WEBVTT - The investment for billionaires and beginners 0:00:02.440 --> 0:00:05.160 Hello, and welcome to Shared Lunch, brought to you by ShaSS. 0:00:05.600 --> 0:00:07.320 My name is Sonia and I'm the co founder and 0:00:07.360 --> 0:00:09.879 co here share CS, and we're on a mission to 0:00:09.920 --> 0:00:13.880 create financial empowerment for everyone. Many people use ETFs or 0:00:13.880 --> 0:00:17.280 exchange traded funds as a defensive move with market volatility. 0:00:17.760 --> 0:00:19.200 For some, it also allows. 0:00:18.840 --> 0:00:22.160 Them to enter the market in a more accessible way. Today, 0:00:22.320 --> 0:00:26.119 I'm joined and hosted by Bryce from Equity Mates to 0:00:26.120 --> 0:00:29.280 discuss all things ETFs and what to consider. 0:00:29.000 --> 0:00:30.600 Before adding them to your portfolio. 0:00:31.440 --> 0:00:34.320 Before we get started, I'd like to acknowledge the traditional 0:00:34.320 --> 0:00:36.960 custodians of the land where we come to you from today, 0:00:37.320 --> 0:00:38.519 the Gettigill people of. 0:00:38.479 --> 0:00:42.360 The Aura nation, and pay respects to olders past and present. 0:00:45.720 --> 0:00:48.360 Investing involves the risk you might lose the money you 0:00:48.360 --> 0:00:51.680 start with. We recommend talking to a licensed financial advisor. 0:00:52.400 --> 0:00:56.200 We also recommend reading product disclosure documents before deciding to invest. 0:00:56.480 --> 0:00:58.880 Everything you're about to see and here is current at 0:00:58.880 --> 0:00:59.680 the time of recording. 0:01:00.120 --> 0:01:02.760 Welcome Brice, Thanks for having me excited to be here. 0:01:02.840 --> 0:01:08.800 Yeah, thanks for having us anytime. Yeah, So we digging 0:01:08.840 --> 0:01:12.000 into etifs. But before we get started, can you just 0:01:12.160 --> 0:01:12.679 what are. 0:01:12.560 --> 0:01:18.399 They whatf okay. So ETFs think of them like a 0:01:18.480 --> 0:01:21.080 It's a bundle of investments that you can buy in 0:01:21.120 --> 0:01:25.880 one on a stock exchange. The analogy that we like 0:01:25.959 --> 0:01:29.880 to use is traditionally, when you were to buy stocks, 0:01:29.880 --> 0:01:33.280 you would have to choose individual stocks and buy them 0:01:33.319 --> 0:01:36.039 individually on the stock exchange. You would buy a Commonwealth Bank, 0:01:36.120 --> 0:01:39.600 you'd buy Woolworths, you'd buy Telstra, for example, three investments, 0:01:39.640 --> 0:01:43.600 three individual holdings. Think of that like buying banana at 0:01:43.600 --> 0:01:47.000 wool is, apple and orange. Whereas now you can go 0:01:47.040 --> 0:01:49.280 in and you can buy the fruit salad, a bucket 0:01:49.320 --> 0:01:51.320 that has all the fruit cut up and in one 0:01:51.360 --> 0:01:53.520 in one purchase you can buy a bit of everything, 0:01:54.440 --> 0:01:56.800 and an ETF is just like that. You can buy 0:01:57.080 --> 0:01:59.440 a bit of Commonwealth, a bit of Telstra, a bit 0:01:59.480 --> 0:02:03.200 of Woolworth in one and trade it just like a 0:02:03.240 --> 0:02:06.560 stock on the Australian Stock Exchange or exchanges around the world. 0:02:07.240 --> 0:02:09.200 The other twom you're here and there with the etfss 0:02:09.240 --> 0:02:12.360 and mixes, can you tell us about how those two connect. 0:02:12.639 --> 0:02:17.960 So indexes are a way of measuring change. So you 0:02:18.000 --> 0:02:22.000 would baseline whatever you're trying to measure, and then the 0:02:22.040 --> 0:02:24.640 index will tell you how that has changed over time. 0:02:25.440 --> 0:02:30.600 In investing, the indexes are around the world a group 0:02:30.639 --> 0:02:33.040 of stocks that have been put together and then we 0:02:33.160 --> 0:02:35.800 measure the change in those stocks. So, for example, the 0:02:35.840 --> 0:02:39.639 ASEX two hundred is an index of the top largest 0:02:39.680 --> 0:02:43.200 two hundred stocks in Australia and the index then