WEBVTT - The Lowdown on Increasing Your ‘ETF IQ’ 0:00:05.640 --> 0:00:13.520 Welcome the Trillions. I'm Joel Weber and I'm Eric belchernas Eric. 0:00:13.600 --> 0:00:17.079 In addition to having a day job for Bloomberg Intelligence 0:00:17.320 --> 0:00:21.320 and co hosting Trillions with me, you also have another 0:00:21.680 --> 0:00:24.520 side of your career, which I hope comes up in 0:00:24.560 --> 0:00:27.720 all your reviews, which is the TV show on Bloomberg 0:00:27.760 --> 0:00:32.040 TV called ETFIQ. Yeah. I began about the same time 0:00:32.080 --> 0:00:34.080 as Trillions. Actually I think it did. There was a 0:00:34.120 --> 0:00:36.960 first iteration like pre COVID with Scarlett fu who we 0:00:37.040 --> 0:00:39.440 did a show with her, I think maybe a year 0:00:39.440 --> 0:00:41.159 and a half in and then it shut down. It 0:00:41.200 --> 0:00:42.400 went dark for like a year and a half. They 0:00:42.400 --> 0:00:44.880 shut all the half an hour shows down that were specialty. 0:00:45.200 --> 0:00:47.199 They slowly started them back up after we came back 0:00:47.240 --> 0:00:49.239 to the office, and so when they were looking to 0:00:49.280 --> 0:00:51.560 redo it, there was some shifts in personnel, and so 0:00:51.640 --> 0:00:54.200 they made a new iteration of etf i Q with 0:00:54.640 --> 0:00:58.600 Matt Miller, Katie Greyfield and myself, and I'm Matt and 0:00:58.680 --> 0:01:01.040 Katier are sort of like the main anchors. I'm sort 0:01:01.040 --> 0:01:03.720 of like the weatherman or the commentary guy. I do 0:01:03.800 --> 0:01:06.960 some special work at the beginning of a couple of 0:01:07.000 --> 0:01:10.399 segments and sort of provide. I ask a few questions, 0:01:10.440 --> 0:01:12.600 but I see myself more like a specialist and they're 0:01:12.959 --> 0:01:15.240 sort of more generalist. And I think it's a goocambo. 0:01:15.319 --> 0:01:18.560 And the show's every Monday at one pm. It's a 0:01:18.560 --> 0:01:22.160 half an hour by Fast Live. Yeah. Live TV is interesting. 0:01:22.200 --> 0:01:24.720 I mean, unlike this, where I can mess up and 0:01:24.840 --> 0:01:26.839 we can edit out. You have to just roll through 0:01:27.240 --> 0:01:30.919 and keep talking. Special shout out to Magnus Hendrickson, who's 0:01:31.080 --> 0:01:33.760 our producer and has been our producer of Trillions for 0:01:33.800 --> 0:01:36.520 a while. We kept them busy with this episode because 0:01:36.560 --> 0:01:39.319 there's a fair amount of better thing. Thanks Magnus, and 0:01:39.400 --> 0:01:41.760 I just want to speak in the shout outs. Obviously, 0:01:42.000 --> 0:01:43.680 the three of us are on the air, we bring 0:01:43.720 --> 0:01:46.320 on guests, but behind the scenes, the other people who 0:01:46.520 --> 0:01:48.400 are you know, spend a lot of their time working 0:01:48.400 --> 0:01:54.440 on the show to Mareaci Ratika Gupta, Maureen Lawler, Kieran 0:01:54.480 --> 0:01:58.120 Buchanan and Alex Soto. And then sometimes we'll have if 0:01:58.120 --> 0:02:00.840 some one of us is out, like a h Basket 0:02:00.960 --> 0:02:03.440 will fill in or Kaylee lines. So it's a show 0:02:03.440 --> 0:02:05.720 where a lot of people work on it every week, 0:02:05.760 --> 0:02:07.760 and I'm sure they do many other things. This is 0:02:07.760 --> 0:02:09.120 just one part of their job. There's only half an 0:02:09.160 --> 0:02:11.080 hour show, but we do our best to put in 0:02:11.240 --> 0:02:14.040 you know, good guests, good topics, and also a little 0:02:14.040 --> 0:02:16.520 bit of improvisation. We don't over prepare. I think in 0:02:16.520 --> 0:02:19.680 the first Iteration show, I found myself really over preparing. 0:02:19.680 --> 0:02:21.880 I wrote the whole script out. I think we did 0:02:21.880 --> 0:02:24.240 that this podcast. We would overscript at the beginning. Now 0:02:24.280 --> 0:02:26.440 I've learned to trust my instincts and a little have 0:02:26.600 --> 0:02:29.080 more improv and let it feel a little more organic. 