WEBVTT - 22 ETFs to Watch in '22 0:00:05.519 --> 0:00:07.840 Welcome to Trillions. I'm Joel Webber and I'm Eric call 0:00:07.880 --> 0:00:17.400 tunis Eric Happy. Um. I have a new year's resolution, 0:00:17.640 --> 0:00:21.599 which is to make more money than than uh last year, 0:00:21.680 --> 0:00:23.920 and I would like some investing advice and I'm hoping 0:00:23.960 --> 0:00:27.040 that you and your team of analysts that Bloomberg Intelligence 0:00:27.040 --> 0:00:29.520 can help me out. Is that is that kosher? Can 0:00:29.520 --> 0:00:31.680 we can we do that? Yeah? I mean I actually 0:00:31.720 --> 0:00:35.400 thought your resolution was gonna be to clean your closet. Yeah, 0:00:35.520 --> 0:00:38.400 you know, we we've been for those not in the know, 0:00:38.680 --> 0:00:41.080 I've been recording in my closet for many, many many 0:00:41.120 --> 0:00:45.400 episodes of Trillions. It's actually my wife's closet. But yeah, 0:00:45.520 --> 0:00:48.440 here we are to answer your question though. Yes. Um. 0:00:48.479 --> 0:00:51.040 So every year we write all these outlooks and it's 0:00:51.080 --> 0:00:53.599 all very you know, sell side research ish. But one 0:00:53.640 --> 0:00:56.480 thing we do that's a little buzzfeedish is a listical 0:00:56.600 --> 0:01:00.440 twenty two et s for and sometimes we do retail 0:01:00.480 --> 0:01:04.320 conferences and the doing yourself retail investors. They don't really 0:01:04.360 --> 0:01:06.200 care that much about like how much is going from 0:01:06.240 --> 0:01:09.200 advisors to brokers and some of that, like more trendy stuff. 0:01:09.720 --> 0:01:11.920 They were just they want tickers. They they want to 0:01:12.000 --> 0:01:15.160 learn e t s through tickers. They want genuine ideas 0:01:15.200 --> 0:01:19.120 of of interesting new innovative products and whatnot. So we 0:01:19.160 --> 0:01:22.880 did this because of that. And we don't necessarily these 0:01:22.920 --> 0:01:25.440 ATMs are gonna go up. We're down. We don't make 0:01:25.760 --> 0:01:27.600 any advice, but these are e t f s that 0:01:27.640 --> 0:01:29.600 we just can't get off our mind. They're ones that 0:01:29.640 --> 0:01:33.000 have really just stuck into our brain and we feel 0:01:33.000 --> 0:01:35.520 like tap into bigger themes that we're watching as well, 0:01:36.000 --> 0:01:37.880 and so we do it every year. And so we 0:01:37.920 --> 0:01:41.520 have um, you know, Ethanacios, James and Rebecca on our 0:01:41.560 --> 0:01:44.360 team who all contributed some of the e t s 0:01:44.800 --> 0:01:47.680 of the twenty two So joining us on this epposite 0:01:47.680 --> 0:01:52.640 of trillions, James Staffert, Athan Nacios, Seraphagus, and Rebecca Sin 0:01:52.760 --> 0:01:55.920 from Hong Kong. We're going to patch in so that 0:01:55.960 --> 0:01:58.240 she can contribute despite being at a different time zone 0:01:58.280 --> 0:02:00.800 from the rest of us recording. And we're gonna hear 0:02:01.520 --> 0:02:05.240 about some investing ideas for the next year. And don't 0:02:05.280 --> 0:02:10.600 take this as investment advice. They're just ideas that hopefully 0:02:10.600 --> 0:02:13.720 that the way we're phrasing ConTroll is ets to watch, okay, 0:02:14.240 --> 0:02:18.680 watch sign off compliance, check that box. Okay, thanks for that. 0:02:19.720 --> 0:02:21.919 I also want to confess that we had some technical 0:02:21.960 --> 0:02:26.360 difficulties with my mike, so what follows may sound a 0:02:26.360 --> 0:02:31.959 little differently than I usually sound. Sorry about that this 0:02:32.080 --> 0:02:38.399 time on Trillions twenty two e t F s Athanasios, 0:02:38.480 --> 0:02:40.760 I'm gonna call you by your non Greek name from 0:02:40.800 --> 0:02:44.040 now on, which is Tom. That sounds good, and we're 0:02:44.040 --> 0:02:47.120 gonna start with you give me your picks. How am 0:02:47.120 --> 0:02:49.920 I going to make money in t F picks? Go? 0:02:50.160 --> 0:02:52.200 All right, I'm gonna come in hot with this first one. 0:02:52.240 --> 0:02:54.960 It's probably the biggest