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Speaker 1: Welcome to Trilliance. I'm Joel Webber and I'm Eric bellionis Eric.

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Speaker 1: We haven't spent that much time talking about trends year

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Speaker 1: to date, right, and that's something I do a lot.

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Speaker 1: And the rest of my job here is to track

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Speaker 1: the flows. The flows. It's every year. It's almost like

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Speaker 1: a horse race, you know, it's year to date flows.

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Speaker 1: So now we're in June and we've got an update

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Speaker 1: on the horse race. Where a basketball game. I gotta

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Speaker 1: be honest with you, it's half time, Okay, give me

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Speaker 1: a bird's eye view. What's happened in the first half.

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Speaker 1: So this was not a normal year. Last year everything

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Speaker 1: was like utopia. Everything was going up, namely US equities.

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Speaker 1: This year was everything that was going up together, which

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Speaker 1: is also unusual. So et s were just exploded. Four

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Speaker 1: hundred and eighty six billion in flows. Last year, everything

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Speaker 1: took in money practically. This year was much harder. Now

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Speaker 1: e t f s up to this point of taking

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Speaker 1: in a hundred and twenty seven billion dollars now this

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Speaker 1: time last year they had taken in almost two billion.

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Speaker 1: Now keep in mind, yes they're underperforming, but it's a

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Speaker 1: rougher market. And if you look, active mutual funds are negative,

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Speaker 1: not by a lot, but they haven't taken in any money.

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Speaker 1: So a hundred seven billion in this environment, it's pretty good.

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Speaker 1: And unlike last year where it was all US equities

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Speaker 1: leading the way as usual, especially after since Trump, when

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Speaker 1: it's been a US equity flow athon US equities were

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Speaker 1: working on. That sounds fun, doesn't it. Yeah, you know,

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Speaker 1: I like a basketball game better, but okay, But something

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Speaker 1: magical happened in early May that sort of put us

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Speaker 1: back on a type US equity flow athon which was

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Speaker 1: lacking the rest of the year. Do you know what

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Speaker 1: happened in early May? That sort of completely changed the

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Speaker 1: directory of flows away from say begging a fixed income

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Speaker 1: kind of year to being much more of a US

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Speaker 1: equity kind of year like last year. What happened? I

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Speaker 1: am racking my brain to remember early May, and you're

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Speaker 1: just gonna have to help me out. Two words. Warren

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Speaker 1: buff It h were Buffet. I've only seen two people

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Speaker 1: have the ability to single handedly change the trajection questions.

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Speaker 1: We could have just done the whole episode twenty questions.

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Speaker 1: The first is the fed chair whoever that is when

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Speaker 1: when they talk the flows changed? Happened already next Trump,

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Speaker 1: Trump is able to move flows pretty regularly. Buffett did it.

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Speaker 1: What he did is he came out and he said

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Speaker 1: he was buying I think it was seventy million shares

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Speaker 1: worth of Apple, which was adding to more of his

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Speaker 1: Apple holdings. And it was over that weekend of the

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Speaker 1: Berkshire Annual Meeting, and I guess it was the spiritual

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Speaker 1: lift the market needed. Plus you had Apple doing buy

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Speaker 1: back just before that, so that really got people going.

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Speaker 1: And since then there's been a nice rally and US

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Speaker 1: equity e t F s have taken in a lot

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Speaker 1: more and sort of made up for lost ground earlier

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Speaker 1: in the year. But anyway, that kind of brings us

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Speaker 1: up to where we're at right now, which is a

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Speaker 1: little less Linn last year, but the assets are more

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Speaker 1: spread around after I Leffett, and so we're gonna drill

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Speaker 1: into that this episode and actually look at where the

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Speaker 1: flows and outflows have come from and joining us again.

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Speaker 1: One of our favorite episodes, we had a guest named

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Speaker 1: Todd Rosenbluth who's the director of mutual fund and E

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Speaker 1: t F Research at the cf are A. Todd is

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Speaker 1: back for this episode. Yeah, Joel instead of Ted too.

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Speaker 1: This is like Todd to there's nobody better to pick

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Speaker 1: apart first half flows than than Todd. He is a

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Speaker 1: bona fide e t f nerd this week on Joyance

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Speaker 1: Halftime with Todd Rosen Booths. All right, Eric, I'm looking

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Speaker 1: at a bunch of pronounce First, we're gonna talk about inflows.

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Speaker 1: Second we're going to talk about outflows. Thurd, we're gonna

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Speaker 1: talk about performance inflows. What do you notice? Right? So

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Speaker 1: I'll just throw out the top inflow leader of the

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Speaker 1: year is a ticker I E f A, which is

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Speaker 1: the I shares Core M s C i EFA E

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Speaker 1: T f IFA is essentially an acronym that we know

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Speaker 1: that's international developed markets, so mainly it's Europe and japp

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Speaker 1: hand and that has taken in seventeen billion dollars, and

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Speaker 1: keep in mind that is at increase on assets. So

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Speaker 1: i f A is far and away the flow leader.

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Speaker 1: The next one on the list is seven billion. But

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Speaker 1: let's focus on I f A. Todd, what's your take?

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Speaker 1: What is driving all of the traffic here? Yeah? I

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Speaker 1: think it's a couple of things. One is that in

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Speaker 1: prior years investors were under exposed to develop internationally were

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Speaker 1: favoring US equities. It was a very home biased for

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Speaker 1: US investors, and so international equities did relatively well last year.

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Speaker 1: Investors wanted to rotate and make sure they had exposure

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Speaker 1: to it. The second thing is investors are as we'll

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Speaker 1: see with the rest of the flows, Investors are increasingly

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Speaker 1: looking at lower cost products. So while I e f

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Speaker 1: A was by far the biggest gainer of new money,

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Speaker 1: a companion product that's more expensive from I shares e

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Speaker 1: f A, which has a higher expense ratio largely similar

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Speaker 1: portfolio was the second biggest and outflows. But you can

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Speaker 1: still see a big different about a ten billion dollar

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Speaker 1: difference net inflows between those two products. So there is

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Speaker 1: still demand for developed international investing this year. Just to

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Speaker 1: explain that price differential, e f A is point three

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Speaker 1: t I f A is point oh eight, So doing

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Speaker 1: the math there, that's four times cheaper. That's a That's enough.

