Speaker 1: Welcome new trillions. I'm Joel Lebert and I'm Eric Belchers.
Speaker 1: This week we have some news. You mean the internal news. Yeah, okay,
Speaker 1: you got promoted. I got a job. You did. You
Speaker 1: are now editor of Business Week. Yeah, Bloomberg business Week.
Speaker 1: That's wild. I can't believe I'm sitting right across from you.
Speaker 1: I'm so excited. No, it's great, and my life is
Speaker 1: moving out a new velocity. Oh. I know you have
Speaker 1: been a harder man to get ahold of. I've been
Speaker 1: having to pron out the notes a little more often. Um, yeah,
Speaker 1: you have to pick up you're a big wig. Okay,
Speaker 1: well I appreciate that. I'm so excited that it's gonna
Speaker 1: be great. So I have a new job, but you
Speaker 1: have the same old job. Yeah, but I'm still tolerable.
Speaker 1: So uh in this capacity in your old job. You
Speaker 1: got to go to Florida recently for basically what is
Speaker 1: the world's biggest trade show for E t f s
Speaker 1: called Inside e t f S. Yes, this is the
Speaker 1: one to go to. This is I refer to it
Speaker 1: as the comic Con of E t f s. You
Speaker 1: could argue it's a little Catalina wine mixer. It's the event.
Speaker 1: It's really big. It's eleven years now. This year there
Speaker 1: were twenty four hundred people. I've been going for seven years.
Speaker 1: When it first started, there was only four hundred and
Speaker 1: thirty eight people there, so huge bump up. There were
Speaker 1: twenty five sponsors the first year. This year there were
Speaker 1: a hundred and twenty sponsors and booths, right, so it's
Speaker 1: just getting bigger. The whole hall is full of of booths.
Speaker 1: And I remember when I first went seven years ago.
Speaker 1: I remember seeing a guy with a fishing shirt and
Speaker 1: short song like. Advisors would go there and just go
Speaker 1: to a few panels and then go deep sea fishing
Speaker 1: in Hollywood, Hollywood, Florida, and it was very casual. It's
Speaker 1: gotten more corporate and there's bigger companies. You know, there's
Speaker 1: big Wall Street firms, there's big By Side firms. Not
Speaker 1: everybody's in a suit and tie. I mean, I went tieless,
Speaker 1: but I definitely dressed up. But there's no more fishing
Speaker 1: shirts and anything like that. But one thing I will
Speaker 1: say is, you know, it's interesting you look at the
Speaker 1: E T F industry. All told, ETFs make about seven
Speaker 1: billion in revenue every year. So you know, when I
Speaker 1: first went that. I remember my colleague and Data going
Speaker 1: to the Salt Conference, which is the hedge fun one.
Speaker 1: They got like Joe Biden, Mike Tyson, Jeb Bush, cigar
Speaker 1: and vodka parties. This I went there, there was an
Speaker 1: ice cream social in a YouTube cover band. Because there's
Speaker 1: just less money, right, I do think there has been
Speaker 1: a little more money into the industry and a little
Speaker 1: more marketing dollars in because this year they had Serena Williams,
Speaker 1: um they had a general McCrystal. Celebrities like real, real people,
Speaker 1: really celebrity. When you go there, do people feel like
Speaker 1: you're a celebrity? D list? Yeah, I'm probably D list
Speaker 1: of like, yeah, I'm not sure, all right. This week
Speaker 1: on Trillions, Eric takes a field trip to the comic
Speaker 1: Con of E T S. So you read a recorder
Speaker 1: when you went to inside et F and you ask
Speaker 1: some questions of people there, which we're gonna get to.