0:02:29.120 --> 0:02:31.000 And I think we've we've done a good job at that. 0:02:31.040 --> 0:02:33.000 I think, Okay, so what are we gonna hear today 0:02:33.040 --> 0:02:35.440 on Trillions? So we're gonna bring on Matt Miller and 0:02:35.560 --> 0:02:38.480 Katie And I've basically teed up about six clips that 0:02:38.520 --> 0:02:42.960 I think sort of represent some topics and guests about 0:02:43.000 --> 0:02:45.000 the show and also some of the quirks of Katie 0:02:45.000 --> 0:02:47.120 and Matt that I think come across. And you know, 0:02:47.160 --> 0:02:48.959 we're just sort of like some of the highlights basically 0:02:48.960 --> 0:02:51.520 from the first year. Some big names in here. Yeah, 0:02:51.560 --> 0:02:53.919 you know, we get some big names, and then I 0:02:53.960 --> 0:02:56.000 also think we get names that are big names later, 0:02:56.120 --> 0:02:59.080 Like I remember we had Kathy Wood before the run 0:02:59.240 --> 0:03:02.799 of all of Kathy Woods ETFs. Yeah, totally. I mean 0:03:03.000 --> 0:03:05.359 I used to when we first had et F i 0:03:05.440 --> 0:03:07.440 Q I would try to promote it internally. Is that 0:03:07.560 --> 0:03:11.079 this show's really not just about ETFs. It's tomorrow's stars today, 0:03:11.639 --> 0:03:13.960 sort of like MTV's one hundred niney minutes or hundred 0:03:14.000 --> 0:03:16.240 twenty minutes where you'd go and watch Sunday Night, like 0:03:16.440 --> 0:03:18.880 you know, eleven PM, and you'd see like you'd see 0:03:18.919 --> 0:03:21.880 like Nirvana before they went mainstream. I feel as though 0:03:21.960 --> 0:03:24.160 we're we're getting were early because a lot of ETF 0:03:24.240 --> 0:03:27.520 fishers who put out ETFs get some assets. That's where 0:03:27.560 --> 0:03:29.600 the money's going. And these people are going to be 0:03:29.680 --> 0:03:31.640 the stars of tomorrow in a lot of cases. But 0:03:31.680 --> 0:03:34.960 we still will always sometimes get a current star. But 0:03:35.160 --> 0:03:38.080 Kathy's case, I think she's a star who was on 0:03:38.120 --> 0:03:40.800 the ETF show early. Perth Tolls another one. There are 0:03:40.800 --> 0:03:42.960 definitely some people we get early and they become they 0:03:43.000 --> 0:03:44.960 branch out then then you see them all over Bloomberg 0:03:44.960 --> 0:03:47.600 TV and all the shows. Okay, joining us on this episode, 0:03:47.600 --> 0:03:50.800 we've got Matt Miller of Bloomberg TV, along with Katie Greifield, 0:03:50.840 --> 0:03:54.680 who's a regular on Trillions and a reporter with Bloomberg News, 0:03:55.880 --> 0:04:00.080 this time on trillions. Highlights of Year one from ETF 0:04:03.120 --> 0:04:05.760 Katy Matt, welcome back to trains. Thank you, thrilled of 0:04:05.840 --> 0:04:08.200 you here. It's my first time. Actually, oh I have 0:04:08.320 --> 0:04:11.040 been here many times. You lucky, long overdue. I've been 0:04:11.080 --> 0:04:13.680 a long time listener, so thank you for great you 0:04:13.880 --> 0:04:16.680 as a first time caller, Eric, How do you want 0:04:16.720 --> 0:04:18.719 to do this? I pulled five or six clips that 0:04:18.760 --> 0:04:20.480 I think we're kind of highlights of the year, might 0:04:20.520 --> 0:04:23.800 get Katie and Matt talking, So we can start with 0:04:23.839 --> 0:04:25.400 the first one if you want. Okay, here we go. 0:04:25.520 --> 0:04:27.640 So the first clip is from the very first guest 0:04:27.680 --> 0:04:29.600 on the very first show. Can you guys remember who 0:04:29.600 --> 0:04:32.680 that was? Holly Farm said yes, So here here she 0:04:32.839 --> 0:04:35.560 is talking about active ets, which has become a huge 0:04:35.560 --> 0:04:37.599 issue for us. In a theme in the show where 0:04:37.600 --> 0:04:40.279 we look at our core investor base, there are trillions 0:04:40.279 --> 0:04:43.400 of dollars of assets still in actively managed solutions that 0:04:43.440 --> 0:04:45.560 haven't moved to index. So I think what that tells 0:04:45.560 --> 0:04:48.599 me is there's a clear space for active in ETFs 0:04:48.640 --> 0:04:51.200 at the core and that is squarely where we think 0:04:51.240 --> 0:04:54.159 our investors and our clients will use our products. She 0:04:54.360 --> 0:04:57.680 was not wrong, right. I'd say, if there's one ETF 0:04:57.720 --> 0:05:01.080 that we've talked about the most other than Spy all 0:05:01.160 --> 0:05:03.240 year long, it's ben jepy. Am I wrong about that 0:05:03.440 --> 0:05:06.080 Jetpy definitely because it took in so much money. Since 0:05:06.160 --> 0:05:08.360 it's like the new arc in terms of flows, Can 0:05:08.400 --> 0:05:10.920 I just toot our own horns for a little bit. 0:05:10.960 --> 0:05:14.160 The fact that we had Capital group on like immediately 0:05:14.200 --> 0:05:16.880 after they launched their first ETFs, and the fact that 0:05:16.920 --> 0:05:19.920 we were focused on active I mean, to Matt's point, 0:05:19.960 --> 0:05:23.000 we've been talking about it for a year straight, and 0:05:23.160 --> 0:05:25.880 I mean, Holly really put it very well that you 0:05:25.880 --> 0:05:28.760 have trillions of dollars in active funds that haven't made 0:05:28.800 --> 0:05:30.920 their way to ETFs yet, and that's exactly what we've 0:05:30.960 --> 0:05:33.480 seen over the past year. It was prescient for sure. 0:05:33.600 --> 0:05:37.000 I thought active now takes in like thirty forty percent 0:05:37.000 --> 0:05:38.480 of the flows and they make up four percent of 0:05:38.520 --> 0:05:41.200 the assets. Huge for now. Yeah, I was gonna say, 0:05:41.240 --> 0:05:43.679 does that continue? Do you think that continues? Yeah, because 0:05:43.720 --> 0:05:46.479 there's still so many trillions and active mutual funds. A 0:05:46.520 --> 0:05:49.360 lot of it's just the migration over, it's not new money. 0:05:49.440 --> 0:05:51.960 That's a little bit of the behind the scenes. It's 0:05:51.960 --> 0:05:53.800 not like somebody's waking up. Oh give me active. I 0:05:53.800 --> 0:05:55.360 think a lot of it's people who were in active 0:05:55.400 --> 0:05:57.919 mutual funds, like the ETF rapper better you know the 0:05:57.960 --> 0:05:59.640 other thing. I just want to say, we're gonna have 0:05:59.680 --> 0:06:00.800 a little This can be a little bit of a 0:06:00.880 --> 0:06:03.359 rivalry here. We've got two sides of Eric here, the 0:06:03.360 --> 0:06:09.320 et more. Yeah, to be fair, our show, to be fair, 0:06:09.360 --> 0:06:12.040 our show is shorter and we are shallower. Yeah. Straight, 0:06:12.080 --> 0:06:16.359 We don't get extremely shallow people. But there's something about 0:06:16.400 --> 0:06:18.440 live TV that just gets the blood flow. And there's 0:06:18.440 --> 0:06:21.919 something special about you love adrenaline. Yeah, you love live television. 0:06:22.040 --> 0:06:24.440 But you can't you definitely can't go as deep. Yeah here, 0:06:24.480 --> 0:06:26.240 you can also make mistakes here and like just edit 0:06:26.279 --> 0:06:28.040 it out like you just basically have to move on 0:06:28.040 --> 0:06:38.000 on TV, like employee Magnus as our producer. Okay, Clip two, Okay, 0:06:38.000 --> 0:06:41.360 clip two is this is Matt This is this first 0:06:41.360 --> 0:06:43.400 C block guest where we drilled down into an ETF 0:06:43.680 --> 0:06:46.240 this you know who that was Katie well Hershey, wow, 0:06:46.440 --> 0:06:49.240 photographic memory over here. Okay, that was like a big deal. 0:06:49.279 --> 0:06:53.039 I had a photographic memory twenty years ago. You know, 0:06:54.040 --> 0:06:56.840 so Will Hershey was talking about met V and this 0:06:56.880 --> 0:06:59.240 is a great clip because sometimes on the show, I'll 0:06:59.320 --> 0:07:01.360 kind of chat with Matt ahead of time before that 0:07:01.800 --> 0:07:03.440 we go to air, and I'll just give him some 0:07:03.520 --> 0:07:06.520 like inside Baseball and he'll go right on air with it. 0:07:07.640 --> 0:07:10.080 So I told him about the MeTV ticker sale to 0:07:10.600 --> 0:07:13.920 Mark Zuckerberg, and Will did not want this brought up. 0:07:14.000 --> 0:07:16.640 So go ahead, you know, let me soften you up 0:07:16.640 --> 0:07:18.480 with a few questions first and then hit you