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Speaker 1: And what was interesting about this this year we saw

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Speaker 1: a five billion dollar trade, actually five point six billion

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Speaker 1: out of e f A into I f A, so

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Speaker 1: almost a third of that seventeen was one trade. I

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Speaker 1: believe it was Merrill Lynch's model portfolios. They put all

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Speaker 1: the f a's in and they basically were able to

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Speaker 1: move that much money in the course of two or

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Speaker 1: three days. It was, as far as we know, the

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Speaker 1: largest et F trade on record, and that was just

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Speaker 1: because even the big fish wont it cheaper if they can,

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Speaker 1: and I f A had started to gain enough liquidity

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Speaker 1: over the years that it became formidable for someone big

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Speaker 1: to use it, Whereas before when it first came out,

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Speaker 1: even though it was cheap, it wasn't liquid enough for

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Speaker 1: the big guys. But now this thing is trading about

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Speaker 1: a billion a day, which is almost good enough for anybody. Yeah,

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Speaker 1: and I think it's similar. You know what's number two

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Speaker 1: on the list of inflows is I E M G,

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Speaker 1: which is another low cost product from I Shares. It's

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Speaker 1: a cheaper version of E E M they're more incumbent

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Speaker 1: emerging market product. You've got a slight difference and exposure.

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Speaker 1: The core series of products from I Shares has some

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Speaker 1: small and MidCap exposure, but these still are market cap weighted,

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Speaker 1: So the largest companies nest Lee for example, in I

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Speaker 1: E f A and Samsung for example in I E

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Speaker 1: M G are still the same large companies in the

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Speaker 1: cheaper and the more expensive products. And I'm noticing another trend,

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Speaker 1: which is number three I v V also I shares right, so,

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Speaker 1: and actually number four s h V also I shares,

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Speaker 1: So I would put before we get to s h

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Speaker 1: V because that one's unique I VV. If you look

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Speaker 1: at the flows for last year, the top three were

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Speaker 1: the same I F A, I M G I V

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Speaker 1: V A slightly different order. But this is what we

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Speaker 1: talked about a couple of weeks ago with Martin Small,

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Speaker 1: what I call the four headed monster. These are dirt

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Speaker 1: cheap ETFs that make up each a big slug of

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Speaker 1: your portfolio. You throw a G G in there, which

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Speaker 1: is your U S aggregate bond. That is number six

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Speaker 1: on the list. Those four E t f s are

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Speaker 1: taking in a third to all the money because you

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Speaker 1: get an entire portfolio for six seven basis points all in.

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Speaker 1: But let's look at v A. V A is a

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Speaker 1: competing product on there. V A would be a competitor

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Speaker 1: to I E F A, and that's number six. Yeah.

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Speaker 1: So again, like what I was saying, some people are

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Speaker 1: rotating to international. What's the difference between I F A

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Speaker 1: and V A. If you were advising somebody which one

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Speaker 1: to pick and what they should think about because they're

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Speaker 1: both cheap, right, they're both cheap, so you can't. Investors

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Speaker 1: just need to be mindful if you want to use

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Speaker 1: I Shares and Vanguard together. Is the way that the

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Speaker 1: index behind this is going to be different. So VA

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Speaker 1: tracks and index that's offered more that's available from Foots,

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Speaker 1: your Russell Foots, your Russell h includes and developed markets

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Speaker 1: Canada as well as South Korea as part of the portfolio.

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Speaker 1: Canada is not part of I e f A. The

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Speaker 1: IFA part doesn't include a C in that there's no

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Speaker 1: it's not KIFA so to speak, so there's gonna be

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Speaker 1: no Canadian exposure and South Korea is considered an emerging

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Speaker 1: market according to M S c I And at the

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Speaker 1: risk of getting too far in the weeds, if you

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Speaker 1: use one I Shares product and one Vanguard product that's

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Speaker 1: from this list here, you could either be doubling down

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Speaker 1: your exposure in certain countries or you could be having

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Speaker 1: a whole in certain countries, depending upon how you structure that.

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Speaker 1: Maybe based on the indicas bottom line, you should use

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Speaker 1: them as a set right if you go I f A,

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Speaker 1: you should also do i MG. If you go V

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Speaker 1: E A, you should use V W O and not

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Speaker 1: mix and match in that case, or do so with

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Speaker 1: a full awareness that you're doubling down. So if you

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Speaker 1: really like South Korea, for example, and you want exposure

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Speaker 1: to it, that's the way of doing it. Or you

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Speaker 1: want to really think that Canada is a part of it,

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Speaker 1: than than Yes, But certainly going into buying an ETF

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Speaker 1: not just because it's the cheapest one, because a lot

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Speaker 1: of the ones that are on the top gainers this

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Speaker 1: year or a top asset gatherers this year are cheap,

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Speaker 1: but they're not the same products. It's not just one

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Speaker 1: basis point cheaper than any other. So I mean cheapness

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Speaker 1: is a trend. Um. There's also some tickers that are

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Speaker 1: sort of boring s h V. Yes, so s h

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Speaker 1: V is um fascinating. It's never on the top ten.

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Speaker 1: This is the I share a short treasury bondy t

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Speaker 1: F which holds treasuries that are really short term. It's

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Speaker 1: almost like a money market funder or like putting your

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Speaker 1: money under a mattress or cash and for it to

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Speaker 1: take in you know, what is it six point two billion?

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Speaker 1: That's a seventy eight percent increase in its assets. And

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Speaker 1: this brings us to on there well earlier in the air.

