WEBVTT - Inside "Inside ETFs" 0:00:06.080 --> 0:00:09.320 Welcome new trillions. I'm Joel Lebert and I'm Eric Belchers. 0:00:09.800 --> 0:00:15.120 This week we have some news. You mean the internal news. Yeah, okay, 0:00:16.160 --> 0:00:18.799 you got promoted. I got a job. You did. You 0:00:18.840 --> 0:00:21.840 are now editor of Business Week. Yeah, Bloomberg business Week. 0:00:22.160 --> 0:00:24.520 That's wild. I can't believe I'm sitting right across from you. 0:00:24.800 --> 0:00:27.360 I'm so excited. No, it's great, and my life is 0:00:27.760 --> 0:00:30.319 moving out a new velocity. Oh. I know you have 0:00:30.400 --> 0:00:32.680 been a harder man to get ahold of. I've been 0:00:32.680 --> 0:00:35.840 having to pron out the notes a little more often. Um, yeah, 0:00:35.640 --> 0:00:37.520 you have to pick up you're a big wig. Okay, 0:00:37.600 --> 0:00:40.000 well I appreciate that. I'm so excited that it's gonna 0:00:40.000 --> 0:00:41.760 be great. So I have a new job, but you 0:00:41.800 --> 0:00:45.080 have the same old job. Yeah, but I'm still tolerable. 0:00:46.159 --> 0:00:50.360 So uh in this capacity in your old job. You 0:00:50.720 --> 0:00:54.280 got to go to Florida recently for basically what is 0:00:54.560 --> 0:00:56.920 the world's biggest trade show for E t f s 0:00:57.200 --> 0:00:59.360 called Inside e t f S. Yes, this is the 0:00:59.400 --> 0:01:01.840 one to go to. This is I refer to it 0:01:01.840 --> 0:01:03.560 as the comic Con of E t f s. You 0:01:03.560 --> 0:01:07.240 could argue it's a little Catalina wine mixer. It's the event. 0:01:07.400 --> 0:01:10.480 It's really big. It's eleven years now. This year there 0:01:10.480 --> 0:01:14.000 were twenty four hundred people. I've been going for seven years. 0:01:14.319 --> 0:01:16.320 When it first started, there was only four hundred and 0:01:16.360 --> 0:01:19.280 thirty eight people there, so huge bump up. There were 0:01:19.280 --> 0:01:21.920 twenty five sponsors the first year. This year there were 0:01:21.920 --> 0:01:25.640 a hundred and twenty sponsors and booths, right, so it's 0:01:25.640 --> 0:01:28.560 just getting bigger. The whole hall is full of of booths. 0:01:28.600 --> 0:01:31.080 And I remember when I first went seven years ago. 0:01:31.120 --> 0:01:33.000 I remember seeing a guy with a fishing shirt and 0:01:33.080 --> 0:01:35.720 short song like. Advisors would go there and just go 0:01:35.800 --> 0:01:37.720 to a few panels and then go deep sea fishing 0:01:39.040 --> 0:01:43.520 in Hollywood, Hollywood, Florida, and it was very casual. It's 0:01:43.560 --> 0:01:46.440 gotten more corporate and there's bigger companies. You know, there's 0:01:46.880 --> 0:01:49.480 big Wall Street firms, there's big By Side firms. Not 0:01:49.560 --> 0:01:51.840 everybody's in a suit and tie. I mean, I went tieless, 0:01:51.880 --> 0:01:54.240 but I definitely dressed up. But there's no more fishing 0:01:54.240 --> 0:01:56.680 shirts and anything like that. But one thing I will 0:01:56.720 --> 0:01:58.960 say is, you know, it's interesting you look at the 0:01:59.000 --> 0:02:02.440 E T F industry. All told, ETFs make about seven 0:02:02.520 --> 0:02:05.680 billion in revenue every year. So you know, when I 0:02:05.800 --> 0:02:08.600 first went that. I remember my colleague and Data going 0:02:08.639 --> 0:02:10.639 to the Salt Conference, which is the hedge fun one. 0:02:11.040 --> 0:02:14.440 They got like Joe Biden, Mike Tyson, Jeb Bush, cigar 0:02:14.600 --> 0:02:17.240 and vodka parties. This I went there, there was an 0:02:17.240 --> 0:02:20.000 ice cream social in a YouTube cover band. Because there's 0:02:20.040 --> 0:02:23.040 just less money, right, I do think there has been 0:02:23.040 --> 0:02:25.280 a little more money into the industry and a little 0:02:25.320 --> 0:02:28.079 more marketing dollars in because this year they had Serena Williams, 0:02:28.680 --> 0:02:32.880 um they had a general McCrystal. Celebrities like real, real people, 0:02:33.400 --> 