measures 0:02:43.200 --> 0:02:46.440 how that changes. You'll hear Alan Kohler on ABC News 0:02:46.760 --> 0:02:49.160 in Australia say that the ASEX two hundred is up 0:02:49.200 --> 0:02:52.239 two percent today. That means that that measure of all 0:02:52.280 --> 0:02:56.400 two hundred stocks has moved up two percent on average 0:02:56.639 --> 0:03:00.960 in value. How that relates to an ETF is that 0:03:01.040 --> 0:03:04.600 ETFs then come along and wrap that index all up 0:03:04.720 --> 0:03:08.080 and then you can buy that index and so you 0:03:08.120 --> 0:03:11.880 can buy all two hundred companies and effectively you can 0:03:11.919 --> 0:03:15.560 buy the change in the ASX two hundred over time. 0:03:16.400 --> 0:03:20.920 So index ETFs ETFs where what you are investing in 0:03:21.120 --> 0:03:23.840 is the underlying index that it tracks. 0:03:24.560 --> 0:03:27.120 Over the last week, while we've seen more of Aaronbistas 0:03:28.240 --> 0:03:31.959 putting money into ETFs over individual companies as something you've 0:03:31.960 --> 0:03:34.480 seen as well, you know, why do you think they might. 0:03:34.320 --> 0:03:34.840 Be the case? 0:03:35.280 --> 0:03:37.800 I mean, yeah, we've definitely seen it as part of 0:03:37.920 --> 0:03:40.960 the equitymates community. I even look at the way I've 0:03:41.080 --> 0:03:44.960 changed my investing strategy over the last sort of ten years, 0:03:44.960 --> 0:03:48.440 and it is very much now centered around a core 0:03:48.680 --> 0:03:53.720 ETF index philosophy. I think why that has has become 0:03:54.680 --> 0:03:57.280 I guess popular is because you know, back in the day, 0:03:57.280 --> 0:04:00.360 when you only had the ability to choose in vidual 0:04:00.400 --> 0:04:03.440 stocks or you had to choose fund managers to invest 0:04:03.480 --> 0:04:06.760 money on your behalf, it was really overwhelming, like I 0:04:06.800 --> 0:04:08.760 didn't really know what I was doing. Like I thought 0:04:08.880 --> 0:04:11.400 I was trying to be Warren Buffett and find you know, 0:04:11.480 --> 0:04:14.600 deep value companies, and you hear all these things about 0:04:14.600 --> 0:04:17.479 trying to find the hidden gem. But the reality is 0:04:17.520 --> 0:04:19.800 that as like an early stage investor, you have to 0:04:19.800 --> 0:04:22.680 do a lot of work to really be good at 0:04:22.720 --> 0:04:26.080 picking individual stocks and create a portfolio. And so it 0:04:26.160 --> 0:04:29.560 was I guess a major barrier to a lot of people. 0:04:30.320 --> 0:04:35.440 The I guess the inclusion or the entry of ETFs 0:04:35.440 --> 0:04:39.239 has made investing far more accessible for a lot of people. Also, 0:04:39.680 --> 0:04:42.760 they're super low cost. It doesn't cost a lot of 0:04:42.800 --> 0:04:46.200 money to invest in ETFs compared to having to invest 0:04:46.240 --> 0:04:48.080 in a fund manager back in the day. So probably 0:04:48.320 --> 0:04:51.599 accessibility and low cost a sort of the two biggest 0:04:51.640 --> 0:04:55.560 reasons I think that, Yeah, ETF's becoming a really popular choice. 0:04:55.720 --> 0:04:59.200 It's funny you say, like how you're investing, like behavior 0:04:59.240 --> 0:05:02.280 has changed over to time, because I definitely feel like 0:05:02.279 --> 0:05:04.560 I went through that too, where it's like kind of 0:05:04.560 --> 0:05:07.320 felt like I loved being able to do the company stuff, 0:05:07.400 --> 0:05:09.040 and then there came a time where I was like, 0:05:09.080 --> 0:05:10.560 wait a minute, I have a day job like this, 0:05:12.640 --> 0:05:15.320 And people often say, you know, like send your money 0:05:15.320 --> 0:05:17.719 to work when you're invested in, Like I kind of 0:05:17.800 --> 0:05:19.440 like that, like I don't have to micro manage it. 0:05:19.520 --> 0:05:21.240 Yes, I'll send. 0:05:21.000 --> 0:05:23.400 It to it investing it and it's hard. Is like 0:05:23.480 --> 0:05:26.440 money