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Speaker 1: Welcome to Fear and Greed Summer investing series, brought to

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Speaker 1: you by vanta specialist in compliance lead growth. I'm Sean Aylmer.

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Speaker 1: Exchange traded funds, or ETFs have boomed in recent years.

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Speaker 1: Many investors see them as a low cost way of

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Speaker 1: diversifying their investments, as these funds usually track the performance

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Speaker 1: of an index of a particular asset class or commodity.

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Speaker 1: So today we're looking at the five ETF to watch

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Speaker 1: this year. As always, its general information only. You should

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Speaker 1: seek independent advice before making investment decisions. Chris Breichy is

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Speaker 1: the founder and CEO of online investment advisor stock Spot,

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Speaker 1: a great friend of our podcast. Chris, welcome back, Thank you, Sean.

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Speaker 1: You're in the hot seat. You've got about four minutes,

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Speaker 1: that's what fifty seconds each? Five ETFs to watch, all.

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Speaker 2: Right, let's give it a go. Well, I think the

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Speaker 2: first one for me, Sean this year would be the

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Speaker 2: SMP Global Dividend Fund, which is WDIV. And the reason

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Speaker 2: I like this one is that one it's pretty unloved.

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Speaker 2: Over the last years. Everyone's jumped towards the Nasdaq ETF

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Speaker 2: NDQ and the Global one hundred ETF which is another

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Speaker 2: one we offer clients IOO because they have the Magnificent

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Speaker 2: Seven and the video and all these high growth stocks.

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Speaker 2: Dividend stocks have been pretty unloved, but I think it

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Speaker 2: won't take a lot. It could be a slowing of

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Speaker 2: the US economy, a return of inflation, or disappointing earnings

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Speaker 2: from some of these big tech stocks that could really

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Speaker 2: switch expectations from high growth to dividends. So that's the

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Speaker 2: first one. The next one I like is the emerging

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Speaker 2: markets ETF. Now this is really another story of an

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Speaker 2: unloved ETF. Like everyone's been fleeing China and emerging markets

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Speaker 2: for the last few years, and certainly the Trump election

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Speaker 2: hasn't helped the situation now that everyone believes there's going

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Speaker 2: to be pretty harsh tariffs on a lot of these

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Speaker 2: countries as well. So it's a very unloved ETF. But again,

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Speaker 2: expectations are so low it won't take a lot to

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Speaker 2: turn things around. We've already seen China pump some stimulus

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Speaker 2: into their economy. If it starts to take hold next year,

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Speaker 2: I'd be backing the emerging markets ETF over developed market ETF.

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Speaker 2: Third one, I know we've talked about it before Sean,

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Speaker 2: but the gold ETF has always been one of my favorites,

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Speaker 2: and this year I think will be an interesting one

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Speaker 2: after in twenty twenty four it was up thirty two percent.

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Speaker 2: It was its best year in decades. But I still

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Speaker 2: think most advisors and asset allocators have way too small

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Speaker 2: allocation to gold, and many have zero So I think

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Speaker 2: they did a survey recently and found the average allocation

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Speaker 2: is about one percent to gold. We allocate about fifteen

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Speaker 2: percent to our clients to gold, so much bigger allocation.

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Speaker 2: I think we will struggle to do another thirty percent year,

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Speaker 2: but I think over the next ten years you'll see

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Speaker 2: gold do very well compared to other asset classes. The

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Speaker 2: fourth one Sewn I think is the bond etf IAF. Obviously,

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Speaker 2: Australia was one of the few economies not to cut

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Speaker 2: interest rates in twenty twenty four, but with inflation coming

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Speaker 2: down and most of our jobs that we created last

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Speaker 2: year just been in the public sector and very few

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Speaker 2: private sector jobs being added, I think we're likely to

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Speaker 2: see the bond etf do well as our economy lows

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Speaker 2: next year. And then finally, you know, commodities had a

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Speaker 2: great run after the COVID stimulus came out from governments

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Speaker 2: and central banks around the world, but really have slowed

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Speaker 2: down over the last couple of years. I wouldn't be

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Speaker 2: surprised if they have a bit of a comeback in

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Speaker 2: twenty twenty five. The two ones that I've got on

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Speaker 2: my watch list and are in our stocksport portfolios are

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Speaker 2: O z R and b B com. One is investing

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Speaker 2: in the stocks that have commodities and the others investing

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Speaker 2: into the commodities themselves. I think inflation is here to

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Speaker 2: stay from a secular perspective, and commodity ETFs are a

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Speaker 2: good one to keep in your portfolio.

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Speaker 1: Really interesting all five of them. A couple of them

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Speaker 1: are very valuation driven, so the dividends and the emerging companies.

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Speaker 1: Others are a little bit more cyclical, so maybe goal cyclical,

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Speaker 1: and the bond ETF that's certainly a cyclical play. So

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Speaker 1: I mean, I suppose the point is not all ETFs

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Speaker 1: are the same. You kind of have to use those

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Speaker 1: same disciplines that you might do investing in inequity or

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Speaker 1: commodity or something. When you think about ETFs.

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Speaker 2: Well, that's right, you want it diversified. Portfolio, and actually

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Speaker 2: you don't want them to all perform well in the

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Speaker 2: same year. Last year, we saw ETF's like the Gold

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Speaker 2: and Global one hundred ETF pump up over thirty percent,

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Speaker 2: but equally bond ETFs and other more cash driven ETFs

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Speaker 2: didn't do as well. It's nice to see that because

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Speaker 2: you know that there'll be a year that bonds actually

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Speaker 2: is the one that's capturing the returns and some of

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Speaker 2: these other asset classes don't do as well.

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Speaker 1: Chris, thanks for joining us this morning.

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Speaker 2: My pleasure. Thanks Sean.

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Speaker 1: That's Chris Brianchy, founder and CEO of online investment advisor

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Speaker 1: stock Spot. This is Forever and Greed Summer Investing series,

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Speaker 1: brought to you by van Van to automates compliance for

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Speaker 1: off at banter dot com, Slash Fear and Greed. I'm

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Speaker 1: Sean Almer. Enjoy your day,