1
00:00:05,760 --> 00:00:07,840
Speaker 1: Welcome to trillion. So I'm Joel Weber and I'm Eric

2
00:00:07,880 --> 00:00:17,120
Speaker 1: beltiunas Eric. Uh, the markets, the economic turbulence, everything has

3
00:00:17,120 --> 00:00:21,560
Speaker 1: been a little crazy yet and yet investors have a

4
00:00:21,640 --> 00:00:25,720
Speaker 1: way to make some money still. Yeah, I mean there's

5
00:00:26,000 --> 00:00:29,560
Speaker 1: there's always going to be a hunt for something up performing.

6
00:00:29,640 --> 00:00:32,800
Speaker 1: And obviously the last decade it's been like growth stocks

7
00:00:32,840 --> 00:00:35,879
Speaker 1: and tech stocks and uh, anything that was shiny was

8
00:00:35,920 --> 00:00:38,240
Speaker 1: really where it was at. Now we've got a whole

9
00:00:38,240 --> 00:00:42,040
Speaker 1: new environment. And now what's interesting is one of those

10
00:00:42,080 --> 00:00:45,760
Speaker 1: areas that is seeing inflows way beyond what they normally

11
00:00:45,800 --> 00:00:49,600
Speaker 1: see and beyond their weight in assets, so they're punching

12
00:00:49,600 --> 00:00:52,879
Speaker 1: above their weight is high dividend e t f s.

13
00:00:53,440 --> 00:00:56,440
Speaker 1: And any analysts will tell you they get asked about

14
00:00:56,520 --> 00:00:59,040
Speaker 1: income all the time, like that's like an evergreen topic.

15
00:00:59,120 --> 00:01:02,520
Speaker 1: So you have need for yield, Yet people are skittish

16
00:01:02,560 --> 00:01:04,200
Speaker 1: to get that yield in the bond market right now

17
00:01:04,200 --> 00:01:06,880
Speaker 1: because they know the fit is hell bent on raising rates,

18
00:01:06,880 --> 00:01:10,800
Speaker 1: so they want yield still, and normally high divid and

19
00:01:10,840 --> 00:01:15,080
Speaker 1: ETFs are not that great because they tend to hold

20
00:01:15,200 --> 00:01:18,280
Speaker 1: energy and utilities because that's where high dividends are. But

21
00:01:18,720 --> 00:01:22,520
Speaker 1: this year those sectors rule. So you've got this perfect

22
00:01:22,840 --> 00:01:24,680
Speaker 1: one two punch in these ct s. I call it

23
00:01:24,720 --> 00:01:28,160
Speaker 1: the sweet spot where they've got two things that people want,

24
00:01:28,880 --> 00:01:32,440
Speaker 1: which is that energy exposure and the high dividends. Um.

25
00:01:32,520 --> 00:01:35,479
Speaker 1: And so they have taken in about dollars this year.

26
00:01:35,520 --> 00:01:38,679
Speaker 1: That's already a record. And the problem I think they

27
00:01:38,760 --> 00:01:40,640
Speaker 1: might take in fifty and they are not that big

28
00:01:40,680 --> 00:01:43,199
Speaker 1: of a category. So this is a nice little feeding

29
00:01:43,200 --> 00:01:45,840
Speaker 1: frenzy and we should really dive into this. I think

30
00:01:45,880 --> 00:01:51,120
Speaker 1: it's a classic, UM you know how to play, uh episode? Okay,

31
00:01:51,160 --> 00:01:55,480
Speaker 1: So joining us will be Todd Rosenbluth. He's a regular

32
00:01:55,640 --> 00:01:57,960
Speaker 1: on Trillions and he's got a new job. He's the

33
00:01:57,960 --> 00:02:01,400
Speaker 1: head of research at Verify, as well as Susanne Woollie,

34
00:02:01,560 --> 00:02:06,880
Speaker 1: personal finance reporter with Bloomberg Wealth, this time on Trillions,

35
00:02:07,760 --> 00:02:12,720
Speaker 1: High Dividend e t f S. Todd, Susanne, welcome back

36
00:02:12,720 --> 00:02:15,200
Speaker 1: to Trillions. Good to be here, Good to be with

37
00:02:15,240 --> 00:02:19,280
Speaker 1: you all. Okay, So Eric set the table there. Things

38
00:02:19,360 --> 00:02:22,400
Speaker 1: have turned really quickly and all of a sudden, a

39
00:02:22,480 --> 00:02:25,480
Speaker 1: category that probably a lot of people weren't paying attention

40
00:02:25,520 --> 00:02:29,919
Speaker 1: to is something that people should be interested in. Todd,

41
00:02:29,919 --> 00:02:32,080
Speaker 1: what kind of returns are we looking at in general

42
00:02:32,480 --> 00:02:35,520
Speaker 1: in this category. So I guess to set the stage,

43
00:02:35,560 --> 00:02:38,079
Speaker 1: we've got the SMP five hundred at the time we're

44
00:02:38,120 --> 00:02:42,840
Speaker 1: recording this down twenty three percent. The high dividend yields

45
00:02:42,919 --> 00:02:47,080
Speaker 1: tend to have have fallen half less than half of

46
00:02:47,120 --> 00:02:50,400
Speaker 1: that ten percent, and in some cases they're close to

47
00:02:50,400 --> 00:02:53,560
Speaker 1: treading water for the year. So you would have saved

48
00:02:54,000 --> 00:02:57,520
Speaker 1: two thousand basis points, perhaps depending upon whether or not

49
00:02:57,600 --> 00:03:01,240
Speaker 1: you were in some of these dividend filding e t s.

50
00:03:01,280 --> 00:03:02,919
Speaker 1: And and maybe if I can, if I can pare

51
00:03:03,000 --> 00:03:05,240
Speaker 1: back for a second, and maybe you guys were going

52
00:03:05,280 --> 00:03:09,200
Speaker 1: to do this. But there's two main types of dividend dts.

53
00:03:09,200 --> 00:03:12,519
Speaker 1: There's dividend growth ETFs, where the companies have a long

54
00:03:12,600 --> 00:03:15,880
Speaker 1: record of paying and growing their dividends, but the yields

55
00:03:15,919 --> 00:03:18,680
Speaker 1: are close to the broader SMP five. And then you've

56
00:03:18,720 --> 00:03:21,600
Speaker 1: got these high dividend yielding ETFs that we're gonna talk about,

57
00:03:22,040 --> 00:03:26,120
Speaker 1: where the yield is three, four, sometimes even five, and

58
00:03:26,120 --> 00:03:29,040
Speaker 1: the companies that are constructed are based on the yield,

59
00:03:29,280 --> 00:03:31,720
Speaker 1: not based on their record of paying dividends. And so

60
00:03:31,760 --> 00:03:35,000
Speaker 1: I think that's an important distinction. It's not all dividend

61
00:03:35,080 --> 00:03:39,720
Speaker 1: dtfs are the same as as I now say at Vertify. Okay, so,

62
00:03:40,160 --> 00:03:42,040
Speaker 1: by the way, it congrats on that new gig. Before

63
00:03:42,040 --> 00:03:44,040
Speaker 1: we go to Suzanne, I want to just ask you.

64
00:03:44,040 --> 00:03:47,640
Speaker 1: You and Eric always have these bets going comparrently. You

65
00:03:47,680 --> 00:03:52,800
Speaker 1: know what bets are live right now, So there's no

66
00:03:52,880 --> 00:03:55,120
Speaker 1: dividend bet. I will say that the left there might

67
00:03:55,120 --> 00:03:57,520
Speaker 1: be by the end of the episode, though there might be.

68
00:03:57,560 --> 00:04:00,360
Speaker 1: The last time that I was on here, Eric's sprung

69
00:04:00,480 --> 00:04:04,200
Speaker 1: a bet on me um that I said yes to

70
00:04:04,520 --> 00:04:07,800
Speaker 1: on the fly, and I stick with that UM. So

71
00:04:07,840 --> 00:04:09,920
Speaker 1: I'll highlight that one because that's the one I think

72
00:04:09,960 --> 00:04:12,400
Speaker 1: he's more confident in any other, and he can perhaps

73
00:04:12,600 --> 00:04:15,240
Speaker 1: highlight the one that he thinks I should be more confident.

74
00:04:15,800 --> 00:04:19,760
Speaker 1: So last time we bet that Capital Group, which was

75
00:04:19,880 --> 00:04:23,280
Speaker 1: at the time soon to launch actively managed equity t F.

76
00:04:23,440 --> 00:04:27,080
Speaker 1: They subsequently did that in February. I believe in late

77
00:04:27,120 --> 00:04:32,120
Speaker 1: February that they would gather have assets under management of

78
00:04:32,160 --> 00:04:35,840
Speaker 1: seven billion dollars or more by the end of that

79
00:04:35,960 --> 00:04:40,560
Speaker 1: first twelve month period. Uh that is alive. Bet. They

80
00:04:40,600 --> 00:04:43,839
Speaker 1: are have been growing assets. It's close to two billion dollars.

