Speaker 1: Cura and welcome to Shared Lunch, brought to you by Chase's.
Speaker 1: My name is Helen Madison, and today we talk about
Speaker 1: the US markets. But don't worry, this episode is not
Speaker 1: all about the election. In particular, we'll discuss the Vanguard
Speaker 1: S and P five hundred ETF index from near Philadelphia.
Speaker 1: I'm joined by David Sharp, who is a senior ETF
Speaker 1: capital market specialist at Vanguard, Vanguard being one of the
Speaker 1: largest and probably most well known fund managers in the world.
Speaker 1: But before we get started, here's some important information.
Speaker 2: Investing involves the risk you might lose the money you
Speaker 2: start with. We recommend talking to a licensed financial advisor.
Speaker 2: We also recommend reading product disclosure documents before deciding to invest.
Speaker 2: Everything you're about to see and here is current at
Speaker 2: the time of recording.
Speaker 1: So good evening, David, thanks for being with us. It's
Speaker 1: you're just out of Philadelphia, is that right.
Speaker 3: Yeah, that's right, Allen, Thanks for having me. Yeah, we
Speaker 3: are just west of Philadelphia, about forty five minuts. It's
Speaker 3: worse in Pennsylvania in terms of elections.
Speaker 1: Typically, when I ask commentators about whether or not they
Speaker 1: move markets, they pretty much say, look, they've factored it
Speaker 1: all in. But I do wonder if this one is
Speaker 1: a bit different because we've had a few kind of
Speaker 1: things to think about. For example, I know, Robin Hood,
Speaker 1: the US trading platform in the US has given the
Speaker 1: opportunity for people to buy event derivatives where you can
Speaker 1: bet each way on which who will win. You've also
Speaker 1: had Donald Trump's social media platform go sky high in
Speaker 1: terms of its value. And also have seen that with
Speaker 1: the markets, crypto and some of the small cap sort
Speaker 1: of stocks have supposedly done well because we have this
Speaker 1: election fever. But I was keen to get your perspective
Speaker 1: working in the capital markets in the US, to see
Speaker 1: whether or not you've noticed anything different.
Speaker 3: Yeah, I mean, I would say again, I mean, it
Speaker 3: has been a noisy election season. But what we look
Speaker 3: out through our investment strategy research group, where we look
Speaker 3: at just researching over you know, time period as h
Speaker 3: as different administrations are in in office, we find that
Speaker 3: presidential elections can be, although hugely consequential on the direction
Speaker 3: of public policies, you know, they often aren't a good
Speaker 3: guide for you know, dictating your investment decisions. You know, certainly,
Speaker 3: as you mentioned, there is you know sometimes particular sectors
Speaker 3: that could outperform others. We did see uh, you know,
Speaker 3: solar energy trading at a higher amount today in the
Speaker 3: US market on Monday. That could be an indication that
Speaker 3: maybe the market is seeing, you know, a potential for
Speaker 3: for Harris victory. But last week we saw you know,
Speaker 3: Bitcoin hitting new highs, which were you know, I think
Speaker 3: generated somewhat by some of what the Trump administration has
Speaker 3: said that they potential Trump administration has said that they
Speaker 3: would look to do in that space. So it's really
Speaker 3: going back and forth. It is, you know, a tight market,
Speaker 3: and when we look back to research dating back to
Speaker 3: all the way back to eighteen sixty, we really find
Speaker 3: no statistical relationship between the performance of a sixty forty
Speaker 3: portfolio in presidential election or non election years. So, you
Speaker 3: know what we've really encouraged clients over the last couple
Speaker 3: of weeks as we build up to this election is
Speaker 3: to really just try to tune out some of that noise,
Speaker 3: really stick to your long term investment plan, and not
Speaker 3: make big changes based on policy proposals or election results
Speaker 3: because we just don't know. What we know for sure
Speaker 3: is the market will go up, and the market will
Speaker 3: go down. But outside of that, you know, all the
Speaker 3: rest is purely speculation.
Speaker 1: So that portfolio that you're talking about over that long
Speaker 1: period from eighteen sixty I think to about twenty twenty two,
Speaker 1: because I did read that article put out by Vanguard,
Speaker 1: was that a portfolio with it sixty percent shares forty
Speaker 1: percent bonds? Was that right?
Speaker 3: That's right? Yep, correct?
Speaker 1: Okay, So is that more typical for now though? Something
Speaker 1: like that? Was it sort of more traditionally what people
Speaker 1: would have had as a portfolio.