story of last year. Cathy would 0:02:55.120 --> 0:02:57.480 right an ARCS fund, but I'm going on the opposite 0:02:57.520 --> 0:03:00.320 side with the Shore arc fund. So it's s A 0:03:00.480 --> 0:03:03.320 r K, which is the Tunnel Capital Short Innovation e 0:03:03.400 --> 0:03:06.960 t F. I get it launching inverse. ETF is hard. 0:03:07.160 --> 0:03:09.880 Markets tend to go up over time. I like this one. 0:03:09.919 --> 0:03:13.639 It's got a lot of attention, very very quickly. Kathy 0:03:13.639 --> 0:03:15.680 has a lot of haters out there. If you look 0:03:15.680 --> 0:03:18.520 at performance it just launched, then I think, like November, 0:03:18.560 --> 0:03:22.440 it's up already. Historically, that's one of the best performing 0:03:22.440 --> 0:03:24.800 ets out of the gate. It's already got some volume 0:03:25.080 --> 0:03:27.519 I'm calling this one like a mini s q q Q. 0:03:27.720 --> 0:03:29.640 I think there's gonna be a good enough ecosystem around 0:03:29.639 --> 0:03:31.200 it that I think this product will be around for 0:03:31.240 --> 0:03:34.519 a while. Okay, so for that to succeed, Kathy has 0:03:34.560 --> 0:03:37.400 to fail right at the highest level. Yes, but if 0:03:37.400 --> 0:03:39.840 you look at something like s q q Q, right, so, 0:03:39.880 --> 0:03:42.960 over time markets go up. But I was actually pretty 0:03:42.960 --> 0:03:45.200 interested to see that even with the queues going up 0:03:45.240 --> 0:03:47.840 so much, the assets and sqq have been going up. 0:03:48.160 --> 0:03:50.720 So yeah, if Cathy's fund does well, just over time 0:03:50.800 --> 0:03:52.800 is gonna be going down. But the way her fund 0:03:52.800 --> 0:03:55.440 has actually been forming pretty recently, Uh, this has been 0:03:55.440 --> 0:03:58.440 doing really good. Like I said, the funds up launched, 0:03:58.720 --> 0:04:00.640 and not even the performance. I think if you can 0:04:00.680 --> 0:04:03.520 build a pretty strong trading ecosystem, I think this is 0:04:03.520 --> 0:04:07.000 what's going to keep this product alive. It's even just 0:04:07.040 --> 0:04:10.800 as much as the performance. And just remember s q 0:04:11.000 --> 0:04:14.400 q Q is obviously short the cues, and I think 0:04:14.440 --> 0:04:16.160 a lot of people look at SPY is sort of 0:04:16.200 --> 0:04:18.960 like the market. The cues is sort of like innovative tech, 0:04:19.000 --> 0:04:22.320 and then Cathy is like nonprofitable tech like stuff that 0:04:22.480 --> 0:04:24.960 hopefully we'll pay off weight on the road, and now 0:04:25.120 --> 0:04:27.839 she's actually creating her own little qui ish world. So 0:04:27.880 --> 0:04:30.040 I think this is actually a compliment or good for her. 0:04:30.440 --> 0:04:32.440 It'll because when this thing gets money, it's got to 0:04:32.480 --> 0:04:36.000 buy a r k K. So it's all kind of 0:04:36.080 --> 0:04:39.400 integrated into the Kathy ecosystem. So I think the liquid 0:04:39.400 --> 0:04:41.560 it is good. But I agree Tom, this is one 0:04:41.600 --> 0:04:45.359 that will probably have nice little spurts when ARC is 0:04:45.360 --> 0:04:49.919 sold off. Okay, next, Okay, this one sounds boring, but 0:04:50.000 --> 0:04:52.760 I think it's actually indicative of a much bigger thing. 0:04:53.120 --> 0:04:55.839 B KLC, which is the Bank of New York melon 0:04:56.240 --> 0:05:00.000 US Large Camp Cory TF, which is just basically um 0:05:00.120 --> 0:05:02.560 like a generic type of the SMP or one of 0:05:02.560 --> 0:05:06.120 those like generic large cap broad uh E T S. 0:05:06.400 --> 0:05:08.760 Why this one is different. It's free, has a zero 0:05:08.800 --> 0:05:12.560 expense ratio, right, so who who's not going to want 0:05:12.560 --> 0:05:14.400 a free E T F. I actually taking this pick 0:05:14.560 --> 0:05:16.120 as a product that I think is not going to 0:05:16.240 --> 0:05:18.880 raise that much money even though it's free, because when 0:05:18.880 --> 0:05:20.600 we look at what it's up against, right signed just 0:05:20.680 --> 0:05:23.760 Trump Vanguard, I get