WEBVTT - 21 ETFs to Watch in '21 0:00:05.920 --> 0:00:13.560 Welcome trilliance. I'm Joel Webber and I'm americal. Tunis Eric? 0:00:13.800 --> 0:00:18.160 Are you ready for next year? Yet? Absolutely? So? Over 0:00:18.320 --> 0:00:22.279 I am, So how about can we get there? Yeah? 0:00:22.280 --> 0:00:24.200 I mean honestly, this year has felt like a decade, 0:00:24.640 --> 0:00:27.280 like longer than a decade. Yes, I mean there's been 0:00:27.320 --> 0:00:30.480 so many phases to it. Something somebody brought up, something 0:00:30.520 --> 0:00:34.640 that happened in January, and it seemed like four times 0:00:34.720 --> 0:00:37.839 yeah before times, yeah before I think longingly about the 0:00:37.960 --> 0:00:41.919 before times. Yeah BC. On this episode of Trillions, we're 0:00:41.920 --> 0:00:46.000 gonna go into the future. Yeah. Um, we're gonna talk 0:00:46.000 --> 0:00:48.839 about the future. Yeah. You know, last year and and 0:00:48.880 --> 0:00:50.760 every half year we coun into these outlooks, and that 0:00:50.880 --> 0:00:53.680 that term is gets. You know, it's a little beaten 0:00:53.720 --> 0:00:56.480 down and traite at this point, and we do an outlook, 0:00:57.040 --> 0:01:00.080 but we thought for this audience, given this sort of 0:01:00.240 --> 0:01:04.080 retailer ish nature, we would do what we're calling one one. 0:01:04.200 --> 0:01:07.360 So we're gonna go over t s that we're watching 0:01:07.640 --> 0:01:10.280 in this coming year. And just to be clear, we 0:01:10.319 --> 0:01:12.920 do not give investment device. So this is not ets 0:01:12.959 --> 0:01:14.920 we think we'll go up or down. It's ones that 0:01:14.959 --> 0:01:18.640 we as analysts just keep thinking about and we're fascinated 0:01:18.680 --> 0:01:20.600 by and they kind of tap into some bigger themes 0:01:20.600 --> 0:01:24.039 and topics and so um. So basically we had the 0:01:24.040 --> 0:01:26.759 whole team, and the team being myself at the Nazia 0:01:26.800 --> 0:01:30.720 Sera Veagus, James Staffer and Morgan Barna each pick five 0:01:30.840 --> 0:01:33.240 ETFs and then we all sort of agreed on the 0:01:33.280 --> 0:01:34.960 twenty one, which we'll go over at the end, but 0:01:35.040 --> 0:01:37.360 that that's the general idea and we'll we'll go through 0:01:37.360 --> 0:01:52.600 it during this sub podcast Best time on Brilliant. Okay, 0:01:52.640 --> 0:01:57.200 so we're going from youngest to oldest, which means James 0:01:57.280 --> 0:01:59.680 Safer is on the hot seat to go first. James, 0:02:00.240 --> 0:02:04.240 what's your opening batch of e t F kickers? So 0:02:04.360 --> 0:02:08.640 my opening batch actually breaks the rules. It's not technically 0:02:08.680 --> 0:02:12.920 an e t F. It's GBTC. Already you're already not 0:02:13.000 --> 0:02:16.320 following instruction, years off to a terrible start, but this 0:02:16.400 --> 0:02:18.720 is something you can't leave off, especially in the environment 0:02:18.720 --> 0:02:22.200 where and it's the gray scale bitcoin trust. Um so 0:02:22.240 --> 0:02:24.960 it holds bitcoin. Uh, it's not technically an et F. 0:02:24.960 --> 0:02:27.320 It's what's known as a grant or trust. Basically, it 0:02:27.360 --> 0:02:29.320 operates kind of like a closed and fund. It's not 0:02:29.400 --> 0:02:31.840 the most efficient vehicle in the world, but right now 0:02:31.880 --> 0:02:34.880 Bitcoin sitting near all time highs, just shy of twenty thousands. 