81
00:04:43,880 --> 00:04:46,200
Speaker 1: I realized that if he'll do the math here for

82
00:04:46,240 --> 00:04:48,440
Speaker 1: you and add that up, and it will be under

83
00:04:48,440 --> 00:04:51,920
Speaker 1: seven billion dollars. But we're going to see an accelerated growth.

84
00:04:51,960 --> 00:04:55,039
Speaker 1: So I'm still feeling very good about that one. But

85
00:04:55,160 --> 00:04:57,200
Speaker 1: that one I could see coming closer to the wire

86
00:04:57,400 --> 00:04:59,520
Speaker 1: than the next one that I'll let Eric set up

87
00:05:00,560 --> 00:05:03,440
Speaker 1: because I feel much more. I feel confident in in

88
00:05:03,640 --> 00:05:07,280
Speaker 1: in E. S G. Yeah, So the Capitol Group, when

89
00:05:07,279 --> 00:05:10,479
Speaker 1: I'm pretty confident, although they are a massive company and

90
00:05:10,520 --> 00:05:13,840
Speaker 1: they know about this bet, and they can they can

91
00:05:13,880 --> 00:05:16,200
Speaker 1: just move you know, a couple of billion if they

92
00:05:16,200 --> 00:05:18,279
Speaker 1: wanted to, like they on the night before, they could

93
00:05:18,279 --> 00:05:20,280
Speaker 1: just make Todd win. So they always have that lever

94
00:05:20,360 --> 00:05:22,800
Speaker 1: they can pull, and that makes me nervous. But otherwise,

95
00:05:23,000 --> 00:05:27,560
Speaker 1: like that sounds like a Boomarati conspiracy theory there, I think, Yeah,

96
00:05:27,720 --> 00:05:30,520
Speaker 1: I mean UM, and plus the market's going down, so

97
00:05:30,560 --> 00:05:34,240
Speaker 1: that hurts assets. So I like my chances based on trajectories.

98
00:05:34,240 --> 00:05:36,279
Speaker 1: But they always have that lever. But the other better

99
00:05:36,360 --> 00:05:39,960
Speaker 1: we have is I bet that of E. S G

100
00:05:40,120 --> 00:05:42,240
Speaker 1: t S would liquidate by the end of this year.

101
00:05:42,560 --> 00:05:45,719
Speaker 1: This is back when they had UM seventy nine or something,

102
00:05:45,920 --> 00:05:48,480
Speaker 1: so I need about twenty or nineteen to liquidate by

103
00:05:48,480 --> 00:05:49,680
Speaker 1: the end of the year, and so far I think

104
00:05:49,720 --> 00:05:52,760
Speaker 1: only two or three have. But it's trending up. And

105
00:05:52,800 --> 00:05:54,599
Speaker 1: if the market keeps getting awful and the E s

106
00:05:54,600 --> 00:05:57,880
Speaker 1: G baggage keeps increasing, which it is six months, I

107
00:05:57,920 --> 00:06:00,279
Speaker 1: think I've got a shot. I think my I'm like

108
00:06:00,320 --> 00:06:02,120
Speaker 1: a fifteen to one shot to win that one. But

109
00:06:02,160 --> 00:06:04,920
Speaker 1: I'm I'm a total favorite to win the Capitol Group one.

110
00:06:05,520 --> 00:06:09,280
Speaker 1: And my recollection is that Eric has the upper hand

111
00:06:09,560 --> 00:06:13,680
Speaker 1: in this betting history. Correct. Yes, yes, we We've had

112
00:06:13,720 --> 00:06:16,440
Speaker 1: a couple of close ones and then Todd was Todd

113
00:06:16,520 --> 00:06:19,960
Speaker 1: was silent and grimacing. Okay, Suzanne, let's let's bring you

114
00:06:20,000 --> 00:06:22,000
Speaker 1: back in. UM. I want to talk to you about

115
00:06:22,040 --> 00:06:25,719
Speaker 1: when you talk to investors or advisors, how how do

116
00:06:25,760 --> 00:06:29,360
Speaker 1: people feel about this this category in general high dividend.

117
00:06:29,440 --> 00:06:32,080
Speaker 1: I think people right now feel like pretty good about

118
00:06:32,080 --> 00:06:34,000
Speaker 1: it because they're looking for anything that has like the

119
00:06:34,040 --> 00:06:38,080
Speaker 1: whiff of certainty. UM. You know, having been in people

120
00:06:38,080 --> 00:06:42,160
Speaker 1: have found themselves so you know, overweighted and tech not

121
00:06:42,200 --> 00:06:45,920
Speaker 1: even realizing it, you know in the SMP UM and

122
00:06:46,080 --> 00:06:49,640
Speaker 1: you know they are. Everyone is desperate for income, so

123
00:06:50,480 --> 00:06:53,719
Speaker 1: you know, the big thing I hear about every advisor

124
00:06:53,800 --> 00:06:56,560
Speaker 1: is talking about. Of course, is like Series I savings bonds,

125
00:06:56,560 --> 00:07:00,320
Speaker 1: which track inflation because they're at like night point nine

126
00:07:00,360 --> 00:07:02,880
Speaker 1: point six percent, but you can only buy ten thousand

127
00:07:02,920 --> 00:07:04,839
Speaker 1: of them a year, so it's not going to do

128
00:07:04,880 --> 00:07:08,600
Speaker 1: a lot for your portfolio. So I mean energy has

129
00:07:08,600 --> 00:07:12,200
Speaker 1: been hot, like you said before, energy and UM utilities,

130
00:07:12,320 --> 00:07:15,640
Speaker 1: you know, So this is an area that, like Eric said,

131
00:07:15,640 --> 00:07:16,800
Speaker 1: a lot of money is going into and a lot

132
00:07:16,840 --> 00:07:19,640
Speaker 1: of people are talking about. I want to jump on

133
00:07:19,680 --> 00:07:21,960
Speaker 1: in quickly if I can to say I wasn't grimacing.

134
00:07:22,040 --> 00:07:24,360
Speaker 1: I was being polite and waiting for Susanne to be

135
00:07:24,400 --> 00:07:29,520
Speaker 1: brought into the conversation because that's that's the appropriate thing

136
00:07:29,600 --> 00:07:33,120
Speaker 1: to do. UM. But I think to piggyback on on

137
00:07:33,160 --> 00:07:35,680
Speaker 1: what she was saying, there's been just a search for income.

138
00:07:35,720 --> 00:07:39,760
Speaker 1: You know, we've done surveys with advisors at Vertify and

139
00:07:39,800 --> 00:07:43,560
Speaker 1: they're continually looking for alternatives to fixed income. So I

140
00:07:43,600 --> 00:07:47,440
Speaker 1: know you've talked about covered call series of products beforehand

141
00:07:48,120 --> 00:07:51,760
Speaker 1: on this platform. We've talked about, you know, inflation protection

142
00:07:52,160 --> 00:07:55,560
Speaker 1: you have on this platform. The high dividend yielding products

143
00:07:55,640 --> 00:07:58,560
Speaker 1: have been around a while, you know, uh I shares

144
00:07:58,600 --> 00:08:02,720
Speaker 1: in Vanguard have had products that of ten fifteen year

145
00:08:02,800 --> 00:08:07,640
Speaker 1: plus histories, but they've they've they've come up when investors

146
00:08:07,640 --> 00:08:10,440
Speaker 1: are seeking out that income component, and we've gotten now

147
00:08:10,480 --> 00:08:13,800
Speaker 1: even more products than ever before to give investors and

148
00:08:13,880 --> 00:08:17,400
Speaker 1: advisors choices. One of the key things here though, is

149
00:08:17,440 --> 00:08:19,800
Speaker 1: that you know, the US tenure Treasury yield is now

150
00:08:19,880 --> 00:08:23,920
Speaker 1: up to three point two percent. That's pretty good. But

151
00:08:23,960 --> 00:08:27,120
Speaker 1: these high dividend e t F s UM are going

152
00:08:27,160 --> 00:08:29,080
Speaker 1: to yield. Some of them yield a little more than that,

153
00:08:29,160 --> 00:08:31,760
Speaker 1: some a little less. But I think it's interesting just

154
00:08:31,800 --> 00:08:35,160
Speaker 1: to note that I do believe investors just aren't quite

155
00:08:35,520 --> 00:08:38,760
Speaker 1: They're just more scared of the bond market right now

156
00:08:38,800 --> 00:08:42,480
Speaker 1: because that's where the FED has a direct impact. Whereas