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Speaker 1: Remember when volatility is going crazy, everybody when they get

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Speaker 1: scared that this is the kind of stuff they run

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Speaker 1: to so they put it under the mattress, and they

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Speaker 1: didn't take it up right. And so ultra short term

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Speaker 1: and short term debt ETFs all told talking about twenty

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Speaker 1: four billion, which is way punching above their weight because

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Speaker 1: is they only make up one percent of the assets.

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Speaker 1: What's your take on that? You think that money is

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Speaker 1: gonna come back out, Todd if the market continues to rally.

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Speaker 1: I think part of that's in there in part because

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Speaker 1: the Federal Reserve is raising interest rates and has on

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Speaker 1: a path to continue to raise interest rates further. And

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Speaker 1: so short term and ultra short term products aren't gonna

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Speaker 1: go down. You know when when the usually bonds go

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Speaker 1: down in value and bond ETFs go down in value

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Speaker 1: as rates spike higher, this is a flight to safety

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Speaker 1: and a flight to liquidity. I don't think it's parking there.

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Speaker 1: I do think there's there's money that's gonna stay in

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Speaker 1: there for a period of time, and it's you know,

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Speaker 1: SHV is one of them, but we're seeing floating rate

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Speaker 1: bond products. I think f l O T S is

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Speaker 1: one of the top ones as well. But you're actually

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Speaker 1: we're seeing it from various products. You know. JP Morgan

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Speaker 1: has a product jps T as an example, that just

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Speaker 1: launched late last year, and I think it's already above

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Speaker 1: five million in assets already based on net inflows. There's

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Speaker 1: a lot of demand that's out there for short term products.

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Speaker 1: I think that's going to continue as we move it

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Speaker 1: to the second half of this game. So it's a

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Speaker 1: little bit like how Eric uses jacuzzi where you just

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Speaker 1: like get in, relax a little bit, and then get

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Speaker 1: back in the game. Well to some I think some

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Speaker 1: you know, some of the money that rotates is gonna stick.

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Speaker 1: Those people are just going to hang in the jacuzzi

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Speaker 1: and until they get all wrinkled and whatnot, and then

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Speaker 1: you gotta get out. Yeah, other people are gonna get out.

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Speaker 1: This top ten list is a good mix and of

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Speaker 1: of products that tend to cater to both the sort

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Speaker 1: of quick hit types and also the more long term

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Speaker 1: But SHV and s h Y or two products that

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Speaker 1: you see have grown over the last five years. So yes,

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Speaker 1: it's a quick hit this year, but they've steadily grown

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Speaker 1: and I think they're actually replacing other vehicles that people

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Speaker 1: use back in the day. Four places to park cash

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Speaker 1: or hideout from rates. Yeah, I mean some money markets

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Speaker 1: obviously are a place where people have hidden out. And

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Speaker 1: you know, we were obviously talking about this on an

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Speaker 1: E t F show, but money is moving from et

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Speaker 1: or into e t F s from from utualer than that.

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Speaker 1: It's a cultural phenomenon. This show definitely is. But because

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Speaker 1: you know, if rachel going up and if the returns

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Speaker 1: are gonna be lower, you want to pay as little

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Speaker 1: as possible. And so these products ETFs in general, or

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Speaker 1: bond ETFs tend to be significantly cheaper than actively managed

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Speaker 1: mutual funds. And so if if the returns are gonna

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Speaker 1: be relatively muted, you want to pay as little as possible.

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Speaker 1: So number UH six is agg which I think we've

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Speaker 1: hit on with what we've been talking about with bonds

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Speaker 1: UH number seven float fl LT also bonds UH number

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Speaker 1: nine momentum m t u M. That's a shocker. Why well,

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Speaker 1: because it's it's kind of hasn't come from oblivion per se,

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Speaker 1: but it only had about, you know, a couple of

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Speaker 1: billion last year. Now it's taken in, it's basically doubled

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Speaker 1: in size in the past um six or seven months.

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Speaker 1: And this hasn't been the most exciting year for stock,

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Speaker 1: so it is interesting that momentum would be that high

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Speaker 1: on the list. Yeah, A couple of things. One, what

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Speaker 1: we've seen this year is that the winners of last

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Speaker 1: year in many cases have continued to move higher. And

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Speaker 1: this is basically a let your winners run approach. The

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Speaker 1: socks that get in have performed relatively well and have

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Speaker 1: strong relative strength and strong technical metrics from a momentum perspective,

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Speaker 1: and so that's TECH. Where that was Tech at the

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Speaker 1: end of the year, and Tech has done relatively well,

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Speaker 1: which explains number ten, Which explains number ten as well. Uh.

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Speaker 1: The second thing is we at c F r A

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Speaker 1: we do individual research on on e t F fourteen

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Speaker 1: hundred in total. We decided to write about M t

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Speaker 1: U M for the month of June as our focus

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Speaker 1: et F and we did so because we were pleasantly

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Speaker 1: surprised that despite the strong run for many of the

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Speaker 1: socks inside the portfolio, we still our analysts still felt

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Speaker 1: they were many of them were still undervalued. Some of

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Speaker 1: those are bank companies, some of them in the financial sector.

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Speaker 1: Summer technology stocks like Cisco and Intel, and I believe

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Speaker 1: it actually just rebalanced UM and I saw one of

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Speaker 1: your members of the team here posted on Twitter in

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Speaker 1: June just examples of stocks that made it in additional

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Speaker 1: technology stocks have rotated and this is not unlike the

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Speaker 1: agg or i VV products. This does rotate and rebalance

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Speaker 1: every six months, and so it's something for investors to

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Speaker 1: be top of the top of mind. Yeah, I'm looking

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Speaker 1: right now MTUM. The tech waiting is so you're getting

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Speaker 1: a lot of tech here. Okay, So there's there's some

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Speaker 1: some themes that I noticed, cheapness being one, tech being another,

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Speaker 1: the things that did well last year. What do you go?

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Speaker 1: How do you guys feel about this top ten for influence.