doing good for you while you don't have to 0:05:26.480 --> 0:05:28.400 do a lot, But you're right, like it takes a 0:05:28.440 --> 0:05:31.240 lot of time to sit down and actually be like, 0:05:31.279 --> 0:05:33.320 of all the money that I've just saved up, I've 0:05:33.320 --> 0:05:35.240 worked mine, you know, my whole life to have this 0:05:35.279 --> 0:05:38.000 pool of money. Do I really know what this individual 0:05:38.040 --> 0:05:41.000 company is doing against all of the other individual companies 0:05:41.000 --> 0:05:44.359 that I could invest in. So I think like the 0:05:44.400 --> 0:05:49.800 way that ETFs now allow you to invest just safely confidently, 0:05:51.080 --> 0:05:52.920 you know, there's a lot of advantages. 0:05:52.600 --> 0:05:54.240 You know, it kind of ties it nicely because it's like, 0:05:54.279 --> 0:05:55.960 who are ETFs good for? 0:05:56.360 --> 0:06:01.120 I would argue everyone, like even even you look at 0:06:01.120 --> 0:06:04.920 some of the best investors from around from around the world, 0:06:05.000 --> 0:06:08.640 and I'm talking like billion dollar hedge fund managers, and 0:06:08.720 --> 0:06:11.839 they have index ETFs in their portfolios because it's just 0:06:13.080 --> 0:06:16.680 because it's just such an easy way to make money. 0:06:17.400 --> 0:06:21.000 And I don't say that it's a given that you 0:06:21.080 --> 0:06:23.560 make money from them, but it's just it's such a 0:06:23.640 --> 0:06:26.360 beautiful mechanism to invest in the stock market without having 0:06:26.400 --> 0:06:28.960 to do a lot. So I think they're suitable for everyone, 0:06:29.360 --> 0:06:32.599 but I think to flip it around, their best for 0:06:32.680 --> 0:06:36.080 people who have worked hard for their money, know that 0:06:36.080 --> 0:06:38.640 they want to try and build wealth outside of just 0:06:38.800 --> 0:06:42.320 saving money in the bank account, but don't really feel 0:06:42.320 --> 0:06:45.279 like they have a whole lot of time or knowledge 0:06:45.320 --> 0:06:49.360 to invest in individual stocks. Because the reality is there 0:06:49.360 --> 0:06:52.279 are ETFs available these days that we call one stop 0:06:52.320 --> 0:06:54.920 shops where you can just choose one ETF that gives 0:06:54.920 --> 0:06:59.400 you global access to thousands of companies and you'd really 0:06:59.440 --> 0:07:02.280 just let that ride for forty years and you're going 0:07:02.320 --> 0:07:04.880 to be more than okay. So I think for beginners 0:07:04.920 --> 0:07:07.279 it's the best way to start, and then once you 0:07:07.320 --> 0:07:09.560 sort of start being a little bit more confident, there's 0:07:10.040 --> 0:07:12.480 different types of ETFs that you can start adding to 0:07:12.520 --> 0:07:15.720 your portfolio, depending on areas of the market that you're 0:07:15.760 --> 0:07:18.800 interested in or what your long term investment strategy is. 0:07:19.200 --> 0:07:22.080 But if someone turns around said ETFs are not for me, 0:07:22.160 --> 0:07:25.480 then I would really challenge them on why that is, 0:07:25.520 --> 0:07:28.600 because the data shows that, as I said, over the 0:07:28.600 --> 0:07:31.640 long time, you can create a very healthy portfolio just 0:07:31.680 --> 0:07:32.760 through index investing. 0:07:33.680 --> 0:07:37.400 Is any disadvantages that you see, maybe not disadvantages, but 0:07:37.560 --> 0:07:41.400 like some misconceptions perhaps Oh yeah, A lot of people. 