0:02:35.320 --> 0:02:37.639 The fund itself is now has a market cap of 0:02:37.680 --> 0:02:41.600 over of around fourteen billion, which is nothing to sneeze 0:02:41.600 --> 0:02:44.840 at for sure, um, but it's it's taken in a 0:02:44.880 --> 0:02:46.720 lot of money this year, would be in the top 0:02:46.760 --> 0:02:50.240 fifty for getting flows this year in so looking to 0:02:50.240 --> 0:02:53.520 see if this continues into the other five. This that 0:02:53.560 --> 0:02:56.440 brings up is a bitcoin ETF. This is something that's 0:02:56.440 --> 0:03:00.440 been talked about since possibly even earlier when the coballs 0:03:00.520 --> 0:03:03.440 first filed, and it's just the SEC is not letting 0:03:03.440 --> 0:03:06.120 it happen. Um. So there's kind of a disservice in 0:03:06.160 --> 0:03:08.400 my opinion, going on here with the SEC allowing this 0:03:08.440 --> 0:03:11.560 product to operate in the OTC markets where retail investors 0:03:11.560 --> 0:03:14.120 can buy it, but they can't buy a more efficient 0:03:14.320 --> 0:03:17.520 actual et F that holds bitcoin. So you have right 0:03:17.560 --> 0:03:20.120 now this thing on Friday closed at roughly a thirty 0:03:20.160 --> 0:03:23.200 percent premium to its underlying value, So basically you're paying 0:03:23.200 --> 0:03:26.000 a thirty percent premium just to get access to this 0:03:26.040 --> 0:03:28.600 fund that holds bitcoin. UM. So there's a bunch of 0:03:28.600 --> 0:03:30.720 issues here, But this is the best product you have 0:03:31.120 --> 0:03:34.600 UM inside the current existing brokerage system. So I'm just 0:03:34.639 --> 0:03:36.480 gonna see how this goes. And the other thing I'm 0:03:36.480 --> 0:03:39.160 watching is if a bitcoin e t F does get approved, 0:03:39.440 --> 0:03:41.720 I think there's a good chance that this product actually 0:03:41.720 --> 0:03:44.160 gets converted to an e t F, so it will 0:03:44.200 --> 0:03:46.280 open up at the door at a ten billion dollar 0:03:46.320 --> 0:03:48.560 product if it converts from a grant of trust to 0:03:48.560 --> 0:03:52.360 an e t F. Okay number two. Number two is 0:03:52.360 --> 0:03:54.800 a little more boring. UM. It's v x US, the 0:03:55.240 --> 0:03:58.760 Vanguard Total International Stock ETF UM. If you look at 0:03:58.840 --> 0:04:01.000 like global equity land Escape and you slice it the 0:04:01.000 --> 0:04:03.040 COmON way to slice in three ways, right, so you're 0:04:03.040 --> 0:04:07.720 looking at domestic equity, international, developed, and then emerging market. 0:04:08.600 --> 0:04:11.000 If you look at the domestic equity market right now, 0:04:11.120 --> 0:04:14.640 I mean over the last ten years, domestic stocks have 0:04:14.680 --> 0:04:19.640 outperformed international stocks by with emerging markets doing slightly worse, 0:04:20.040 --> 0:04:22.800 an international developed doing slightly better. But it's been an 0:04:22.800 --> 0:04:25.440 absolute dominant run by domestics. So one we're going I'm 0:04:25.480 --> 0:04:28.479 watching this to see if international stocks can do some 0:04:28.560 --> 0:04:30.840 catching up. The other thing I'm watching is v x 0:04:30.920 --> 0:04:32.680 U S has been around for about ten years has 0:04:32.720 --> 0:04:35.320 only they've seen three days of outflows. It's just a 0:04:35.360 --> 0:04:38.200 perpetual parade of inflows, partially because of the underperformance. So 0:04:38.240 --> 0:04:41.320 people are constantly rebalancing into this. So if that changes, 0:04:41.360 --> 0:04:43.360 I want to see if this thing starts seeing outflows. 0:04:44.000 --> 0:04:47.480 Number three, I'm gonna go with SNPE here, which is 0:04:47.520 --> 0:04:52.440 the Extractor's SMP five E s G E T F UM. Obviously, 0:04:52.480 --> 0:04:54.400 E s G is a hot topic, it has been 0:04:54.440 --> 0:04:56.640 for a couple of years UM, which finally starting to 0:04:56.680 --> 0:04:59.440 see assets go to the space. The other thing here 0:04:59.560 --> 0:05:02.360 is I like these types of products, they find them 0:05:02.400 --> 0:05:05.080 more interesting. Um when I mean these types of products. 0:05:05.440 --> 0:05:08.000 SMP is an exclusionary portfolio. So what it does is 0:05:08.040 --> 0:05:10.720 it gives you the SMP five hundred and basically takes 0:05:10.760 --> 0:05:13.000 out the worst actors from each sector and then a 0:05:13.040 --> 0:05:15.719 couple of other ones like tobacco and weapons. So you're 0:05:15.720 --> 0:05:18.640 getting broadly the SMP five hundred, but just kind of 0:05:18.680 --> 0:05:21.200 taking things off the edge that thinks are the worst performers. 