Speaker 1: But before we get into that, just tell me a
Speaker 1: little bit more about what this place is. Sure, it's
Speaker 1: the Diplomat Hotel in Florida. You go down there, it's
Speaker 1: Sunday morning. They started like noon on Sunday. A lot
Speaker 1: of people don't. Yeah, and they end on Wednesday, so
Speaker 1: it's a it's a couple of days. And like I said,
Speaker 1: people the majority seem to be issuers, but you have
Speaker 1: also a lot of advisors, right, So the issuers want
Speaker 1: to talk to the advisors. Then the service providers want
Speaker 1: to talk to the issuers. So everybody's sort of trying
Speaker 1: to do business there at the same time. It's a
Speaker 1: little incestual. You see the same it is. It's a
Speaker 1: big cozy hot tub or jacuzzi in my case. Uh,
Speaker 1: what was the mood this year? I thought it was happy. Um,
Speaker 1: there was a four hundred and sixty seven billion dollars
Speaker 1: that came into et F last year. That's more then
Speaker 1: they had an assets total when the thing started eleven
Speaker 1: years ago, so we're talking big boy numbers. Everybody's happy.
Speaker 1: I think there's some concern that just the market has
Speaker 1: just been going up too long, but that isn't They
Speaker 1: still are fired up about the et F structure having
Speaker 1: the winning end out there. And as this event is
Speaker 1: kind of snowballed, how has it changed? Like I said,
Speaker 1: it's gotten more formal. You see bigger companies, bigger exhibits
Speaker 1: this year, Oppenheimer had this huge It was really effective.
Speaker 1: But they did a multi factor equalizer, like a life
Speaker 1: size stereo equalizer. And if you it turned to the market,
Speaker 1: you think that's going to be there, like say let's
Speaker 1: say a down market or an upmarket or raising rates,
Speaker 1: and then the factor levels would change from value to
Speaker 1: grow to a momentum to size and it would sort
Speaker 1: of tell you where to tell your portfolio. So it
Speaker 1: was a multi factor equalizer life size. Then Deutsche Bank
Speaker 1: had an ice cream truck. It's always good to give
Speaker 1: up fore ice cream. That worked. Everybody was like, I
Speaker 1: love the ice cream, and the ice cream truck was
Speaker 1: supposed to symbolize how h y LB a hio bondy
Speaker 1: TF is plain vanilla. Now back to food. I mean,
Speaker 1: I'm so easy and I do remember five years ago
Speaker 1: the big debate and controversial thing was smart beta. People
Speaker 1: to turn and piss people off the concept. People were
Speaker 1: pro and anti and every panel matter what was about
Speaker 1: somebody to bring up smart beta. Now smart beta is
Speaker 1: completely accepted. That's just like was in its lane. Bitcoin
Speaker 1: was the thing and cryptocurrencies that made it into every panel.
Speaker 1: So I was wondering about the themes totally heard about, right,
Speaker 1: and crypto is all over huh yep, cryptocurrencies. Another big
Speaker 1: thing was this the hedge fund industry and how ETFs
Speaker 1: are yet to sort of like knock out or give
Speaker 1: a good punt to the hedge fund world. And people
Speaker 1: think that liquid aults and hedge funds are the next
Speaker 1: place where e t s will make cause some damage
Speaker 1: because hedge funds are have maintained their three trillion as
Speaker 1: whereas active mutual funds are feeling the pain of et
Speaker 1: s more so. Between that that big dial and the
Speaker 1: ice cream truck, what was the coolest thing you saw?
Speaker 1: Quincy Jones? Yeah, I know that was fun. I mean, look,
Speaker 1: I grew up with thriller, so this was a This
Speaker 1: is a pretty big He's sitting at the booth. It's
Speaker 1: almost like the booths are getting more and more like
Speaker 1: having to have something like really attractive there. You know,
Speaker 1: you have all these like giveaways, which, by the way,
Speaker 1: I brought you a something from there that I think,
Speaker 1: yeah from Quincy, not from Quincy, but something from the
Speaker 1: event that is swag that I feel like you're ready
Speaker 1: for it is a pin the e T f nerd
Speaker 1: oh Man. I'm literally gonna put this on my lapel
Speaker 1: right now. I feel like I'm part of the tribe. Now,
Speaker 1: even though if I showed up at this thing, they'd
Speaker 1: be like, get this guy out of here. They'd be like,
Speaker 1: who's eating all the ice cream? Yeah, he's just eating
Speaker 1: ice cream? Who is this guy? You're not an E. T.