0:07:41.080 --> 0:07:44.480 Think that any ETF is set and forget, And what 0:07:44.560 --> 0:07:48.000 I mean by that is index ETFs, which we've spoken about, 0:07:48.120 --> 0:07:51.800 you are very much bottom draw investments. You can put 0:07:51.840 --> 0:07:54.720 money in the ASX two hundred and really you could 0:07:54.800 --> 0:07:57.200 just keep adding to that over a long period of 0:07:57.240 --> 0:08:01.280 time and not have to really worry about doing much 0:08:01.320 --> 0:08:03.720 with that ETF because the way it works is it 0:08:03.760 --> 0:08:07.280 will change the companies within those two hundred just by 0:08:07.360 --> 0:08:09.760 nature of how the market works. But a lot of 0:08:09.800 --> 0:08:12.160 people then take that sort of concept of set and 0:08:12.200 --> 0:08:16.640 forget and bottom draw and put it to thematic ETFs, 0:08:16.800 --> 0:08:20.200 or ETFs that have a leverage tilt to them, or 0:08:20.760 --> 0:08:26.280 ETFs that actively managed for example. And so if you're 0:08:26.320 --> 0:08:29.240 buying a thematic ETF, which might be an ETF that 0:08:30.040 --> 0:08:33.400 invests in AI companies or an ETF that invests in 0:08:33.480 --> 0:08:37.200 defense companies, or thematics that are sort of the here 0:08:37.240 --> 0:08:40.280 and now, if you put that in the bottom drawer, 0:08:40.280 --> 0:08:42.680 thinking that something you can invest in forever, then you're 0:08:42.760 --> 0:08:45.120 effectively making a bet that that thematic is going to 0:08:45.160 --> 0:08:48.079 be a forty year thematic. And so people can go 0:08:48.120 --> 0:08:51.280 wrong thinking any ETF is a set and figet So 0:08:51.320 --> 0:08:53.959 I would just caution that that is probably with the 0:08:53.960 --> 0:08:59.040 biggest misconception or not disadvantage, but misconception that we see 0:08:59.360 --> 0:09:01.800 and maybe not a disadvantage. But there are now so 0:09:02.000 --> 0:09:04.680 many ETFs available as well, like there can be a 0:09:04.679 --> 0:09:07.880 feeling of ETF overload or overwhelmed when it comes to 0:09:07.880 --> 0:09:10.160 trying to pick it. So I'm sure we'll get into 0:09:10.200 --> 0:09:15.800 how to pick them, but yeah, it can feel confusing. 0:09:16.080 --> 0:09:17.479 Can you be too diversified? 0:09:18.760 --> 0:09:21.960 You can have too many ETFs? I think, because what 0:09:22.000 --> 0:09:26.000 you'll start finding is, you know, given that so many 0:09:26.000 --> 0:09:29.160 of them have hundreds if not thousands of companies, you'll 0:09:29.200 --> 0:09:32.120 start just overlapping. And what that means is you might 0:09:32.120 --> 0:09:34.760 find the top ten holdings of one ETF are very 0:09:34.760 --> 0:09:37.760 similar to the top ten of another, and very similar 0:09:37.800 --> 0:09:40.480 to the top ten of another, And there's nothing wrong 0:09:40.600 --> 0:09:45.040 with that, Like you're still invested, but you could be 0:09:45.120 --> 0:09:50.520 consolidated and a little bit more simplified. And if you 0:09:50.559 --> 0:09:52.880 have too many stocks, you've got to really ask yourself, 0:09:52.880 --> 0:09:56.800 what are you really trying to achieve? Yeah, so I 0:09:56.800 --> 0:10:00.200 don't want to put people off, but yeah, you you 0:10:00.240 --> 0:10:01.200 can have an overlap. 0:10:02.040 --> 0:10:04.679 And so let's check thematics. Because you've brought that up. 0:10:06.360 --> 0:10:07.800 What role do themetics play? 0:10:08.160 --> 0:10:10.960 They're probably one of the more hotter spaces in ETFs 0:10:11.000 --> 0:10:12.640 at the moment. Like the first things to kind of 0:10:12.640 --> 0:10:15.880 come to market was through Vanguard, which was the index investing. 0:10:16.240 --> 0:10:19.000 Let's just get access to the ASEX two hundred s 0:10:19.040 --> 0:10:21.000 and P five hundred, which is the top five hundred 0:10:21.000 --> 0:10:23.920 in the US, the foot see which is the top 0:10:24.240 --> 0:10:29.480 companies over in the UK. And then people sort of thought, 0:10:29.720 --> 0:10:31.440 this is a really great way to invest in a 0:10:31.440 --> 0:10:33.760 whole lot of stocks without really having to do a lot. 0:10:33.920 --> 0:10:37.560 Why don't we bucket up stocks that center around a 0:10:37.600 --> 0:10:42.200 particular theme, and so you'll see gold miners, for example, 0:10:42.240 --> 0:10:45.160 as an ETF thematic, or you'll see, as I said, 0:10:45.200 --> 0:10:49.320 AI semiconductors are a huge one at the moment given 0:10:49.360 --> 0:10:52.400 what's going on overseas. As I said, defense spending is 0:10:52.440 --> 0:10:57.120 a massive one cryptocurrency. There's been all sorts of like 0:10:57.320 --> 0:11:01.480 trends where ETF providers have come a long and wrapped 0:11:01.559 --> 0:11:04.960 up companies and created an ETF. So that's a thematic 0:11:05.000 --> 0:11:08.600 ETF where all of the companies sort of follow one theme. 