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Speaker 1: Cura and welcome to Shared Lunch, brought to you by Chase's.

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Speaker 1: My name is Helen Madison, and today we talk about

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Speaker 1: the US markets. But don't worry, this episode is not

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Speaker 1: all about the election. In particular, we'll discuss the Vanguard

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Speaker 1: S and P five hundred ETF index from near Philadelphia.

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Speaker 1: I'm joined by David Sharp, who is a senior ETF

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Speaker 1: capital market specialist at Vanguard, Vanguard being one of the

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Speaker 1: largest and probably most well known fund managers in the world.

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Speaker 1: But before we get started, here's some important information.

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Speaker 2: Investing involves the risk you might lose the money you

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Speaker 2: start with. We recommend talking to a licensed financial advisor.

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Speaker 2: We also recommend reading product disclosure documents before deciding to invest.

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Speaker 2: Everything you're about to see and here is current at

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Speaker 2: the time of recording.

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Speaker 1: So good evening, David, thanks for being with us. It's

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Speaker 1: you're just out of Philadelphia, is that right.

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Speaker 3: Yeah, that's right, Allen, Thanks for having me. Yeah, we

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Speaker 3: are just west of Philadelphia, about forty five minuts. It's

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Speaker 3: worse in Pennsylvania in terms of elections.

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Speaker 1: Typically, when I ask commentators about whether or not they

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Speaker 1: move markets, they pretty much say, look, they've factored it

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Speaker 1: all in. But I do wonder if this one is

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Speaker 1: a bit different because we've had a few kind of

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Speaker 1: things to think about. For example, I know, Robin Hood,

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Speaker 1: the US trading platform in the US has given the

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Speaker 1: opportunity for people to buy event derivatives where you can

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Speaker 1: bet each way on which who will win. You've also

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Speaker 1: had Donald Trump's social media platform go sky high in

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Speaker 1: terms of its value. And also have seen that with

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Speaker 1: the markets, crypto and some of the small cap sort

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Speaker 1: of stocks have supposedly done well because we have this

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Speaker 1: election fever. But I was keen to get your perspective

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Speaker 1: working in the capital markets in the US, to see

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Speaker 1: whether or not you've noticed anything different.

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Speaker 3: Yeah, I mean, I would say again, I mean, it

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Speaker 3: has been a noisy election season. But what we look

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Speaker 3: out through our investment strategy research group, where we look

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Speaker 3: at just researching over you know, time period as h

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Speaker 3: as different administrations are in in office, we find that

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Speaker 3: presidential elections can be, although hugely consequential on the direction

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Speaker 3: of public policies, you know, they often aren't a good

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Speaker 3: guide for you know, dictating your investment decisions. You know, certainly,

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Speaker 3: as you mentioned, there is you know sometimes particular sectors

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Speaker 3: that could outperform others. We did see uh, you know,

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Speaker 3: solar energy trading at a higher amount today in the

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Speaker 3: US market on Monday. That could be an indication that

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Speaker 3: maybe the market is seeing, you know, a potential for

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Speaker 3: for Harris victory. But last week we saw you know,

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Speaker 3: Bitcoin hitting new highs, which were you know, I think

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Speaker 3: generated somewhat by some of what the Trump administration has

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Speaker 3: said that they potential Trump administration has said that they

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Speaker 3: would look to do in that space. So it's really

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Speaker 3: going back and forth. It is, you know, a tight market,

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Speaker 3: and when we look back to research dating back to

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Speaker 3: all the way back to eighteen sixty, we really find

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Speaker 3: no statistical relationship between the performance of a sixty forty

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Speaker 3: portfolio in presidential election or non election years. So, you

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Speaker 3: know what we've really encouraged clients over the last couple

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Speaker 3: of weeks as we build up to this election is

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Speaker 3: to really just try to tune out some of that noise,

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Speaker 3: really stick to your long term investment plan, and not

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Speaker 3: make big changes based on policy proposals or election results

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Speaker 3: because we just don't know. What we know for sure

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Speaker 3: is the market will go up, and the market will

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Speaker 3: go down. But outside of that, you know, all the

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Speaker 3: rest is purely speculation.