0:05:21.600 --> 0:05:23.200 And the other thing I'm looking at here is there's 0:05:23.360 --> 0:05:26.400 three other ETFs that track the same exact index. One 0:05:26.720 --> 0:05:29.679 on the US market, which is E five from Spider 0:05:30.120 --> 0:05:33.440 and then there's one from Investco in Europe UM which 0:05:33.560 --> 0:05:36.720 is sp X E, and one in Canada that's e 0:05:36.920 --> 0:05:40.160 s G. So all of these have about just shy 0:05:40.200 --> 0:05:41.640 of a billion dollars. So I want to see how 0:05:41.760 --> 0:05:44.360 quickly those assets grow. Because SMP is obviously pushing this 0:05:44.520 --> 0:05:47.240 as a as a product, how do they decide what 0:05:47.360 --> 0:05:51.480 gets excluded? Is it just performance? So each so that 0:05:51.640 --> 0:05:56.239 it's it's actually a pretty complicated um methodology. Uh. Depending 0:05:56.279 --> 0:05:59.919 on the sector, it takes certain scores into more more important, 0:06:00.480 --> 0:06:02.960 so like they might take social more important in this area, 0:06:03.120 --> 0:06:05.320 or like obviously energy they take into carbon a little 0:06:05.360 --> 0:06:08.320 more seriously. Um. So different things gets different ways. So 0:06:08.400 --> 0:06:10.559 the whole idea is just like, based on your sector, 0:06:10.600 --> 0:06:12.560 we're gonna get rid of the worst things from that 0:06:12.720 --> 0:06:15.400 sector and we're just gonna give you basic your The 0:06:15.480 --> 0:06:17.800 goal is to give a risk return characteristics similar to 0:06:17.839 --> 0:06:21.080 the SMP, which we've done tons of research. We've talked 0:06:21.080 --> 0:06:23.920 about it on this podcast. The things that are most 0:06:24.080 --> 0:06:26.120 like beta, the most like what you can put in 0:06:26.160 --> 0:06:28.320 a core portfolio, tend to get the most assets and 0:06:28.360 --> 0:06:32.240 interests from advisors. Okay, number four, Um, so I'm gonna 0:06:32.279 --> 0:06:35.719 go with ov L which is the overlay shares Large 0:06:35.800 --> 0:06:38.480 cap Equity e t F. There's another one SPU i 0:06:38.560 --> 0:06:41.880 C from Simplify the Simplify Us Equity plus Convexity e 0:06:41.960 --> 0:06:44.960 t F. These are structured product ETFs. They have like 0:06:45.080 --> 0:06:47.320 kind of overlays and it's an interesting market for these. 0:06:47.360 --> 0:06:49.400 There's a couple of them coming to market. We've talked 0:06:49.440 --> 0:06:51.279 about the buffer products on here a bunch. We had 0:06:51.320 --> 0:06:54.480 Bruce Bond on UM. All of these kind of like 0:06:54.680 --> 0:06:57.239 options strategy e t f s are coming to market. 0:06:57.279 --> 0:06:59.680 It's a booming area and it's a good time for 0:07:00.120 --> 0:07:02.280 now with interest rate SOLO, there's a lot of people 0:07:02.360 --> 0:07:04.760 looking for yield replacement. There's a lot of people saying 0:07:04.800 --> 0:07:07.040 that you can't just do a sixty forty portfolio. So 0:07:07.120 --> 0:07:09.040 they're taking a little away from each side and going 0:07:09.080 --> 0:07:11.640 to these other types of products. UM. Some of them. 0:07:11.720 --> 0:07:14.880 O VL for instance, is outperformed since it's launch, which 0:07:15.200 --> 0:07:16.960 so I'm just kind of watching to see both the 0:07:17.000 --> 0:07:19.160 performance of these things and how well they do at 0:07:19.200 --> 0:07:25.559 gathering assets. UM. So we'll see and your your fifth 0:07:25.640 --> 0:07:29.000 and final. So my fifth and final is uh is 0:07:29.080 --> 0:07:31.880 t q q q UM and also s q q 0:07:32.040 --> 0:07:34.480 q T q q Q is the triple levered long 0:07:35.240 --> 0:07:39.080 queues or NASDAQ on t f UM. This thing has 0:07:39.480 --> 0:07:42.880 shocked US this year. It is the fourth most traded 0:07:42.920 --> 0:07:45.920 e t f on US exchanges in twenty so far, 0:07:46.280 --> 0:07:49.320 which is kind of insane for me to think about 0:07:49.360 --> 0:07:51.160 that a triple leverage product would do it. But that 0:07:51.320 --> 0:07:54.480 kind of is indicative of