at 0:07:18.520 --> 0:07:21.080 the hard one. But I'll just go ahead and ask 0:07:21.960 --> 0:07:25.240 you sold the ticker Meta to Mark Zuckerberg. I guess 0:07:25.240 --> 0:07:26.720 he called you up and said, will you know I'll 0:07:26.720 --> 0:07:29.360 give you like your own Caribbean island? What did you 0:07:29.400 --> 0:07:32.600 get for that? You know, I'm actually probably gonna plead 0:07:32.600 --> 0:07:34.400 the fifth on that one. What I will say is 0:07:34.520 --> 0:07:37.280 changing from Meta to met V I think eliminated some 0:07:37.320 --> 0:07:40.000 of the confusion in the market. When Facebook changed their 0:07:40.080 --> 0:07:42.160 name to Meta, that was truly a validation of the 0:07:42.160 --> 0:07:44.600 theme for us, and we're seeing investors play with their money. 0:07:45.000 --> 0:07:47.480 Wait a sophomone up there. I was going to but 0:07:47.560 --> 0:07:49.400 I felt like, you know, we only have a half hour, 0:07:49.400 --> 0:07:51.240 and if you take out commercial breaks, it's more like 0:07:51.280 --> 0:07:54.360 twenty two minutes. So why beat around the bush right 0:07:54.480 --> 0:07:56.680 right to the jugular exactly. So he got his own 0:07:56.720 --> 0:07:59.840 G five fifty now or G six fifties something like. 0:08:00.120 --> 0:08:03.120 He got his own private jet for selling Mark Zuckerberg 0:08:03.160 --> 0:08:05.760 the meta ticker. And what's great about that is he 0:08:05.800 --> 0:08:08.880 had his own canned answer. But Matt puts so much 0:08:08.880 --> 0:08:11.040 of what people are really thinking in the question that 0:08:11.400 --> 0:08:13.840 everything is out there now. Because you knew Will wasn't 0:08:13.840 --> 0:08:15.400 going to really do much with that, he said his 0:08:15.440 --> 0:08:18.080 little thing and then and wanted to go away. I 0:08:18.160 --> 0:08:21.440 remember after that happened, when it was announced they were 0:08:21.440 --> 0:08:24.720 actually changing the ticker, so many people asked me for 0:08:24.760 --> 0:08:27.000 a number. Oh how much did he get? We never 0:08:27.080 --> 0:08:30.000 quite got it out of him, Do you know Eric? 0:08:30.120 --> 0:08:32.640 I think Eric knows. There were rumors. I think we're 0:08:33.520 --> 0:08:35.400 twenty twenty five million. I don't know if that's what 0:08:35.520 --> 0:08:37.360 I thought as well. I heard twenty five million. You 0:08:37.360 --> 0:08:39.520 can buy an island with that, right somewhere. I think 0:08:39.559 --> 0:08:41.960 you can buy a jet with that, and then you 0:08:42.000 --> 0:08:44.200 can just go to whichever island. You have to have 0:08:44.800 --> 0:08:47.679 multiple bank accounts. He's still working though, Like so, I 0:08:47.679 --> 0:08:49.319 don't know, if I got twenty five million, I might 0:08:49.320 --> 0:08:51.000 just leave the ends with the two hundred and fifty 0:08:51.040 --> 0:08:54.560 thousand dollars FDIC insurance limit. You'd have to open a 0:08:54.600 --> 0:08:58.920 ton of bank accounts. It still just makes me astounded 0:08:59.000 --> 0:09:01.840 that Mark was willing to change his name, the name 0:09:01.880 --> 0:09:05.760 of the company to Meta Like it was a big step. 0:09:05.960 --> 0:09:09.360 He was so crazy and bold um and you know, 0:09:09.440 --> 0:09:11.800 we'll see how that stake. Maybe a decade or earlier, 0:09:12.760 --> 0:09:16.880 I don't know. Yeah, it was like, everybody's gonna say, 0:09:17.080 --> 0:09:23.400 return to office now, stop doing this thing called the metaverse. Yeah, 0:09:23.440 --> 0:09:25.680 well it's gonna be a little bit ironic if met 0:09:25.800 --> 0:09:28.640 if Meta orders everyone back to the office and they're like, 0:09:28.760 --> 0:09:33.400 why just to be in the Horizonville with a torso, yeah, 0:09:33.679 --> 0:09:35.960 all of us could be doing this right now, someone said, 0:09:36.720 --> 0:09:40.359 Someone asked me, what was the bigger mistake Mark Stuckerberg 0:09:40.480 --> 0:09:42.760 changing the whole company and betting on Metaverse, or Tom 0:09:42.800 --> 0:09:45.160 Brady coming back to