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Speaker 1: So that portfolio that you're talking about over that long

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Speaker 1: period from eighteen sixty I think to about twenty twenty two,

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Speaker 1: because I did read that article put out by Vanguard,

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Speaker 1: was that a portfolio with it sixty percent shares forty

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Speaker 1: percent bonds? Was that right?

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Speaker 3: That's right? Yep, correct?

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Speaker 1: Okay, So is that more typical for now though? Something

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Speaker 1: like that? Was it sort of more traditionally what people

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Speaker 1: would have had as a portfolio.

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Speaker 3: So we still think that the sixty forty portfolio has

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Speaker 3: has value for the right investor. You know, certainly it

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Speaker 3: has to be you know, kind of related to what

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Speaker 3: your investment needs are, what your risk tolerance is, where

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Speaker 3: you are in your investment journey. For younger folks that

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Speaker 3: are just getting started in their retirement plan, then forty

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Speaker 3: percent bond allocation would certainly be too much in our viewpoint.

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Speaker 3: But the sixty forty ends up being kind of a

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Speaker 3: good dictation for where institutions can find the right balance,

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Speaker 3: even more so than retail And it just tends to be,

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Speaker 3: you know, a portfolio that gives you a little bit

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Speaker 3: more neutral risk relative to you know, maybe somewhat muted

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Speaker 3: performance by having that bond allocation we've seen in most

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Speaker 3: year sixty forty ends up being a pretty productive portfolio

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Speaker 3: to have. There are some years that that is off.

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Speaker 3: Twenty twenty two, with the raising rate environment, we did

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Speaker 3: see stocks be depressed in value and bonds get depressed

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Speaker 3: in value the same year, which is rare. Usually see

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Speaker 3: those correlated in opposite directions. So for that to occur

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Speaker 3: in twenty twenty two was kind of more anomalists that

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Speaker 3: it was, you know, what we'd expect for the future,

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Speaker 3: and it really just was the speed of the rates

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Speaker 3: that were taking place that affected both sides of the

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Speaker 3: investment landscape.

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Speaker 1: So, David, let's roll back to what Van Guard does.

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Speaker 1: I think it was established back in nineteen seventy five,

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Speaker 1: so nearly fifty years. You're sort of known as a

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Speaker 1: passive index manager, low cost being a big part of that.

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Speaker 1: Give us some idea of what you're doing today in

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Speaker 1: and has that changed over that period.

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Speaker 3: Yeah, they were exactly right. We're found in nineteen seventy five.

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Speaker 3: So we're coming up on our fifty year anniversary next May,

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Speaker 3: which we're looking forward to. We actually just passed in

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Speaker 3: September our fifty years of incorporation, so our official incorporation

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Speaker 3: before we launched that following May. But you know, the

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Speaker 3: way that you know, we often will describe ourselves is

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Speaker 3: just you know, one of the world's you know, largest

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Speaker 3: and hopefully most respected investment management companies. You know, we

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Speaker 3: offered a lot of different investments, advice, retirement services, insights

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Speaker 3: to individuals, institutions and financial professionals through thought leadership, through

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Speaker 3: other research avenues, and we we really are a worldwide firm.

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Speaker 3: Obviously we're known for our US presence, but we do

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Speaker 3: manage over ten trillion dollars ten trillion US dollars assets

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Speaker 3: under management, and we have more than fifty million clients,

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Speaker 3: and it's really all around the world. Even our ETF specifically,

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Speaker 3: we have domiciled in the US, in Canada, in Mexico,

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Speaker 3: in Europe and Australia. So even in our ETF realm specifically,

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Speaker 3: we are you know, broadly diversified. And I think, as

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Speaker 3: you mentioned, we are known to be an index shop.