Speaker 1: F nerd? You're an ice cream eater? No? No, look man,
Speaker 1: you're This is a it's a big tent. And I think,
Speaker 1: uh that I like the idea of E. T. F. Nerd. Listen,
Speaker 1: this conference really has his finger on the pulse of
Speaker 1: the new investing in Wall Street, which is more nerdish,
Speaker 1: more data driven, more diverse. This is not the Bud
Speaker 1: Fox Wall Street that you see at this conference. This
Speaker 1: is much more people all working together. You know, there's
Speaker 1: I guess a little element that when when you have
Speaker 1: some of the bigger firms involved. But you know, it's
Speaker 1: very pleasant. That's why I like it. And I think
Speaker 1: that the nerd word fits well to the tone of
Speaker 1: some of the people who are in it. I'll take
Speaker 1: it happily. Welcome to the nerd club. So so you
Speaker 1: better with quorder. You've got to talk to a couple
Speaker 1: of different people who do various different things in the industry.
Speaker 1: Who's the first one you want to talk about? UM,
Speaker 1: let's start with West Gray. West was there with the
Speaker 1: two of his colleagues, and West is a He's interesting
Speaker 1: because he's not he's a PhD. He's a guy who
Speaker 1: used to run family office money, like the kind of
Speaker 1: guy only an institution would hire. But he launches some
Speaker 1: ETFs that do his active strategy. But his clients don't
Speaker 1: like taxes and ets very tax efficient, so he you
Speaker 1: get access to a guy like West through an e
Speaker 1: t F. So West is there sort of as a
Speaker 1: small issuer, but also as a really respected sort of
Speaker 1: PhD active manager. Listen to that clip everyone in the
Speaker 1: world and then ETF industries here, so we gotta talk
Speaker 1: to our service survivors. We have a lot of clients
Speaker 1: down here where we walk him around and show him
Speaker 1: what's cooking, UM, and then just yeah, meet and greet,
Speaker 1: be part of the scene. It's unlike mutual fund conferences
Speaker 1: are a lot of the old financial services. This one's
Speaker 1: actually fun UM. So you can, you know, have a
Speaker 1: drink with your favorite people and it's a great time.
Speaker 1: So I think he captures the spirit in a nutshell.
Speaker 1: It's fun have a drink. It's again a little bit
Speaker 1: of the Catalina wine mixer angle. And ultimately he doesn't
Speaker 1: seem like a wine mixer kind of guy. No, I
Speaker 1: think he gets down. Actually, uh, he's interesting because he's
Speaker 1: a guy who is somebody trying to market the fund.
Speaker 1: And he's got the right attitude, I think, which is,
Speaker 1: you know, I'm just here to keep the bar low,
Speaker 1: and you know, good things happen and you never know,
Speaker 1: like you meet somebody and then three months later it
Speaker 1: turns into something. But ultimately West is also one of
Speaker 1: these guys on Twitter, and so that's how I met him.