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Speaker 1: I'm not surprised to see. I think many of the

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Speaker 1: names are what you would expect in the market, which

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Speaker 1: has been expectations of of bonds declining and value, so

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Speaker 1: investors hiding out in that and then continue demand for

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Speaker 1: international investing. I think the fact that we have a

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Speaker 1: single factor product m t UM and we have net

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Speaker 1: inflows for the triple queues, which is often seen net outflows.

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Speaker 1: It's been around for a while, but his money has

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Speaker 1: flowed out of it over time. I think it's encouraging

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Speaker 1: that there's still adoption of e t f s to

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Speaker 1: be had. And I also think that this top ten list,

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Speaker 1: when the market's a little shaky a lot of times,

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Speaker 1: that will clear off some of the crazy hot trends.

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Speaker 1: I think MTUM is one example where that that does,

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Speaker 1: and the cues uh and what it will leave with

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Speaker 1: is the huge secular shift from like high cost mutual

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Speaker 1: funds into low cost ttfs. A lot of this money

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Speaker 1: was going to come over no matter what was going on,

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Speaker 1: So I think this is like a baseline that you

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Speaker 1: can expect to see for a while. I think half

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Speaker 1: these e t f s, maybe even six of them,

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Speaker 1: are probably gonna be on the top ten list for

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Speaker 1: a long time. It's the floating rate debt e t

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Speaker 1: F the momentum which I think will come and go. Look,

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Speaker 1: you gotta I shares in Vanguard are just so dominant.

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Speaker 1: The cues on there is Investco. But outside of that,

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Speaker 1: I mean, I haven't gone down to the top twenty five,

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Speaker 1: but you're probably looking at four of the top twenty

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Speaker 1: five or two companies. And I bet if you look

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Speaker 1: at the flows in the first or I did this

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Speaker 1: when there was volatility. Still of the money goes to

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Speaker 1: products that charge less than twenty basis points. So even

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Speaker 1: with its volatile or it's utopia, there's nothing like dirt cheap. Okay.

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Speaker 1: So we talked about inflows. Part two, Let's talk about outflows.

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Speaker 1: Number one. This is a shocker spy also known as spiders,

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Speaker 1: also known as the first ETF. I can keep going

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Speaker 1: well when you're the largest HEATF, you know that you

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Speaker 1: can obviously gain as as the pie continues to expand,

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Speaker 1: or when there's a lower cost alternative, as there is.

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Speaker 1: You know there's two of them actually I VV and

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Speaker 1: v O that are on the top ten list. Some

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Speaker 1: of that money that's going into those respected products are

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Speaker 1: coming out of spy spy and then spy tends to

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Speaker 1: be used more by from a trading perspective, institutional investors

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Speaker 1: that are trying to position ahead of something or using

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Speaker 1: it as a hedging vehicle. So it tends to either

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Speaker 1: be the biggest from an inflows or tends to be

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Speaker 1: the biggest from an outflows perspective year after year just

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Speaker 1: because of its scale. Yeah, I agree, Spies got a

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Speaker 1: crosshairs on it. I VV in particular is going after Spies.

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Speaker 1: It's a little cheaper, right, spies point o nine percent

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Speaker 1: i vvs point four pc IVV starting to trade a

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Speaker 1: little more. Uh, they're gonna be going back and forth

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Speaker 1: for a while. One thing about Spy though, is in

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Speaker 1: the first month January was a killer month before the

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Speaker 1: vall came, Spy took in nineteen billion in a month

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Speaker 1: and that was like, uh, almost of the whole months flows.

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Speaker 1: So it's sort of like when Spy is on, it

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Speaker 1: carries a lot of the weight, and when Spy goes away,

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Speaker 1: when the hot money pulls out, what you find is

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Speaker 1: Spy had nineteen billion and outflows the next month. So

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Speaker 1: Spy we'll see flows in a day that would be

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Speaker 1: like a lifetime for other ETFs. So a lot of

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Speaker 1: the Spy volume and flows our money coming in and

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Speaker 1: out using spin inst the futures. But there is this

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Speaker 1: sort of secular shift away inside baseball of I v

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Speaker 1: V and VU sort of maybe chipping away at spies

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Speaker 1: long term holders. Yeah, because some of the products we

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Speaker 1: talked about it in the first segment, I guess the

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Speaker 1: first quarter of this segment to use the basketball analogy,

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Speaker 1: even though it's okay, I don't know. Is that a

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Speaker 1: cricket game. I don't know. I'm an American, I don't

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Speaker 1: real cricket. Sorry about that. It's a great mystery. But

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Speaker 1: what we saw is, you know, the difference between the

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Speaker 1: Eye Shares International and the Vanguard and National. There are

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Speaker 1: differences the VOO product, I, VV and SPY all hold

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Speaker 1: the same exact stocks within the SMP five hundred. They

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Speaker 1: all trade quite well. They all have significant volume behind

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Speaker 1: it and type bit esque spreads, so you're really not

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Speaker 1: getting the difference and needing to go into the weeds

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Speaker 1: and understand what's inside it. People are buying the cheaper product.

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Speaker 1: So number two is e f A. We talked about

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Speaker 1: that one in the first segment. Number three l q D.

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Speaker 1: What's that. L q D is the famous investment Great

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Speaker 1: corporate bond d t F four billion, four point five

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Speaker 1: billion and outflows. That's eleven organic negative growth there. Here's

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Speaker 1: the thing is a lot of people don't realize that

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Speaker 1: how big the duration is on l q T. It's

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Speaker 1: a like seven years, eight years, meaning that it's very

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Speaker 1: sensitive to interest rate. So I think the FED is

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Speaker 1: why you saw some money come out of l q D.

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Speaker 1: I don't know if Toddy, you've beenything to add. Yeah,

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Speaker 1: I think what we saw is that the short term

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Speaker 1: bond products for much of the year, in both investment

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Speaker 1: grade and high yield, which we'll get to, took some

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Speaker 1: of that share as investors were rotating to reduce the

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Speaker 1: interest rate risk. So it's again important to not just

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Speaker 1: look at the expense ratio with the liquidity of THETF,

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Speaker 1: but looking at the interest rate sensitivity that a product provides.