two things. One, Robin Hood 0:07:54.520 --> 0:07:57.920 traders will just use that term, but really retail traders 0:07:57.960 --> 0:08:02.280 on any platform have balloon or in the pandemic. And also, 0:08:02.360 --> 0:08:05.240 obviously tech has done extremely well. The cues of outperformed 0:08:05.240 --> 0:08:07.640 the SP five over a long period of time, and 0:08:07.720 --> 0:08:10.200 the cues have even outperformed by more. The t q 0:08:10.360 --> 0:08:14.040 q Q as outperformed by more because basically the way 0:08:14.040 --> 0:08:16.360 it's leverage, if it's a consistent ride up, it actually 0:08:16.440 --> 0:08:19.560 will generate more return than the the underlying investment. So 0:08:20.160 --> 0:08:22.320 basically going to be watching to see two things. One 0:08:22.560 --> 0:08:26.000 does this outperformance continue and two does that this amount 0:08:26.040 --> 0:08:28.440 of trading. I mean, this thing trades opens four billion 0:08:28.520 --> 0:08:30.840 dollars a day um, So is that going to slow 0:08:30.920 --> 0:08:33.920 down when things start opening up? Their sports back on TV, now, 0:08:34.080 --> 0:08:36.040 more gambling, more things like that, are people going to 0:08:36.160 --> 0:08:38.880 leave the trading arena UM from their deaths at home. 0:08:39.440 --> 0:08:42.280 So all that's gonna be interesting rots in one in 0:08:42.320 --> 0:08:45.400 my view, Hey Eric, Um, I don't know if you 0:08:45.480 --> 0:08:47.520 were listening to this, but James picked a ticker that 0:08:47.600 --> 0:08:50.080 wasn't in et F and then he picked two tickers 0:08:50.120 --> 0:08:52.559 instead of one. Um, what do we what do you 0:08:52.640 --> 0:08:55.160 have to say about m and his picks? Well, I 0:08:55.200 --> 0:08:57.679 think it's on brand. UM. I think James is like 0:08:58.120 --> 0:08:59.760 when I want to know, like the mindset of a 0:08:59.800 --> 0:09:02.079 mall Neil day trader. I asked James, he's got Bitcoin, 0:09:02.600 --> 0:09:05.599 he's got triple leverage cues, and he's got E S 0:09:05.679 --> 0:09:08.600 G in there and in some you know, option overlay. 0:09:09.440 --> 0:09:12.280 He's Um, I think they're great. I think all of 0:09:12.360 --> 0:09:15.439 these are really interesting. I think v x US is 0:09:15.520 --> 0:09:20.480 the one that's that's a little unexpected from from his picks. UM. 0:09:20.679 --> 0:09:24.800 That said, you know, waiting for International to catch up 0:09:24.960 --> 0:09:27.280 or do you know, to have a good run has 0:09:27.320 --> 0:09:29.880 been something that's been like a five year story. But 0:09:30.200 --> 0:09:34.000 our chief market strategist, Gina Martin Adams has talked about 0:09:34.800 --> 0:09:36.959 look out for some rotations next year and one of 0:09:37.000 --> 0:09:39.960 those is two International. So UM, I think they're great. 0:09:39.960 --> 0:09:41.800 I think they're all indicative of things that are going 0:09:41.840 --> 0:09:44.360 to play out next year. I think bitcoin et F, 0:09:44.480 --> 0:09:48.000 if you have Biden, pick somebody who is just the 0:09:48.120 --> 0:09:50.640 right person at the SEC, potentially you can see want 0:09:50.679 --> 0:09:54.000 to prove quickly. Um, but I'm still doubtful. I'll add 0:09:54.080 --> 0:09:55.760 something and I'm the Bitcoin thing that I think is 0:09:55.800 --> 0:09:59.319 really interesting. They want to prove it. Um. Europe has 0:09:59.400 --> 0:10:02.839 a bitcoin tfs already, right and they're performing, uh pretty well. 0:10:03.040 --> 0:10:05.839 So it's interesting that you have all these approvals in 0:10:05.880 --> 0:10:09.079 Europe and there's multiple bitcoin ETFs. So I have to 0:10:09.120 --> 0:10:11.160 think that the SEC is looking over in Europe. You know, 0:10:11.240 --> 0:10:12.920 usually it's the other way around. Europe's looking to what 0:10:12.960 --> 0:10:14.439 the U S is doing, but it seems like this 0:10:14.520 --> 0:10:17.520 time they're looking the other way. Um. So I think 0:10:17.760 --> 0:10:20.080 depending how some of these