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Speaker 3: That is what we're most famous for, launching the first

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Speaker 3: retail UH investment fund that follow on an index, which

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Speaker 3: we're certainly going to talk more about in the next

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Speaker 3: you know, half hour to an hour year. But you

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Speaker 3: know what I think is surprising to a lot of

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Speaker 3: folks is we still we have one point eight trillion

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Speaker 3: dollars in active management as well. We do see ourselves

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Speaker 3: as having an active prowess, and we do subadvise a

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Speaker 3: lot of our equity to active managers, but we do

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Speaker 3: in house fixed income active management, and we are really

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Speaker 3: proud of that active franchise that we have within fixed

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Speaker 3: income because it is, you know, a bit unique, and

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Speaker 3: that that unique investor owned structure that we have where

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Speaker 3: our clients own our funds and the funds own the

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Speaker 3: company allow us to really operate at cost and keep

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Speaker 3: our costs very low. In our ETF lineup in the US,

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Speaker 3: no product has an expensory issue over twenty two basis points,

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Speaker 3: and you know they're as low as for our five

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Speaker 3: hundred index fund VOO or we affectionately call VOO on

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Speaker 3: the desk, we are down to just three basis points

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Speaker 3: for that product.

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Speaker 1: Let's peg what the vote is for a stat because

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Speaker 1: if we're tracking that index and it being I think

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Speaker 1: one of your most famous what's it all about?

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Speaker 3: It's a great question and you know, I think when

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Speaker 3: we look at the five hundred index that we have

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Speaker 3: in our ETF FOO or VU as I mentioned earlier,

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Speaker 3: it really dates back to August thirty first in nineteen

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Speaker 3: seventy six in the mutual fund wrapper or that open

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Speaker 3: ended wrapper. So that ETF really is a share class

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Speaker 3: of that portfolio that is almost fifty years old now

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Speaker 3: that tracks the S and P five hundred index and

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Speaker 3: buys all the five hundred companies within the S and

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Speaker 3: P five hundred at the weights within the index. So

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Speaker 3: that fund from nineteen seventy six all the way to

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Speaker 3: twenty ten was just a open ended fund and index

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Speaker 3: fund mutual fund that you couldn't buy on exchange. On

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Speaker 3: September seventh of twenty ten, we launched a share class

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Speaker 3: of that five hundred index and that was our ETF.

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Speaker 3: So that is a unique style that we have at Vanguard.

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Speaker 3: That is a patented approach that we had with our

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Speaker 3: first ETF we launched our Total stock market ETF in

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Speaker 3: two thousand and one that we actually had patented and

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Speaker 3: no one else could do this multi share class strategy

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Speaker 3: in ETFs until our patent expired last May, and it

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Speaker 3: still is awaiting other approvals. So what the great advantage

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Speaker 3: that that actually provides us to have an ETF share

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Speaker 3: class is that we got instant scale in that product.

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Speaker 3: The economies of scale that allows us to keep our

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Speaker 3: costs very low, and it allows us to keep our

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Speaker 3: tracking are very low as well. Because the fund is

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Speaker 3: so large across all share classes, over a trillion dollars

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Speaker 3: in this fund in total assets, that the ETF was

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Speaker 3: able to basically get that history of getting exposure there

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Speaker 3: in that fund at a really cheap cost with low tracking,

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Speaker 3: right out of the gate in twenty ten. So what

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Speaker 3: we've seen that time period since that launch now about

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Speaker 3: fourteen years ago, is just incredible growth on the product,

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Speaker 3: especially over the last few years the cash flows that

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Speaker 3: have entered that product as the megacap and large cap

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Speaker 3: companies have performed so well. In the US, we've seen

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Speaker 3: Voo actually lead flows this year with close to almost

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Speaker 3: eighty six billion dollars in flows so far this year,

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Speaker 3: which is put us up as the close to the

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Speaker 3: second largest ETF in the world, now only behind SPY

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Speaker 3: and you know we are you know, it's certainly not

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Speaker 3: focused on flows, but we're proud to see that adoption

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Speaker 3: of our products really, you know, showing a testament to

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Speaker 3: that low cost that we try to create within that product.

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Speaker 1: One thing must be said though about any market, but

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Speaker 1: particularly the US markets in recent times, is the volatility.