157
00:08:42,559 --> 00:08:48,240
Speaker 1: in and and with because bonds all all the rates

158
00:08:48,240 --> 00:08:49,600
Speaker 1: are going up, all the new bonds you can get

159
00:08:49,600 --> 00:08:51,720
Speaker 1: a higher rate. It really questions the value of the

160
00:08:51,760 --> 00:08:54,560
Speaker 1: current bonds over on the equity side. The other thing

161
00:08:54,600 --> 00:08:56,439
Speaker 1: about this is, yes, you get the yield of it's

162
00:08:56,440 --> 00:09:00,600
Speaker 1: around three to three for most, but that's double the

163
00:09:00,720 --> 00:09:03,480
Speaker 1: S ANDPS yield and you get that pop because it's

164
00:09:03,559 --> 00:09:06,800
Speaker 1: largely in energy and utilities UM and so I think

165
00:09:07,160 --> 00:09:10,840
Speaker 1: that's also important is because the return is a yield

166
00:09:10,880 --> 00:09:15,040
Speaker 1: in a way to UM by not underperforming. So it's

167
00:09:15,080 --> 00:09:17,400
Speaker 1: the right yield. It's not just a yield, it's it's

168
00:09:17,400 --> 00:09:19,160
Speaker 1: a it's a it's a better yield. I think for

169
00:09:19,200 --> 00:09:21,920
Speaker 1: many investors until the FED cools off, I just think

170
00:09:21,920 --> 00:09:23,840
Speaker 1: the bond market is going to be a tough place.

171
00:09:24,080 --> 00:09:26,480
Speaker 1: We've seen it in the flows in mutual funds in particular,

172
00:09:26,640 --> 00:09:29,559
Speaker 1: a lot of older investors are bailing UM. So that's

173
00:09:29,559 --> 00:09:32,319
Speaker 1: gonna be a constant drain on the prices of bonds

174
00:09:32,440 --> 00:09:36,240
Speaker 1: for the foreseeable future. So UM, it's interesting how this works.

175
00:09:36,240 --> 00:09:40,240
Speaker 1: Sometimes an et F category just it just just troads

176
00:09:40,280 --> 00:09:42,959
Speaker 1: along for a decade like oh yeah, whatever, and then bam,

177
00:09:43,040 --> 00:09:45,520
Speaker 1: the star is just aligne and it's like got it's

178
00:09:45,520 --> 00:09:49,000
Speaker 1: got what everyone wants. So todd as these stars sort

179
00:09:49,040 --> 00:09:52,520
Speaker 1: of ALIGNE. Let's walk through some of the tickers that

180
00:09:52,840 --> 00:09:55,080
Speaker 1: UM jump out to you. What's what's your number one?

181
00:09:55,160 --> 00:09:58,560
Speaker 1: Because there's like what Tannard twelve in this category that

182
00:09:58,600 --> 00:10:01,680
Speaker 1: have sort of attracted it engine. What's your number one? Yeah,

183
00:10:01,720 --> 00:10:04,920
Speaker 1: well my number one or the number one, so you

184
00:10:04,960 --> 00:10:07,880
Speaker 1: know the most popular. Let's do let's do the number

185
00:10:07,880 --> 00:10:10,439
Speaker 1: one and then you can do your number one. Sure,

186
00:10:10,640 --> 00:10:14,360
Speaker 1: So the most popular of these ETFs this year based

187
00:10:14,400 --> 00:10:16,600
Speaker 1: on my data, I'm sure Eric stated will agree with

188
00:10:16,640 --> 00:10:19,920
Speaker 1: this is HDV. This is the I shares Core high

189
00:10:20,000 --> 00:10:23,679
Speaker 1: dividend uh e t F. It's pulled in as we're

190
00:10:23,720 --> 00:10:27,280
Speaker 1: recording this five and a half billion dollars. It's down

191
00:10:27,400 --> 00:10:31,640
Speaker 1: just one and a half percent. It's extremely cheap. UH.

192
00:10:31,640 --> 00:10:34,360
Speaker 1: It's it's focused on those sectors that that Eric was

193
00:10:34,400 --> 00:10:38,160
Speaker 1: talking about, not only but it has above average exposure

194
00:10:38,520 --> 00:10:44,480
Speaker 1: to high dividend yielding stocks within energy and utilities. UM.

195
00:10:44,520 --> 00:10:48,480
Speaker 1: I want to call out I guess two other ones, uh,

196
00:10:48,640 --> 00:10:51,320
Speaker 1: that are one that is popular and one that I

197
00:10:51,360 --> 00:10:53,000
Speaker 1: find to be under the radar. And I'm not sure

198
00:10:53,000 --> 00:10:57,280
Speaker 1: why it's not as popular. So sp h D, which

199
00:10:57,559 --> 00:11:02,959
Speaker 1: is in Investco SMP five High Dividend Low Volatility e

200
00:11:03,120 --> 00:11:05,880
Speaker 1: t F UM. I think I got that name right,

201
00:11:05,920 --> 00:11:09,160
Speaker 1: and where the dividendendo low volatility is on this This

202
00:11:09,240 --> 00:11:12,160
Speaker 1: is as the name suggests, it not only owns well,

203
00:11:12,200 --> 00:11:15,360
Speaker 1: it starts with the SMP five hundred that's important, uh,

204
00:11:15,400 --> 00:11:18,280
Speaker 1: and then it looks at companies that have both a

205
00:11:18,320 --> 00:11:22,720
Speaker 1: low risk profile less volatility as well as an above

206
00:11:22,760 --> 00:11:26,480
Speaker 1: average dividend yield. It's pulled in about a billion dollars

207
00:11:26,880 --> 00:11:29,640
Speaker 1: this year. It's down four and a half percent, so

208
00:11:29,920 --> 00:11:33,880
Speaker 1: doing still much better than the SNP five hundred. And

209
00:11:33,920 --> 00:11:38,000
Speaker 1: then there's an alps UH sector dividend dog ETF the

210
00:11:38,080 --> 00:11:41,360
Speaker 1: tickers S, D O, g UM. I think Suzanne has

211
00:11:41,360 --> 00:11:43,080
Speaker 1: a dog that's staying with her. I've got a dog

212
00:11:43,200 --> 00:11:45,920
Speaker 1: sleeping not that far from me. That ticker S dog

213
00:11:46,040 --> 00:11:48,960
Speaker 1: is just fun to say out loud. But what's compelling

214
00:11:49,040 --> 00:11:52,000
Speaker 1: to me about this is that it's equally weighted at

215
00:11:52,040 --> 00:11:55,040
Speaker 1: the highest dividend yielding stocks across all of the sectors,

216
00:11:55,040 --> 00:11:58,679
Speaker 1: so it isn't dominated by energy and utilities that has

217
00:11:58,800 --> 00:12:03,679
Speaker 1: some technology exposure less than a broader market, some financials exposure,

218
00:12:03,720 --> 00:12:06,440
Speaker 1: I think, less than a broader market, but it's equally

219
00:12:06,440 --> 00:12:08,720
Speaker 1: spread out there. UM, and I'm a little surprised it

220
00:12:08,720 --> 00:12:11,280
Speaker 1: hasn't pulled in that much money is I think it's

221
00:12:11,280 --> 00:12:13,960
Speaker 1: just under a hundred million in net influence this year.

222
00:12:14,000 --> 00:12:17,960
Speaker 1: But it's it's performing well, and it's it's well constructed.

223
00:12:18,000 --> 00:12:20,240
Speaker 1: So I guess those are the Those are three of

224
00:12:20,240 --> 00:12:24,000
Speaker 1: them that jump out to me. I'm confident my fellow

225
00:12:24,280 --> 00:12:27,199
Speaker 1: et f analyst NERD is going to have three different ones.