products trade, could hopefully open 0:10:20.160 --> 0:10:21.400 the door and make it a little bit easier for 0:10:21.440 --> 0:10:24.040 a bitcoin approval in the US. Yeah. And there's a 0:10:24.120 --> 0:10:27.400 lot of a lot of what aboutism with some of 0:10:27.440 --> 0:10:29.560 the stuff that Robin Hood people are doing. And then 0:10:29.559 --> 0:10:31.800 they're like, but there still isn't a bitcoin ETF. You know, 0:10:31.880 --> 0:10:35.239 we looked a bitcoin e t F ranked by volatility 0:10:35.280 --> 0:10:38.160 would be wouldn't even be in the top fifty. Um 0:10:38.240 --> 0:10:40.120 there are there would be you know, dozens of e 0:10:40.240 --> 0:10:42.400 t A e tps that are more volatile than a 0:10:42.440 --> 0:10:45.280 bitcoin fund would be. It just has comes down to that, 0:10:45.520 --> 0:10:50.240 you know, surveillance on exchanges and the possibility of manipulation 0:10:50.360 --> 0:10:53.040 that the SECC can't seem to get over. But and look, 0:10:53.080 --> 0:10:55.079 you know over in Sweden they've got they've had they'd 0:10:55.120 --> 0:10:57.600 launched this stuff a long time ago. There's one over 0:10:57.600 --> 0:10:59.720 there is five years old and there has not been 0:10:59.800 --> 0:11:02.160 really much problem with the premium discount. It seemed to 0:11:02.800 --> 0:11:05.720 do the job exactly as an e t P should. 0:11:06.120 --> 0:11:09.040 I'm surprised they haven't looked at that and said, okay, 0:11:09.080 --> 0:11:12.520 well it's worked there five years, let's let's give it 0:11:12.559 --> 0:11:15.400 a shot. But they're they're they're obsessed with the underlying 0:11:15.480 --> 0:11:18.000 market more than the how the product will work. And 0:11:18.120 --> 0:11:29.440 that's the issue, all right. Second youngest analysts morgan um 0:11:30.040 --> 0:11:35.520 number six e t f I SEB t I shares 0:11:35.559 --> 0:11:40.439 Convertible bond DTF. So the convertibles market have really ballooned 0:11:40.720 --> 0:11:42.800 UM this year there was sort of a bull year. 0:11:42.840 --> 0:11:45.520 We're on track for like a hundred and seventeen billion 0:11:45.559 --> 0:11:49.560 of issuants UM. This fun tracks of Bloomberg Barkley's US 0:11:49.600 --> 0:11:53.920 Convertible Cash Pay Bond Index, which is really issuers coming 0:11:53.960 --> 0:11:58.440 to market for UM, you know, really appealing borrow rates 0:11:59.160 --> 0:12:03.800 with an equity conversion option. So the the appreciation investors 0:12:04.040 --> 0:12:06.599 really is linked to the equity growth. But just the 0:12:06.760 --> 0:12:10.480 nature of the issuers has been super interesting this year. 0:12:11.000 --> 0:12:14.000 Entrence that were more distressed, like American Airlines were a Caribbean, 0:12:14.080 --> 0:12:17.559 but also just really fast growing companies that that are 0:12:17.640 --> 0:12:21.000 looking to you know, lowering or cossa borrowing UM companies 0:12:21.040 --> 0:12:24.800 like shop High and Novocure. So ultimately with with the 0:12:24.840 --> 0:12:29.439 conversion option, investors in this fund have seen UM really 0:12:29.480 --> 0:12:32.720 strong growth like fifty up this year. For for investors 0:12:32.760 --> 0:12:35.120 who really want to stick to a certain bond allocation, 0:12:35.240 --> 0:12:37.880 this is kind of an interesting, uh interesting play to 0:12:37.960 --> 0:12:39.960 do it. Some of the mutual funds have have loads, 0:12:40.000 --> 0:12:42.360 So I like that the e t F is clean 0:12:42.880 --> 0:12:46.880 share class and this fund actually only charges twenty BIPs. Okay, 0:12:47.160 --> 0:12:50.520 number seven, I'm going with q Q q J, which 0:12:50.720 --> 0:12:53.040 I don't know that one. I know, I know cues, 0:12:53.160 --> 0:12:57.640 but I don't know Cukuku j Yeah, relatively new, launched 0:12:57.640 --> 0:13:01.280 in October. It was a an extension of sort of 0:13:01.320 --> 0:13:05.400 the NASDAC brand Buy invest Go, which is really interesting. 