it. Being cheap is a good lane. 0:05:23.800 --> 0:05:26.160 You want to be in it. It's traducing work. Vanguard 0:05:26.160 --> 0:05:28.320 already owns that space. And if you look at what 0:05:28.400 --> 0:05:31.080 v O O can even do with tracking and total 0:05:31.120 --> 0:05:33.239 cost of ownership, you already getting the O for free. 0:05:33.440 --> 0:05:35.520 So I don't I think crying that money out of 0:05:35.560 --> 0:05:37.159 the O O is gonna be really really hard for 0:05:37.160 --> 0:05:38.800 this product. So I actually think that this is a 0:05:38.839 --> 0:05:40.400 case that even if it's free, it's not going to 0:05:40.560 --> 0:05:43.440 raise any money. Well, I will say it has four 0:05:43.960 --> 0:05:46.520 fifty million. That's probably a lot of B y O A, 0:05:46.600 --> 0:05:49.440 which is money coming in through their clients. But you 0:05:49.440 --> 0:05:51.760 know this is the idea. Bank of New York is 0:05:51.800 --> 0:05:54.160 a big custodian. They have a lot of they serve 0:05:54.200 --> 0:05:57.880 a lot of advisors. They can say, hey, look what 0:05:58.040 --> 0:06:01.960 by the ACME brand instead of Vanguard, it's three basis 0:06:01.960 --> 0:06:04.480 points cheaper and obviously maybe a coupe people are doing 0:06:04.520 --> 0:06:08.760 that next. All right, So Eric said, I can pick 0:06:08.839 --> 0:06:11.560 one European one and it doesn't have use. It's in 0:06:11.560 --> 0:06:14.520 the name, so it's fine. Uh, But I love this ticker. 0:06:14.560 --> 0:06:17.640 It's a CEO two uh. And this is the spark 0:06:17.720 --> 0:06:23.240 change physical carbon uh etc. And so carbons that been 0:06:23.279 --> 0:06:26.320 a really hot item. So what this does is advised 0:06:26.360 --> 0:06:28.280 carbon allowances. So I don't know if people know how 0:06:28.279 --> 0:06:30.960 those work. It's essentially like a permit that people could 0:06:30.960 --> 0:06:34.679 that companies can use to pollute. Right, So as companies 0:06:34.720 --> 0:06:37.000 want to buy these up, this e t F actually 0:06:37.000 --> 0:06:39.000 has two benefits. One, it's just going to track the 0:06:39.040 --> 0:06:41.320 price of these carbon credits right as they go up 0:06:41.480 --> 0:06:44.120 and then the demand they're gonna they're gonna track that price. 0:06:44.640 --> 0:06:46.760 But what's so different about this product compared to any 0:06:46.760 --> 0:06:49.640 other et F out there that that's tracking carbon credits. 0:06:49.800 --> 0:06:52.599 It actually owns the credits. So this is almost like 0:06:52.640 --> 0:06:54.680 a hoarder in a way, and that it's buying the 0:06:54.720 --> 0:06:58.320 credit ETFs taking it off the market so companies can't 0:06:58.440 --> 0:07:00.800 use them. It's actually taking the supply out of the market. 0:07:00.920 --> 0:07:03.240 So it's basically saying that even if companies wanted to 0:07:03.240 --> 0:07:05.360 buy these credits to the loot, they can't because we're 0:07:05.400 --> 0:07:07.920 buying up all the supply. And then that also will 0:07:07.960 --> 0:07:10.640 probably end up could potentially also end up moving the 0:07:10.720 --> 0:07:12.600 price a little bit higher as well, just because you're 0:07:12.600 --> 0:07:17.200 limiting it. So so they're actually like a market maker 0:07:17.280 --> 0:07:21.200 because they're able to take onto their books an asset 0:07:21.280 --> 0:07:24.280 that companies are are trying to get. Yeah, exactly. If 0:07:24.320 --> 0:07:25.960 you look at some of the other carbon ones that 0:07:26.000 --> 0:07:28.960 have done well, they're all just tracking futures, so parallels 0:07:28.960 --> 0:07:32.080 what's happening with bitcoin futures versus physical They're actually owning 0:07:32.080 --> 0:07:33.960 the credit, so even if you wanted to buy them, 0:07:34.160 --> 0:07:37.080 they're hoarding them. So I think it's a really interesting strategy. 