play another year with the Bucks 0:09:45.160 --> 0:09:47.880 and kind of like ruining his marriage. To Zuck's credit, 0:09:47.920 --> 0:09:50.360 he changed the conversation he did not like the one 0:09:50.400 --> 0:09:53.560 that they were having about his company. Absolutely, he created 0:09:53.559 --> 0:09:57.760 a whole new I think Tom Brady Trumps very Trumpish 0:09:57.760 --> 0:10:00.640 of him, and Brady hasn't quite learned that lesson yet. 0:10:00.679 --> 0:10:02.680 But the ETF side of this was from the moment 0:10:02.720 --> 0:10:05.280 that it happened, we are like, that's that's gonna be awesome. Yeah, 0:10:05.480 --> 0:10:07.160 that's so good on you for asking it about it, 0:10:07.200 --> 0:10:17.320 Matt Okay number three sometimes a big name. Yeah, we 0:10:17.360 --> 0:10:20.080 get some big names sometimes. Kathy Wood, whom you know, 0:10:20.240 --> 0:10:22.800 has had a rough year, but she's always interesting. She's 0:10:22.800 --> 0:10:24.559 just good TV because she says a lot. She's just 0:10:25.200 --> 0:10:26.640 the people who are at the top of the companies 0:10:26.679 --> 0:10:28.760 are always the best interviews because they don't really they're 0:10:28.760 --> 0:10:30.200 not in the middle. They don't really care what their 0:10:30.200 --> 0:10:32.559 bosses think because they are the boss, right, So Kathy's 0:10:32.640 --> 0:10:35.280 very open. We asked her about she says her funds 0:10:35.320 --> 0:10:37.920 are inherently ESG. That's a huge theme on the show, 0:10:38.160 --> 0:10:40.920 and we asked her whether she agrees with Elon that 0:10:41.200 --> 0:10:43.720 ESG is outrageous scam. Sort of an interesting wedge question 0:10:44.400 --> 0:10:48.240 that characterization of ESG. What I've always said when people 0:10:48.280 --> 0:10:52.960 have asked us about our our portfolios, I've always said 0:10:53.000 --> 0:10:59.480 they are intrinsically good for the environment, socially good, and 0:11:00.200 --> 0:11:03.040 you know, we have a scoring system around government, so 0:11:03.400 --> 0:11:09.120 we certainly, we certainly are focused on doing the right thing, 0:11:09.200 --> 0:11:12.600 which is what I think ESG is all about. I 0:11:12.600 --> 0:11:15.959 think it got way out of hand and there was 0:11:16.040 --> 0:11:19.360 a lot of slapping lipstick on a pig, and you know, 0:11:19.400 --> 0:11:26.120 basically Annie portfolio being kind of promoted as ESG all right, Well, 0:11:26.160 --> 0:11:28.680 to some extent she was right. She was kind of 0:11:28.679 --> 0:11:31.240 proved out or Elon Musk I should say, was right 0:11:31.320 --> 0:11:36.079 by msdi's recent move. Right. Yeah, I've always been BULLISHESG metrics. 0:11:36.120 --> 0:11:38.120 If you're analyzing a company or an active manager, why 0:11:38.120 --> 0:11:40.720 not get more data that's going to be a huge area, 0:11:40.960 --> 0:11:44.199 packaging it into a fund and like making your banking, 0:11:44.200 --> 0:11:48.120 your retirement on it, your kids education. I'll always skeptical 0:11:48.120 --> 0:11:50.800 of that. And it's trying to make something that's subjective 0:11:50.840 --> 0:11:53.360 objective and it's very difficult to do that. So ESG 0:11:53.520 --> 0:11:56.920 funds barish, ESG metrics bullish for me. Yeah, I mean 0:11:56.960 --> 0:11:59.920 it's just such a broad umbrella. Someone's going to be upset. 0:12:00.200 --> 0:12:02.679 But ESG is I think probably come up on every show, right, 0:12:02.760 --> 0:12:07.200 oh yeah about its every show. But the thing the 0:12:07.200 --> 0:12:10.080 thing is, I think people invested on principles long before 0:12:10.400 --> 0:12:13.160 ESG was around. But you're very smart to point out 0:12:13.160 --> 0:12:16.800 that it's subjective, right, and what the taxonomy is trying 0:12:16.840 --> 0:12:18.959 to do is turn it into an objective thing, and 0:12:19.000 --> 0:12:21.480 I think they've failed pretty miserably at least thus far. 0:12:22.000 --> 0:12:24.640 Speaking of which, speaking your take on any of these things, Joe, 0:12:24.840 --> 0:12:26.679 