0:11:09.400 --> 0:11:12.760 The positives of that are that again I can go 0:11:12.800 --> 0:11:16.680 in and be like, I'm super bullish on semiconductors, but 0:11:16.800 --> 0:11:19.600 I really don't have the understanding all the time to 0:11:19.640 --> 0:11:23.400 go and choose the best semiconductor stock. I want just 0:11:23.520 --> 0:11:27.680 access to the best twenty and for me, an ETF 0:11:27.720 --> 0:11:29.520 is the best way to do that. And so you 0:11:29.520 --> 0:11:33.000 could put that in your portfolio as a smaller percentage 0:11:33.040 --> 0:11:36.440 on top of your core and that's one way to 0:11:36.440 --> 0:11:39.160 get access to that thematic. The danger of that, as 0:11:39.160 --> 0:11:41.839 I said, is that that thematic you still need to 0:11:41.840 --> 0:11:44.880 pay attention to. Because I've been in plenty I got 0:11:44.880 --> 0:11:48.559 on I thought the legalization of marijuana, for example, over 0:11:48.600 --> 0:11:52.360 in the States was talked up and hyped and thought 0:11:52.440 --> 0:11:54.559 this was going to be the next biggest thing. There 0:11:54.559 --> 0:11:57.000 were ETFs that gave exposure to all of the marijuana 0:11:57.040 --> 0:12:00.480 producers and retailers over in the States, but that's been 0:12:00.480 --> 0:12:03.120 an absolute flop. And if you weren't paying attention to 0:12:03.160 --> 0:12:06.720 that thematic, if you put it into your bottom drawn you, 0:12:06.760 --> 0:12:09.480 then you would have, you know, probably lost a lot 0:12:09.480 --> 0:12:12.160 of money. And so thematics are a great way to 0:12:12.200 --> 0:12:15.600 get broader exposure to I guess a trend or a fad, 0:12:15.720 --> 0:12:19.440 but it comes with caution that they're not something that's 0:12:19.440 --> 0:12:20.680 going to last forever. 0:12:20.840 --> 0:12:23.000 How do you choose what etifs to envisten? 0:12:23.400 --> 0:12:25.440 It firstly comes down to and this is a classic 0:12:25.520 --> 0:12:27.600 answer which I actually hate when other people tell. 0:12:27.480 --> 0:12:30.679 Me, but it depends, It depends what. 0:12:31.160 --> 0:12:34.360 It depends what your goals are to begin with, and 0:12:34.400 --> 0:12:36.680 then from there you can kind of work things out. 0:12:36.760 --> 0:12:41.040 So if your goal, for example, is to just put 0:12:41.080 --> 0:12:43.160 your money to work and never have to pick a stock, 0:12:43.240 --> 0:12:46.000 and you just want one thing to invest in, then 0:12:46.080 --> 0:12:48.560 that kind of tells you all. I need to find 0:12:48.559 --> 0:12:53.200 an ETF that gives me that functionality that is, gives 0:12:53.200 --> 0:12:56.160 me the opportunity to buy a lot of stuff around 0:12:56.200 --> 0:12:59.760 the world very cheaply, and so you can kind of 0:13:00.120 --> 0:13:02.720 will search to find that out. There are plenty of examples. 0:13:02.720 --> 0:13:05.080 But if that's the goal, then there's a universe of 0:13:05.120 --> 0:13:07.760 ETFs that suit that. If the goal is I want 0:13:07.800 --> 0:13:11.280 to create a core portfolio that tracks index products, but 0:13:11.360 --> 0:13:15.040 I want to create the portfolio myself, then you say, okay, well, 0:13:15.080 --> 0:13:17.360 now I have a universe of stocks where I need 0:13:17.400 --> 0:13:21.560 to find, you know, index ETFs that are particular to countries, 0:13:21.679 --> 0:13:24.079 and so you can sort of filter that way. If 0:13:24.120 --> 0:13:26.280 your goal is I only want to invest in