0:07:37.120 --> 0:07:39.840 It's the first of its kind, um and I like 0:07:39.960 --> 0:07:42.240 I like the physically back aspect compared to some of 0:07:42.240 --> 0:07:46.240 the other things anything. Yeah, they've actually done quite a bit. 0:07:46.240 --> 0:07:49.560 They're over a hundred million, uh and only a couple 0:07:49.600 --> 0:07:51.640 of months, and that's in Europe, so that's actually really 0:07:51.640 --> 0:07:54.600 impressively in the context of that market. It's really really good. 0:07:54.800 --> 0:07:57.360 It's a very very strong that makes up for your 0:07:57.400 --> 0:07:59.280 previous pick, which was a little boring. Let's see what 0:07:59.360 --> 0:08:02.240 you got for number or alright, this one's boring too, 0:08:02.320 --> 0:08:05.000 but it's uh. It's sp I B, which is a 0:08:05.040 --> 0:08:10.160 Spider portfolio intermediate term corporate bond ETF. They cut their 0:08:10.200 --> 0:08:13.760 fee on this, so they vanguarded vanguarded, and Vanguard ended 0:08:13.840 --> 0:08:16.080 up cutting the fee. But what I think this is 0:08:16.120 --> 0:08:18.800 so important is if you look at the fixed income 0:08:18.840 --> 0:08:22.320 et F market, it's all black Rock and Vanguard. They're 0:08:22.360 --> 0:08:24.880 they're like eighty percent of the assets. State Street really 0:08:24.960 --> 0:08:27.600 missed an opportunity here, and they were one of the original, 0:08:27.800 --> 0:08:30.320 you know, ones that could launch fixed income ets. I 0:08:30.360 --> 0:08:32.400 think they're gonna put a lot of effort into their 0:08:32.400 --> 0:08:36.480 fixed income line up with fee reductions, maybe launching more products. 0:08:36.679 --> 0:08:38.080 I just think this is the way that they're And 0:08:38.360 --> 0:08:40.120 if you look at what's happening the rest of their business, 0:08:40.240 --> 0:08:43.560 you know they're losing share too. I shares in Vanguard, 0:08:43.720 --> 0:08:45.360 So I actually think they're gonna really try to make 0:08:45.360 --> 0:08:47.520 it up on the fixed income side. So I'd be 0:08:47.559 --> 0:08:50.400 looking for some really really aggressive moves for State Street 0:08:50.840 --> 0:08:53.240 in their fixed income space. And I'm just picking this 0:08:53.280 --> 0:08:54.960 et F as a proxy just because they were so 0:08:55.000 --> 0:08:57.880 aggressive with some of the recent feet cuts. All Right, 0:08:57.920 --> 0:09:01.360 I'm still bored. Giving some fireworks to end, Okay, I 0:09:01.360 --> 0:09:04.680 think this is a pretty nice picker. It's MVPs, which 0:09:04.720 --> 0:09:08.679 is the amplified thematical Austar e t F. Now how 0:09:08.679 --> 0:09:10.960 we were talking about KATHY before. Just thematic ets in 0:09:10.960 --> 0:09:13.319 general have gotten so so large. It's like one of 0:09:13.320 --> 0:09:17.720 the biggest categories now sector wise. But the space has 0:09:17.760 --> 0:09:20.120 gotten so big that when you say, hey, okay, I 0:09:20.120 --> 0:09:22.880 want to buy an autonomous vehicle et F for CYBERSECURITYF 0:09:23.160 --> 0:09:26.040 there's so much out there that actually the performance dispersion 0:09:26.120 --> 0:09:28.359 is pretty wide. You can have a very different experience 0:09:28.559 --> 0:09:30.760 than someone else with bought a different product. So what 0:09:30.840 --> 0:09:34.240 this tries to do is cut through the middle of that, saying, yeah, 0:09:34.240 --> 0:09:37.040 there's all these different thematic products, but where's that one 0:09:37.080 --> 0:09:40.040 point where they all meet, where the highest conviction thematic 0:09:40.080 --> 0:09:42.480 picks of all these e t s And the category 0:09:42.520 --> 0:09:45.200 is so big that this actually matters. So I think 0:09:45.240 --> 0:09:47.640 over time, not only is this gonna so it's recally 0:09:47.640 --> 0:09:49.280 sited down the middle, I actually think it's gonna do 0:09:49.360 --> 0:09:51.440 better than the average because it's not just you know, 0:09:51.440 --> 0:09:53.720 it's trying to be sort of a diversified thematic thing, 0:09:54.160 --> 0:09:57.120 but the fact that it's choosing the highest conviction names, 0:09:57.160 --> 0:09:59.480 I think it's actually a little bit better than average. 