0:02:35.919 really celebrity. When you go there, do people feel like 0:02:35.919 --> 0:02:38.960 you're a celebrity? D list? Yeah, I'm probably D list 0:02:39.480 --> 0:02:46.760 of like, yeah, I'm not sure, all right. This week 0:02:46.840 --> 0:02:49.800 on Trillions, Eric takes a field trip to the comic 0:02:49.840 --> 0:02:54.000 Con of E T S. So you read a recorder 0:02:54.080 --> 0:02:55.520 when you went to inside et F and you ask 0:02:55.560 --> 0:02:58.200 some questions of people there, which we're gonna get to. 0:02:58.440 --> 0:03:00.280 But before we get into that, just tell me a 0:03:00.280 --> 0:03:02.960 little bit more about what this place is. Sure, it's 0:03:03.000 --> 0:03:05.960 the Diplomat Hotel in Florida. You go down there, it's 0:03:06.000 --> 0:03:09.200 Sunday morning. They started like noon on Sunday. A lot 0:03:09.240 --> 0:03:12.840 of people don't. Yeah, and they end on Wednesday, so 0:03:12.960 --> 0:03:15.320 it's a it's a couple of days. And like I said, 0:03:16.200 --> 0:03:19.000 people the majority seem to be issuers, but you have 0:03:19.160 --> 0:03:21.400 also a lot of advisors, right, So the issuers want 0:03:21.400 --> 0:03:23.840 to talk to the advisors. Then the service providers want 0:03:23.840 --> 0:03:25.679 to talk to the issuers. So everybody's sort of trying 0:03:25.720 --> 0:03:27.320 to do business there at the same time. It's a 0:03:27.320 --> 0:03:29.919 little incestual. You see the same it is. It's a 0:03:29.919 --> 0:03:33.560 big cozy hot tub or jacuzzi in my case. Uh, 0:03:34.200 --> 0:03:37.600 what was the mood this year? I thought it was happy. Um, 0:03:37.880 --> 0:03:40.600 there was a four hundred and sixty seven billion dollars 0:03:40.640 --> 0:03:43.760 that came into et F last year. That's more then 0:03:43.800 --> 0:03:46.160 they had an assets total when the thing started eleven 0:03:46.240 --> 0:03:49.640 years ago, so we're talking big boy numbers. Everybody's happy. 0:03:50.080 --> 0:03:53.880 I think there's some concern that just the market has 0:03:54.000 --> 0:03:56.760 just been going up too long, but that isn't They 0:03:56.880 --> 0:03:59.520 still are fired up about the et F structure having 0:03:59.560 --> 0:04:02.600 the winning end out there. And as this event is 0:04:02.680 --> 0:04:06.160 kind of snowballed, how has it changed? Like I said, 0:04:06.200 --> 0:04:09.320 it's gotten more formal. You see bigger companies, bigger exhibits 0:04:09.840 --> 0:04:13.600 this year, Oppenheimer had this huge It was really effective. 0:04:13.640 --> 0:04:17.240 But they did a multi factor equalizer, like a life 0:04:17.279 --> 0:04:20.479 size stereo equalizer. And if you it turned to the market, 0:04:20.520 --> 0:04:21.920 you think that's going to be there, like say let's 0:04:21.920 --> 0:04:25.520 say a down market or an upmarket or raising rates, 0:04:25.960 --> 0:04:28.920 and then the factor levels would change from value to 0:04:29.000 --> 0:04:32.440 grow to a momentum to size and it would sort 0:04:32.480 --> 0:04:34.160 of tell you where to tell your portfolio. So it 0:04:34.240 --> 0:04:38.000 was a multi factor equalizer life size. Then Deutsche Bank 0:04:38.080 --> 0:04:40.440 had an ice cream truck. It's always good to give 0:04:40.480 --> 0:04:42.680 up fore ice cream. That worked. Everybody was like, I 0:04:42.760 --> 0:04:44.440 love the ice cream, and the ice cream truck was 0:04:44.480 --> 0:04:48.080 supposed to symbolize how h y LB a hio bondy 0:04:48.160 --> 0:04:52.640 TF is plain vanilla. Now back to food. I mean, 0:04:53.080 --> 0:04:55.200 I'm so easy and I do remember five years ago 0:04:55.640 --> 0:04:59.240 the big debate and controversial thing was smart beta. People 0:04:59.600 --> 0:05:03.320 to turn and piss people off the concept. People were 0:05:03.360 --> 0:05:06.320 pro and anti and every panel matter what was about 0:05:06.320 --> 0:05:09.040 somebody to bring up smart beta. Now smart beta is 0:05:09.080 --> 0:05:12.760 completely accepted. That's just like was in its lane. Bitcoin 0:05:12.920 --> 0:05:15.239 was the thing and cryptocurrencies that made it into every panel. 