Speaker 3: So we still think that the sixty forty portfolio has
Speaker 3: has value for the right investor. You know, certainly it
Speaker 3: has to be you know, kind of related to what
Speaker 3: your investment needs are, what your risk tolerance is, where
Speaker 3: you are in your investment journey. For younger folks that
Speaker 3: are just getting started in their retirement plan, then forty
Speaker 3: percent bond allocation would certainly be too much in our viewpoint.
Speaker 3: But the sixty forty ends up being kind of a
Speaker 3: good dictation for where institutions can find the right balance,
Speaker 3: even more so than retail And it just tends to be,
Speaker 3: you know, a portfolio that gives you a little bit
Speaker 3: more neutral risk relative to you know, maybe somewhat muted
Speaker 3: performance by having that bond allocation we've seen in most
Speaker 3: year sixty forty ends up being a pretty productive portfolio
Speaker 3: to have. There are some years that that is off.
Speaker 3: Twenty twenty two, with the raising rate environment, we did
Speaker 3: see stocks be depressed in value and bonds get depressed
Speaker 3: in value the same year, which is rare. Usually see
Speaker 3: those correlated in opposite directions. So for that to occur
Speaker 3: in twenty twenty two was kind of more anomalists that
Speaker 3: it was, you know, what we'd expect for the future,
Speaker 3: and it really just was the speed of the rates
Speaker 3: that were taking place that affected both sides of the
Speaker 3: investment landscape.
Speaker 1: So, David, let's roll back to what Van Guard does.
Speaker 1: I think it was established back in nineteen seventy five,
Speaker 1: so nearly fifty years. You're sort of known as a
Speaker 1: passive index manager, low cost being a big part of that.
Speaker 1: Give us some idea of what you're doing today in
Speaker 1: and has that changed over that period.
Speaker 3: Yeah, they were exactly right. We're found in nineteen seventy five.
Speaker 3: So we're coming up on our fifty year anniversary next May,
Speaker 3: which we're looking forward to. We actually just passed in
Speaker 3: September our fifty years of incorporation, so our official incorporation
Speaker 3: before we launched that following May. But you know, the
Speaker 3: way that you know, we often will describe ourselves is
Speaker 3: just you know, one of the world's you know, largest
Speaker 3: and hopefully most respected investment management companies. You know, we
Speaker 3: offered a lot of different investments, advice, retirement services, insights
Speaker 3: to individuals, institutions and financial professionals through thought leadership, through
Speaker 3: other research avenues, and we we really are a worldwide firm.
Speaker 3: Obviously we're known for our US presence, but we do
Speaker 3: manage over ten trillion dollars ten trillion US dollars assets
Speaker 3: under management, and we have more than fifty million clients,
Speaker 3: and it's really all around the world. Even our ETF specifically,
Speaker 3: we have domiciled in the US, in Canada, in Mexico,
Speaker 3: in Europe and Australia. So even in our ETF realm specifically,
Speaker 3: we are you know, broadly diversified. And I think, as
Speaker 3: you mentioned, we are known to be an index shop.
Speaker 3: That is what we're most famous for, launching the first
Speaker 3: retail UH investment fund that follow on an index, which
Speaker 3: we're certainly going to talk more about in the next
Speaker 3: you know, half hour to an hour year. But you
Speaker 3: know what I think is surprising to a lot of
Speaker 3: folks is we still we have one point eight trillion
Speaker 3: dollars in active management as well. We do see ourselves
Speaker 3: as having an active prowess, and we do subadvise a
Speaker 3: lot of our equity to active managers, but we do
Speaker 3: in house fixed income active management, and we are really
Speaker 3: proud of that active franchise that we have within fixed
Speaker 3: income because it is, you know, a bit unique, and
Speaker 3: that that unique investor owned structure that we have where
Speaker 3: our clients own our funds and the funds own the
Speaker 3: company allow us to really operate at cost and keep
Speaker 3: our costs very low. In our ETF lineup in the US,
Speaker 3: no product has an expensory issue over twenty two basis points,
Speaker 3: and you know they're as low as for our five
Speaker 3: hundred index fund VOO or we affectionately call VOO on
Speaker 3: the desk, we are down to just three basis points
Speaker 3: for that product.
Speaker 1: Let's peg what the vote is for a stat because
Speaker 1: if we're tracking that index and it being I think
Speaker 1: one of your most famous what's it all about?