Speaker 1: And there's a lot of people there who met on
Speaker 1: Twitter or digitally. I met a couple of people this
Speaker 1: this time who I felt like I know very well,
Speaker 1: and now I met him in person just because I've
Speaker 1: been communicating with them on Twitter. And West is big
Speaker 1: in that scene too, So it's almost like meeting a
Speaker 1: pen pal or something. Okay, who's the next person you
Speaker 1: got to talk with? We're gonna hear from Brian Lake
Speaker 1: of JP Morgan, who used to be at Power Shares
Speaker 1: and he's a guy who has been in the industry
Speaker 1: a long time. He was at the very first inside
Speaker 1: et s. What's noticeable to me is that how many
Speaker 1: different organizations are here. I mean when you when you started,
Speaker 1: or even just a handful of years ago, there was
Speaker 1: maybe ten twenty booths and in different issues, and now
Speaker 1: there's over a hundred fifty different new shoes or something
Speaker 1: crazy like that. And everybody's got their own unique kind
Speaker 1: of perspective on it. Um. But what's interesting is, you know,
Speaker 1: you look at the et F industry compared to like, say,
Speaker 1: for example, the traditional neutra fund industry, and you know,
Speaker 1: there's over a thousands of different neutro fund companies with
Speaker 1: over fifteen thousand different neutrol funds out there. So, uh,
Speaker 1: you can still see that the ETF industry is just
Speaker 1: young in the grand scheme of things. So when you
Speaker 1: were in Florida, that might have been the beginning, the
Speaker 1: top of the first inning. What inning are we in now?
Speaker 1: I don't even know if that was the top of
Speaker 1: the first I mean that might have been warmups in
Speaker 1: Little League or something like that, because now we're barely
Speaker 1: you know, maybe we're playing in the first inning in
Speaker 1: uh major leagues. But um, you know, I started orienting
Speaker 1: myself and I was thinking about on the plane right
Speaker 1: over here, I think it's time to start talking about
Speaker 1: thirty trillion and so thirty and thirty um, and I
Speaker 1: actually think if you start measuring that out, the numbers
Speaker 1: aren't too far off. I think we could actually get
Speaker 1: towards that direction. It so about twelve years away for
Speaker 1: a five. Now you can see a double a double
Speaker 1: kind of thing. You're you're You're not terribly far off.
Speaker 1: So that guy is optimistic, yeah, I mean, And the
Speaker 1: thing is, this is a guy at JP Morgan. Jpen
Speaker 1: Worgan had a huge booth there. You have a lot
Speaker 1: of these big firms being optimistic. That to me really
Speaker 1: is big because they've joined the sort of grassroots thing.
Speaker 1: And also what I found interesting was this comparison to
Speaker 1: the mutual fun world. You know, when you have people
Speaker 1: thinking that this is the future and it's cool, and
Speaker 1: these are even big firms saying this. I mean, I
Speaker 1: can't imagine going to the I C I conference that
Speaker 1: which is the big mutual fun one, and I've been there.
Speaker 1: It's fine, it's just not it doesn't have that same
Speaker 1: vibe and it's gotta be tough. But a lot of
Speaker 1: these firms also go there. They have mutual fund so
Speaker 1: they're sort of you know how they're doing both sides
Speaker 1: sidebar or maybe footnote. The conference business. I've been to
Speaker 1: consumer electronic shows ce YES, which is like the world's
Speaker 1: biggest trade show multiple times. The business of the booths
Speaker 1: I think is like a great story because everybody's got
Speaker 1: like this booth that you know, has to be on brand,
Speaker 1: and and it's so big, and they like break them
Speaker 1: down and put them in storage or ship them and
Speaker 1: it's I mean, it's a it's a huge business. No
Speaker 1: I had. I was there on Sunday and there was
Speaker 1: these crates and they had like that stamp like at
Speaker 1: a rock show instead of iron made, and it said
Speaker 1: like wisdom Tree and it was like the loading you
Speaker 1: know what I mean, And you're right, it's like a
Speaker 1: big show and the boost You're right. There was thematically
Speaker 1: linked swag, which I love. There's pens and stuff, but
Speaker 1: well like one guy had like a robot and it's
Speaker 1: and it's appendages were usp ports. You could plug in
Speaker 1: four iPhones charging from this. Yeah. By the way, I
Speaker 1: saw a photo I think you tweeted it right. The
Speaker 1: robo et F didn't they have a robot there? They
Speaker 1: had an actual robot working on like a chip that
Speaker 1: was moving its arms around and should be that again
Speaker 1: it was doing the robot. It was like, yeah, I'm
Speaker 1: from the eighties, I know how to do the robot. Okay,
Speaker 1: don't know, we don't, don't ask me, okay. So we
Speaker 1: talked to the issuer and then we talked to uh
Speaker 1: JP Morgan on the custody side. Who else? So next
Speaker 1: up we're gonna hear from Mike Costa of The Daily Show,
Speaker 1: Daily Show. Yeah, I mean this is like for real,
Speaker 1: We actually like real people there. Yeah. He's a writer
Speaker 1: and he's a stand up comedian and I gotta tell
Speaker 1: you he did a set during lunch. It was knockout man.