226
00:12:28,320 --> 00:12:29,880
Speaker 1: How do you feel about the reads? It has a

227
00:12:29,920 --> 00:12:34,800
Speaker 1: big slug of reads, doesn't it? Real Estate investment trusts? Yeah,

228
00:12:34,840 --> 00:12:37,200
Speaker 1: I mean real estate is you know, important sector to

229
00:12:37,240 --> 00:12:40,960
Speaker 1: have exposure to. It tends to historically do okay during

230
00:12:40,960 --> 00:12:44,000
Speaker 1: a rising interest rate environment and real estates different than

231
00:12:44,040 --> 00:12:48,680
Speaker 1: it was years ago. Especially we've got these former communication

232
00:12:48,720 --> 00:12:52,760
Speaker 1: services companies American Tower, Crown Castle that are above average

233
00:12:52,840 --> 00:12:56,160
Speaker 1: dividud yielders. So I like that it's got exposure to

234
00:12:56,200 --> 00:12:59,400
Speaker 1: it to real estate. That's that's a important thing to

235
00:12:59,400 --> 00:13:01,960
Speaker 1: be aware of. Some of these don't have exposure to

236
00:13:02,000 --> 00:13:04,960
Speaker 1: real estate. They intentionally carve out. Real estate is one

237
00:13:05,000 --> 00:13:08,480
Speaker 1: of the sectors. Some don't. So it's important to take

238
00:13:08,480 --> 00:13:10,560
Speaker 1: a look at it and do do some homework on

239
00:13:10,600 --> 00:13:14,480
Speaker 1: these ETFs. Yeah. I mean I think if if you

240
00:13:14,559 --> 00:13:16,880
Speaker 1: if they yield is really high or the returns are

241
00:13:16,960 --> 00:13:20,280
Speaker 1: just abnormally good, it's probably concentrated in something like it

242
00:13:20,320 --> 00:13:23,679
Speaker 1: probably has more energy um or more reads. I mean,

243
00:13:24,160 --> 00:13:26,560
Speaker 1: I think that's something you have to weigh. And you know,

244
00:13:26,760 --> 00:13:29,480
Speaker 1: this is why Todd and I have job security because

245
00:13:29,840 --> 00:13:33,400
Speaker 1: even amongst high divided ETFs, which they're all have sounded

246
00:13:33,400 --> 00:13:35,679
Speaker 1: the same. There are a lot of differences. And I

247
00:13:35,679 --> 00:13:37,640
Speaker 1: actually went through when I wrote my note two weeks

248
00:13:37,640 --> 00:13:40,680
Speaker 1: ago and just look at the prospectives for how they're designed,

249
00:13:41,240 --> 00:13:43,160
Speaker 1: and like I mean, I guess you could say they're

250
00:13:43,160 --> 00:13:46,160
Speaker 1: all similar, but they start with a different universe, like UM,

251
00:13:46,200 --> 00:13:48,800
Speaker 1: the I Shares HDV. The I shares one starts with

252
00:13:48,840 --> 00:13:51,640
Speaker 1: the morning Star US Market Index and then it picks

253
00:13:51,679 --> 00:13:56,439
Speaker 1: the eighties stocks with the strongest UM, financial health and dividends.

254
00:13:56,440 --> 00:13:59,319
Speaker 1: So there's a fundamental aspect to that one. And then

255
00:13:59,320 --> 00:14:02,120
Speaker 1: it waits it by dividends. So then their s P

256
00:14:02,320 --> 00:14:05,600
Speaker 1: y D, which is the SMP five hundred is the universe.

257
00:14:05,800 --> 00:14:08,480
Speaker 1: It takes the eight highest then it kind of equalates

258
00:14:08,520 --> 00:14:11,400
Speaker 1: it more or less um. And but both those and

259
00:14:11,440 --> 00:14:13,440
Speaker 1: there's the feet. Both of those are ten basis points fee,

260
00:14:13,440 --> 00:14:15,240
Speaker 1: which is really good. That's another thing about this area.

261
00:14:15,600 --> 00:14:19,320
Speaker 1: It's very cheap, like compared to like buying an dividend

262
00:14:19,400 --> 00:14:21,480
Speaker 1: manager E t F back in the day. This is

263
00:14:21,520 --> 00:14:25,040
Speaker 1: like dirt cheap. It's a it's really a great service,

264
00:14:25,080 --> 00:14:27,000
Speaker 1: I think to have this kind of access for these

265
00:14:27,000 --> 00:14:29,920
Speaker 1: costs UM, but there are difference this year and then

266
00:14:29,960 --> 00:14:32,800
Speaker 1: like the Vanguard one which is very popular v y

267
00:14:33,040 --> 00:14:36,800
Speaker 1: M that uses the Footsie universe and it picks five

268
00:14:36,880 --> 00:14:40,200
Speaker 1: hundred companies, So obviously that's not going to pop as much.

269
00:14:40,280 --> 00:14:43,720
Speaker 1: So I love I love the field number of holdings.

270
00:14:43,920 --> 00:14:46,360
Speaker 1: That's an underrated field for E t F in my opinion,

271
00:14:46,960 --> 00:14:49,760
Speaker 1: because I think most people in sniff test wise can

272
00:14:49,800 --> 00:14:52,560
Speaker 1: can understand like, oh, it holds three D stocks, okay,

273
00:14:53,120 --> 00:14:56,880
Speaker 1: versus like fifty or eighty you know, uh, that can

274
00:14:56,920 --> 00:14:58,320
Speaker 1: tell you how you should use it. So I would

275
00:14:58,360 --> 00:15:00,320
Speaker 1: say for the ones that hold a D you really

276
00:15:00,320 --> 00:15:03,640
Speaker 1: should consider that like a satellite position, um, whereas you

277
00:15:03,640 --> 00:15:06,440
Speaker 1: could almost move in a v y M a little

278
00:15:06,480 --> 00:15:08,800
Speaker 1: a little more into your core, I mean, depending on

279
00:15:08,840 --> 00:15:12,480
Speaker 1: what your goal, your goals are UM. And then there's

280
00:15:12,640 --> 00:15:14,080
Speaker 1: you know, I guess there's a slew of other ones.

281
00:15:14,160 --> 00:15:20,000
Speaker 1: Everybody has one, Wisdom Tree has one, First Trust has one.

282
00:15:23,840 --> 00:15:28,440
Speaker 1: When you guys break the numbers down for this category,

283
00:15:28,640 --> 00:15:31,440
Speaker 1: I mean there are we've talked about energy and utilities.

284
00:15:32,040 --> 00:15:35,720
Speaker 1: Is there a given company or stock that ends up

285
00:15:36,400 --> 00:15:40,680
Speaker 1: basically everywhere at a high percentages it like Exxon shows

286
00:15:40,760 --> 00:15:43,680
Speaker 1: up everywhere in this category, so it I guess it

287
00:15:43,720 --> 00:15:47,120
Speaker 1: depends It depends upon the criteria of it. So if

288
00:15:47,120 --> 00:15:49,440
Speaker 1: you're looking at high dividend, you know, if if the

289
00:15:49,440 --> 00:15:53,360
Speaker 1: focus is above average dividend yield, I would think companies

290
00:15:53,360 --> 00:15:59,040
Speaker 1: like Exxon Mobile and Johnson and Johnson, those uh are

291
00:15:59,360 --> 00:16:03,880
Speaker 1: higher divd in yielding stocks. Verizon perhaps if communication services

292
00:16:03,960 --> 00:16:06,120
Speaker 1: part of it, that's that tends to happen. But I

293
00:16:06,480 --> 00:16:08,400
Speaker 1: want to just if I can, for a second, go

294
00:16:08,400 --> 00:16:11,440
Speaker 1: back to what Eric said. The number of holdings is important,

295
00:16:11,640 --> 00:16:13,600
Speaker 1: but the other thing that he said that I'll agree

296
00:16:13,640 --> 00:16:17,480
Speaker 1: with is how concentrated are those holdings and whether there's

297
00:16:17,520 --> 00:16:21,360
Speaker 1: equally weighted aspect to it or not. So HTV that

298
00:16:21,480 --> 00:16:24,360
Speaker 1: I shares core hygh divid and DTF has seventy five stocks.

299
00:16:24,400 --> 00:16:27,560
Speaker 1: That's actually about what you'd find within the s dog

300
00:16:27,560 --> 00:16:30,480
Speaker 1: one I keep referencing. But x On Mobile is nine

301
00:16:31,760 --> 00:16:34,840
Speaker 1: of HDV. It's going to perform better when energy does

302
00:16:34,920 --> 00:16:38,720
Speaker 1: better because and when Xon in particular does better because

303
00:16:38,920 --> 00:16:42,120
Speaker 1: of that concentration. It's going to struggle that same way

304
00:16:42,360 --> 00:16:47,280
Speaker 1: if a company or two that that's heavily weighted underperforms.

305
00:16:47,840 --> 00:16:49,760
Speaker 1: So I just looked up x in and then I

306
00:16:49,800 --> 00:16:53,200
Speaker 1: searched for high dividends it's in most of them. Um. So,

307
00:16:53,920 --> 00:16:56,160
Speaker 1: first first point here is if you're an E s

308
00:16:56,160 --> 00:16:58,640
Speaker 1: G type, do not invest in high divid and ETFs,

309
00:16:58,880 --> 00:17:01,120
Speaker 1: which which brings me up to the problem with the

310
00:17:01,280 --> 00:17:04,040
Speaker 1: s G and being moral when you invest is at

311
00:17:04,080 --> 00:17:07,080
Speaker 1: some point the money is gonna win, You're gonna go.