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Speaker 1: Also Number four I w D Number five easy you

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Speaker 1: both I shares. The first one the I shares Russell

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Speaker 1: one thousand value et F. Second ones I shares MSc

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Speaker 1: I Eurozone ETF. So both I shares. What do you

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Speaker 1: guys seeing these two? Yeah, I mean the Russell one

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Speaker 1: thousand series. You know, the growth and the value are

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Speaker 1: relatively expensive compared to other products that are out there

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Speaker 1: that are either tied to the SMP five hundred that

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Speaker 1: that I shares offers, or relative to vanguards lineup of

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Speaker 1: growth versus values. I think there's more of an incumbent

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Speaker 1: base that money is moving out of it. Values underperformed

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Speaker 1: or you know, this year relative to growth. So I

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Speaker 1: think that may play apart as well as people have.

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Speaker 1: We talked about earlier about momentum and and the triple

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Speaker 1: queues are much more growth oriented. Value is going to

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Speaker 1: have more exposure to energy and financials. Yeah, just to

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Speaker 1: give you some numbers here, I W D which is

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Speaker 1: the one with the outflows, is basically down one percent.

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Speaker 1: It's sort of sister product that's the growth version is

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Speaker 1: up eight point two. That there you have it. I mean,

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Speaker 1: that's really the story there. Another thing I noticed about

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Speaker 1: the easy you it's a europe product, right, and we

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Speaker 1: have another Europe product a little bit lower on the list,

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Speaker 1: which is number ten for redemptions. What's the difference between

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Speaker 1: those two? Yes, I mean H E D J, which

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Speaker 1: is the Wisdom Tree Europe hedge product is I think

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Speaker 1: poorly named. It's not just Europe, it's actually the your

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Speaker 1: zone for what it is, so it's dominant. Has a

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Speaker 1: pet peeve about this, well, I just think you should.

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Speaker 1: You should know what's inside. It doesn't have UK, it

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Speaker 1: doesn't have UK, doesn't have switchholand which is trying to

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Speaker 1: get out of the out of the youth. So yeah,

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Speaker 1: but they don't. They're not out, they're not ahead of

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Speaker 1: they're not out of Europe. You know, they're still in

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Speaker 1: the continent as this though. It's a great surfboard. Oh right.

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Speaker 1: The currency hedge dtfs I did refer to them as

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Speaker 1: the central bank surfboards, so H E d J would

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Speaker 1: basically neutralize the currency and go along the stocks. And

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Speaker 1: when the central bank was you know, keeping rates low

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Speaker 1: and printing money, it was a great way to play.

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Speaker 1: That was it a longboard or sort of a short board.

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Speaker 1: This is a long board because all you have to

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Speaker 1: do is get on that puppy and just ride it

430
00:21:55,000 --> 00:21:56,760
Speaker 1: like there was. You don't have to be like you know,

431
00:21:56,920 --> 00:21:59,600
Speaker 1: Kelly Slater doing all the crazy moves. It didn't require

432
00:21:59,640 --> 00:22:02,240
Speaker 1: that much trading, but it ended and now you have

433
00:22:02,880 --> 00:22:06,000
Speaker 1: Europeans down is down in general, but the hedge is

434
00:22:06,040 --> 00:22:08,760
Speaker 1: even down worse. You got to keep mind. Currency hedge

435
00:22:08,840 --> 00:22:11,040
Speaker 1: gtf s were a phenomenon. They were like the hula

436
00:22:11,080 --> 00:22:13,120
Speaker 1: hoop of E T s. A couple of years ago.

437
00:22:13,160 --> 00:22:15,520
Speaker 1: They ruled the top ten list. In fact, a couple

438
00:22:15,560 --> 00:22:18,280
Speaker 1: of years ago and Todd you know, you see if

439
00:22:18,280 --> 00:22:20,680
Speaker 1: you agree with me on this. D x J was

440
00:22:20,760 --> 00:22:23,760
Speaker 1: the number one E t F and flows. I don't

441
00:22:23,800 --> 00:22:26,520
Speaker 1: think we'll ever see a non vanguard or our shares

442
00:22:26,640 --> 00:22:28,280
Speaker 1: on the top of the list again. But that's how

443
00:22:28,760 --> 00:22:30,480
Speaker 1: that was only three years ago for first over d

444
00:22:30,680 --> 00:22:33,040
Speaker 1: x J, and I think the year after that h

445
00:22:33,119 --> 00:22:35,040
Speaker 1: G d J might have been one or two. It

446
00:22:35,160 --> 00:22:37,800
Speaker 1: was an amazing situation going on. Everybody was getting in

447
00:22:37,880 --> 00:22:39,760
Speaker 1: on that, and that trade has sort of like unwound

448
00:22:39,840 --> 00:22:42,200
Speaker 1: big time. And but it's been a slow bleed of

449
00:22:42,240 --> 00:22:44,640
Speaker 1: assets because it's a couple it's been a couple of years,

450
00:22:44,680 --> 00:22:46,320
Speaker 1: and we see both d x J and h G

451
00:22:46,440 --> 00:22:49,199
Speaker 1: d J here and what we're not doing a program

452
00:22:49,280 --> 00:22:51,639
Speaker 1: that's about the fun closures this year, but a lot

453
00:22:51,720 --> 00:22:54,240
Speaker 1: of currency hedge E t F s that came out

454
00:22:54,680 --> 00:22:57,400
Speaker 1: in that wave or following that wave have now shut down.

455
00:22:57,520 --> 00:23:01,480
Speaker 1: His money never flowed in to current heads international products,

456
00:23:01,560 --> 00:23:04,000
Speaker 1: so I think it is a long tail for some

457
00:23:04,119 --> 00:23:06,359
Speaker 1: of these products. But one more point on that um.