Speaker 3: It's a great question and you know, I think when
Speaker 3: we look at the five hundred index that we have
Speaker 3: in our ETF FOO or VU as I mentioned earlier,
Speaker 3: it really dates back to August thirty first in nineteen
Speaker 3: seventy six in the mutual fund wrapper or that open
Speaker 3: ended wrapper. So that ETF really is a share class
Speaker 3: of that portfolio that is almost fifty years old now
Speaker 3: that tracks the S and P five hundred index and
Speaker 3: buys all the five hundred companies within the S and
Speaker 3: P five hundred at the weights within the index. So
Speaker 3: that fund from nineteen seventy six all the way to
Speaker 3: twenty ten was just a open ended fund and index
Speaker 3: fund mutual fund that you couldn't buy on exchange. On
Speaker 3: September seventh of twenty ten, we launched a share class
Speaker 3: of that five hundred index and that was our ETF.
Speaker 3: So that is a unique style that we have at Vanguard.
Speaker 3: That is a patented approach that we had with our
Speaker 3: first ETF we launched our Total stock market ETF in
Speaker 3: two thousand and one that we actually had patented and
Speaker 3: no one else could do this multi share class strategy
Speaker 3: in ETFs until our patent expired last May, and it
Speaker 3: still is awaiting other approvals. So what the great advantage
Speaker 3: that that actually provides us to have an ETF share
Speaker 3: class is that we got instant scale in that product.
Speaker 3: The economies of scale that allows us to keep our
Speaker 3: costs very low, and it allows us to keep our
Speaker 3: tracking are very low as well. Because the fund is
Speaker 3: so large across all share classes, over a trillion dollars
Speaker 3: in this fund in total assets, that the ETF was
Speaker 3: able to basically get that history of getting exposure there
Speaker 3: in that fund at a really cheap cost with low tracking,
Speaker 3: right out of the gate in twenty ten. So what
Speaker 3: we've seen that time period since that launch now about
Speaker 3: fourteen years ago, is just incredible growth on the product,
Speaker 3: especially over the last few years the cash flows that
Speaker 3: have entered that product as the megacap and large cap
Speaker 3: companies have performed so well. In the US, we've seen
Speaker 3: Voo actually lead flows this year with close to almost
Speaker 3: eighty six billion dollars in flows so far this year,
Speaker 3: which is put us up as the close to the
Speaker 3: second largest ETF in the world, now only behind SPY
Speaker 3: and you know we are you know, it's certainly not
Speaker 3: focused on flows, but we're proud to see that adoption
Speaker 3: of our products really, you know, showing a testament to
Speaker 3: that low cost that we try to create within that product.
Speaker 1: One thing must be said though about any market, but
Speaker 1: particularly the US markets in recent times, is the volatility.
Speaker 1: There's there's a fear bit. It seems to happen pretty
Speaker 1: much all the time. So I suppose from Vesta's thinking
Speaker 1: about the vou if you like, they would really have
Speaker 1: to be able to stomach volatility as it were.
Speaker 3: Yeah, I mean certainly, you know, as as the S
Speaker 3: and P goes, this product will go. So you know,
Speaker 3: there's certainly been you know, some level of volatility in
Speaker 3: the market. You know that has ramped up a little
Speaker 3: bit as we go into this election cycle that we
Speaker 3: spoke about earlier. You know, the the good news is
Speaker 3: again though it even though it's just five hundred companies
Speaker 3: of around thirty seven hundred public companies in the US,
Speaker 3: it is the five hundred largest, and you know, there
Speaker 3: is some level stability that does come with that, I
Speaker 3: believe relative to some of the lower market capitalizations that
Speaker 3: naturally have a little bit higher volatility profile, It's still
Speaker 3: something that exists. It is still the stock market. The
Speaker 3: stock market still will go up and go down and
Speaker 3: the five hundred index no different. So there is absolutely
Speaker 3: that you know, potential of volatility in the market and
Speaker 3: especially during times of you know of stress in the markets,
Speaker 3: which hopefully we don't see in the near term.
Speaker 1: What it's the wasting at the moment for the vo
Speaker 1: around about for the tech stocks as it used to
Speaker 1: be almost up to a shood with things like the
Speaker 1: Magnificent seven. So we're talking like Alphabet Tesla, Microsoft and
Speaker 1: the like.