the 0:13:26.320 --> 0:13:30.320 hottest themes around the world, I don't care about just 0:13:30.440 --> 0:13:33.719 investing in Australia or whatever, then there's ETFs that will 0:13:33.720 --> 0:13:37.280 probably track your theme. So like starting with like how 0:13:37.440 --> 0:13:39.440 like your goal what it is you want to be 0:13:39.520 --> 0:13:42.760 investing in, can kind of figure it out. But from 0:13:42.760 --> 0:13:45.560 there there are a few small things like looking at 0:13:45.800 --> 0:13:50.280 the provider or the the the ETF whereah, the ETF 0:13:50.360 --> 0:13:53.239 provider like some big names in Australia. You've got Vanguard, 0:13:53.600 --> 0:13:56.560 You've got Beta shares, You've got black Rock or I shares, 0:13:57.679 --> 0:14:00.120 that they have a huge range of ETFs available and 0:14:00.160 --> 0:14:04.440 all sort of do different things. So starting there, and 0:14:04.480 --> 0:14:08.160 they all have very good transparent information on their websites 0:14:08.800 --> 0:14:11.520 where you can I would recommend always going and starting 0:14:11.559 --> 0:14:13.800 at their websites to find out everything you need to 0:14:13.840 --> 0:14:14.840 know about that ETF. 0:14:15.360 --> 0:14:16.760 Yeah, so there are. 0:14:18.320 --> 0:14:21.720 Like the same funds that check the same indixes and 0:14:21.760 --> 0:14:23.960 so that you've got a range of options. What's the 0:14:24.080 --> 0:14:27.160 kind of if you're reading the information, what are the 0:14:27.240 --> 0:14:29.560 key things to look for to try and decipher whether 0:14:29.600 --> 0:14:31.480 you want to go for this, Like I said, a 0:14:31.720 --> 0:14:34.600 provider of an et if over or very different. 0:14:34.600 --> 0:14:37.480 One good question. So let's take the S and P. 0:14:37.880 --> 0:14:40.920 Let's take ASEX two hundred, which is the Australian top 0:14:40.920 --> 0:14:44.400 two hundred. So Beta shares have one pretty sure I 0:14:44.520 --> 0:14:48.000 Shares Vanguard have a sort of equivalent. But let's say 0:14:48.000 --> 0:14:50.920 that there's three providers. The first thing is that at 0:14:50.920 --> 0:14:53.320 the end of the day, don't get worked up on 0:14:53.480 --> 0:14:56.480 just like the minuture of it all you through all 0:14:56.520 --> 0:14:59.080 three of them, you are buying the same thing, which 0:14:59.120 --> 0:15:03.240 is the top two hundred companies in Australia. Beta shares 0:15:03.320 --> 0:15:05.880 is not going to change theirs or VANDGUARD is not 0:15:05.960 --> 0:15:07.640 going to change theirs. They all have to follow the 0:15:07.640 --> 0:15:10.320 same index methodology and so you're not going to get 0:15:10.320 --> 0:15:13.120 anything different in terms of the underlying assets. So don't 0:15:13.160 --> 0:15:16.400 feel like one is like worse off than the other. 0:15:17.440 --> 0:15:22.240 Where you really can differentiate for us is the price 0:15:22.800 --> 0:15:25.680 and not so is the cost of the ETF, not 0:15:25.760 --> 0:15:27.920 the share price, because the share prices will all be 0:15:27.960 --> 0:15:31.080 different and it has no bearing on anything. But it's 0:15:31.120 --> 0:15:35.080 actually the underlying management fee of the ETF, and you 0:15:35.080 --> 0:15:37.440 can find that information on the website. It's often called 0:15:37.480 --> 0:15:41.720 a management expense ratio MEER, or it's just going to 0:15:41.760 --> 0:15:45.760 say management fee. If if all three of them, you're 0:15:45.760 --> 0:15:48.800 getting access to the same investments. For me, it's like 0:15:49.560 --> 0:15:52.080 pay as cheap as possible. Yeah. 0:15:52.200 --> 0:15:53.240 Yeah, that's a great point. 0:15:53.280 --> 0:15:55.560 And I loved your point at the start around like 0:15:55.960 --> 0:15:57.840 they're all invested on the same thing, you know, don't. 0:15:57.760 --> 0:15:59.160 Kind of get too caught up. But your point on 0:15:59.200 --> 0:16:00.320 fees is really imporant. 