Speaker 1: You gotta look this guy up. It was like it
Speaker 1: was like a machine gun of comedy. It was. It
Speaker 1: was remarkable. What advice do you have for et investors? Well,
Speaker 1: I don't even know what et F stands for. I mean,
Speaker 1: Roy Wood Jr. Made the joke that it was electric
Speaker 1: funds transfer. But that's the F two, you know, isn't
Speaker 1: it Isn't it like put money in when the stock
Speaker 1: markets going up? Take money on when the stock markets
Speaker 1: going down? Is that I'm a comic. I don't know
Speaker 1: this ship. That music was amazing. We guys in like
Speaker 1: a like a jazz club after lunch. I guess they have,
Speaker 1: you know, tracks they play when people are shuffling out
Speaker 1: of the hall, and they played jazz. Yeah, I look
Speaker 1: a lot of I had to interview people right on
Speaker 1: the spot before they you know, went home or whatever.
Speaker 1: So yeah, I don't know if it went with that scenario,
Speaker 1: but it was funny. It was It was interesting when
Speaker 1: he said put the money in when the stocks go up,
Speaker 1: and take it out when they go down, And he
Speaker 1: really put his finger on the biggest problem with investors.
Speaker 1: You know, when the chart goes up, they start investing,
Speaker 1: and when the chart goes down, they take the money out.
Speaker 1: And that's the exact opposite of what you should do.
Speaker 1: So he should probably attend and uh go to the
Speaker 1: some of the panel sessions. Okay, Uh, a lot of
Speaker 1: duds here at this place. You'd get detected any women.
Speaker 1: There were a lot of dudes, but no women were there.
Speaker 1: There's a big organization called Women and Ets. They had
Speaker 1: a big breakfast. They're a huge organization with branches, and
Speaker 1: I gotta think at this point in fifty or sixty
Speaker 1: cities it's major. There's a lot of women the industry.
Speaker 1: It's still prominantly men though. But yeah, we got Elizabeth
Speaker 1: Kashner from fact Set who's sort of like me. He's
Speaker 1: like a Todd rosen Bluther's. There's about six or seven
Speaker 1: of us that are have been analysts for about a
Speaker 1: decade and she's one of them. Women in E T
Speaker 1: S is a tremendous force for good in this industry
Speaker 1: in terms of partnering women men and are major organizations
Speaker 1: to achieve a goal that we all believe in, which
Speaker 1: is the advancement of women in the financial services field.
Speaker 1: There is a tremendous movement of foot which has already
Speaker 1: been mentioned from the stage at least twice that I've seen,
Speaker 1: and that is the rise of social activism in terms
Speaker 1: of the major asset managers taking a stand in terms
Speaker 1: of how they vote their shares. There's a lot of
Speaker 1: buzz about E s G investing. Frankly, there's not a
Speaker 1: lot of assets in E s G investing, nor is
Speaker 1: there any demonstrated risk adjusted return. However, the move to
Speaker 1: be active and take a stand with trillions of dollar
Speaker 1: is and something like five tent of assets in US companies,
Speaker 1: that moves the needle. I'm starting to see that openly
Speaker 1: discussed and claimed. Bravo. Women in e TF is maybe
Speaker 1: five or six years old, and it's going stronger than ever.