458
00:23:06,560 --> 00:23:10,000
Speaker 1: Only half the money that went into currency gtfs has

459
00:23:10,080 --> 00:23:12,800
Speaker 1: come out. And I've seen this all Every time there's

460
00:23:12,800 --> 00:23:15,840
Speaker 1: a huge trend, usually half the money sticks. People either

461
00:23:15,880 --> 00:23:18,320
Speaker 1: bought the story forgot they bought it or they're hanging

462
00:23:18,359 --> 00:23:21,120
Speaker 1: in there. And I think the currency hedged wave taught

463
00:23:21,200 --> 00:23:23,440
Speaker 1: people that they have a lot of dollar exposure and

464
00:23:23,520 --> 00:23:26,920
Speaker 1: maybe they do want half of their international hedged. Do

465
00:23:27,080 --> 00:23:30,080
Speaker 1: you think todd that half of your international exposure, whether

466
00:23:30,119 --> 00:23:32,359
Speaker 1: it's e M or it developed, should be hedged or

467
00:23:32,600 --> 00:23:34,879
Speaker 1: should you try to trade around it? Yeah, I think

468
00:23:34,920 --> 00:23:37,080
Speaker 1: it's gonna come down to do you understand the risk

469
00:23:37,160 --> 00:23:39,560
Speaker 1: that's out there? So so some people will want to

470
00:23:39,600 --> 00:23:42,240
Speaker 1: have it. You can do it from a pure currency

471
00:23:42,320 --> 00:23:45,320
Speaker 1: hedge perspective, and the I Shares suite of products and

472
00:23:45,600 --> 00:23:49,360
Speaker 1: the DWS the formerly Deutsche Bank products do a currency

473
00:23:49,480 --> 00:23:52,320
Speaker 1: hedge on that. The Wisdom Tree ones do a double

474
00:23:52,400 --> 00:23:55,280
Speaker 1: down on the currency hedge because or the currency impact,

475
00:23:55,640 --> 00:23:59,440
Speaker 1: because there's exposure to not just reducing the euro or

476
00:23:59,520 --> 00:24:02,040
Speaker 1: the or the end. But these are the companies inside

477
00:24:02,080 --> 00:24:05,119
Speaker 1: it are significant exporters, so the revenues are coming from

478
00:24:05,160 --> 00:24:08,320
Speaker 1: outside of Europe in the case of the European product

479
00:24:08,359 --> 00:24:10,679
Speaker 1: and outside of Japan in the case of the Japanese product.

480
00:24:11,040 --> 00:24:13,119
Speaker 1: So I think that's I think there's a role for

481
00:24:13,200 --> 00:24:16,119
Speaker 1: these in in someone's portfolio, but you have to be

482
00:24:16,240 --> 00:24:18,600
Speaker 1: aware that that trend is gonna go against you just

483
00:24:18,640 --> 00:24:20,520
Speaker 1: as much as it's gonna go for you. Okay, So

484
00:24:20,720 --> 00:24:24,600
Speaker 1: number six on the list j n K junk. I

485
00:24:24,640 --> 00:24:26,800
Speaker 1: think that's kind of funny because when we're talking about

486
00:24:26,840 --> 00:24:31,280
Speaker 1: inflows bonds everywhere talk about outflows different type of bonds

487
00:24:31,560 --> 00:24:35,200
Speaker 1: in massive flight. Well, yeah, j n K, I think

488
00:24:35,359 --> 00:24:37,919
Speaker 1: is much more like an equity. UM. It's also got

489
00:24:37,960 --> 00:24:40,200
Speaker 1: a duration of I think four or five years, which

490
00:24:40,280 --> 00:24:42,680
Speaker 1: isn't as bad as l q D, meaning that it

491
00:24:42,720 --> 00:24:46,240
Speaker 1: has got some rate risk. But ultimately, I think high

492
00:24:46,280 --> 00:24:48,800
Speaker 1: yield just got hurt in the sell off of from equities.

493
00:24:49,440 --> 00:24:52,320
Speaker 1: And because you did see some flows into UM the

494
00:24:52,440 --> 00:24:54,640
Speaker 1: cheaper junk bond e t F h y LB, which

495
00:24:54,720 --> 00:24:57,320
Speaker 1: is the Deutsche Bank low cost So even the junk

496
00:24:57,359 --> 00:25:00,240
Speaker 1: bond space, you do see this sort of hot monny

497
00:25:00,320 --> 00:25:02,800
Speaker 1: moving around to where performances, but you see the secular

498
00:25:02,920 --> 00:25:05,200
Speaker 1: change out of H y G and j n K

499
00:25:05,440 --> 00:25:07,800
Speaker 1: into the cheaper h y LB, which is twenty basis

500
00:25:07,840 --> 00:25:10,160
Speaker 1: points of their forty. So j n K I think

501
00:25:10,200 --> 00:25:12,240
Speaker 1: got hit by two things at once, being a little

502
00:25:12,280 --> 00:25:16,119
Speaker 1: pricey and by just people wanting out of junk because uh,

503
00:25:16,440 --> 00:25:18,119
Speaker 1: there was more of a risk off trade, especially for

504
00:25:18,160 --> 00:25:20,440
Speaker 1: the first three months. Yeah, in relation to J and

505
00:25:20,520 --> 00:25:23,840
Speaker 1: K versus the short term and floating rate bond products

506
00:25:23,840 --> 00:25:27,800
Speaker 1: are are significant ends of the of the spectrum on it,

507
00:25:27,880 --> 00:25:29,920
Speaker 1: so you're you're taking on much more risk from a

508
00:25:29,960 --> 00:25:34,400
Speaker 1: credit perspective. UH investors favored much more of the reducing

509
00:25:34,480 --> 00:25:37,800
Speaker 1: the duration the interest rate sensitivity of the portfolio in

510
00:25:37,880 --> 00:25:41,159
Speaker 1: the first half of two thousand and eighteen. Was h

511
00:25:41,359 --> 00:25:43,640
Speaker 1: y G, which is number nine in the list, affected

512
00:25:43,680 --> 00:25:47,159
Speaker 1: by that double whammy as well. Totally both of them