I have no takes for this one. This is all 0:12:26.920 --> 0:12:30.520 this is you guys. Well, I do you think we 0:12:30.600 --> 0:12:34.320 talked about ESG a lot on trillions? I think you're 0:12:35.000 --> 0:12:37.000 the way you just described it, Eric, I think is 0:12:37.040 --> 0:12:39.679 interesting because I don't think that's come through the in 0:12:40.200 --> 0:12:42.680 the trillion segments that we've done, that the metrics you're 0:12:42.720 --> 0:12:46.600 interested in, and that your your pro data just not 0:12:47.559 --> 0:12:52.520 maybe more accuri Yeah, because ESGTF inherently wants to take 0:12:52.559 --> 0:12:55.079 over your core because why would you put five percent 0:12:55.120 --> 0:12:57.480 into an ESG fund, Because then you're still on SPY, 0:12:57.559 --> 0:12:59.760 which has all the bad stocks, right, So you kind 0:12:59.800 --> 0:13:01.199 of have to go all in if you're going to 0:13:01.240 --> 0:13:03.880 be ESG, and that's I don't know, that's that's basically 0:13:03.920 --> 0:13:06.360 betting all your money on a more expensive active approach, 0:13:06.480 --> 0:13:09.040 which again you can underperform. And that's what people saw 0:13:09.080 --> 0:13:11.640 in the past eighteen months. That's I've just been barished 0:13:11.679 --> 0:13:13.960 on that. Yeah, everything else I kind of get so 0:13:14.360 --> 0:13:21.800 interesting way to articulate it. Okay, so good transition here, 0:13:22.280 --> 0:13:24.839 because this next guest made a ton of noise in 0:13:24.880 --> 0:13:27.600 the ETF space and then he went ahead and like 0:13:27.640 --> 0:13:32.640 declared himself a presidential potential. Yeah. This is vevek Roumswamy 0:13:32.720 --> 0:13:36.080 who started Strive And as we interviewed him over we 0:13:36.080 --> 0:13:37.600 had him on Trillions, we had him on the show, 0:13:38.040 --> 0:13:40.040 you could see he was just getting himself into this 0:13:40.120 --> 0:13:43.400 political sort of communication and I'm not surprised. It just 0:13:43.440 --> 0:13:45.720 evolved him going, you know what, screw at ETFs aren't enough. 0:13:45.720 --> 0:13:48.120 I'm running for presidents. So signs were there, so yeah, 0:13:48.240 --> 0:13:50.480 you know, logical transition. It could have been the endgame 0:13:50.520 --> 0:13:54.319 from the beginning. Well, but Nature Racing are talking about 0:13:54.320 --> 0:13:56.280 how like this is like ETF marketing to a whole 0:13:56.280 --> 0:13:58.240 nother level because he's going to be able to maybe 0:13:58.240 --> 0:14:00.400 like because the ETFs match what he's saying on the 0:14:00.400 --> 0:14:04.080 presidential trail. Anyway, Matt had a really cool set up 0:14:04.559 --> 0:14:06.920 for a question to Vevec, and Vevec, I gotta say, 0:14:07.040 --> 0:14:09.120 is a very good communicator regardless if you agree or not, 0:14:09.800 --> 0:14:13.120 you're focused vic on making money, right, This is what 0:14:13.160 --> 0:14:15.840 investors want to do. I think of it like Michael 0:14:15.920 --> 0:14:18.800 Jordan in that great documentary said, I just didn't want 0:14:18.800 --> 0:14:21.880 to focus on politics. I was focused on winning basketball games. 0:14:21.920 --> 0:14:24.680 There are athletes who focus on politics and they don't 0:14:24.720 --> 0:14:26.960 necessarily put up as many points on the board as 0:14:26.960 --> 0:14:30.760 those who focus on what they're doing, what they're there for. 0:14:30.920 --> 0:14:33.600 And that's what you want to really bring out here. 0:14:33.640 --> 0:14:36.760 You want to sort of rebirth capitalism into the investment 0:14:36.960 --> 0:14:41.080 space exactly, and starting with the US energy sector, picking 0:14:41.080 --> 0:14:42.760 the one sector to that I think has been most 0:14:42.800 --> 0:14:46.880 economically damaged by these politicized demands coming from large capital 0:14:46.960 --> 0:14:49.640 owners and shareholders. And so our message is really simple. 0:14:49.760 --> 0:14:51.840 If you're an oil company, be a great oil company. 