Speaker 1: I've moderated a few panels at their event. There's also
Speaker 1: some pretty awesome tickers that are specifically sort of built
Speaker 1: around this premise. Yes, so State Street has an e
Speaker 1: t F that's called Gender Diversity, which is the ticker sheet,
Speaker 1: and this gets the exactly her both our points. State
Speaker 1: Streets offering you an e t F that allows you
Speaker 1: to sort of funnel money to companies that have women
Speaker 1: leading it or high percentage on boards. That's the ticker sheet.
Speaker 1: There's a one called her in Canada. At the same time,
Speaker 1: State Street, the company has been very active as a
Speaker 1: rising shareholder of corporations, not just than that, but actually
Speaker 1: as just spy you know, owns a lot of stock
Speaker 1: to push more for gender gender diversity. So what she's
Speaker 1: saying is that E s G. E t F and
Speaker 1: investing has kind of been a little bit of a dud.
Speaker 1: They don't have a four billions five billion in assets.
Speaker 1: It's not much given the hype, but E s G
Speaker 1: as a mantra from the passive fund companies is a
Speaker 1: big deal, and they have moved the needle they're trying to.
Speaker 1: Larry Fink just wrote this big letter. There's some critique
Speaker 1: that a letter isn't enough, but ultimately, these passive funds
Speaker 1: are are going to be the biggest shareholders of America's companies,
Speaker 1: and so what they're doing in terms of E s
Speaker 1: G is important to a lot of people. And of
Speaker 1: course the Street had probably the most viral marketing campaign
Speaker 1: that financial services has ever seen last year. Right, Yeah,
Speaker 1: that statue downtown across from the bull, I think what's
Speaker 1: called Fearless Girl. Yeah, people forget that was literally a
Speaker 1: statue to market sheet, but it it just took a life.
Speaker 1: It's on that definitely went viral. It was interesting. It
Speaker 1: was really worked well with the bull. The whole thing
Speaker 1: just worked as a piece of art. Did you get
Speaker 1: to see any more frenemies while you're there? I did?
Speaker 1: In fact. The next clip we have is Ben Johnson,
Speaker 1: a morning star who is definitely a competitor again one
Speaker 1: of the panels or I guess presentations was they had
Speaker 1: eight analysts on stage to argue for the best new
Speaker 1: et F. I was up there, Ben was up there. Uh.
Speaker 1: And in Elizabeth, do you guys prank each other before
Speaker 1: you go up? Do you like give him something like
Speaker 1: bad data or something. No, but there was some stuff
Speaker 1: going on on stage that I thought was like one
Speaker 1: guy used slides and he won. Matt Hogan, I gotta
Speaker 1: use slides next year. I Uh, I did not win.
Speaker 1: And Tom, Yeah, the audience votes based on noise and
Speaker 1: you didn't win. I didn't win. I I was a
Speaker 1: little flat that morning. I didn't get a good night's sleep.
Speaker 1: I also picked a corporate BONDYTF. Note to self, if
Speaker 1: you're trying to win over a crowd, stay away from
Speaker 1: fixed income at you slides, Tom, your audience. Tom lydon
Speaker 1: even read a poem. So it really I think it
Speaker 1: was more of a contest of who had the best
Speaker 1: show next year. I'm gonna bring it though, I get it.