0:05:15.279 --> 0:05:18.120 So I was wondering about the themes totally heard about, right, 0:05:18.160 --> 0:05:22.240 and crypto is all over huh yep, cryptocurrencies. Another big 0:05:22.320 --> 0:05:25.520 thing was this the hedge fund industry and how ETFs 0:05:25.560 --> 0:05:27.800 are yet to sort of like knock out or give 0:05:27.839 --> 0:05:29.840 a good punt to the hedge fund world. And people 0:05:29.880 --> 0:05:32.920 think that liquid aults and hedge funds are the next 0:05:33.000 --> 0:05:36.240 place where e t s will make cause some damage 0:05:36.279 --> 0:05:39.520 because hedge funds are have maintained their three trillion as 0:05:39.560 --> 0:05:41.720 whereas active mutual funds are feeling the pain of et 0:05:41.960 --> 0:05:45.840 s more so. Between that that big dial and the 0:05:45.920 --> 0:05:48.880 ice cream truck, what was the coolest thing you saw? 0:05:49.400 --> 0:05:52.440 Quincy Jones? Yeah, I know that was fun. I mean, look, 0:05:52.480 --> 0:05:54.480 I grew up with thriller, so this was a This 0:05:54.600 --> 0:05:56.120 is a pretty big He's sitting at the booth. It's 0:05:56.160 --> 0:05:59.240 almost like the booths are getting more and more like 0:05:59.320 --> 0:06:01.880 having to have something like really attractive there. You know, 0:06:01.960 --> 0:06:04.080 you have all these like giveaways, which, by the way, 0:06:04.160 --> 0:06:07.000 I brought you a something from there that I think, 0:06:07.320 --> 0:06:10.200 yeah from Quincy, not from Quincy, but something from the 0:06:10.240 --> 0:06:13.360 event that is swag that I feel like you're ready 0:06:13.400 --> 0:06:18.760 for it is a pin the e T f nerd 0:06:19.040 --> 0:06:21.600 oh Man. I'm literally gonna put this on my lapel 0:06:21.960 --> 0:06:26.600 right now. I feel like I'm part of the tribe. Now, 0:06:27.600 --> 0:06:29.440 even though if I showed up at this thing, they'd 0:06:29.480 --> 0:06:32.120 be like, get this guy out of here. They'd be like, 0:06:32.240 --> 0:06:34.440 who's eating all the ice cream? Yeah, he's just eating 0:06:34.440 --> 0:06:36.080 ice cream? Who is this guy? You're not an E. T. 0:06:36.200 --> 0:06:39.400 F nerd? You're an ice cream eater? No? No, look man, 0:06:39.480 --> 0:06:42.400 you're This is a it's a big tent. And I think, 0:06:42.560 --> 0:06:45.239 uh that I like the idea of E. T. F. Nerd. Listen, 0:06:45.600 --> 0:06:48.040 this conference really has his finger on the pulse of 0:06:48.120 --> 0:06:51.200 the new investing in Wall Street, which is more nerdish, 0:06:51.400 --> 0:06:54.800 more data driven, more diverse. This is not the Bud 0:06:54.960 --> 0:06:56.920 Fox Wall Street that you see at this conference. This 0:06:57.080 --> 0:07:00.520 is much more people all working together. You know, there's 0:07:00.600 --> 0:07:02.160 I guess a little element that when when you have 0:07:02.960 --> 0:07:04.880 some of the bigger firms involved. But you know, it's 0:07:05.000 --> 0:07:07.240 very pleasant. That's why I like it. And I think 0:07:07.279 --> 0:07:10.120 that the nerd word fits well to the tone of 0:07:10.200 --> 0:07:11.440 some of the people who are in it. I'll take 0:07:11.480 --> 0:07:14.720 it happily. Welcome to the nerd club. So so you 0:07:14.840 --> 0:07:16.760 better with quorder. You've got to talk to a couple 0:07:16.800 --> 0:07:19.840 of different people who do various different things in the industry. 