0:09:59.559 --> 0:10:01.480 So I think it's just I like this product because 0:10:01.480 --> 0:10:05.120 it cuts through all that thematic performance dispersion, which is 0:10:05.160 --> 0:10:09.360 in its only forty nine basis points, it's pretty concentrated. Uh, 0:10:09.520 --> 0:10:11.920 I think those are it's a good you know, good 0:10:11.960 --> 0:10:15.200 price points. I'm gonna be honest and say that the 0:10:15.240 --> 0:10:18.400 ticker was better than your explanation. But you know that's 0:10:18.440 --> 0:10:20.720 just the brutal reality of it, and you know, don't 0:10:20.800 --> 0:10:22.680 don't don't don't read into it too much, you know, 0:10:22.720 --> 0:10:24.640 I would I would add like to throw in some 0:10:24.679 --> 0:10:27.920 of the stats that that Athan or Tom mentioned. Uh, 0:10:28.280 --> 0:10:30.280 they have a hundred James is gonna bail you out? 0:10:30.440 --> 0:10:32.880 James is gon no. I I love this pick from 0:10:32.920 --> 0:10:36.960 tom um. The sector if you can consider thematic ets 0:10:36.960 --> 0:10:39.120 a sector like Tom mentioned there, it's the second largest 0:10:39.120 --> 0:10:41.280 sector of e t s. There's a hundred and sixty 0:10:41.280 --> 0:10:44.040 one billion assets and these types of etf SO and 0:10:44.080 --> 0:10:47.040 there's we have a ton of different categories in the dashboard, 0:10:47.040 --> 0:10:48.839 and it's continually growing. It's one of the fast growing 0:10:48.920 --> 0:10:51.400 enitors of the market. So I'm definitely gonna be watching 0:10:51.440 --> 0:10:55.360 m vps as well. I believe this one also has 0:10:55.400 --> 0:10:58.720 the most overlap with arc right, didn't um what's his name, Mike, 0:10:58.760 --> 0:11:02.080 I can show that. So for Texas Harvesting, Yeah, because 0:11:02.080 --> 0:11:08.200 I'm looking Tesla Navidio um Block, these are cathy stocks Shopify. 0:11:08.440 --> 0:11:11.439 I really like products that try to cut through the noise. 0:11:11.720 --> 0:11:13.800 Where do we all agree where do all these products 0:11:13.840 --> 0:11:15.840 agree and I think there's some benefit there and just 0:11:15.920 --> 0:11:27.079 finding these really high conviction picks. Rebecca Hong Kong Holcong 0:11:27.200 --> 0:11:31.600 is doing well. Happy New Year, Happy New Year to YouTube. Okay, 0:11:31.640 --> 0:11:34.520 I want to hear your picks. Which one are you 0:11:34.600 --> 0:11:37.400 most excited about? Let's start with that one. The one 0:11:37.520 --> 0:11:41.720 I'm probably most excited about is electric vehicle. And the 0:11:41.760 --> 0:11:45.080 reason why I chose electric vehicle is that there's been 0:11:45.080 --> 0:11:47.840 a lot of growth in this sector, especially in China. 0:11:47.960 --> 0:11:50.840 So within the electrical vehicle in China, we've seen some 0:11:50.920 --> 0:11:54.240 of the ets return more than and one of the 0:11:54.280 --> 0:11:56.880 main reasons for China's growth is that they're starting from 0:11:56.920 --> 0:12:02.680 a much lower base. So Chinese electric vehicles posted greater 0:12:02.760 --> 0:12:05.440 returns than they did in the US. So, for instance, 0:12:05.480 --> 0:12:08.160 if we look at some stats like their new energy vehicle, 0:12:08.480 --> 0:12:13.200 it contributed to of the return. Looking at one year earlier, 0:12:13.240 --> 0:12:16.040 the return was only eight percent. And so the Chinese 0:12:16.040 --> 0:12:18.840 market has a lot more growth potential. And with a 0:12:18.920 --> 0:12:22.839 chip shortage easing and everyone looking for driverless cars and 0:12:22.920 --> 0:12:26.439 not autonomous technology and robotics as well as E s G. 0:12:26.600 --> 0:12:29.400 Favorite themes, I believe that electric vehicles will do really well, 0:12:29.400 --> 0:12:32.239 and the one that I picked is global X Autonomous 0:12:32.320 --> 0:12:35.640 Electric Vehicle Drive US, which captures this segment at only 0:12:35.679 --> 0:12:40.400 sixty five basis points. So the ticker is drive. Wow, 0:12:41.000 --> 0:12:45.040 that's an amazing ticker. Eric, how