513
00:25:47,240 --> 00:25:49,560
Speaker 1: J n K, H y G kind of sort of

514
00:25:50,119 --> 00:25:53,080
Speaker 1: mirror each other, right, Yeah, they're like, um, they're brothers

515
00:25:53,119 --> 00:25:55,800
Speaker 1: who don't like each other. Yeah. Yeah, they a few

516
00:25:55,920 --> 00:25:57,960
Speaker 1: I shares, always trashing jan K and vice versa. But

517
00:25:58,320 --> 00:26:00,840
Speaker 1: they tend to their flows move very much similar. I

518
00:26:00,880 --> 00:26:03,160
Speaker 1: think h y G is this sort of bigger, more

519
00:26:03,240 --> 00:26:06,240
Speaker 1: popular product, but they're both, Um, it's not surprising they're

520
00:26:06,280 --> 00:26:08,920
Speaker 1: both on the list with the outflows. That's what made

521
00:26:09,440 --> 00:26:12,159
Speaker 1: h y L B s inflow so interesting, which was

522
00:26:12,240 --> 00:26:15,200
Speaker 1: that they you know, this cheap high yell, but bondy

523
00:26:15,280 --> 00:26:17,280
Speaker 1: t F took in a billion. That just goes to

524
00:26:17,320 --> 00:26:19,840
Speaker 1: show you that some people are still allocating and that's

525
00:26:19,880 --> 00:26:22,600
Speaker 1: what makes all flows tough to read, is because you've

526
00:26:22,640 --> 00:26:26,439
Speaker 1: got people trading and you've got people allocating, and allocating

527
00:26:26,480 --> 00:26:29,200
Speaker 1: typically is more immune from what's going on in the market.

528
00:26:29,520 --> 00:26:32,080
Speaker 1: So we're trying to suss out long term investment. Absolutely,

529
00:26:32,160 --> 00:26:34,040
Speaker 1: So I think both J and K and H y

530
00:26:34,119 --> 00:26:37,440
Speaker 1: G are not used that much by allocators, So that

531
00:26:37,520 --> 00:26:42,840
Speaker 1: reflects trading trends. Uh. Okay, So number seven d x

532
00:26:42,920 --> 00:26:44,800
Speaker 1: J We're gonna skip that one because we've talked about

533
00:26:44,800 --> 00:26:48,480
Speaker 1: it with the head stuff. Number eight, this one's surprising

534
00:26:48,520 --> 00:26:51,879
Speaker 1: to me. A Vanguard real Estate et F v n Q.

535
00:26:52,920 --> 00:26:55,000
Speaker 1: Why is that on the list? Well, v n Q

536
00:26:55,119 --> 00:26:58,600
Speaker 1: saw two point five billion outflows, and um, this is

537
00:26:58,640 --> 00:27:02,879
Speaker 1: a rate story. Basically, people rushed into reats, which are

538
00:27:02,920 --> 00:27:06,840
Speaker 1: passed through securities, which yields six percent five percent. So

539
00:27:07,080 --> 00:27:09,440
Speaker 1: when you can get you know, three percent in a

540
00:27:09,560 --> 00:27:12,359
Speaker 1: ten year treasury, it makes that a lot less appealing,

541
00:27:12,440 --> 00:27:16,440
Speaker 1: not from everybody, but certainly some people that holds reets

542
00:27:16,840 --> 00:27:18,800
Speaker 1: and yields five or six percent. It was being used

543
00:27:18,840 --> 00:27:22,720
Speaker 1: as a surrogate place for income. In fact, what's interesting

544
00:27:22,840 --> 00:27:25,479
Speaker 1: is if you look at sectors, everybody's shocked to hear

545
00:27:25,560 --> 00:27:28,800
Speaker 1: this the sector with the most assets is real estate,

546
00:27:28,960 --> 00:27:32,080
Speaker 1: not tech or energy or anything like that. Because this

547
00:27:32,280 --> 00:27:36,639
Speaker 1: low rate environment, everybody needed yield, and reets was a

548
00:27:36,720 --> 00:27:39,520
Speaker 1: huge one thing that was reliable, right right, So this

549
00:27:39,680 --> 00:27:41,800
Speaker 1: is a little bit of an unwinding of what we

550
00:27:42,000 --> 00:27:43,880
Speaker 1: many called the thirst for yield trade because it had

551
00:27:44,280 --> 00:27:46,840
Speaker 1: more yield than a bond. Oh a lot. Yeah, I

552
00:27:47,080 --> 00:27:50,320
Speaker 1: was yielding more than a junk bond. And you've seen that.

553
00:27:50,440 --> 00:27:52,480
Speaker 1: It's not on the list, But consumer staples, which is

554
00:27:52,480 --> 00:27:55,840
Speaker 1: another defensive sector I think had significant as collectively had

555
00:27:55,880 --> 00:27:58,560
Speaker 1: significant outflows in the first half of the year. Also,

556
00:27:58,880 --> 00:28:01,000
Speaker 1: it's interesting also just to point out, is that V

557
00:28:01,160 --> 00:28:04,520
Speaker 1: and Q has been changing. The index that's behind it

558
00:28:04,960 --> 00:28:07,119
Speaker 1: UH is changing, and so it actually has added in

559
00:28:07,320 --> 00:28:11,360
Speaker 1: some specialty read companies American Tower, Crown Castle, some more

560
00:28:11,480 --> 00:28:14,480
Speaker 1: growth oriented companies, and that may not be as appealing

561
00:28:14,600 --> 00:28:18,640
Speaker 1: for some investors that wanted the defensive, more traditional read exposure.