Speaker 3: Yeah, it is. The portfolio is about thirty one point
Speaker 3: seven percent technology at this point, and it is driven
Speaker 3: by those mag seven. When you look at the Mag
Speaker 3: seven alone, they make up you know, a very large
Speaker 3: percentage of the portfolio, about twenty eight percent of the
Speaker 3: S and P five hundred is actually in those Mag seven.
Speaker 3: That's how strong their performance has been over the last
Speaker 3: you know, close to two years now, driven heavily by
Speaker 3: you know, DA Video as the leader there as that's
Speaker 3: come up that that that board. So you know, when
Speaker 3: we look at it, the second largest you know holding
Speaker 3: there is still financials, but it's all the way to
Speaker 3: twelve point nine percent. So you know, one argument that
Speaker 3: could be mean to your point is that although it's
Speaker 3: diversified across all the major sectors. It is heavily weighted
Speaker 3: to technology at this time.
Speaker 1: I mean in some of the other big sectors would
Speaker 1: be banking, and is healthcare perhaps another I'm just trying
Speaker 1: to think, Yes, it has diversified as five hundred companies,
Speaker 1: but actually there's all sorts of good and bad in there.
Speaker 1: Is there in terms of depending on your value when
Speaker 1: when you're investing.
Speaker 3: Yeah, I mean, certainly, you know, it's broadly the five
Speaker 3: hundred you know, largest market cap companies in the in
Speaker 3: the US. Sometimes there is you know, naturally some additions
Speaker 3: and deletions around the the the bottom of that, but
Speaker 3: you know, for the most part it is that so
Speaker 3: you do get you know, over seventy nine percent of
Speaker 3: the portfolio has a market cap that's greater than you know,
Speaker 3: seventy two you know, billions, So you know, you're you're
Speaker 3: there's some really large companies in that portfolio. But the
Speaker 3: diversification does change across sectors as certain sentiment comes into
Speaker 3: the market. It at times, you know, we look at
Speaker 3: last year and energy was actually one of the leading
Speaker 3: sectors last year, but it still makes up only about
Speaker 3: three point three percent of the portfolio, but it actually
Speaker 3: had a really good year last year, close through a
Speaker 3: thirty five percent return. So you really have when you
Speaker 3: map it out over time that what sector bubbles up
Speaker 3: to the top tends to rotate at some level of frequency.
Speaker 3: It's just been a strong couple of years for technology. Frankly,
Speaker 3: one thing.
Speaker 1: I wandered with Vanguard earlier in the year, you said
Speaker 1: you wouldn't be doing cryptocurrencies. I think that was when
Speaker 1: the Securities Exchange Commission approved bitcoin as ETFs. There was
Speaker 1: a lot of interest in that, and you know, we've
Speaker 1: seen markets sort of go up even with this election fever.
Speaker 1: As I said before, is that still something that you
Speaker 1: are not going to be going into or you're thinking
Speaker 1: more about it as perhaps it becomes more if you
Speaker 1: like mainstream.
Speaker 3: Yeah, I would say, you know, wouldn't speculate too much on,
Speaker 3: you know, if the future would change our view, just
Speaker 3: because changing market conditions can certainly, you know, change our position.
Speaker 3: But at the current time it still stays stable in
Speaker 3: the fact that we don't plan to launch a bitcoin ETF,
Speaker 3: and it's really just related directly to our viewpoint on
Speaker 3: the importance of intrinsic value in a security. And and
Speaker 3: our fear that that might be you know, a tougher
Speaker 3: to determine within bitcoin or cryptocurrencies relative to high quality
Speaker 3: stocks or you know, or the bond market, you know,
Speaker 3: quality within the bond market. So that's one of the
Speaker 3: challenges when we look at that asset class. The other
Speaker 3: one is just the volatility that is naturally inherent there
Speaker 3: is much greater We have a retail focused client base
Speaker 3: that we want to make sure is thoughtful for long
Speaker 3: term investing and is you know, considering you know, where
Speaker 3: their their goals are for the long term is paramount
Speaker 3: to us, and we just you know, do have some
Speaker 3: fear that the volatility inherent in that product could send
Speaker 3: some of our clients kind of off of that trail.
Speaker 3: So we are a little bit tepid and you know,
Speaker 3: relative to sell of our issuer partners to bring a
Speaker 3: product to market for those reasons. But I am not
Speaker 3: in the case to say, you know, I would I
Speaker 3: would definitely say never, say never, but you know, it
Speaker 3: is something that isn't high on our list at the
Speaker 3: current time.