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Speaker 1: There's there's a fear bit. It seems to happen pretty

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Speaker 1: much all the time. So I suppose from Vesta's thinking

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Speaker 1: about the vou if you like, they would really have

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Speaker 1: to be able to stomach volatility as it were.

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Speaker 3: Yeah, I mean certainly, you know, as as the S

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Speaker 3: and P goes, this product will go. So you know,

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Speaker 3: there's certainly been you know, some level of volatility in

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Speaker 3: the market. You know that has ramped up a little

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Speaker 3: bit as we go into this election cycle that we

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Speaker 3: spoke about earlier. You know, the the good news is

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Speaker 3: again though it even though it's just five hundred companies

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Speaker 3: of around thirty seven hundred public companies in the US,

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Speaker 3: it is the five hundred largest, and you know, there

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Speaker 3: is some level stability that does come with that, I

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Speaker 3: believe relative to some of the lower market capitalizations that

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Speaker 3: naturally have a little bit higher volatility profile, It's still

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Speaker 3: something that exists. It is still the stock market. The

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Speaker 3: stock market still will go up and go down and

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Speaker 3: the five hundred index no different. So there is absolutely

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Speaker 3: that you know, potential of volatility in the market and

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Speaker 3: especially during times of you know of stress in the markets,

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Speaker 3: which hopefully we don't see in the near term.

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Speaker 1: What it's the wasting at the moment for the vo

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Speaker 1: around about for the tech stocks as it used to

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Speaker 1: be almost up to a shood with things like the

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Speaker 1: Magnificent seven. So we're talking like Alphabet Tesla, Microsoft and

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Speaker 1: the like.

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Speaker 3: Yeah, it is. The portfolio is about thirty one point

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Speaker 3: seven percent technology at this point, and it is driven

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Speaker 3: by those mag seven. When you look at the Mag

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Speaker 3: seven alone, they make up you know, a very large

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Speaker 3: percentage of the portfolio, about twenty eight percent of the

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Speaker 3: S and P five hundred is actually in those Mag seven.

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Speaker 3: That's how strong their performance has been over the last

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Speaker 3: you know, close to two years now, driven heavily by

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Speaker 3: you know, DA Video as the leader there as that's

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Speaker 3: come up that that that board. So you know, when

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Speaker 3: we look at it, the second largest you know holding

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Speaker 3: there is still financials, but it's all the way to

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Speaker 3: twelve point nine percent. So you know, one argument that

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Speaker 3: could be mean to your point is that although it's

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Speaker 3: diversified across all the major sectors. It is heavily weighted

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Speaker 3: to technology at this time.

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Speaker 1: I mean in some of the other big sectors would

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Speaker 1: be banking, and is healthcare perhaps another I'm just trying

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Speaker 1: to think, Yes, it has diversified as five hundred companies,

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Speaker 1: but actually there's all sorts of good and bad in there.

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Speaker 1: Is there in terms of depending on your value when

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Speaker 1: when you're investing.

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Speaker 3: Yeah, I mean, certainly, you know, it's broadly the five

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Speaker 3: hundred you know, largest market cap companies in the in

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Speaker 3: the US. Sometimes there is you know, naturally some additions

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Speaker 3: and deletions around the the the bottom of that, but

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Speaker 3: you know, for the most part it is that so

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Speaker 3: you do get you know, over seventy nine percent of

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Speaker 3: the portfolio has a market cap that's greater than you know,

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Speaker 3: seventy two you know, billions, So you know, you're you're

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Speaker 3: there's some really large companies in that portfolio. But the

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Speaker 3: diversification does change across sectors as certain sentiment comes into

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Speaker 3: the market. It at times, you know, we look at

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Speaker 3: last year and energy was actually one of the leading

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Speaker 3: sectors last year, but it still makes up only about

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Speaker 3: three point three percent of the portfolio, but it actually

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Speaker 3: had a really good year last year, close through a

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Speaker 3: thirty five percent return. So you really have when you

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Speaker 3: map it out over time that what sector bubbles up

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Speaker 3: to the top tends to rotate at some level of frequency.