0:07:20.080 --> 0:07:22.120 Who's the first one you want to talk about? UM, 0:07:22.160 --> 0:07:24.360 let's start with West Gray. West was there with the 0:07:24.440 --> 0:07:28.120 two of his colleagues, and West is a He's interesting 0:07:28.200 --> 0:07:30.680 because he's not he's a PhD. He's a guy who 0:07:30.800 --> 0:07:32.880 used to run family office money, like the kind of 0:07:32.920 --> 0:07:36.240 guy only an institution would hire. But he launches some 0:07:36.360 --> 0:07:40.920 ETFs that do his active strategy. But his clients don't 0:07:41.000 --> 0:07:44.000 like taxes and ets very tax efficient, so he you 0:07:44.120 --> 0:07:46.240 get access to a guy like West through an e 0:07:46.320 --> 0:07:48.840 t F. So West is there sort of as a 0:07:48.880 --> 0:07:51.640 small issuer, but also as a really respected sort of 0:07:51.680 --> 0:07:55.480 PhD active manager. Listen to that clip everyone in the 0:07:55.560 --> 0:07:58.000 world and then ETF industries here, so we gotta talk 0:07:58.040 --> 0:08:00.000 to our service survivors. We have a lot of clients 0:08:00.120 --> 0:08:02.680 down here where we walk him around and show him 0:08:02.680 --> 0:08:05.240 what's cooking, UM, and then just yeah, meet and greet, 0:08:05.320 --> 0:08:08.080 be part of the scene. It's unlike mutual fund conferences 0:08:08.120 --> 0:08:10.000 are a lot of the old financial services. This one's 0:08:10.000 --> 0:08:12.280 actually fun UM. So you can, you know, have a 0:08:12.400 --> 0:08:14.640 drink with your favorite people and it's a great time. 0:08:15.760 --> 0:08:18.560 So I think he captures the spirit in a nutshell. 0:08:18.920 --> 0:08:21.120 It's fun have a drink. It's again a little bit 0:08:21.160 --> 0:08:24.280 of the Catalina wine mixer angle. And ultimately he doesn't 0:08:24.280 --> 0:08:26.520 seem like a wine mixer kind of guy. No, I 0:08:26.600 --> 0:08:30.000 think he gets down. Actually, uh, he's interesting because he's 0:08:30.000 --> 0:08:33.520 a guy who is somebody trying to market the fund. 0:08:33.679 --> 0:08:35.319 And he's got the right attitude, I think, which is, 0:08:35.400 --> 0:08:37.079 you know, I'm just here to keep the bar low, 0:08:37.200 --> 0:08:38.679 and you know, good things happen and you never know, 0:08:38.840 --> 0:08:41.000 like you meet somebody and then three months later it 0:08:41.040 --> 0:08:44.040 turns into something. But ultimately West is also one of 0:08:44.080 --> 0:08:46.800 these guys on Twitter, and so that's how I met him. 0:08:46.880 --> 0:08:49.079 And there's a lot of people there who met on 0:08:49.200 --> 0:08:51.520 Twitter or digitally. I met a couple of people this 0:08:51.720 --> 0:08:54.040 this time who I felt like I know very well, 0:08:54.559 --> 0:08:56.040 and now I met him in person just because I've 0:08:56.040 --> 0:08:58.080 been communicating with them on Twitter. And West is big 0:08:58.160 --> 0:09:00.400 in that scene too, So it's almost like meeting a 0:09:00.480 --> 0:09:03.760 pen pal or something. Okay, who's the next person you 0:09:03.880 --> 0:09:06.080 got to talk with? We're gonna hear from Brian Lake 0:09:06.160 --> 0:09:08.720 of JP Morgan, who used to be at Power Shares 0:09:09.240 --> 0:09:10.680 and he's a guy who has been in the industry 0:09:10.679 --> 0:09:12.400 a long time. He was at the very first inside 0:09:12.440 --> 0:09:16.400 et s. What's noticeable to me is that how many 0:09:16.480 --> 0:09:19.480 different organizations are here. I mean when you when you started, 0:09:19.600 --> 0:09:21.760 or even just a handful of years ago, there was 0:09:21.840 --> 0:09:25.280 maybe ten twenty booths and in different issues, and now 0:09:25.320 --> 0:09:27.240 there's over a hundred fifty different new shoes or something 0:09:27.280 --> 0:09:29.520 crazy like that. And everybody's got their own unique kind 0:09:29.559 --> 0:09:32.280 of perspective on it. Um. But what's interesting is, you know, 0:09:33.360 --> 0:09:35.440 you look at the et F industry compared to like, say, 0:09:35.520 --> 0:09:38.520 for example, the traditional neutra fund industry, and you know, 0:09:38.679 --> 0:09:41.360 there's over a thousands of different neutro fund companies with 0:09:41.440 --> 0:09:44.320 over fifteen thousand different neutrol funds out there. So, uh, 0:09:44.600 --> 0:09:46.319 you can still see that the ETF industry is just 0:09:46.440 --> 0:09:48.800 young in the grand scheme of things. So when you 0:09:48.880 --> 0:09:50.559 