come we've never talked 0:12:45.040 --> 0:12:47.360 about that one before? We might have brought it up. 0:12:47.400 --> 0:12:49.679 I mean there's a couple electric vehicle e t F 0:12:49.760 --> 0:12:51.719 s out there. UM, I know, I did it once 0:12:51.840 --> 0:12:54.320 on our e t F battles with Rondo Legy and 0:12:54.360 --> 0:12:57.000 I get asked a lot about electric vehicle ets. It's 0:12:57.040 --> 0:12:58.599 one of the most pop That and Bitcoin are the 0:12:58.679 --> 0:13:01.760 probably the two most questions I get for like regular people. Um, 0:13:01.800 --> 0:13:04.120 I think people have seen non Tesla car companies get 0:13:04.160 --> 0:13:06.040 into electric vehicles and they're like, you know, this is 0:13:06.400 --> 0:13:08.800 it's going to take over. They can see Tesla a 0:13:08.880 --> 0:13:11.960 little electric pumps showing up at the wah wah or 0:13:12.040 --> 0:13:14.640 the seven eleven or whatever, and they're like, this is 0:13:14.679 --> 0:13:18.200 really happening. So I agreat. I think this is a 0:13:18.240 --> 0:13:20.440 big theme. I think some of these stocks though you 0:13:20.480 --> 0:13:22.920 probably find other funds, but for the most part, I 0:13:22.960 --> 0:13:25.679 think this is exactly why theme ets were invented. Electric 0:13:25.760 --> 0:13:30.079 vehicles is definitely has a bright future. Okay, Number two. 0:13:30.960 --> 0:13:35.880 Number two is metaverse. Everyone's heard of metaverse. But one 0:13:35.880 --> 0:13:38.319 of the things that's interesting is that the metaverse ets 0:13:38.320 --> 0:13:41.480 actually started a lot longer before Facebook rebranded to meta 0:13:41.960 --> 0:13:45.360 and so I may have predicted that the metaverse e 0:13:45.440 --> 0:13:49.240 t F universe may reach eight billion by four which 0:13:49.320 --> 0:13:51.760 might be a little bit aggressive, but we've had a 0:13:51.760 --> 0:13:55.840 lot of progress since that. And so even in Asia, 0:13:56.480 --> 0:13:59.959 in Korea, we had four metaverse ets launch on the 0:14:00.080 --> 0:14:02.840 exact same day, and two of the e t F 0:14:02.880 --> 0:14:06.280 Sampson and Maria, managed to reach more than one hundred 0:14:06.360 --> 0:14:09.400 million in only six days, which is very quick for 0:14:09.440 --> 0:14:12.720 reaching a hundred million. And so the metaverse et F 0:14:12.800 --> 0:14:17.520 has surpassed more than two point three billion in December, 0:14:17.760 --> 0:14:19.800 and so I think that there's a lot of growth opportunity, 0:14:20.040 --> 0:14:21.840 and I know a lot of other regions, for instance, 0:14:21.840 --> 0:14:25.280 in Hong Kong, Taiwan, Singapore, they're looking to launch metaverse 0:14:25.280 --> 0:14:27.320 e t s as well this year. So the US 0:14:27.440 --> 0:14:29.720 is leading the race at more than one point four 0:14:29.760 --> 0:14:33.680 billion in assets under management round Hill Balls Metaverse et 0:14:33.800 --> 0:14:37.160 F meta US leads the pack in terms of having 0:14:37.440 --> 0:14:40.360 the largest assets under management, but there are other ETFs 0:14:40.400 --> 0:14:42.760 that are going to join and I see that a 0:14:42.800 --> 0:14:44.680 lot more et fish where is jumping in on the 0:14:44.720 --> 0:14:49.160 bandwagon for metaverse products? Okay, and of course if you 0:14:49.160 --> 0:14:52.000 want to learn more about this metaverse space, we did 0:14:52.040 --> 0:14:56.880 a great episode with Rebecca and Matt Ball, who is 0:14:57.280 --> 0:15:00.240 the brain behind the Meta e t F. So you 0:15:00.240 --> 0:15:01.640 can check that out. That was just a couple of 0:15:01.680 --> 0:15:04.960 months ago. Uh yeah, I mean if one thing on 0:15:05.080 --> 0:15:07.920 Meta in the U s here that E t F. 0:15:08.280 --> 0:15:11.080 There was a four hundred and fifty ish launches last 0:15:11.160 --> 0:15:15.240 year of natural organic flows. That was the third most 0:15:15.240 --> 0:15:19.920 successful of all four fifty. That's a big feat. And honestly, 0:15:19.960 --> 0:15:22.080 they got a huge break when Facebook