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Speaker 3: It's just been a strong couple of years for technology. Frankly,

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Speaker 3: one thing.

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Speaker 1: I wandered with Vanguard earlier in the year, you said

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Speaker 1: you wouldn't be doing cryptocurrencies. I think that was when

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Speaker 1: the Securities Exchange Commission approved bitcoin as ETFs. There was

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Speaker 1: a lot of interest in that, and you know, we've

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Speaker 1: seen markets sort of go up even with this election fever.

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Speaker 1: As I said before, is that still something that you

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Speaker 1: are not going to be going into or you're thinking

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Speaker 1: more about it as perhaps it becomes more if you

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Speaker 1: like mainstream.

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Speaker 3: Yeah, I would say, you know, wouldn't speculate too much on,

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Speaker 3: you know, if the future would change our view, just

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Speaker 3: because changing market conditions can certainly, you know, change our position.

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Speaker 3: But at the current time it still stays stable in

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Speaker 3: the fact that we don't plan to launch a bitcoin ETF,

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Speaker 3: and it's really just related directly to our viewpoint on

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Speaker 3: the importance of intrinsic value in a security. And and

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Speaker 3: our fear that that might be you know, a tougher

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Speaker 3: to determine within bitcoin or cryptocurrencies relative to high quality

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Speaker 3: stocks or you know, or the bond market, you know,

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Speaker 3: quality within the bond market. So that's one of the

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Speaker 3: challenges when we look at that asset class. The other

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Speaker 3: one is just the volatility that is naturally inherent there

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Speaker 3: is much greater We have a retail focused client base

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Speaker 3: that we want to make sure is thoughtful for long

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Speaker 3: term investing and is you know, considering you know, where

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Speaker 3: their their goals are for the long term is paramount

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Speaker 3: to us, and we just you know, do have some

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Speaker 3: fear that the volatility inherent in that product could send

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Speaker 3: some of our clients kind of off of that trail.

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Speaker 3: So we are a little bit tepid and you know,

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Speaker 3: relative to sell of our issuer partners to bring a

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Speaker 3: product to market for those reasons. But I am not

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Speaker 3: in the case to say, you know, I would I

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Speaker 3: would definitely say never, say never, but you know, it

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Speaker 3: is something that isn't high on our list at the

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Speaker 3: current time.

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Speaker 1: A lot of Cheesy's investors tend to hold their et ifs,

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Speaker 1: but there is a number two who like to buy

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Speaker 1: and sell. Have you got any kind of sort of

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Speaker 1: tips I suppose you'd say for thinking about timing with

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Speaker 1: et ifs, because obviously they're quite different to manage fund

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Speaker 1: as such.

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Speaker 3: Yeah, I would say, I mean, we are, you know,

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Speaker 3: certainly believe the buy and hold strategy is really important

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Speaker 3: because any sales and subsequent buys. Besides the difficulty of

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Speaker 3: actually market timing, which we've proven, you know, over time,

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Speaker 3: it's just if you do try to market time that

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Speaker 3: the challenge to do that is great. You know. What

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Speaker 3: we tend to see is, you know, low cost long

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Speaker 3: term investing usually will have a better payoff than then

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Speaker 3: more frequent changes in different market conditions. The other part

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Speaker 3: of that is just the cost that you incur the

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Speaker 3: more you rebalance, the more you have to pay that

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Speaker 3: spread to be able to buy and sell the security

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Speaker 3: that will distract from some of your returns and make

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Speaker 3: some of those returns harder to accomplish the you know,

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Speaker 3: the same way you would in a buy and hold.

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Speaker 3: So we really you know, preach the idea of having large,

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Speaker 3: diversified portfolios that give you exposure to many parts in

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Speaker 3: the market and then holding on to those for a

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Speaker 3: longer period of time and and you know, be thoughtful

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Speaker 3: of costs. That's thoughtful of cost when it relates to expense.