0:16:00.720 --> 0:16:04.160 Yeah, I think you can get overwhelmed with trying to 0:16:04.160 --> 0:16:08.440 find like the perfect ETF. But as I said, like firstly, 0:16:08.480 --> 0:16:09.760 what are you trying to do. I'm trying to get 0:16:09.800 --> 0:16:13.520 access to this train market. If you're paying a percentage 0:16:13.560 --> 0:16:15.760 of zero point zero four and the next the one 0:16:15.760 --> 0:16:19.640 next door is zero point zero three, like, it really 0:16:19.680 --> 0:16:22.280 doesn't matter that much. It's like only if the one 0:16:22.360 --> 0:16:25.160 up the road was paying one percent or whatever. But yeah, 0:16:25.280 --> 0:16:28.360 I think you can get overwhelmed, and especially with ETFs 0:16:28.360 --> 0:16:30.600 as well, like you can always sell it and move 0:16:30.640 --> 0:16:33.960 to another one if you find later on that there's 0:16:33.960 --> 0:16:36.160 another one that is actually better and suits your needs. 0:16:36.240 --> 0:16:38.960 That's exactly what I've done. I've sold in and out 0:16:39.040 --> 0:16:41.800 until I've found the right mix for my core portfolio, 0:16:42.960 --> 0:16:44.600 and now I'm really happy with it. So I think 0:16:45.200 --> 0:16:46.920 it's not like a once you're in, you're locked in. 0:16:47.920 --> 0:16:50.440 Just get in and you'll kind of figure it out. 0:16:50.800 --> 0:16:53.080 You know, are there any other kind of ways that 0:16:53.160 --> 0:16:55.560 etif's fit in is your overall portfolio? 0:16:55.920 --> 0:16:59.120 I have dabbled and sort of do dabble on the 0:17:00.160 --> 0:17:03.360 matic side a little bit more than I think others might. 0:17:03.520 --> 0:17:06.199 You know, if I think that Bitcoin's going to have 0:17:06.200 --> 0:17:08.439 a good run, or if I think that you know, 0:17:08.600 --> 0:17:11.000 the you know, Liberation Day was a good example actually 0:17:11.000 --> 0:17:13.919 short at the nasdak over a period of time and 0:17:13.960 --> 0:17:16.200 did well out of that but you kind of really 0:17:16.240 --> 0:17:18.159 need to have an understanding of what is going on 0:17:19.480 --> 0:17:22.919 and pay very very close attention if you start playing 0:17:22.920 --> 0:17:25.680 that short term game like it's just I think fundamentally 0:17:25.760 --> 0:17:27.600 trying to time the market is just not the right 0:17:27.640 --> 0:17:29.520 thing to be doing at all. You can have a 0:17:29.520 --> 0:17:30.919 little bit of fun with it on the side, but 0:17:31.000 --> 0:17:33.240 as I said, I can do that knowing eighty percent 0:17:33.240 --> 0:17:37.840 of my core my portfolio is sitting in core. So yeah, 0:17:38.160 --> 0:17:41.240 I think the matics play that part. 0:17:41.960 --> 0:17:43.840 Are there any other trends that you're seeing. 0:17:44.080 --> 0:17:47.520 We're seeing a lot of active ETFs starting to come 0:17:47.800 --> 0:17:52.800 And what I mean by that is traditionally, if you 0:17:52.880 --> 0:17:55.880 were not investing in individual stocks, you could have gone 0:17:55.920 --> 0:17:58.560 to fund managers and given them your money and they 0:17:58.600 --> 0:18:04.320 would run a folio of companies. Traditionally, that was a 0:18:04.440 --> 0:18:07.639 very expensive way to invest because they would charge you 0:18:08.280 --> 0:18:11.000 a high percentage on what you're investing. They'd also charge 0:18:11.000 --> 0:18:14.480 you management fees, and it was all pretty opaque and 0:18:14.520 --> 0:18:16.679 you didn't really know what they were investing in. They 0:18:16.760 --> 0:18:18.080 kind of just said, this is what we've done for 0:18:18.119 --> 0:18:22.520 you this year. And because of the rise of ETFs, 0:18:23.200 --> 0:18:25.439 these fund managers are now saying, well, we want to 0:18:25.480 --> 0:18:27.520 be able to get access to a lot of the 0:18:28.320 --> 0:18:30.400 trends that are happening in the ATF space, So why 0:18:30.400 --> 0:18:35.480 