Speaker 1: I can't believe you didn't win. Such a letdown. I'm sorry, man,
Speaker 1: I'm sorry. I've fallen in your eyes. So here's Ben Johnson,
Speaker 1: a Morning Star. My biggest takeaway is that most of
Speaker 1: the band. With that, this conference has been dedicated to
Speaker 1: what are largely you look at the data distractions as
Speaker 1: far as investors are concerned, cryptocurrencies, block chains, multi factor funds,
Speaker 1: you name it. All of these new fangled and increasingly
Speaker 1: complex and costly contraptions that are being rolled out to
Speaker 1: the marketplace are not earning their fair share of investors
Speaker 1: money relative to the amount of time and attention and
Speaker 1: ink that's spilt on them. Blockchain, blockchain, block chain, Yeah, pot,
Speaker 1: pot pot, I mean party, party, party, Listen. He's right,
Speaker 1: And I've had this new formula I'm working out where
Speaker 1: of the media coverage is on stuff that would be
Speaker 1: five percent of your portfolio. It's true if if that, yeah,
Speaker 1: maybe point five percent. You know why, because the media
Speaker 1: and media is growing more and more prevalent. They're going
Speaker 1: after readership and clicks. And if you're wade about Quincy
Speaker 1: Jones Potter blockchain, you're gonna get double triple the clicks
Speaker 1: as if as if you compared the Vanguard Value with
Speaker 1: the I Shares Value Fund, even though those two suckers
Speaker 1: have like forty billion dollars. And this is just any industry,
Speaker 1: the fringe stuff that just sort of sticks out gets
Speaker 1: a lot of the attentions. Yeah, but arguably, as we
Speaker 1: saw last year, almost all the money goes to boring
Speaker 1: cheap Beta, so cheap Beta. But then you also saw
Speaker 1: a great T shirt while you're there too, huh. I
Speaker 1: did Advisor Shares, which is a active, actively managed et
Speaker 1: F shop, had a vote for Alpha T shirt that
Speaker 1: was like vote for Pedro, which it's close to my heart.
Speaker 1: I love the Napoleon Dynamite's so good. So some of
Speaker 1: their tops, and they also had one a couple of
Speaker 1: years ago they had pac Man eating up like dollars
Speaker 1: I supposed like Alpha Man. So they're kind of clever
Speaker 1: trying to keep the Alpha dream alive. So even active
Speaker 1: managers have a role here, and a lot of them
Speaker 1: like to be an et F structure because as an
Speaker 1: active manager, if you trade a lot in the portfolio,
Speaker 1: if you're in a mutual fund, you're gonna get your
Speaker 1: investors capital gains distributions. Mostly you can avoid that in
Speaker 1: the ETF structure. Okay, main event Quincy Jones does Quincy
Speaker 1: is anything about ETFs? If he does, it's not a lot.
Speaker 1: He's not there for that, you know, he's he's part
Speaker 1: of I think what you're seeing with the marketing. But
Speaker 1: if you talk to Quincy Jones, the reason he's there
Speaker 1: is because there's a new firm launching called Iconic Beta. Now,
Speaker 1: this is a firm that's wants to sort of like
Speaker 1: open up investing to people who aren't invested to make
Speaker 1: it more fun. And one of the ways they're doing
Speaker 1: that is you're going to take experts or celebrities in
Speaker 1: different fields and attach them sort of to the name.
Speaker 1: Work with those people to pick out the companies and
Speaker 1: the trends in that industry, and then that way you
Speaker 1: can invest sort of alongside somebody who's an expert. And
Speaker 1: so this e t F that is going to be
Speaker 1: launched soon, I'm pretty sure probably the next couple of
Speaker 1: weeks is called q J and it's gonna awesome, I
Speaker 1: know right. It's gonna tract streaming music companies, companies all
Speaker 1: across the world. It's going to be equal weighted, and
Speaker 1: it's a classic theme ETF and it wouldn't be Nobody
Speaker 1: would have blinked if it was called the Streaming Music ETF.
Speaker 1: We've seen a lot of those, but the Quincy Jones
Speaker 1: was what made it so new and it made. But
Speaker 1: wonder if there'll be a string of these and according
Speaker 1: to Iconic Beta, yeah, they have about a dozen lined
Speaker 1: up if and when this one gets approved. Did Quincy perform,
Speaker 1: He didn't. He just talked. He was very social. I mean,
Speaker 1: you just go up and talk to him. He's a
Speaker 1: big fan of Mike Bloomberg. Apparently didn't he didn't event
Speaker 1: with him with Whoopi Goldberg and he goes, oh, I
Speaker 1: love that guy. The bottom the bottom line is we
Speaker 1: have songwriters and singers and musicians that what they brought
Speaker 1: up to learn what they're doing, you know, and they
Speaker 1: should do taking care or you know, it's not right
Speaker 1: to take their music and virus. It's it's a simral right.