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Speaker 3: Ratios is very explicit how much you pay. Our founder

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Speaker 3: has a great quote, Jack Bogol that says, in investing,

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Speaker 3: you get exactly what you don't pay for. So you know,

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Speaker 3: that is, you know, really at the heart of our

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Speaker 3: strategy to give you. If you have one hundred basis

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Speaker 3: points of return in the s and P. Five hundred,

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Speaker 3: if we only charge you three basis points, you keep

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Speaker 3: ninety seven basis points of that and that compounds over time.

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Speaker 3: We think that's really important for clients to achieve their

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Speaker 3: investment success over the long run.

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Speaker 1: What about in terms of sort of assessing your portfolio,

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Speaker 1: I mean, yes, to hold seit and forget if you like,

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Speaker 1: over a period of time. I mean, how often would

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Speaker 1: you suggest people need to have a look about maybe rebalancing.

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Speaker 3: Yeah, rebalancing is still important for sure. You know what

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Speaker 3: is what your target allocation is, and determining that target

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Speaker 3: allocation up front allows you to ensure that you're rebalancing

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Speaker 3: back to that target allocation. So we do say that,

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Speaker 3: you know, quarterly is a good opportunity to kind of

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Speaker 3: take a look and see how much your how far

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Speaker 3: away you are from your target allocation. If it's only

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Speaker 3: a percentage or two, that could quickly go back the

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Speaker 3: other way. What we really like to see before you

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Speaker 3: would spend the potential transaction costs to rebalance that would

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Speaker 3: be to start to stray about five percent away from

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Speaker 3: your target allocation at that point, which if you're reviewing

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Speaker 3: on a quarterly basis, allows you to tie that back

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Speaker 3: in and ensure that if equities have the run they

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Speaker 3: have this year relative to bonds being a bit flat,

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Speaker 3: and now your equity position is greater than your target allocation,

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Speaker 3: then it is a good idea to rebalance that back

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Speaker 3: and stay focused on that long term strategic allocation that

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Speaker 3: you hope to have in your portfolio.

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Speaker 1: One of the criticisms often leveled at the US markets

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Speaker 1: is that they're topping out. They're just keeping on going,

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Speaker 1: and all of a sudden there's going to be a

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Speaker 1: crash and people are going to burn as a result.

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Speaker 1: I mean, what do you sort of say to investors

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Speaker 1: in terms of keeping that longer term view, knowing that markets,

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Speaker 1: as you said before, go up and go down.

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Speaker 3: Yeah, it's important to just think of that long term

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Speaker 3: time horizon. If we look at twenty twenty two, the

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Speaker 3: sixty to forty portfolio we mentioned earlier had one of

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Speaker 3: its worst years and since nineteen thirties because both stocks

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Speaker 3: and bonds were down together, which is rare. So you know,

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Speaker 3: that was a clear example of a time where people

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Speaker 3: were feeling a little bit of the pain of the

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Speaker 3: market and having that drawl down. But those that stayed

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Speaker 3: in it, that return we've seen since twenty twenty two

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Speaker 3: is almost forty five percent in the S and P

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Speaker 3: five hundred, and it is sixty to forty portfolio would

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Speaker 3: be muted a bit to that, but it's still you know,

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Speaker 3: that growth that you've had in that time period by

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Speaker 3: just staying the course and staying focused on your long

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Speaker 3: term plan and not reacting to short term market events

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Speaker 3: even if they aren't you know, it's not easy to

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Speaker 3: see on your portfolio when the number goes down, but

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Speaker 3: it's really important, and we've showcased over time this. You

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Speaker 3: know what happens when you get out of the market

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Speaker 3: when the time is in stress and you miss that

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Speaker 3: you know, return to positive returns. What that does with

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Speaker 3: the long term investment because of the impact of compounding

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Speaker 3: is quite great, So we really try to reinforce to

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Speaker 3: tune out the noise that's in the market and really

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Speaker 3: just be focused on if your plan is twenty years

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Speaker 3: from now, your portfolio doesn't need a lot of change

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Speaker 3: right now to be able to achieve the goals that

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Speaker 3: you have for your long term investment returns.