312
00:17:07,200 --> 00:17:10,800
Speaker 1: You know, I need the yield, I like the return. Uh,

313
00:17:11,119 --> 00:17:13,800
Speaker 1: screw it. That's a one point. The second point is

314
00:17:14,200 --> 00:17:16,880
Speaker 1: if you look at Exxon and you look at something

315
00:17:16,920 --> 00:17:19,920
Speaker 1: like HDV, XN is an eight point seven percent waiting

316
00:17:19,920 --> 00:17:23,120
Speaker 1: in that one, But then in v y M I'm

317
00:17:23,119 --> 00:17:25,640
Speaker 1: looking here, XN is a much more tame two point

318
00:17:25,680 --> 00:17:29,280
Speaker 1: six percent waiting. And that's going to happen throughout these

319
00:17:29,280 --> 00:17:31,280
Speaker 1: e T f Uh. Some stocks are going to have

320
00:17:31,320 --> 00:17:34,280
Speaker 1: a much higher weighting. Um, I think you tend to

321
00:17:34,280 --> 00:17:36,040
Speaker 1: find like the Van Guardian ones are going to be

322
00:17:36,080 --> 00:17:38,679
Speaker 1: like more market cap weighted, so XN couldn't possibly be

323
00:17:38,760 --> 00:17:43,800
Speaker 1: eight percent. But then, um, everybody else, Wisdom Tree, even

324
00:17:43,840 --> 00:17:47,240
Speaker 1: I shares, You're gonna find some weight equally or by

325
00:17:47,280 --> 00:17:50,000
Speaker 1: the factor itself. And if it waits by the factor

326
00:17:50,000 --> 00:17:53,360
Speaker 1: itself like dividends, you clearly are going to have some

327
00:17:53,400 --> 00:17:56,320
Speaker 1: stocks that dominate the fund and that can be a

328
00:17:56,320 --> 00:17:58,600
Speaker 1: little scary because yes, this thing yields a lot, but

329
00:17:58,640 --> 00:18:01,280
Speaker 1: now it's really controlling your fund. So I think it's

330
00:18:01,320 --> 00:18:04,120
Speaker 1: really interesting, and I think some investors probably would opt

331
00:18:04,160 --> 00:18:07,960
Speaker 1: for the equal weighted version UM on these UM. There's

332
00:18:08,119 --> 00:18:10,879
Speaker 1: there's just these are probably the greatest example on like

333
00:18:10,960 --> 00:18:15,639
Speaker 1: the due diligence checklist for an ETF because there's several

334
00:18:15,640 --> 00:18:17,600
Speaker 1: ways these could go and then the you know obviously

335
00:18:17,640 --> 00:18:21,479
Speaker 1: that this waiting and the UM expense ratio and all

336
00:18:21,520 --> 00:18:23,840
Speaker 1: this just kind of adds up to a different return stream.

337
00:18:23,960 --> 00:18:26,040
Speaker 1: Although I gotta say, if I look at them, they're

338
00:18:26,080 --> 00:18:29,040
Speaker 1: all doing pretty good relatively SMP. There's there's no real

339
00:18:29,119 --> 00:18:31,360
Speaker 1: crazy outliers that it's like, well, what's this doing? It's

340
00:18:31,359 --> 00:18:33,880
Speaker 1: not labeled correctly. I mean, you really do get high

341
00:18:33,960 --> 00:18:36,040
Speaker 1: dividends with most of these, but their their approaches are

342
00:18:36,080 --> 00:18:39,000
Speaker 1: pretty different. Susanna. Want to bring you back in. We

343
00:18:39,040 --> 00:18:42,160
Speaker 1: didn't get to hear some of your favorite tickers yet

344
00:18:42,520 --> 00:18:44,960
Speaker 1: UM in the space. Which ones have we not talked

345
00:18:45,000 --> 00:18:48,840
Speaker 1: about that UM that are on your list. I mean

346
00:18:48,920 --> 00:18:52,159
Speaker 1: I was looking at h DV, like we talked about

347
00:18:52,480 --> 00:18:54,879
Speaker 1: the ice shares one UM. What was interesting to me

348
00:18:54,920 --> 00:18:56,720
Speaker 1: that I sort of wanted to ask you guys about

349
00:18:56,880 --> 00:18:59,840
Speaker 1: was that you know so much of it. The main

350
00:19:00,080 --> 00:19:03,320
Speaker 1: the biggest holdings in that fund are in the top

351
00:19:04,000 --> 00:19:08,040
Speaker 1: of the SMP, the top twenty stocks the spire. So

352
00:19:08,040 --> 00:19:10,880
Speaker 1: it just made me sort of laugh in a way

353
00:19:10,920 --> 00:19:13,600
Speaker 1: because you know what we've seen as our portfolios dominated

354
00:19:13,640 --> 00:19:16,240
Speaker 1: by the top ten percent, the top ten stocks in

355
00:19:16,280 --> 00:19:18,280
Speaker 1: the SMP, and now we're going to move into these

356
00:19:18,320 --> 00:19:21,000
Speaker 1: high dividend yield e t f s and get into like,

357
00:19:21,359 --> 00:19:24,240
Speaker 1: you know, number ten to number twenty in the SMP.

358
00:19:24,400 --> 00:19:30,280
Speaker 1: Five d um, But I don't know hdv V I am.

359
00:19:30,320 --> 00:19:32,919
Speaker 1: I was looking at when I was curious that I

360
00:19:32,960 --> 00:19:37,359
Speaker 1: wanted to run by you guys was what international dividend

361
00:19:37,600 --> 00:19:41,000
Speaker 1: e t f s should we be looking at? And

362
00:19:41,200 --> 00:19:44,399
Speaker 1: do any of them have a big chunk, big mix

363
00:19:44,440 --> 00:19:49,240
Speaker 1: of US and international dividend ETFs dividend stocks? Yeah, I

364
00:19:49,240 --> 00:19:52,159
Speaker 1: mean most of these are going to have some international version.

365
00:19:52,400 --> 00:19:55,400
Speaker 1: I mean these companies d it's like, um, any sort

366
00:19:55,440 --> 00:19:58,720
Speaker 1: of product. You know, you've got coke, diet coke, cherry coke.

367
00:19:59,200 --> 00:20:02,320
Speaker 1: It's just like high divid international, high different global. So

368
00:20:02,400 --> 00:20:04,600
Speaker 1: like for example, v y M has v y M I,

369
00:20:04,960 --> 00:20:07,920
Speaker 1: which is the International High Dividend, which is very similar. Um,

370
00:20:08,080 --> 00:20:11,000
Speaker 1: so yeah, they're they're gonna do that, and I'm just curious.

371
00:20:11,080 --> 00:20:13,480
Speaker 1: Let's look at the yield difference between the two. So

372
00:20:13,840 --> 00:20:16,040
Speaker 1: if v y M gives you a yield of two

373
00:20:16,040 --> 00:20:19,720
Speaker 1: point eight percent, which is low, but again Vanguard when

374
00:20:19,720 --> 00:20:22,120
Speaker 1: they view factors, they really water them down by market

375
00:20:22,160 --> 00:20:26,880
Speaker 1: cap waiting. Anyway, the International one yields double that four

376
00:20:26,920 --> 00:20:30,520
Speaker 1: point seven percent, So you know you're probably gonna get

377
00:20:30,560 --> 00:20:32,640
Speaker 1: a lot more yield over there. But that then you're

378
00:20:32,640 --> 00:20:36,440
Speaker 1: in international stocks, which have you know, can have issues. Um,

379
00:20:36,640 --> 00:20:38,080
Speaker 1: a lot of people like to stick in the US.

380
00:20:38,119 --> 00:20:39,960
Speaker 1: I don't know if Todd, do you have a take

381
00:20:40,040 --> 00:20:41,800
Speaker 1: on like if some if your mom came to you

382
00:20:41,840 --> 00:20:43,560
Speaker 1: and one at high dividends, would you center a US

383
00:20:43,640 --> 00:20:47,080
Speaker 1: or international? Well, I think you should. I think if

384
00:20:47,119 --> 00:20:51,119
Speaker 1: you're gonna have international equity as a carve out of

385
00:20:51,160 --> 00:20:54,199
Speaker 1: your portfolio, then and it certainly can make sense to

386
00:20:54,240 --> 00:20:56,800
Speaker 1: have something like v y M I, which is that

387
00:20:56,920 --> 00:21:01,760
Speaker 1: a Vanguard High Dividend Yield International E t F as

388
00:21:01,800 --> 00:21:04,160
Speaker 1: an example. I don't know that I would be seeking

389
00:21:04,400 --> 00:21:06,720
Speaker 1: just income for that, I would be using that as

390
00:21:06,720 --> 00:21:12,320
Speaker 1: my international slug of the portfolio um But Susan your

391
00:21:12,440 --> 00:21:16,320
Speaker 1: question prompted me to just go into too quickly search

392
00:21:16,400 --> 00:21:18,520
Speaker 1: for it because I actually had forgotten this e t

393
00:21:18,640 --> 00:21:22,439
Speaker 1: F existed and maybe there's others, But there's a spider

394
00:21:22,640 --> 00:21:25,760
Speaker 1: SNP Global Dividend e t F W d I V

395
00:21:26,840 --> 00:21:31,400
Speaker 1: which is actually much more internationally focused than than your

396
00:21:31,440 --> 00:21:36,199
Speaker 1: typical UH all country world or global approach to it.