0:14:52.040 --> 0:14:54.200 If you're a natural gas company, be a great natural 0:14:54.240 --> 0:14:56.920 gas company. And if you're an alternative energy company, be 0:14:56.960 --> 0:15:00.000 a great alternative energy company. But don't mendate oil company 0:15:00.080 --> 0:15:02.400 needs to stop being oil companies, which is what the 0:15:02.440 --> 0:15:06.200 likes of black Rock, State Street and Vanguard have done. Now, 0:15:06.240 --> 0:15:08.600 I will say Matt didn't exactly ask a question there. 0:15:08.840 --> 0:15:11.520 I didn't mean to sell his ETF for him re 0:15:11.720 --> 0:15:14.040 listening to that. I wish I could shorten that intro 0:15:14.160 --> 0:15:17.320 because and and and end your statement with the question 0:15:17.440 --> 0:15:20.680 instead of also comparing him to Jordan. I don't know 0:15:20.760 --> 0:15:25.080 that that was right. Well, it lives on in chiliance forever. Now. Well, 0:15:25.320 --> 0:15:28.160 I recently watched Last Dance again with my twelve year old, 0:15:28.160 --> 0:15:30.480 and I noticed that Jordan had to account for that 0:15:30.480 --> 0:15:33.000 whole Republicans buy sneakers too, and that's sort of what 0:15:33.040 --> 0:15:35.720 he said. He's like, I'm just busy playing basketball. I 0:15:35.760 --> 0:15:38.560 just didn't really want to get into that arena. So 0:15:38.640 --> 0:15:40.600 I think that's what your question was focused on. But 0:15:40.800 --> 0:15:43.120 he because he was trying to defend that he wasn't 0:15:43.120 --> 0:15:46.120 anti EESG. He was just provaci. We called it the 0:15:46.120 --> 0:15:49.200 anti woke ETF and he didn't like that, or at 0:15:49.240 --> 0:15:51.200 least he didn't want us to frame it that way, 0:15:51.360 --> 0:15:53.640 or at least he wanted to push back against framing 0:15:53.640 --> 0:15:57.040 it that way. I think, though, that he misses an 0:15:57.080 --> 0:16:00.680 important point, which is that sometimes companies need to pivot. 0:16:00.720 --> 0:16:02.720 I mean, sometimes you're an oil producer and then you 0:16:02.800 --> 0:16:05.040 realize you should be a battery maker. Maybe that's too 0:16:05.120 --> 0:16:06.920 much of a pivot, but you get my point right, 0:16:07.200 --> 0:16:12.480 and his theory or his investment strategy doesn't really allow 0:16:12.520 --> 0:16:15.040 for that. Well, I think his point, like if you 0:16:15.040 --> 0:16:16.800 think we had him on around the launch of the 0:16:16.840 --> 0:16:23.120 Strive US Energy ETF, which tracks I shares is Energy ETF, 0:16:23.120 --> 0:16:26.040 and his whole point was these companies need to drill 0:16:26.080 --> 0:16:29.520 more and fracmore, basically making the point that they're not. 0:16:29.920 --> 0:16:32.240 It's not that they're pivoting, which to your point, some 0:16:32.240 --> 0:16:36.080 companies need to do. It's just they're straying away from 0:16:36.120 --> 0:16:39.320 what they're supposed to do and not even channeling that 0:16:39.440 --> 0:16:43.440 energy into something productive. He's concerned about the regulation, but 0:16:43.600 --> 0:16:46.640 sometimes these companies decide not to drill more in fracmore 0:16:46.720 --> 0:16:49.880 because it's not economically expedient to do so. Right, If 0:16:49.920 --> 0:16:51.960 they see a downturn coming, if they see a drop 0:16:51.960 --> 0:16:54.520 in demand, they're naturally going to pull back on investment. 0:16:54.840 --> 0:16:57.320 So there's a difference between making the right decision for 0:16:57.360 --> 0:17:00.680 your shareholders and being forced to do something by But 0:17:00.760 --> 0:17:03.960 this taps into this. ETF doesn't have hardly any assets, 0:17:04.000 --> 0:17:06.520 like VTI alone takes in more than their whole company 0:17:06.520 --> 0:17:09.159 every day. But VTI, what can you say, it's the 0:17:09.200 --> 0:17:11.840 total market. So this also talks about with TV some 0:17:11.880 --> 0:17:14.840 things play well that tap into debates and conversations that 0:17:14.920 --> 0:17:18.400 don't have a lot of assets, like ESG versus Vanguard. 