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Speaker 1: What would you say to New Zealand investors who are

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Speaker 1: thinking for the first time to invest in the US market.

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Speaker 1: So might have played around a little bit with individual stocks,

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Speaker 1: but perhaps now they're thinking exchange traded funds is probably

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Speaker 1: an easier, cheaper, maybe safer way to go.

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Speaker 3: Yeah, I mean, I think that's we do. You know,

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Speaker 3: stress the importance of diversification, and that is something that

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Speaker 3: ETF gives you. You can trade it like a stock

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Speaker 3: within the market, but it still gives you the broad

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Speaker 3: exposure of what the underlying portfolio is made up of,

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Speaker 3: and in this case the five hundred largest companies in

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Speaker 3: the US. So that diversification that you get over choosing

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Speaker 3: one single stock really is an important risk mitigation tool.

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Speaker 3: When we look at securities over time, the number one

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Speaker 3: secure already in the S and P five hundred at

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Speaker 3: you know, in two thousand and five, in nineteen ninety

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Speaker 3: five and nineteen eighty five. It's different every time you look,

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Speaker 3: because you know markets are going to you know, there's

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Speaker 3: just different situations for different securities that are going to

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Speaker 3: increase their value or decrease. So having that broad exposure

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Speaker 3: instead of maybe even looking at you know, everybody looks

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Speaker 3: at We just take na Vidia as an example because

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Speaker 3: of the great ride that it's had. Everybody wants to

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Speaker 3: have the number one stock in the market, but the

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Speaker 3: video won't always be the number one stock in the market.

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Speaker 3: And how are you diversified when there is a drawl

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Speaker 3: down there if the valuation might get too high, the

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Speaker 3: rest of the portfolio helps to kind of pick that up.

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Speaker 3: So we really just stress that diversification. We think this

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Speaker 3: gives a great opportunity to get that and a wrapper

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Speaker 3: that again is really low cost and easy to access.

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Speaker 1: Diabet there's a phrase online where people say voo and chill.

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Speaker 1: Just wondering what your take on that is.

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Speaker 3: Yeah, it's it's a funny phrase that you know, I

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Speaker 3: think we are starting to see following the Alexicond a

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Speaker 3: little bit more and it's really to me it resonates

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Speaker 3: a lot of what I just mentioned. It's you know,

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Speaker 3: you don't have to get complicated in the market. You

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Speaker 3: don't have to be chasing returns or looking for opportunities

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Speaker 3: to maybe find the next hot product. Just buy voo,

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00:23:17,160 --> 00:23:20,199
Speaker 3: buy vu and and chill, just you know, kind of

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Speaker 3: sit on that, continue to invest it as you have

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Speaker 3: new monies go into it. And because what we see

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00:23:25,119 --> 00:23:28,720
Speaker 3: is over the course of you know, long dated period,

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00:23:28,840 --> 00:23:32,320
Speaker 3: say fifty years as the longest, only about two percent

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00:23:32,359 --> 00:23:35,800
Speaker 3: of active managers can beat the index. So instead of

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00:23:35,960 --> 00:23:39,480
Speaker 3: chasing some of those returns from that active management or

442
00:23:39,640 --> 00:23:43,600
Speaker 3: some of those strategies, buying the index, that whole index

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00:23:43,760 --> 00:23:46,399
Speaker 3: and just you know, sitting it out and just waiting

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00:23:46,400 --> 00:23:49,480
Speaker 3: for the long term or vo and chill, as as

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00:23:49,560 --> 00:23:52,880
Speaker 3: ken Be said, is really a you know, we think

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00:23:53,119 --> 00:23:56,640
Speaker 3: a really great strategy to just get those long term

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00:23:56,680 --> 00:23:58,280
Speaker 3: investment returns that we talked about.

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Speaker 1: Thanks for your in science today, David, and thanks to

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Speaker 1: everyone else for joining in too. You can watch Sheared

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Speaker 1: Lunch on YouTube or follow us on your favorite podcast app.

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Speaker 1: Leave us a rating and a comment about what you'd

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