397
00:21:36,320 --> 00:21:40,720
Speaker 1: So it only has about in the United States and

398
00:21:40,760 --> 00:21:47,040
Speaker 1: then Canada, Japan, Hong Kong, Switzerland, UK rounded out, and

399
00:21:47,160 --> 00:21:49,800
Speaker 1: so I think that that's being constructed in part based

400
00:21:49,840 --> 00:21:53,240
Speaker 1: on the yield. This is the challenge when you try

401
00:21:53,240 --> 00:21:55,240
Speaker 1: to do this on the fly, is to the rules

402
00:21:55,280 --> 00:21:57,240
Speaker 1: of of an index. But I think that is being

403
00:21:57,280 --> 00:22:01,560
Speaker 1: constructed based on the yield, and that's why perhaps um

404
00:22:01,760 --> 00:22:04,000
Speaker 1: or and that it has to have a criteria of

405
00:22:05,080 --> 00:22:06,919
Speaker 1: having raised a dividend for a period of time. But

406
00:22:06,960 --> 00:22:09,119
Speaker 1: this is just an example of you can get a

407
00:22:09,200 --> 00:22:14,800
Speaker 1: global equity dividend yielding portfolio in the mix, and just

408
00:22:14,840 --> 00:22:17,160
Speaker 1: real quick I found a good one here. Fidelities International

409
00:22:17,240 --> 00:22:20,760
Speaker 1: High Dividit ETF SO vanguards a conservative take on that,

410
00:22:20,800 --> 00:22:22,880
Speaker 1: but the fidelity kind of goes all the way. So

411
00:22:23,040 --> 00:22:27,320
Speaker 1: if this thing yields a very healthy five point three,

412
00:22:28,600 --> 00:22:32,359
Speaker 1: which is looks very attractive relatively speaking. Um, and the

413
00:22:32,400 --> 00:22:34,399
Speaker 1: holdings are pretty mixed. You got a hundred and fifteen

414
00:22:34,400 --> 00:22:37,320
Speaker 1: holdings and they're in a lot of different sectors. It's

415
00:22:37,359 --> 00:22:42,359
Speaker 1: not just like energy, its banks, insurance, telecom, uh, some mining,

416
00:22:42,440 --> 00:22:45,600
Speaker 1: chemicals again very not very not e s G. And

417
00:22:45,600 --> 00:22:49,120
Speaker 1: it's spread up between countries Canada, Japan, UK, France. UM

418
00:22:49,320 --> 00:22:53,200
Speaker 1: and interesting the pe on this is nine point seven.

419
00:22:53,280 --> 00:22:55,359
Speaker 1: I mean that is low. So you're you're kind of

420
00:22:55,359 --> 00:22:58,080
Speaker 1: getting a value trade here too. I wonder if this

421
00:22:58,160 --> 00:23:00,119
Speaker 1: thing is out performing this year. Let me see, so

422
00:23:00,160 --> 00:23:02,800
Speaker 1: this is the year today it returns for this it's

423
00:23:02,800 --> 00:23:05,480
Speaker 1: down seven. So that's the thing, like, even though you

424
00:23:05,520 --> 00:23:09,520
Speaker 1: have all that good value and energy exposure, you're still down,

425
00:23:09,720 --> 00:23:12,480
Speaker 1: although you're down less, whereas the ones in the US

426
00:23:12,600 --> 00:23:14,600
Speaker 1: or some of them are all close to actually you know,

427
00:23:14,680 --> 00:23:19,800
Speaker 1: being flat. I would add though, Susanne. And again I

428
00:23:19,880 --> 00:23:22,199
Speaker 1: love it when you bring when somebody brings in a

429
00:23:22,280 --> 00:23:24,760
Speaker 1: question for the rest of us and keeps us on

430
00:23:24,760 --> 00:23:28,679
Speaker 1: our toes. When you're investing internationally, you know, looking at

431
00:23:28,720 --> 00:23:32,480
Speaker 1: currency is important. So again, doing some quick due diligence.

432
00:23:32,520 --> 00:23:37,520
Speaker 1: Here dB a W, which is an ex tracker all

433
00:23:37,560 --> 00:23:41,880
Speaker 1: country world x US hedged equity ETF, so it's going

434
00:23:41,920 --> 00:23:46,280
Speaker 1: to hedge out that currency risk. Uh. The impact of

435
00:23:46,320 --> 00:23:51,399
Speaker 1: the dollars has weighed significantly on international slices of a portfolio,

436
00:23:51,480 --> 00:23:55,879
Speaker 1: so hedging that out has been rewarding UH in general. Um,

437
00:23:55,920 --> 00:23:57,920
Speaker 1: and I presume has been the case for dB a W.

438
00:23:58,160 --> 00:24:01,520
Speaker 1: So just again, lots of tools in the toolbox for

439
00:24:01,800 --> 00:24:04,159
Speaker 1: an advisor to sort of through and do some homework on,

440
00:24:04,280 --> 00:24:06,760
Speaker 1: and just a little digging that we're doing here on

441
00:24:06,840 --> 00:24:16,000
Speaker 1: the fly. Okay, I thought of a bet and then

442
00:24:16,000 --> 00:24:18,480
Speaker 1: I'm gonna throw out there for for Todd and Eric,

443
00:24:18,600 --> 00:24:20,960
Speaker 1: which is, if this has already been a record year

444
00:24:21,640 --> 00:24:25,520
Speaker 1: for the high dividend et F category, how big is

445
00:24:25,520 --> 00:24:26,720
Speaker 1: it going to be by the end of the year

446
00:24:27,359 --> 00:24:30,439
Speaker 1: overall assets under management in this space? What's it gonna be?

447
00:24:31,480 --> 00:24:35,680
Speaker 1: How about we do U two flows. So here's the numbers, Todd,

448
00:24:36,040 --> 00:24:39,280
Speaker 1: So they've taken in twenty five billion this year. Now,

449
00:24:39,760 --> 00:24:42,040
Speaker 1: last year they took in about nineteen billion, which was

450
00:24:42,040 --> 00:24:44,399
Speaker 1: their old record, so they've already beat their old record.

451
00:24:45,119 --> 00:24:48,080
Speaker 1: So I would, honestly, I would put the over under

452
00:24:48,119 --> 00:24:52,919
Speaker 1: it fifty, which would be double maybe even may maybe. Um,

453
00:24:52,960 --> 00:24:54,360
Speaker 1: I don't know, you're gonna take the Are you gonna

454
00:24:54,400 --> 00:24:57,920
Speaker 1: take the over or the under? I'm taking the over.

455
00:24:58,000 --> 00:24:59,840
Speaker 1: I'm not letting him think about it. I'm taking the

456
00:25:00,080 --> 00:25:02,960
Speaker 1: over on this. Yeah, I gotta say over on this.

457
00:25:03,080 --> 00:25:04,880
Speaker 1: You can want to set it higher, you can set

458
00:25:04,920 --> 00:25:10,119
Speaker 1: it higher. I'll take the fifty one. I sometimes I

459
00:25:10,280 --> 00:25:13,879
Speaker 1: sometimes feel like betting against Todd's excitement is a winning trade.

460
00:25:14,520 --> 00:25:17,480
Speaker 1: But in this case, I just these things are so

461
00:25:17,560 --> 00:25:19,800
Speaker 1: perfect for this year that I can't. I cannot take

462
00:25:19,840 --> 00:25:22,760
Speaker 1: the under because I just don't feel it as much

463
00:25:22,760 --> 00:25:24,240
Speaker 1: as the other one. So I gotta, I gotta wanna

464
00:25:24,240 --> 00:25:25,680
Speaker 1: go to the standown. I wanna go to you want

465
00:25:25,680 --> 00:25:32,040
Speaker 1: to go to fifty five? I'll take under a hundred? No, Well,

466
00:25:32,720 --> 00:25:36,800
Speaker 1: come on, how that's that's crazy, Susanne. Where should we

467
00:25:36,840 --> 00:25:39,959
Speaker 1: put the number? I don't know I'm going if I'm

468
00:25:40,000 --> 00:25:44,280
Speaker 1: I think fifty sounds reasonable to me. We gotta, I'm

469
00:25:44,280 --> 00:25:47,560
Speaker 1: gonna che it up. We're gonna we're gonna say fifty, Eric,

470
00:25:47,600 --> 00:25:50,680
Speaker 1: are you over or under that? The big problem with

471
00:25:50,800 --> 00:25:54,280
Speaker 1: that bet, the under the underbet to me would be

472
00:25:54,400 --> 00:25:58,120
Speaker 1: that maybe they're the recessionary numbers, Like there's some economic

473
00:25:58,200 --> 00:26:01,560
Speaker 1: signals that say the FED his like messed up to

474
00:26:01,960 --> 00:26:05,439
Speaker 1: the actual economy, and they back up all of a sudden.