0:13:05.520 --> 0:13:09.040 It's the next one hundred listed companies on the asset 0:13:09.120 --> 0:13:13.200 that are non financials, so in line with the QQ 0:13:13.520 --> 0:13:17.839 brand UM. Obviously, that brand has has had some pretty 0:13:17.880 --> 0:13:21.640 big strides this year just in notoriety and investors interest 0:13:21.760 --> 0:13:25.360 in in it. But this, this next one, actually we 0:13:25.480 --> 0:13:27.640 like that it overlaps with a number of sort of 0:13:27.679 --> 0:13:30.360 hot thematic categories. Even just looking at the top three holdings, 0:13:30.400 --> 0:13:35.160 I mean five G content streaming, on demand, internet, ad tech, 0:13:35.440 --> 0:13:37.719 you know this, This is just sort of intersect with 0:13:37.760 --> 0:13:40.760 a lot of interesting themes um. So we're watching this fun. 0:13:40.840 --> 0:13:42.800 We think it's going to get more traction um the 0:13:42.840 --> 0:13:46.240 coming year. It already has three million in assets. Okay, 0:13:46.559 --> 0:13:51.720 Number eight. I chose KMD Crane Chairs, Emerging Markets, Healthcare 0:13:51.800 --> 0:13:55.360 et F. This is a smaller fund, but we've seen 0:13:55.520 --> 0:13:57.679 as some have have described a bit of like a 0:13:57.800 --> 0:14:01.360 k recovery. I think, you know, healthcare along with biotech, 0:14:01.440 --> 0:14:03.839 but really, you know, healthcare and emerging markets has been 0:14:04.120 --> 0:14:06.480 part of the upper leg of that k UM. They're 0:14:06.520 --> 0:14:09.839 just some really interesting exposure here among some of the 0:14:09.920 --> 0:14:14.000 more innovative emerging markets economies. Uh. This fund has a 0:14:14.080 --> 0:14:17.040 thirty percent allocation in China, twenty to South Korea, thirteen 0:14:17.080 --> 0:14:19.920 percent Hong Kong, and thirteen percent India. So really those 0:14:20.320 --> 0:14:25.680 stronger growing emerging market economies right now. Um. The structural 0:14:26.040 --> 0:14:28.200 I guess play here is that healthcare costs as a 0:14:28.320 --> 0:14:30.520 share of GDP or supposed to grow a lot faster 0:14:30.560 --> 0:14:33.720 and emerging markets than developed Um. Just the demographic tell 0:14:33.760 --> 0:14:37.760 when they're coming along with urbanization. So the fund has 0:14:37.880 --> 0:14:41.000 seen some some really strong growing names this year, but 0:14:41.080 --> 0:14:43.200 I think it owes to the construction of it. So 0:14:43.400 --> 0:14:45.440 it's it's market cap weighted with a cap at four 0:14:45.520 --> 0:14:49.480 point five percent, and then anything over that is distributed 0:14:49.480 --> 0:14:51.760 prograd at the rest of the holding. So it does 0:14:51.880 --> 0:14:56.000 feature some some higher weightings and smaller companies. And yeah, 0:14:56.000 --> 0:14:57.840 I'm watching this one next year. I think I think 0:14:57.960 --> 0:15:01.400 the demographic trends are going to continue to play. Um. Okay, 0:15:01.480 --> 0:15:05.520 number nine, I chose that the A T T which 0:15:05.560 --> 0:15:08.640 is amplifies lithium and battery technology. I was going to say, 0:15:08.640 --> 0:15:10.920 if this has nothing to do with battery it would 0:15:10.960 --> 0:15:13.840 be like the weirdest tiger of all time. But yeah, 0:15:14.080 --> 0:15:17.000 glad to know it's battery. This is a battery t 0:15:17.160 --> 0:15:21.280 F Actually super Interestingly, this fund converted from an actively 0:15:21.360 --> 0:15:24.560 managed UH to an index based strategy in mid October, 0:15:24.640 --> 0:15:26.200 So that's part of why I'm watching it because I 0:15:26.280 --> 0:15:29.280 think the index based construction is really going to change 0:15:29.640 --> 0:15:32.880 the investment mandate change too. I think this fund is 0:15:32.920 --> 0:15:35.200 going to have a little bit of a different trajectory 0:15:35.240 --> 0:15:39.720 going forward. So they actually notched down their exposure to 0:15:40.000 --> 0:15:44.000 lithium miners by ten percent. The fund added six energy 0:15:44.080 --> 0:15:47.840 storage makers and now it's including e V auto manufacturers 0:15:47.880 --> 0:15:50.120 in a meaningful way. It's going to try to contain 0:15:50.280 --> 0:15:54.440 those automakers to just the exposure and get more of 0:15:54.520 --> 0:15:57.400 the end to end battery life cycle and still keep 0:15:57.480 --> 0:16:00.480 the miners in there. Um. But know it's at a 0:16:00.520 --> 0:16:03.680 Tesla Neo like a bunch of these these EV makers. 