don't we turn our funds into ETFs. And so the 0:18:35.520 --> 0:18:37.560 good thing with that is we can now access some 0:18:37.600 --> 0:18:40.000 of the best fund managers around the world. And I'm 0:18:40.040 --> 0:18:43.520 talking fund managers that traditionally work for like Ultra high 0:18:43.560 --> 0:18:47.679 net worths, JP Morgans, Black Rocks, Fidelities. These are like 0:18:47.880 --> 0:18:53.000 multi trillion dollar investment banks. They are now listing their 0:18:53.800 --> 0:18:57.800 investment strategies as ETFs on the Australian Stock Exchange. So 0:18:57.880 --> 0:18:59.960 I can go and give my money to JP Morgan 0:19:00.080 --> 0:19:04.439 and let them run their global fund managers, or I 0:19:04.480 --> 0:19:08.199 can go to Fidelity and get them to invest in 0:19:08.200 --> 0:19:10.760 their small cap fund. So what it's done is it's 0:19:10.800 --> 0:19:13.960 like opened up a world of opportunity to invest in 0:19:14.040 --> 0:19:17.720 some of the best fund managers, which sounds cool and 0:19:17.800 --> 0:19:20.520 it is cool. The thing you need to remember is 0:19:20.560 --> 0:19:24.840 that a lot of them, an overwhelming amount of fund managers, 0:19:24.920 --> 0:19:28.080 actually struggle to beat what we call the benchmark, which 0:19:28.200 --> 0:19:32.439 is just those underlying index ETFs. And so you need 0:19:32.480 --> 0:19:34.840 to be very careful on who you're giving your money 0:19:34.880 --> 0:19:38.200 to or which active ETFs you're choosing because if they 0:19:38.280 --> 0:19:41.040 can't beat the ASX two hundred or the S and 0:19:41.040 --> 0:19:43.160 P five hundred, you may as well just be going 0:19:43.160 --> 0:19:46.040 with the index. So that's a huge trend we're seeing. 0:19:47.240 --> 0:19:50.120 We're seeing a lot of companies come out and sort 0:19:50.119 --> 0:19:54.919 of create differentiated ETFs. You might get access now to 0:19:55.000 --> 0:19:57.480 commodities that we may never have been able to access. 0:19:57.520 --> 0:20:00.560 You can buy gold ETFs. You can buy that give 0:20:00.560 --> 0:20:04.280 you access to all different asset classes as well property, crypto, 0:20:04.480 --> 0:20:07.040 So they've really opened up the investment universe. 0:20:08.000 --> 0:20:09.920 What about smart beta etifs. 0:20:11.000 --> 0:20:14.920 So smart beta is something that's very new here in Australia. 0:20:15.320 --> 0:20:18.320 There's only a handful and they are the big players Macquarie, 0:20:18.359 --> 0:20:22.720 JP etc. We're actually looking at them this morning and 0:20:22.760 --> 0:20:25.359 I think they have a great role to play. So 0:20:25.400 --> 0:20:27.400 what they are is like think about the ASEX two 0:20:27.480 --> 0:20:31.879 hundred index. It is based and ranked by the top 0:20:31.880 --> 0:20:34.760 two hundred in terms of the value of the company. 0:20:35.000 --> 0:20:38.040 The most valuable company BHP or Commonwealth sits at the 0:20:38.040 --> 0:20:41.160 top all the way down to the two hundredth most 0:20:41.280 --> 0:20:46.240 valuable and then that changes automatically as the stocks move around. 0:20:46.840 --> 0:20:50.119 What a beta ETF does is they will take that 0:20:50.160 --> 0:20:53.280 two hundred and then they'll say, we're going to slightly 0:20:53.359 --> 0:20:56.320 tweak a few stocks in there so that we should 0:20:56.359 --> 0:20:58.639 be able to get a little bit better performance than 0:20:58.640 --> 0:21:03.080 if you were to just in in the top two hundred. Now, again, 0:21:03.160 --> 0:21:05.600 you're backing in a manager or you're backing in a 0:21:05.640 --> 0:21:09.680 system to do that. But I mean some data we're 0:21:09.680 --> 0:21:13.120 looking out this morning shows that it does work, and 0:21:13.280 --> 0:21:16.680 it gives you access to different styles of investing as well. 0:21:16.960 --> 0:21:19.399 You might have heard of value investing, you might have 0:21:19.480 --> 0:21:23.879