Speaker 1: A lot of Cheesy's investors tend to hold their et ifs,
Speaker 1: but there is a number two who like to buy
Speaker 1: and sell. Have you got any kind of sort of
Speaker 1: tips I suppose you'd say for thinking about timing with
Speaker 1: et ifs, because obviously they're quite different to manage fund
Speaker 1: as such.
Speaker 3: Yeah, I would say, I mean, we are, you know,
Speaker 3: certainly believe the buy and hold strategy is really important
Speaker 3: because any sales and subsequent buys. Besides the difficulty of
Speaker 3: actually market timing, which we've proven, you know, over time,
Speaker 3: it's just if you do try to market time that
Speaker 3: the challenge to do that is great. You know. What
Speaker 3: we tend to see is, you know, low cost long
Speaker 3: term investing usually will have a better payoff than then
Speaker 3: more frequent changes in different market conditions. The other part
Speaker 3: of that is just the cost that you incur the
Speaker 3: more you rebalance, the more you have to pay that
Speaker 3: spread to be able to buy and sell the security
Speaker 3: that will distract from some of your returns and make
Speaker 3: some of those returns harder to accomplish the you know,
Speaker 3: the same way you would in a buy and hold.
Speaker 3: So we really you know, preach the idea of having large,
Speaker 3: diversified portfolios that give you exposure to many parts in
Speaker 3: the market and then holding on to those for a
Speaker 3: longer period of time and and you know, be thoughtful
Speaker 3: of costs. That's thoughtful of cost when it relates to expense.
Speaker 3: Ratios is very explicit how much you pay. Our founder
Speaker 3: has a great quote, Jack Bogol that says, in investing,
Speaker 3: you get exactly what you don't pay for. So you know,
Speaker 3: that is, you know, really at the heart of our
Speaker 3: strategy to give you. If you have one hundred basis
Speaker 3: points of return in the s and P. Five hundred,
Speaker 3: if we only charge you three basis points, you keep
Speaker 3: ninety seven basis points of that and that compounds over time.
Speaker 3: We think that's really important for clients to achieve their
Speaker 3: investment success over the long run.
Speaker 1: What about in terms of sort of assessing your portfolio,
Speaker 1: I mean, yes, to hold seit and forget if you like,
Speaker 1: over a period of time. I mean, how often would
Speaker 1: you suggest people need to have a look about maybe rebalancing.
Speaker 3: Yeah, rebalancing is still important for sure. You know what
Speaker 3: is what your target allocation is, and determining that target
Speaker 3: allocation up front allows you to ensure that you're rebalancing
Speaker 3: back to that target allocation. So we do say that,
Speaker 3: you know, quarterly is a good opportunity to kind of
Speaker 3: take a look and see how much your how far
Speaker 3: away you are from your target allocation. If it's only
Speaker 3: a percentage or two, that could quickly go back the
Speaker 3: other way. What we really like to see before you
Speaker 3: would spend the potential transaction costs to rebalance that would
Speaker 3: be to start to stray about five percent away from
Speaker 3: your target allocation at that point, which if you're reviewing
Speaker 3: on a quarterly basis, allows you to tie that back
Speaker 3: in and ensure that if equities have the run they
Speaker 3: have this year relative to bonds being a bit flat,
Speaker 3: and now your equity position is greater than your target allocation,
Speaker 3: then it is a good idea to rebalance that back
Speaker 3: and stay focused on that long term strategic allocation that
Speaker 3: you hope to have in your portfolio.
Speaker 1: One of the criticisms often leveled at the US markets
Speaker 1: is that they're topping out. They're just keeping on going,
Speaker 1: and all of a sudden there's going to be a
Speaker 1: crash and people are going to burn as a result.
Speaker 1: I mean, what do you sort of say to investors
Speaker 1: in terms of keeping that longer term view, knowing that markets,
Speaker 1: as you said before, go up and go down.