were in Florida, that might have been the beginning, the 0:09:50.600 --> 0:09:52.839 top of the first inning. What inning are we in now? 0:09:53.880 --> 0:09:55.120 I don't even know if that was the top of 0:09:55.160 --> 0:09:56.719 the first I mean that might have been warmups in 0:09:56.760 --> 0:09:58.839 Little League or something like that, because now we're barely 0:09:59.200 --> 0:10:01.160 you know, maybe we're playing in the first inning in 0:10:01.360 --> 0:10:04.319 uh major leagues. But um, you know, I started orienting 0:10:04.320 --> 0:10:05.720 myself and I was thinking about on the plane right 0:10:05.760 --> 0:10:07.600 over here, I think it's time to start talking about 0:10:07.600 --> 0:10:10.559 thirty trillion and so thirty and thirty um, and I 0:10:10.600 --> 0:10:13.680 actually think if you start measuring that out, the numbers 0:10:13.679 --> 0:10:15.480 aren't too far off. I think we could actually get 0:10:15.480 --> 0:10:17.719 towards that direction. It so about twelve years away for 0:10:17.840 --> 0:10:20.240 a five. Now you can see a double a double 0:10:20.360 --> 0:10:22.439 kind of thing. You're you're You're not terribly far off. 0:10:23.400 --> 0:10:25.800 So that guy is optimistic, yeah, I mean, And the 0:10:25.920 --> 0:10:28.439 thing is, this is a guy at JP Morgan. Jpen 0:10:28.440 --> 0:10:30.480 Worgan had a huge booth there. You have a lot 0:10:30.520 --> 0:10:34.400 of these big firms being optimistic. That to me really 0:10:34.720 --> 0:10:37.560 is big because they've joined the sort of grassroots thing. 0:10:38.040 --> 0:10:40.079 And also what I found interesting was this comparison to 0:10:40.120 --> 0:10:42.839 the mutual fun world. You know, when you have people 0:10:42.920 --> 0:10:45.360 thinking that this is the future and it's cool, and 0:10:45.440 --> 0:10:48.599 these are even big firms saying this. I mean, I 0:10:48.720 --> 0:10:50.880 can't imagine going to the I C I conference that 0:10:50.920 --> 0:10:53.079 which is the big mutual fun one, and I've been there. 0:10:53.280 --> 0:10:55.800 It's fine, it's just not it doesn't have that same 0:10:55.880 --> 0:10:57.880 vibe and it's gotta be tough. But a lot of 0:10:57.920 --> 0:11:00.240 these firms also go there. They have mutual fund so 0:11:00.280 --> 0:11:03.040 they're sort of you know how they're doing both sides 0:11:03.800 --> 0:11:07.360 sidebar or maybe footnote. The conference business. I've been to 0:11:07.880 --> 0:11:10.360 consumer electronic shows ce YES, which is like the world's 0:11:10.360 --> 0:11:14.080 biggest trade show multiple times. The business of the booths 0:11:14.600 --> 0:11:17.880 I think is like a great story because everybody's got 0:11:17.960 --> 0:11:20.240 like this booth that you know, has to be on brand, 0:11:20.440 --> 0:11:22.760 and and it's so big, and they like break them 0:11:22.800 --> 0:11:25.120 down and put them in storage or ship them and 0:11:25.200 --> 0:11:27.439 it's I mean, it's a it's a huge business. No 0:11:27.840 --> 0:11:29.599 I had. I was there on Sunday and there was 0:11:29.679 --> 0:11:31.880 these crates and they had like that stamp like at 0:11:31.880 --> 0:11:33.640 a rock show instead of iron made, and it said 0:11:33.679 --> 0:11:36.439 like wisdom Tree and it was like the loading you 0:11:36.520 --> 0:11:38.199 know what I mean, And you're right, it's like a 0:11:38.240 --> 0:11:41.199 big show and the boost You're right. There was thematically 0:11:41.280 --> 0:11:43.480 linked swag, which I love. There's pens and stuff, but 0:11:44.040 --> 0:11:46.760 well like one guy had like a robot and it's 0:11:46.920 --> 0:11:50.319 and it's appendages were usp ports. You could plug in 0:11:50.440 --> 0:11:54.679 four iPhones charging from this. Yeah. By the way, I 0:11:54.720 --> 0:11:57.920 saw a photo I think you tweeted it right. The 0:11:58.400 --> 0:12:00.640 robo et F didn't they have a robot there? They 0:12:00.679 --> 0:12:03.360 had an actual robot working on like a chip that 0:12:03.480 --> 0:12:05.840 was moving its arms around and should be that again 0:12:07.320 --> 0:12:09.520 it was doing the robot. It was like, yeah, I'm 0:12:09.520 --> 0:12:11.240 from the eighties, I know how to do the robot. Okay, 0:12:11.920 --> 0:12:14.120 don't know, we don't, don't ask me, okay. So we 0:12:14.400 --> 0:12:16.840 talked to the issuer and then we talked to uh 0:12:17.080 --> 0:12:19.559 JP Morgan on the custody side. Who else? So next 0:12:19.679 --> 0:12:22.760 up we're gonna hear from Mike Costa of The Daily Show, 0:12:23.080 --> 0:12:24.800 Daily Show. Yeah, I mean this is like for real, 0:12:24.880 --> 0:12:27.280 We actually like real people there. Yeah. He's a writer 0:12:27.440 --> 0:12:29.959 and he's a stand up comedian and I gotta tell 0:12:30.000 --> 0:12:33.320 you he did a set during lunch. It was knockout man. 0:12:33.520 --> 0:12:35.319 You gotta look this guy up. It was like it 0:12:35.400 --> 0:12:37.480 was like a machine gun of comedy. It was. It 0:12:37.600 --> 0:12:42.920 was remarkable. What advice do you have for et investors? Well, 0:12:42.920 --> 0:12:44.720 I don't even know what et F stands for. I mean, 0:12:44.960 --> 0:12:47.320 Roy Wood Jr. Made the joke that it was electric 0:12:47.400 --> 0:12:50.880 funds transfer. But that's the F two, you know, isn't 0:12:50.880 --> 0:12:53.720 it Isn't it like put money in when the stock 0:12:53.760 --> 0:12:55.720 markets going up? Take money on when the stock markets 0:12:55.760 --> 0:12:57.679 going down? Is that I'm a comic. I don't know 0:12:57.800 --> 0:13:00.640 this ship. That music was amazing. We guys in like 0:13:00.720 --> 0:13:03.679 a like a jazz club after lunch. I guess they have, 0:13:03.920 --> 0:13:06.160 you know, tracks they play when people are shuffling out 0:13:06.200 --> 0:13:08.640 of the hall, and they played jazz. Yeah, I look 0:13:09.040 --> 0:13:10.599 a lot of I had to interview people right on 0:13:10.679 --> 0:13:12.640 the spot before they you know, went home or whatever. 0:13:12.760 --> 0:13:14.960 So yeah, I don't know if it went with that scenario, 0:13:15.160 --> 0:13:17.679 but it was funny. It was It was interesting when 0:13:17.679 --> 0:13:19.280 he said put the money in when the stocks go up, 0:13:19.320 --> 0:13:20.839 and take it out when they go down, And he 0:13:20.960 --> 0:13:23.640 really put his finger on the biggest problem with investors. 0:13:23.880 --> 0:13:25.680 You know, when the chart goes up, they start investing, 0:13:25.720 --> 0:13:27.360 and when the chart goes down, they take the money out. 0:13:27.360 --> 0:13:29.319 And that's the exact opposite of what you should do. 0:13:30.000 --> 0:13:32.760 So he should probably attend and uh go to the 0:13:32.800 --> 0:13:44.400 some of the panel sessions. Okay, Uh, a lot of 0:13:44.480 --> 0:13:47.680 duds here at this place. You'd get detected any women. 0:13:47.760 --> 0:13:50.520 There were a lot of dudes, but no women were there. 0:13:50.720 --> 0:13:53.160 There's a big organization called Women and Ets. They had 0:13:53.160 --> 0:13:56.360 a big breakfast. They're a huge organization with branches, and 0:13:56.720 --> 0:13:58.560 I gotta think at this point in fifty or sixty 0:13:58.600 --> 0:14:01.280 cities it's major. There's a lot of women the industry. 0:14:01.360 --> 0:14:04.440 It's still prominantly men though. But yeah, we got Elizabeth 0:14:04.480 --> 0:14:06.800 Kashner from fact Set who's sort of like me. He's 0:14:06.800 --> 0:14:09.040 like a Todd rosen Bluther's. There's about six or seven 0:14:09.040 --> 0:14:10.719 of us that are have been analysts for about a 0:14:10.760 --> 0:14:13.280 decade and she's one of them. Women in E T 0:14:13.480 --> 0:14:16.080 S is a tremendous force for good in this industry 0:14:16.400 --> 0:14:20.840 in terms of partnering women men and are major organizations 0:14:21.280 --> 0:14:23.280 to achieve a goal that we all believe in, which 0:14:23.400 --> 0:14:26.760 is the advancement of women in the financial services field. 