0:16:03.720 --> 0:16:07.720 Though the EV maker has to have top line revenue 0:16:07.800 --> 0:16:12.240 from electric vehicles. But interestingly, the other auto makers as 0:16:12.320 --> 0:16:15.040 they they you know, maybe naturally increase their e V 0:16:15.160 --> 0:16:18.760 output could be considered for this fund. So I think 0:16:18.800 --> 0:16:21.920 the construction is interesting. They even have like sort of 0:16:21.960 --> 0:16:26.680 a market cap minimum for some of the lithium miners 0:16:26.840 --> 0:16:29.040 and other metals producers, so they have to have a 0:16:29.040 --> 0:16:30.880 reasonable share of the market. I think it just tries 0:16:30.920 --> 0:16:34.960 to add really close to this the sector and the 0:16:35.080 --> 0:16:38.680 growth in lithium ion battery demand. Okay, and your your 0:16:38.840 --> 0:16:44.120 tent my my fifth and the tent pick is UH 0:16:44.360 --> 0:16:48.400 NET and et L fundamental income net least rate e 0:16:48.520 --> 0:16:52.600 t F. This is an interesting UH sub segment of 0:16:52.720 --> 0:16:57.560 the of the single Tenant Reaped index in the US. 0:16:57.640 --> 0:16:59.520 So this is this is an index product, but it's 0:16:59.560 --> 0:17:04.159 it's sort of a sub index of only those reads 0:17:04.240 --> 0:17:06.960 that operate with triple netleases, so the managers actually have 0:17:07.000 --> 0:17:10.600 a much better path through of rental income to investors. 0:17:10.680 --> 0:17:13.159 So these tend to be this is a higher yielding 0:17:13.240 --> 0:17:16.720 segment right now, it's around four four four percent. Just 0:17:16.840 --> 0:17:19.280 as a starting point, the BI single tenant read index 0:17:19.320 --> 0:17:22.840 has done fiftcent better than the broader UH North American 0:17:22.920 --> 0:17:25.720 read index. I think that proved some defensibility on the 0:17:25.760 --> 0:17:28.919 single tenant side, and I see that kind of content 0:17:29.000 --> 0:17:31.680 that defensibility kind of continuing next year. This being a 0:17:31.720 --> 0:17:34.320 little bit more of a shielded segment of the real 0:17:34.440 --> 0:17:37.679 estate operators. But you know, I think there's really interesting 0:17:37.800 --> 0:17:40.400 embedded portfolio diversity. This is sort of a big range 0:17:40.440 --> 0:17:44.560 of tenant types. Um and for real estate or or 0:17:44.680 --> 0:17:47.959 a yield sleeve. This is this is an interesting strategy. Eric, 0:17:48.000 --> 0:17:52.840 what do you think about her picks? They're great. Um, 0:17:52.960 --> 0:17:55.480 They're all kind of out of the box stuff. I 0:17:55.520 --> 0:17:56.840 hadn't really thought of. The only one that I was 0:17:57.000 --> 0:17:59.080 I think where the whole team was on was q 0:17:59.240 --> 0:18:02.360 Q Q J. Think this is this product came out. 0:18:02.880 --> 0:18:05.399 Rarely a product gets launched and you're like, God, that 0:18:05.520 --> 0:18:07.680 makes so much sense, Like, I'm surprised they didn't do 0:18:07.760 --> 0:18:10.400 that one sooner. You know, the next one in the cues. 0:18:10.440 --> 0:18:12.399 I suppose that the cues were so on fire this 0:18:12.560 --> 0:18:16.280 year that it just the idea was more natural than 0:18:16.520 --> 0:18:18.399 the years past. But that's a good one. I like. 0:18:18.520 --> 0:18:21.280 I like the e M themes are analysts were off 0:18:21.720 --> 0:18:25.120 for b I, who covers all the emerging markets. He's 0:18:25.160 --> 0:18:27.440 written naturally about themes, even though E t f s 0:18:27.440 --> 0:18:30.720 are not his coverage, and they naturally connect with some 0:18:30.880 --> 0:18:33.440 of the things the issuers have been