Speaker 1: Has that hurt the industry and like developing artists is okay?
Speaker 1: So you think to meet the take and take whatever
Speaker 1: they want. Um, and what do you think of this
Speaker 1: conference so far? What do you think of the conference?
Speaker 1: A good time? Yeah, nice people. I love that guy's voice.
Speaker 1: It's so good. It's good. Right, Yeah, you know he was.
Speaker 1: He was exactly the legend you thought he would be.
Speaker 1: One thing he said it was interesting to read and
Speaker 1: I picked that clip from our interview was that I
Speaker 1: have gone along in my presentations and I compare the
Speaker 1: e t F to the MP three in that the
Speaker 1: MP three really disrupted the whole record business. It made
Speaker 1: music cheaper, and it brought the revenue of the record
Speaker 1: business and cut it in half. And the E t
Speaker 1: F is kind of like that. It's flexible, it's cheap,
Speaker 1: it's sort of the technology like that. But he made
Speaker 1: me rethink this a little bit because he's right, the
Speaker 1: MP three and the piracy definitely hurt nurturing new artists.
Speaker 1: And you know, there is some truth to everything's free.
Speaker 1: Will there be anyone who could rise who has skills
Speaker 1: as an active manager? And I think that's a concern
Speaker 1: with some going forward, because you do need active managers
Speaker 1: who are educated and well paid to invest actively so
Speaker 1: that passive can ride their coat tails. That's the whole
Speaker 1: reason passive works. Also like that he opened with bottom line,
Speaker 1: which is like one of my favorite places to just
Speaker 1: use again and again bottom line. Bottom line. It's probably
Speaker 1: because he's you know, talking to artists. Bottom line, we
Speaker 1: need more bay in this bottom Line is actually a
Speaker 1: thing that we used throughout Business Week at the bottom
Speaker 1: of some of our articles. To say, bottom line, just
Speaker 1: cut to the chase here it is. Do you like
Speaker 1: how I made it about me? Again? That was great?
Speaker 1: Right in business, it's just like it's great. Back, Yeah,
Speaker 1: I can't tell you got a promotion. We also want
Speaker 1: to say thank you to Jordan's Bell, who has been
Speaker 1: our producer from the beginning and she's moving on. She
Speaker 1: got us here. And remember all those pre recording things
Speaker 1: we did before we went live. It was like torture,
Speaker 1: but we got here because of Jordan. Yet, Jordan had
Speaker 1: to listen to our sort of six week rehearsal, sort
Speaker 1: of like a band finding their sound. She had to
Speaker 1: go through all that and it was it was tough.
Speaker 1: And just one note on that first episode when I
Speaker 1: explained diversification of Jordan, a few people thought that was
Speaker 1: a little goodle condescending, and if you know Jordan and
Speaker 1: know how it worked together, it was not like that
Speaker 1: at all. I didn't. You know. Joel kind of forced
Speaker 1: me into that. He's like, explain it to Jordan, who
Speaker 1: knows nothing, and so I kind of got into that role. Back,
Speaker 1: I love her. She was great and yeah, totally thanks
Speaker 1: for listening to trillions. Until next time, you can find
Speaker 1: us on the Bloomberg terminal, Bloomberg dot com, Apple Podcasts,
Speaker 1: and a bunch of other places I probably haven't heard
Speaker 1: about yet. We'd love to hear from you. We're on Twitter.
Speaker 1: I'm at Joel Webber Show. He's at Eric Baltunas. Trillions
Speaker 1: is produced by Magnus Henrickson. Francesca Levie is the head
Speaker 1: of Bloomberg podcast Bye.