0:14:27.480 --> 0:14:30.000 There is a tremendous movement of foot which has already 0:14:30.040 --> 0:14:33.440 been mentioned from the stage at least twice that I've seen, 0:14:33.920 --> 0:14:37.880 and that is the rise of social activism in terms 0:14:38.040 --> 0:14:41.280 of the major asset managers taking a stand in terms 0:14:41.360 --> 0:14:44.560 of how they vote their shares. There's a lot of 0:14:44.800 --> 0:14:47.800 buzz about E s G investing. Frankly, there's not a 0:14:47.880 --> 0:14:50.480 lot of assets in E s G investing, nor is 0:14:50.520 --> 0:14:55.520 there any demonstrated risk adjusted return. However, the move to 0:14:55.680 --> 0:14:59.920 be active and take a stand with trillions of dollar 0:15:00.200 --> 0:15:05.640 is and something like five tent of assets in US companies, 0:15:06.040 --> 0:15:09.080 that moves the needle. I'm starting to see that openly 0:15:09.240 --> 0:15:15.760 discussed and claimed. Bravo. Women in e TF is maybe 0:15:15.800 --> 0:15:18.200 five or six years old, and it's going stronger than ever. 0:15:18.280 --> 0:15:20.960 I've moderated a few panels at their event. There's also 0:15:21.000 --> 0:15:25.240 some pretty awesome tickers that are specifically sort of built 0:15:25.240 --> 0:15:27.320 around this premise. Yes, so State Street has an e 0:15:27.360 --> 0:15:29.920 t F that's called Gender Diversity, which is the ticker sheet, 0:15:30.160 --> 0:15:32.560 and this gets the exactly her both our points. State 0:15:32.600 --> 0:15:34.360 Streets offering you an e t F that allows you 0:15:34.400 --> 0:15:36.680 to sort of funnel money to companies that have women 0:15:36.760 --> 0:15:39.280 leading it or high percentage on boards. That's the ticker sheet. 0:15:39.320 --> 0:15:42.440 There's a one called her in Canada. At the same time, 0:15:42.520 --> 0:15:45.320 State Street, the company has been very active as a 0:15:45.640 --> 0:15:49.000 rising shareholder of corporations, not just than that, but actually 0:15:49.080 --> 0:15:51.040 as just spy you know, owns a lot of stock 0:15:51.520 --> 0:15:55.120 to push more for gender gender diversity. So what she's 0:15:55.120 --> 0:15:57.080 saying is that E s G. E t F and 0:15:57.160 --> 0:15:59.400 investing has kind of been a little bit of a dud. 0:15:59.400 --> 0:16:01.520 They don't have a four billions five billion in assets. 0:16:01.560 --> 0:16:03.960 It's not much given the hype, but E s G 0:16:04.520 --> 0:16:08.840 as a mantra from the passive fund companies is a 0:16:08.920 --> 0:16:11.320 big deal, and they have moved the needle they're trying to. 0:16:11.440 --> 0:16:14.040 Larry Fink just wrote this big letter. There's some critique 0:16:14.040 --> 0:16:17.760 that a letter isn't enough, but ultimately, these passive funds 0:16:17.800 --> 0:16:21.640 are are going to be the biggest shareholders of America's companies, 0:16:21.680 --> 0:16:23.760 and so what they're doing in terms of E s 0:16:23.840 --> 0:16:25.320 G is important to a lot of people. And of 0:16:25.400 --> 0:16:28.960 course the Street had probably the most viral marketing campaign 0:16:29.080 --> 0:16:31.680 that financial services has ever seen last year. Right, Yeah, 0:16:31.720 --> 0:16:33.720 that statue downtown across from the bull, I think what's 0:16:33.720 --> 0:16:36.840 called Fearless Girl. Yeah, people forget that was literally a 0:16:36.960 --> 0:16:39.840 statue to market sheet, but it it just took a life. 0:16:39.880 --> 0:16:41.880 It's on that definitely went viral. It was interesting. It 0:16:42.280 --> 0:16:44.320 was really worked well with the bull. The whole thing 0:16:44.440 --> 0:16:46.760 just worked as a piece of art. Did you get 0:16:46.800 --> 0:16:49.320 to see any more frenemies while you're there? I did? 0:16:49.520 --> 0:16:51.840 In fact. The next clip we have is Ben Johnson, 0:16:51.920 --> 0:16:55.440 a morning star who is definitely a competitor again one 0:16:55.520 --> 0:16:58.720 of the panels or I guess presentations was they had 0:16:58.840 --> 0:17:01.640 eight analysts on stage to argue for the best new 0:17:01.680 --> 0:17:04.679 et F. I was up there, Ben was up there. Uh. 0:17:04.760 --> 0:17:07.120 And in Elizabeth, do you guys prank each other before 0:17:07.160 --> 0:17:09.119 you go up? Do you like give him something like 0:17:09.160 --> 0:17:12.159 bad data or something. No, but there was some stuff 0:17:12.160 --> 0:17:13.919 going on on stage that I thought was like one 0:17:13.960 --> 0:17:16.840 guy used slides and he won. Matt Hogan, I gotta 0:17:16.920 --> 0:17:19.280 use slides next year. I Uh, I did not win. 0:17:19.920 --> 0:17:23.520 And Tom, Yeah, the audience votes based on noise and 0:17:23.600 --> 0:17:25.639 you didn't win. I didn't win. I I was a 0:17:25.680 --> 0:17:27.480 little flat that morning. I didn't get a good night's sleep. 0:17:27.480 --> 0:17:30.320 I also picked a corporate BONDYTF. Note to self, if 0:17:30.320 --> 0:17:32.000 you're trying to win over a crowd, stay away from 0:17:32.040 --> 0:17:36.680 fixed income at you slides, Tom, your audience. Tom lydon 0:17:36.720 --> 0:17:38.680 even read a poem. So it really I think it 0:17:38.760 --> 0:17:40.480 was more of a contest of who had the best 0:17:40.560 --> 0:17:42.960 show next year. I'm gonna bring it though, I get it. 0:17:42.960 --> 0:17:46.719 I can't believe you didn't win. Such a letdown. I'm sorry, man, 0:17:46.800 --> 0:17:51.840 I'm sorry. I've fallen in your eyes. So here's Ben Johnson, 0:17:51.920 --> 0:17:55.680 a Morning Star. My biggest takeaway is that most of 0:17:55.720 --> 0:17:58.159 the band. With that, this conference has been dedicated to 0:17:58.320 --> 0:18:01.879 what are largely you look at the data distractions as 0:18:01.960 --> 0:18:07.320 far as investors are concerned, cryptocurrencies, block chains, multi factor funds, 0:18:07.400 --> 0:18:10.359 you name it. All of these new fangled and increasingly 0:18:10.560 --> 0:18:14.119 complex and costly contraptions that are being rolled out to 0:18:14.200 --> 0:18:19.320 the marketplace are not earning their fair share of investors 0:18:19.440 --> 0:18:22.760 money relative to the amount of time and attention and 0:18:22.920 --> 0:18:27.920 ink that's spilt on them. Blockchain, blockchain, block chain, Yeah, pot, 0:18:27.960 --> 0:18:32.959 pot pot, I mean party, party, party, Listen. He's right, 0:18:33.520 --> 0:18:36.120 And I've had this new formula I'm working out where 0:18:37.240 --> 0:18:39.000 of the media coverage is on stuff that would be 0:18:39.080 --> 0:18:42.520 five percent of your portfolio. It's true if if that, yeah, 0:18:43.080 --> 0:18:45.560 maybe point five percent. You know why, because the media 0:18:45.600 --> 0:18:47.440 and media is growing more and more prevalent. They're going 0:18:47.480 --> 0:18:49.960 after readership and clicks. And if you're wade about Quincy 0:18:50.040 --> 0:18:52.639 Jones Potter blockchain, you're gonna get double triple the clicks 0:18:52.680 --> 0:18:55.000 as if as if you compared the Vanguard Value with 0:18:55.080 --> 0:18:57.320 the I Shares Value Fund, even though those two suckers 0:18:57.359 --> 0:19:01.600 have like forty billion dollars. And this is just any industry, 0:19:01.840 --> 0:19:04.440 the fringe stuff that just sort of sticks out gets 0:19:04.440 --> 0:19:08.639 a lot of the attentions. Yeah, but arguably, as we 0:19:08.680 --> 0:19:11.840 saw last year, almost all the money goes to boring 0:19:12.200 --> 0:19:15.840 cheap Beta, so cheap Beta. But then you also saw 0:19:16.000 --> 0:19:18.359 a great T shirt while you're there too, huh. I 0:19:18.440 --> 0:19:22.639 did Advisor Shares, which is a active, actively managed et 0:19:22.760 --> 0:19:25.520 F shop, had a vote for Alpha T shirt that 0:19:25.680 --> 0:19:27.960 was like vote for Pedro, which it's close to my heart. 0:19:27.960 --> 0:19:30.680 I love the Napoleon Dynamite's so good. So some of 0:19:30.760 --> 0:19:33.320 their tops, and they also had one a couple of 0:19:33.359 --> 0:19:35.720