doing with try 0:18:33.520 --> 0:18:36.639 to unbundle em a little bit, to try to capture 0:18:36.680 --> 0:18:39.320 the more growthy areas and cut out the stuff that 0:18:39.320 --> 0:18:42.080 doesn't grow that fast. And then the battery you know, 0:18:42.600 --> 0:18:45.320 lithium has l I T the competing one has one 0:18:45.359 --> 0:18:47.560 point three billion, which is way more than I thought 0:18:47.600 --> 0:18:50.520 it did. And then the driver the electric driving car 0:18:50.720 --> 0:18:52.520 e t F there's like three of them now they 0:18:52.560 --> 0:18:55.399 also have about half a billion, so there's clearly interest 0:18:55.520 --> 0:18:57.280 in that one. So I also thought that was good. 0:18:57.280 --> 0:18:59.840 And also I see I V C T I rarely 0:19:00.000 --> 0:19:03.800 and think about convertibles, and it's the best performing fixed 0:19:03.800 --> 0:19:07.320 income et F of the year, which again was a shocker. 0:19:07.440 --> 0:19:11.080 So UM, I like, I enjoy being surprised by the picks, 0:19:11.119 --> 0:19:14.000 and I was surprised by like four of these five. Yeah, 0:19:14.080 --> 0:19:15.960 I mean the the I C v T pick is 0:19:16.000 --> 0:19:17.760 the one that jumped out at me, just because when 0:19:17.800 --> 0:19:19.240 she said it and I looked it up, I was like, 0:19:19.400 --> 0:19:22.040 that chart is impressive to look at, UM, And it's 0:19:22.080 --> 0:19:24.639 definitely a unique way that she mentioned to get like 0:19:24.840 --> 0:19:27.400 your your fixed income exposure. I talked about using those 0:19:27.480 --> 0:19:31.280 overlay structured products strategies as kind of like a way 0:19:31.359 --> 0:19:34.040 to change your sixty forty portfolio. Maybe you take a 0:19:34.040 --> 0:19:36.080 little from me to put in those and I think 0:19:36.160 --> 0:19:38.200 I c VT also kind of fits into that theme 0:19:38.240 --> 0:19:40.159 because you get a little more of the equity upside, 0:19:40.200 --> 0:19:42.240 but there's a little more principal protection on the downside 0:19:42.280 --> 0:19:46.159 theoretically because it is it does have a fixed income floor. UM. 0:19:46.240 --> 0:19:48.720 So I think I c BT also fits into that 0:19:48.960 --> 0:19:52.760 theme that I spoke about, UM pretty well. I like 0:19:52.960 --> 0:19:55.480 the q q J pick as well, UM, and I 0:19:55.560 --> 0:19:58.919 like it from the angle that it's a MidCap focus. Um. 0:19:59.000 --> 0:20:01.119 You know, NBUI, which is the mid cap ETF, is 0:20:01.280 --> 0:20:03.920 one of the best performing ETFs of all time, and 0:20:04.000 --> 0:20:07.000 it's traditionally been an area that Nastac just frankly hasn't 0:20:07.040 --> 0:20:09.240 focused on. So they they it's pretty interesting that they 0:20:09.280 --> 0:20:11.040 found that gap and now they're able to compete in 0:20:11.080 --> 0:20:14.679 the MidCap space as well. Terific If keep the mic, 0:20:15.600 --> 0:20:19.639 let's hear what you got alright. UM, My picks aren't 0:20:19.640 --> 0:20:22.600 as hardcore millennial because I grew up in the analog 0:20:22.720 --> 0:20:25.239 world two a little bit, so I've seen them both. Um. 0:20:25.320 --> 0:20:27.760 But the first one I'll start with is a SPG 0:20:28.000 --> 0:20:31.399 p UM. It's the Investo SMP five D GARB e 0:20:31.560 --> 0:20:34.960 t f UM GARB standing for growth at a Reasonable Price, 0:20:35.400 --> 0:20:37.560 But the way I explain this one, it's like it's 0:20:37.600 --> 0:20:41.760 like growth light. You're seeing this transition over to value. Now, 0:20:42.119 --> 0:20:44.160 value has been doing really well. You've seen it come 0:20:44.240 --> 0:20:46.960 up more and more. But if there's one thing that 0:20:47.119 --> 0:20:49.640 history has taught us, it's that anyone who keeps allocating 0:20:49.680 --> 0:20:52.960 the value gets burned. Um. What GARB does is it 0:20:53.119 --> 0:20:55.359 it still doesn't allow you to let go of these 0:20:55.440 --> 0:20:58.399 growth companies, but it down shifts a little bit. So 0:20:58.840 --> 0:21:01.119