changed their name 0:15:22.120 --> 0:15:24.520 to Meta. That's when that was like a catalyst moment 0:15:25.200 --> 0:15:27.360 because I think they maybe might have had like sixty 0:15:27.400 --> 0:15:30.520 million now they have almost a billion. Sometimes it's good 0:15:30.520 --> 0:15:32.240 to be lucky, but they, you know what, they were 0:15:32.240 --> 0:15:35.120 ahead of the curve and that's important. You gotta be out, 0:15:35.120 --> 0:15:38.320 you gotta be in it to win it. Chill, we'll 0:15:38.320 --> 0:15:40.880 see if it wins it, but definitely have a lot 0:15:40.920 --> 0:15:45.080 of investor enthusiasm. Okay, what's next, Rebecca. The next one 0:15:45.400 --> 0:15:49.280 is cathy Woods flagship Arc innovation. A r K k 0:15:49.520 --> 0:15:51.600 U S can't talk about e t S without talking 0:15:51.640 --> 0:15:55.800 about this one the number one performing fund in but 0:15:55.960 --> 0:16:00.120 then it didn't do so well in one in, so 0:16:00.760 --> 0:16:04.440 I believe there's a lot of growth potential for it in. Ultimately, 0:16:04.520 --> 0:16:07.840 this fund tracks five areas within the technology sector, which 0:16:07.880 --> 0:16:14.200 includes DNA sequencing, robotics, energy storage, artificial intelligence, and blockchain technology. 0:16:14.640 --> 0:16:18.280 I believe that as the world becomes more dependent on technology, 0:16:18.360 --> 0:16:21.360 there's a lot of growth opportunity for this. So look, 0:16:21.960 --> 0:16:24.480 ARC has come down to earth a bit um, you know, 0:16:24.680 --> 0:16:27.960 down since February. It had to happen. It was up 0:16:28.000 --> 0:16:30.440 too much. I think everybody saw it was like, how 0:16:30.600 --> 0:16:32.480 on Earth could have fund returned this much in a 0:16:32.600 --> 0:16:35.280 year um, and I think over five years though it's 0:16:35.280 --> 0:16:38.640 still an annualized return of like I mean, that's ridiculous. 0:16:38.960 --> 0:16:40.320 But a lot of people came in at the high, 0:16:40.440 --> 0:16:43.880 so some people are underwater. It's ongoing controversy, but the 0:16:44.040 --> 0:16:45.920 fact is not a lot of people left the fund, 0:16:46.040 --> 0:16:48.320 and I think the reason for that is again, they 0:16:48.400 --> 0:16:52.160 have cheap beta. They've got all the serious investor fundamentally 0:16:52.200 --> 0:16:55.640 sound stocks covered in their cheap beta. Part of their portfolio, 0:16:56.040 --> 0:16:58.760 so they already own all that stuff, because that's what 0:16:58.840 --> 0:17:01.200 people ding Cathew on their Oh you you own all 0:17:01.240 --> 0:17:05.040 these nonprofitable crazy stocks. But most people are like, yeah, 0:17:05.320 --> 0:17:08.560 that's a feature, not a bug, because I already owned 0:17:08.560 --> 0:17:13.600 the fundamental stuff. I want Kathy for that potential huge payoff, 0:17:14.000 --> 0:17:17.480 the dreamers kind of stocks and you know that asymmetric 0:17:17.560 --> 0:17:19.720 return potentially, and I think they buy into her five 0:17:19.800 --> 0:17:22.359 year a plan. I mean she's basically said this is 0:17:22.400 --> 0:17:24.760 going to take a little while, and um, I think 0:17:24.920 --> 0:17:27.119 you know, her personality is also a big part of it. 0:17:27.200 --> 0:17:30.560 So it's really interesting that people haven't left, and I 0:17:30.680 --> 0:17:32.960 think Cathy would and ARC will be around for a 0:17:33.119 --> 0:17:36.360 long time. If you cannot see outflows after draw down, 0:17:36.760 --> 0:17:42.600 that is a really really good sign. Okay, Rebecca, last pick, 0:17:42.760 --> 0:17:45.240 your last pick. My last pick is going to have 0:17:45.480 --> 0:17:48.440 to be China focused. Since I am based in Hong Kong. 0:17:49.080 --> 0:17:53.680 China has had lots of difficulties in but I believe 0:17:53.720 --> 0:17:58.080 that there are pockets of growth in China in despite 0:17:58.119 --> 0:18:02.560 Beijing's regulatory crackdown straight to US relations, there are opportunities 0:18:02.600 --> 0:18:07.200 of growth and some of these include clean