475
00:26:05,600 --> 00:26:08,960
Speaker 1: All the stocks and these funds are going down. That's

476
00:26:09,000 --> 00:26:10,640
Speaker 1: why you can you can pick the under if you want.

477
00:26:11,119 --> 00:26:12,600
Speaker 1: But I don't think the Fed's going to do that

478
00:26:12,760 --> 00:26:15,280
Speaker 1: because I think that because inflation is the number one

479
00:26:15,359 --> 00:26:18,119
Speaker 1: issue amongst voters, and the mid terms are all the

480
00:26:18,160 --> 00:26:21,000
Speaker 1: way in November, they're going to be hell bent no

481
00:26:21,119 --> 00:26:24,560
Speaker 1: matter what the economy says. So it's almost like betting,

482
00:26:24,880 --> 00:26:28,200
Speaker 1: well the FED back up after the mid terms and

483
00:26:28,320 --> 00:26:30,440
Speaker 1: before the end of the year. It's a very specific

484
00:26:30,520 --> 00:26:33,080
Speaker 1: bet on that, in my opinion, And I just don't

485
00:26:33,080 --> 00:26:35,320
Speaker 1: know if I feel like I want to bet on that.

486
00:26:35,400 --> 00:26:37,800
Speaker 1: I just because I'm I'm I'm just not. I don't

487
00:26:37,840 --> 00:26:42,440
Speaker 1: I don't have a clear vision the over. Yeah, I

488
00:26:42,520 --> 00:26:43,879
Speaker 1: got the I got the over on And see what

489
00:26:43,920 --> 00:26:46,400
Speaker 1: happens Joel when he throws the bet at me, I go, yeah,

490
00:26:46,560 --> 00:26:48,520
Speaker 1: I'll do it. When you throw the bet, he's like,

491
00:26:48,920 --> 00:26:50,760
Speaker 1: I'm thinking about it, and he threw in the In

492
00:26:50,880 --> 00:26:53,560
Speaker 1: my opinion, so he's covered himself from a comp well perspect.

493
00:26:54,480 --> 00:26:57,399
Speaker 1: Most of the time, the bets between Todd Night happen

494
00:26:57,520 --> 00:27:00,320
Speaker 1: organically on Twitter, where he'll have a take. I'll say

495
00:27:00,320 --> 00:27:02,280
Speaker 1: I don't and then he'll be like no, and I'm

496
00:27:02,320 --> 00:27:04,480
Speaker 1: like all right, like you know, throw my wall on

497
00:27:04,520 --> 00:27:07,160
Speaker 1: the table. Let's let's see if you really feel this way.

498
00:27:07,600 --> 00:27:09,840
Speaker 1: All right, Well, you guys can after the episode wraps.

499
00:27:09,880 --> 00:27:12,119
Speaker 1: I mean, everybody's out there, we'll see if we can

500
00:27:12,160 --> 00:27:15,080
Speaker 1: come up with something. Got the bet. No, the bed

501
00:27:15,240 --> 00:27:19,399
Speaker 1: is fifty, the bed is over on it and if

502
00:27:19,480 --> 00:27:22,120
Speaker 1: you want to slide the number up, slide the number

503
00:27:22,240 --> 00:27:26,400
Speaker 1: up a little bit. That's the bet. I'll bet your coffee.

504
00:27:27,040 --> 00:27:28,760
Speaker 1: We'll take this to the Twitter and we'll see what

505
00:27:28,840 --> 00:27:32,200
Speaker 1: the Twitter has to say. Um, you gotta show them.

506
00:27:33,240 --> 00:27:35,280
Speaker 1: I was just wondering if there's anything interesting to note

507
00:27:35,359 --> 00:27:39,159
Speaker 1: about sort of average market cap um. It seems like

508
00:27:39,240 --> 00:27:44,480
Speaker 1: the Vanguard one was average weighted market cap was like

509
00:27:44,520 --> 00:27:47,520
Speaker 1: a hundred and seventeen billion. But there's something are much

510
00:27:48,960 --> 00:27:53,560
Speaker 1: TV larger and smaller. Yeah. I think that's important is

511
00:27:53,640 --> 00:27:55,720
Speaker 1: to take so that we're going through a number of

512
00:27:55,800 --> 00:27:58,439
Speaker 1: things that are worth looking at that that are easy, Uh,

513
00:27:58,600 --> 00:28:02,119
Speaker 1: do your homework, checklist, things of understanding how many stocks

514
00:28:02,200 --> 00:28:05,720
Speaker 1: it has, understanding the sector exposure that it has or

515
00:28:05,840 --> 00:28:09,360
Speaker 1: is allowed to have, the concentration, and then I think

516
00:28:09,480 --> 00:28:11,920
Speaker 1: looking at the average market cap can tell you that

517
00:28:12,040 --> 00:28:15,280
Speaker 1: so these dominant you know, something that's got over a

518
00:28:15,400 --> 00:28:18,240
Speaker 1: hundred billion dollars as an average market cap or even higher,

519
00:28:18,560 --> 00:28:20,600
Speaker 1: shows you that they're focusing on more of these mega

520
00:28:20,640 --> 00:28:25,280
Speaker 1: cap companies those might be more stable, uh in terms

521
00:28:25,320 --> 00:28:30,040
Speaker 1: of a quality perspective, but also have some less growth potential. Yeah,

522
00:28:30,520 --> 00:28:31,760
Speaker 1: there's one et f that we didn't you know, that

523
00:28:31,800 --> 00:28:33,600
Speaker 1: we didn't touch on that that caught my eye, which

524
00:28:33,680 --> 00:28:36,480
Speaker 1: is from global X the tickers D I V. It

525
00:28:36,600 --> 00:28:39,360
Speaker 1: has super Dividend in the name because it's the highest

526
00:28:39,400 --> 00:28:42,360
Speaker 1: yielding stocks that they can possibly find around. And the

527
00:28:42,480 --> 00:28:46,000
Speaker 1: market cap on that is thirty one, uh, you know,

528
00:28:46,120 --> 00:28:48,520
Speaker 1: thirty one billion dollars. And it has a number of

529
00:28:48,640 --> 00:28:51,560
Speaker 1: companies in its top ten holdings that I have heard of,

530
00:28:51,720 --> 00:28:54,840
Speaker 1: like IBM and Kellogg and a number of companies that

531
00:28:54,920 --> 00:28:57,120
Speaker 1: I haven't heard of, which just tells you that it's

532
00:28:57,160 --> 00:29:01,360
Speaker 1: fishing in a in a much broader than just the

533
00:29:01,520 --> 00:29:04,120
Speaker 1: S and P five. Yeah. I mean, by the way,

534
00:29:04,240 --> 00:29:06,520
Speaker 1: we should highlight that one We've really covered the more

535
00:29:06,600 --> 00:29:10,120
Speaker 1: mainstream ones, but there are a couple wild and crazy ones.

536
00:29:10,360 --> 00:29:12,760
Speaker 1: Um Estive is an interesting one. It's been around a

537
00:29:12,760 --> 00:29:16,320
Speaker 1: long time. Um it holds the hundred highest yielding companies

538
00:29:16,320 --> 00:29:19,880
Speaker 1: in the world, point blank. So when you have that

539
00:29:20,000 --> 00:29:22,080
Speaker 1: as your mandate, you're gonna you're gonna buy some really

540
00:29:22,120 --> 00:29:26,320
Speaker 1: wacky stuff. But it yields. That's a crazy yield for stocks.

541
00:29:26,400 --> 00:29:29,160
Speaker 1: But you're gonna own stuff like you probably own MLPs

542
00:29:29,160 --> 00:29:32,800
Speaker 1: in here. You probably own rates. Your allocations you're going

543
00:29:32,840 --> 00:29:37,440
Speaker 1: to take you to China, Brazil, Hong Kong, alata e m.

544
00:29:38,000 --> 00:29:41,800
Speaker 1: It's risky, but you know, if I call this thing

545
00:29:41,880 --> 00:29:45,000
Speaker 1: a yield seeking missile again, if it's a satellite position

546
00:29:45,040 --> 00:29:46,800
Speaker 1: and you want just a little bump a yield, you

547
00:29:46,840 --> 00:29:48,920
Speaker 1: would obviously need to allocate less. But this thing can

548
00:29:49,040 --> 00:29:53,240
Speaker 1: be volatile. Dude. The average pe on this is five.