0:17:18.480 --> 0:17:21.160 You know, we cover Vanguard to a degree, but asset wise, 0:17:21.200 --> 0:17:22.800 we should cover them for a third of the show, 0:17:22.840 --> 0:17:24.919 but we don't. We give more time to some of 0:17:24.920 --> 0:17:27.479 this other stuff that's new or innovative or debatable. By 0:17:27.480 --> 0:17:33.600 the way, don't vevex ETFs mimic existing gigantic products that 0:17:33.600 --> 0:17:35.480 are already in the market, except for they have a 0:17:35.560 --> 0:17:38.439 much higher expense ratio. So Strive wants to charge a 0:17:38.480 --> 0:17:41.160 lot more money for something that's very similar to something 0:17:41.160 --> 0:17:43.920 that Vanguard gives away for free. Close but the fees 0:17:43.960 --> 0:17:45.959 are the same, but they're there. Yeah, the fees are 0:17:45.960 --> 0:17:48.000 the same. To his credit, and then they just say 0:17:48.000 --> 0:17:52.080 we're going to erase that part mat cut That also 0:17:52.200 --> 0:17:56.600 also probably a better ticker. Um, but yeah, speaks to uh, 0:17:57.040 --> 0:18:05.360 there's some interesting takeaways in that one. Okay, next, Yeah, Next, 0:18:05.400 --> 0:18:07.399 we have nature Acy, who's a friend of the show, 0:18:07.960 --> 0:18:10.159 you know, a great guy. He was on. And we 0:18:10.200 --> 0:18:11.920 have advisors on the A block. These are people who 0:18:11.920 --> 0:18:13.520 invest and actually put money to work. That's what our 0:18:13.560 --> 0:18:15.960 A block's about he talks about a one trillion prediction, 0:18:16.200 --> 0:18:19.679 and this also Katie's reaction to his answer. Katie's got 0:18:19.680 --> 0:18:21.919 the best reactions and she cracks me up constantly. And 0:18:21.960 --> 0:18:25.199 I think this clip sort of shows that because the 0:18:25.280 --> 0:18:29.360 first US listed ETF, the Spider SNP five hundred ETF, 0:18:29.880 --> 0:18:33.240 turns thirty years old next month, and from my perspective, 0:18:33.480 --> 0:18:36.240 it's pretty remarkable that ETFs have now been around for 0:18:36.600 --> 0:18:40.560 three decades, yet the industry is still accelerating, still growing, 0:18:40.800 --> 0:18:43.359 Which gets to my first prediction, which is that I 0:18:43.400 --> 0:18:49.200 believe ETF inflows will surpass one trillion in twenty twenty three. 0:18:49.240 --> 0:18:51.520 So we knocked on the door in twenty twenty one 0:18:51.680 --> 0:18:55.000 had over nine hundred billion of inflows. Twenty twenty two 0:18:55.080 --> 0:18:57.880 is we just discussed highly impressive just given the markets 0:18:58.119 --> 0:19:01.240 around six hundred billion in inflows. I think twenty twenty 0:19:01.320 --> 0:19:03.679 three will be the year that we eclipse one trilling 0:19:03.720 --> 0:19:05.480 and influence for the first time. I just think the 0:19:05.480 --> 0:19:09.600 ETF industry is firing on all cylinders right now, and 0:19:09.960 --> 0:19:13.359 ETFs are the investment vehicle moving forward. Eric, did you 0:19:13.359 --> 0:19:15.800 know that Spy and I are the same age. We 0:19:15.880 --> 0:19:18.200 have almost the same birthday. I was born in May. 0:19:18.400 --> 0:19:20.600 That is really cool. It's a great fun fact for 0:19:20.640 --> 0:19:24.200 the last show. It's not my birthday yet, but very 0:19:24.200 --> 0:19:30.720 soon Katie's birthday. That stuff really makes financial television work 0:19:31.680 --> 0:19:34.360 because a lot of it's scripted. The people are scripted, 0:19:34.400 --> 0:19:37.560 they're on message points. I think when I watch, I 0:19:37.680 --> 0:19:40.119 like to see the coloring out of the lines to 0:19:40.200 --> 0:19:43.040 a degree in between some of the guests. So I 0:19:43.080 --> 0:19:45.520 like that you're good at coloring outside the lines, Katie. Well, 0:19:45.560 --> 0:19:47.359 this is why I was so thrilled to be a 0:19:47.359 --> 0:19:50.000 part of this next generation of ETF i Q because 0:19:50.000 --> 0:19:51.360 I knew it was going to be with Eric, who 0:19:51.359 --> 0:19:53.040 I get along with famously. I knew I was going 0:19:53.080 --> 0:19:56.840