Speaker 3: Yeah, it's important to just think of that long term
Speaker 3: time horizon. If we look at twenty twenty two, the
Speaker 3: sixty to forty portfolio we mentioned earlier had one of
Speaker 3: its worst years and since nineteen thirties because both stocks
Speaker 3: and bonds were down together, which is rare. So you know,
Speaker 3: that was a clear example of a time where people
Speaker 3: were feeling a little bit of the pain of the
Speaker 3: market and having that drawl down. But those that stayed
Speaker 3: in it, that return we've seen since twenty twenty two
Speaker 3: is almost forty five percent in the S and P
Speaker 3: five hundred, and it is sixty to forty portfolio would
Speaker 3: be muted a bit to that, but it's still you know,
Speaker 3: that growth that you've had in that time period by
Speaker 3: just staying the course and staying focused on your long
Speaker 3: term plan and not reacting to short term market events
Speaker 3: even if they aren't you know, it's not easy to
Speaker 3: see on your portfolio when the number goes down, but
Speaker 3: it's really important, and we've showcased over time this. You
Speaker 3: know what happens when you get out of the market
Speaker 3: when the time is in stress and you miss that
Speaker 3: you know, return to positive returns. What that does with
Speaker 3: the long term investment because of the impact of compounding
Speaker 3: is quite great, So we really try to reinforce to
Speaker 3: tune out the noise that's in the market and really
Speaker 3: just be focused on if your plan is twenty years
Speaker 3: from now, your portfolio doesn't need a lot of change
Speaker 3: right now to be able to achieve the goals that
Speaker 3: you have for your long term investment returns.
Speaker 1: What would you say to New Zealand investors who are
Speaker 1: thinking for the first time to invest in the US market.
Speaker 1: So might have played around a little bit with individual stocks,
Speaker 1: but perhaps now they're thinking exchange traded funds is probably
Speaker 1: an easier, cheaper, maybe safer way to go.
Speaker 3: Yeah, I mean, I think that's we do. You know,
Speaker 3: stress the importance of diversification, and that is something that
Speaker 3: ETF gives you. You can trade it like a stock
Speaker 3: within the market, but it still gives you the broad
Speaker 3: exposure of what the underlying portfolio is made up of,
Speaker 3: and in this case the five hundred largest companies in
Speaker 3: the US. So that diversification that you get over choosing
Speaker 3: one single stock really is an important risk mitigation tool.
Speaker 3: When we look at securities over time, the number one
Speaker 3: secure already in the S and P five hundred at
Speaker 3: you know, in two thousand and five, in nineteen ninety
Speaker 3: five and nineteen eighty five. It's different every time you look,
Speaker 3: because you know markets are going to you know, there's
Speaker 3: just different situations for different securities that are going to
Speaker 3: increase their value or decrease. So having that broad exposure
Speaker 3: instead of maybe even looking at you know, everybody looks
Speaker 3: at We just take na Vidia as an example because
Speaker 3: of the great ride that it's had. Everybody wants to
Speaker 3: have the number one stock in the market, but the
Speaker 3: video won't always be the number one stock in the market.
Speaker 3: And how are you diversified when there is a drawl
Speaker 3: down there if the valuation might get too high, the
Speaker 3: rest of the portfolio helps to kind of pick that up.
Speaker 3: So we really just stress that diversification. We think this
Speaker 3: gives a great opportunity to get that and a wrapper
Speaker 3: that again is really low cost and easy to access.
Speaker 1: Diabet there's a phrase online where people say voo and chill.
Speaker 1: Just wondering what your take on that is.
Speaker 3: Yeah, it's it's a funny phrase that you know, I
Speaker 3: think we are starting to see following the Alexicond a
Speaker 3: little bit more and it's really to me it resonates
Speaker 3: a lot of what I just mentioned. It's you know,
Speaker 3: you don't have to get complicated in the market. You
Speaker 3: don't have to be chasing returns or looking for opportunities
Speaker 3: to maybe find the next hot product. Just buy voo,
Speaker 3: buy vu and and chill, just you know, kind of
Speaker 3: sit on that, continue to invest it as you have
Speaker 3: new monies go into it. And because what we see
Speaker 3: is over the course of you know, long dated period,
Speaker 3: say fifty years as the longest, only about two percent
Speaker 3: of active managers can beat the index. So instead of
Speaker 3: chasing some of those returns from that active management or
Speaker 3: some of those strategies, buying the index, that whole index
Speaker 3: and just you know, sitting it out and just waiting
Speaker 3: for the long term or vo and chill, as as
Speaker 3: ken Be said, is really a you know, we think
Speaker 3: a really great strategy to just get those long term
Speaker 3: investment returns that we talked about.
Speaker 1: Thanks for your in science today, David, and thanks to
Speaker 1: everyone else for joining in too. You can watch Sheared
Speaker 1: Lunch on YouTube or follow us on your favorite podcast app.
Speaker 1: Leave us a rating and a comment about what you'd
Speaker 1: like to hear next. Ma Tewa