energy, electric vehicles, tech, healthcare, 0:18:07.359 --> 0:18:11.640 and China A shares. I'd say specifically where there's maybe 0:18:11.680 --> 0:18:14.320 the most opportunity would be within China tech and the 0:18:14.400 --> 0:18:16.720 reason for this is because it's been massively hit in 0:18:18.160 --> 0:18:23.040 hit more than fifty due to Beijing's regulatory crackdown, and 0:18:23.080 --> 0:18:26.280 the one I picked is Crane Shares CSI. China Internet 0:18:26.720 --> 0:18:29.159 k WEB. What's most interesting about k web is that 0:18:29.280 --> 0:18:33.960 despite the drop of more than fift they managed to 0:18:34.080 --> 0:18:39.159 get four billion dollars worth of inflows, and so more 0:18:39.240 --> 0:18:42.879 than of the assets under management came in as the 0:18:42.960 --> 0:18:45.680 fund was dropping, and so there's a lot, ultimately a 0:18:45.720 --> 0:18:48.200 lot of people looking to invest into China technology and 0:18:48.240 --> 0:18:52.000 this is a great et f for that, and the 0:18:52.240 --> 0:18:56.440 thesis here being that it won't get worse. We believe 0:18:56.560 --> 0:19:00.360 that China's technology sector has already been hit a lot 0:19:00.920 --> 0:19:04.119 and that there will be a rebound in at what 0:19:04.400 --> 0:19:08.440 time It's to be determined. Ultimately, it is very dependent 0:19:08.560 --> 0:19:12.040 on the government. But there is still a lot of 0:19:12.080 --> 0:19:15.280 growth opportunity within the China sector and so I think 0:19:15.320 --> 0:19:21.239 that it will rebound. Yeah. And actually, Rebecca, I think 0:19:21.280 --> 0:19:23.120 the flows into k web are actually even a little 0:19:23.160 --> 0:19:24.840 more by the end of the year. I think they 0:19:24.880 --> 0:19:27.960 were like seven point five billion. That the spread between 0:19:28.160 --> 0:19:33.560 negative and plus seven billion. That that's an insane spread 0:19:33.640 --> 0:19:38.000 between performance and flows. Um as um Athanasio has put it, 0:19:38.040 --> 0:19:40.440 it's in the buy the dip hall of fame for sure. 0:19:40.880 --> 0:19:44.320 At some point these people will be rewarded. But also 0:19:44.400 --> 0:19:46.680 there's not many dips to buy anymore. I mean, everything's 0:19:46.760 --> 0:19:49.360 up all the time. It's like a utopia out there. 0:19:50.000 --> 0:19:53.200 Um and this was a huge dip for people to 0:19:53.280 --> 0:19:56.200 buy into. I can't believe k web is the biggest 0:19:56.280 --> 0:19:59.160 China et F in the US. It's past m SHI 0:19:59.320 --> 0:20:02.280 and FX and all these like broader based ones that 0:20:02.600 --> 0:20:05.040 you think would be way bigger. It's like it's like 0:20:05.280 --> 0:20:08.919 having an awful draw out was like the best thing 0:20:08.960 --> 0:20:10.960 that ever happened to it, I think within the China 0:20:11.000 --> 0:20:13.800 sector also though, there are so many Chinese ETFs that 0:20:13.880 --> 0:20:16.359 people often don't know which one to invest into, and 0:20:16.520 --> 0:20:19.240 so Crane Shares has done a well done, really good 0:20:19.320 --> 0:20:23.520 job at providing a niche exposure to the Chinese markets. 0:20:23.800 --> 0:20:25.680 And if you look at the Cream Shares product offer, 0:20:25.760 --> 0:20:29.120 they have everything from electric vehicles to clean energy to healthcare, 0:20:29.400 --> 0:20:31.359 as well as China A shares, which are really the 0:20:31.480 --> 0:20:34.399 large segments, and so there's no other ETF issue in 0:20:34.440 --> 0:20:36.879 the US that covers the China market as well as 0:20:36.920 --> 0:20:42.040 cream shares ANTI and to this point about being the 0:20:42.080 --> 0:20:43.760 hot sauce on top of cheap beta. If a lot 0:20:43.800 --> 0:20:46.320 of people are own an Emerging markets et F like 0:20:46.400 --> 0:20:50.119 i MG um, you have China covered to a large extent. 0:20:50.240 --> 0:20:52.359 But k web can actually be put on top of 0:20:52.440 --> 0:20:55.280 that because there isn't a ton of overlap between i 0:20:55.560 --> 0:20:57.360