549
00:29:54,520 --> 00:29:59,680
Speaker 1: Holy molly, that's like Nigeria. I mean, there's nothing five.

550
00:30:00,240 --> 00:30:01,520
Speaker 1: By the way, the last time I saw a p

551
00:30:01,760 --> 00:30:04,880
Speaker 1: of five was when we covered the airline et F

552
00:30:05,000 --> 00:30:08,680
Speaker 1: before the pandemic. I was like, these stocks are so

553
00:30:08,800 --> 00:30:11,360
Speaker 1: beaten down. That had a nice run. But I will

554
00:30:11,400 --> 00:30:13,680
Speaker 1: say Nigeria has been at five. For like fifteen years,

555
00:30:13,760 --> 00:30:15,560
Speaker 1: I used to look at et s by low pe

556
00:30:15,920 --> 00:30:18,400
Speaker 1: thinking like they were deals. Believe me, they can be

557
00:30:18,480 --> 00:30:22,080
Speaker 1: deals for a long time, like some of these country

558
00:30:22,120 --> 00:30:25,120
Speaker 1: e t s especially, but five is really low. That

559
00:30:25,200 --> 00:30:28,480
Speaker 1: means you're buying some crap because it means that active

560
00:30:28,520 --> 00:30:31,680
Speaker 1: managers hate these stocks. But they held a lot. That's

561
00:30:31,720 --> 00:30:34,760
Speaker 1: what you get, I think. But I think you mispronounced value.

562
00:30:35,480 --> 00:30:37,000
Speaker 1: I think you called it so, I think you called

563
00:30:37,040 --> 00:30:39,840
Speaker 1: it something else. Just to clarify, uh, And and this

564
00:30:40,000 --> 00:30:41,720
Speaker 1: is a good e t F two s d I V.

565
00:30:42,000 --> 00:30:44,440
Speaker 1: The one I was referencing was just d I V,

566
00:30:44,880 --> 00:30:48,120
Speaker 1: which is the US version of this but from global

567
00:30:48,320 --> 00:30:52,640
Speaker 1: X two very worthwhile ETFs that are under the radar

568
00:30:52,760 --> 00:30:57,400
Speaker 1: for investors and advisors to take a closer look at. Todd.

569
00:30:57,920 --> 00:30:59,840
Speaker 1: You haven't been on the show in your new capacity,

570
00:30:59,880 --> 00:31:03,520
Speaker 1: but for gotta ask, do you have a new favorite

571
00:31:03,560 --> 00:31:06,640
Speaker 1: et F ticker? Okay, so I'm gonna take the liberty

572
00:31:06,960 --> 00:31:09,760
Speaker 1: since you since I'm part of a company that has

573
00:31:09,880 --> 00:31:13,800
Speaker 1: index capabilities, I'm going to both name something that is

574
00:31:14,000 --> 00:31:17,560
Speaker 1: cool and interesting that we're tied to and in full disclosure,

575
00:31:17,640 --> 00:31:20,240
Speaker 1: we are tied to it. But there is a procure

576
00:31:20,360 --> 00:31:22,880
Speaker 1: et F that just came out under the ticker FEMA

577
00:31:23,400 --> 00:31:27,960
Speaker 1: f E M A UM, which is a disaster recovery effort.

578
00:31:28,040 --> 00:31:30,480
Speaker 1: And I just think that just first of all, no

579
00:31:30,520 --> 00:31:33,520
Speaker 1: one should ever have to say FEMA out loud historically

580
00:31:33,680 --> 00:31:35,800
Speaker 1: in in but now it's just it rolls off the

581
00:31:35,880 --> 00:31:39,400
Speaker 1: tongue to me. Um, And it's just a cool sounding,

582
00:31:39,440 --> 00:31:42,920
Speaker 1: you know, cool name uh for for it. So my

583
00:31:43,240 --> 00:31:46,160
Speaker 1: my prior submission, I used to like p b J

584
00:31:46,920 --> 00:31:51,440
Speaker 1: that's an investco et F that's food related. UM. I

585
00:31:51,520 --> 00:31:55,400
Speaker 1: think I continue to like that. Um. Yeah, we're kind

586
00:31:55,440 --> 00:31:58,160
Speaker 1: of in disaster mode though it's p BJ sounds great,

587
00:31:58,440 --> 00:32:00,040
Speaker 1: you know when when you're in a bull market, but

588
00:32:00,120 --> 00:32:01,800
Speaker 1: now that we're in a bear market, I think THEEMA

589
00:32:01,880 --> 00:32:06,320
Speaker 1: is appropriate. Uh. Susanne, we haven't asked you for a while. Uh.

590
00:32:06,680 --> 00:32:10,040
Speaker 1: Any new favorite E t F tickers? Um? No. I

591
00:32:10,120 --> 00:32:13,640
Speaker 1: still love cows CEO w Z, which I think is

592
00:32:13,840 --> 00:32:17,360
Speaker 1: timely because it's a cash flow um E t F.

593
00:32:17,480 --> 00:32:20,880
Speaker 1: But there's what I wish was in there, like ouch

594
00:32:21,720 --> 00:32:24,480
Speaker 1: oh U c H. It's actually the ticker for a

595
00:32:24,520 --> 00:32:27,600
Speaker 1: company called Occupational Urgent Care Health, which I don't know

596
00:32:27,680 --> 00:32:30,240
Speaker 1: what that is, but I love that ticker. Good for

597
00:32:30,280 --> 00:32:32,080
Speaker 1: the times as well. But by the way, can I

598
00:32:32,160 --> 00:32:34,640
Speaker 1: just comment on cows. This is a very relevant issue.

599
00:32:35,040 --> 00:32:39,160
Speaker 1: Is the PACER US cash cowsf This thing is like

600
00:32:39,480 --> 00:32:41,600
Speaker 1: in the top twenty of most inflow et f s.

601
00:32:41,640 --> 00:32:44,160
Speaker 1: PACER has never had a hit like this, and it

602
00:32:44,280 --> 00:32:47,760
Speaker 1: tracks the free cash flow, which is very valued in

603
00:32:47,840 --> 00:32:50,320
Speaker 1: this kind of market. But again, where do you get

604
00:32:50,360 --> 00:32:53,200
Speaker 1: You get a lot of energy basically energy. Anything that

605
00:32:53,400 --> 00:32:56,360
Speaker 1: act that has energy in it, even if its name

606
00:32:56,400 --> 00:32:59,640
Speaker 1: is high dividend or cash flow, is really doing well

607
00:32:59,720 --> 00:33:02,880
Speaker 1: this or uh, simply because energy is the only thing

608
00:33:03,160 --> 00:33:07,800
Speaker 1: up and anyway, just but I like cows uh as well.

609
00:33:07,840 --> 00:33:09,000
Speaker 1: I think that's a good one. And by the way,

610
00:33:09,040 --> 00:33:12,040
Speaker 1: that it has a sister or I get young sibling

611
00:33:12,440 --> 00:33:16,520
Speaker 1: version calf, which is small free cash flow. See it's adorable.

612
00:33:16,640 --> 00:33:20,480
Speaker 1: I love that's even better. Yeah, and it fits in well.

613
00:33:20,680 --> 00:33:23,360
Speaker 1: It fits in well with this theme because the free

614
00:33:23,440 --> 00:33:26,480
Speaker 1: cash flow leads to dividends, and so cows and calf

615
00:33:26,600 --> 00:33:31,080
Speaker 1: are are other ways to get above average dividend yields

616
00:33:31,120 --> 00:33:35,040
Speaker 1: in this environment. So good call Susanne, wow wrapping it up, Todd,

617
00:33:35,240 --> 00:33:38,080
Speaker 1: nice all right, Todd, Susanne, thank you. For joining us

618
00:33:38,120 --> 00:33:45,640
Speaker 1: in front. You're welcome, Thank you, thanks for listening to

619
00:33:45,760 --> 00:33:47,800
Speaker 1: trillions Until next time. You can find us on the

620
00:33:47,840 --> 00:33:52,560
Speaker 1: Bloomberg terminal, Bloomberg dot com, Apple Podcast, Spotify, and wherever

621
00:33:52,640 --> 00:33:55,080
Speaker 1: else you'd like to listen. We'd love to hear from you.

622
00:33:55,360 --> 00:33:59,160
Speaker 1: We're on Twitter, I'm at Joel Webber Show. He's at Aricultunist.

623
00:33:59,560 --> 00:34:01,880
Speaker 1: This episod, sort of Choyance, was produced by Magnus Hendrickson.

624
00:34:02,320 --> 00:34:09,680
Speaker 1: Francesca Levie is the head of Bloomberg Podcast. By h

625
00:34:11,880 --> 00:34:17,239
Speaker 1: m hm h