562
00:28:18,880 --> 00:28:20,879
Speaker 1: No idea if anyone's actually selling because of it, but

563
00:28:20,920 --> 00:28:23,879
Speaker 1: there is a change behind this that investors that may

564
00:28:23,960 --> 00:28:26,200
Speaker 1: be considering V and Q may want to be be

565
00:28:26,320 --> 00:28:31,439
Speaker 1: aware of. Closing thought about these outflows, well, my closing

566
00:28:31,480 --> 00:28:34,120
Speaker 1: thought is this significantly more money going into the inflows

567
00:28:34,119 --> 00:28:35,800
Speaker 1: the money that's going out of the outflows. So we

568
00:28:35,840 --> 00:28:38,240
Speaker 1: still are seeing a very good year behind it, but

569
00:28:38,360 --> 00:28:41,600
Speaker 1: it is still a it's a trade towards lower cost products,

570
00:28:42,200 --> 00:28:45,920
Speaker 1: and it's been more defensive oriented fixed income products that

571
00:28:46,000 --> 00:28:49,200
Speaker 1: really shined in the first half, and taking on credit

572
00:28:49,360 --> 00:28:52,480
Speaker 1: or interest rate risk through fixed income hasn't been rewarding

573
00:28:52,560 --> 00:28:55,720
Speaker 1: investors this year, and money is flowing out as well. Yeah,

574
00:28:55,760 --> 00:28:57,240
Speaker 1: if you look at the top ten, I mean I

575
00:28:57,360 --> 00:29:00,480
Speaker 1: read it as again, uh, a migration for high cost

576
00:29:00,560 --> 00:29:04,000
Speaker 1: to low cost as well as just this rising rate

577
00:29:04,080 --> 00:29:06,040
Speaker 1: environment that those are the two big I think us

578
00:29:06,600 --> 00:29:15,000
Speaker 1: straws that are stirring the drink. Okay, so we've talked

579
00:29:15,000 --> 00:29:17,360
Speaker 1: about influence, we've talked about outflows. Let's talk about some

580
00:29:17,480 --> 00:29:21,760
Speaker 1: of the top performing e t f s year to date. Right,

581
00:29:22,320 --> 00:29:24,120
Speaker 1: we've had a lot of tickers, a little bit like

582
00:29:24,200 --> 00:29:26,720
Speaker 1: alphabet soup. We're gonna have a few more yet, and

583
00:29:26,920 --> 00:29:32,200
Speaker 1: we're not going to look at leveraged or fixed vixed products. Right, Yeah,

584
00:29:32,360 --> 00:29:35,240
Speaker 1: that's not really that's sort of like um counting. It's

585
00:29:35,280 --> 00:29:37,320
Speaker 1: like they're using steroids. We just want to look at

586
00:29:37,320 --> 00:29:40,600
Speaker 1: the natural long only kind of stuff that did it

587
00:29:40,680 --> 00:29:43,440
Speaker 1: the real way, whereas fixed and leverage they can go up,

588
00:29:43,480 --> 00:29:44,920
Speaker 1: they're usually gonna be at the top, in the bottom

589
00:29:44,920 --> 00:29:47,960
Speaker 1: of the list, right, no muscle creams, Okay, we want

590
00:29:48,080 --> 00:29:52,240
Speaker 1: Roger Marris, not Barry Bonds. So based on what we're

591
00:29:52,240 --> 00:29:55,640
Speaker 1: looking at, P s c H is top performing e

592
00:29:55,760 --> 00:29:59,080
Speaker 1: t F here today up twenty nine. I had to

593
00:29:59,120 --> 00:30:00,600
Speaker 1: look it up. These are two kers that I don't

594
00:30:00,600 --> 00:30:03,480
Speaker 1: have memorized. And you know, usually even in the long

595
00:30:03,600 --> 00:30:05,479
Speaker 1: only area, if it's gonna be the top of list,

596
00:30:05,520 --> 00:30:08,720
Speaker 1: it's probably something very specific and maybe concentrated. This is

597
00:30:08,760 --> 00:30:12,560
Speaker 1: power shares S and P small cap healthcare and looks

598
00:30:12,640 --> 00:30:15,600
Speaker 1: like it's getting some kick from biotech, it's getting some

599
00:30:15,760 --> 00:30:18,480
Speaker 1: kick from UM having small caps that they've been doing

600
00:30:18,520 --> 00:30:21,120
Speaker 1: better this year, but ultimately it's doing a lot better

601
00:30:21,240 --> 00:30:23,680
Speaker 1: than both of those. So it's got some stock picking

602
00:30:24,160 --> 00:30:27,680
Speaker 1: probably help here by just owning some stocks that have

603
00:30:27,760 --> 00:30:29,960
Speaker 1: gone up. Maybe there's been a few acquisitions in there,

604
00:30:30,040 --> 00:30:33,240
Speaker 1: but ultimately this is sort of like a lottery ticket

605
00:30:33,320 --> 00:30:35,440
Speaker 1: coming in. Todd, did you know that one? I did

606
00:30:35,560 --> 00:30:37,880
Speaker 1: know that one of the small cap sector products I

607
00:30:37,920 --> 00:30:40,400
Speaker 1: think are quite interesting that make you better analysts than

608
00:30:40,480 --> 00:30:42,840
Speaker 1: Eric it means I knew the one that one on

609
00:30:42,920 --> 00:30:44,280
Speaker 1: the list will be some others on the list. I

610
00:30:44,360 --> 00:30:47,040
Speaker 1: had to look at myself because some of these are

611
00:30:47,040 --> 00:30:49,720
Speaker 1: are few and far between on this. But he's just

612
00:30:49,760 --> 00:30:53,120
Speaker 1: trying to draw drive a wedge between us where wants

613
00:30:53,160 --> 00:30:56,280
Speaker 1: to see some fireworks. It's fine. There's only a handful

614
00:30:56,360 --> 00:30:58,520
Speaker 1: of et F analysts that will talk on just about

615
00:30:58,520 --> 00:31:01,680
Speaker 1: any topic. And Eric and I found and you found

616
00:31:01,680 --> 00:31:03,400
Speaker 1: two of them in the room, and you haven't locked

617
00:31:03,440 --> 00:31:06,480
Speaker 1: the door. So small cap healthcare, you've got a couple

618
00:31:06,480 --> 00:31:07,960
Speaker 1: of things that are working out. Their small caps are

619
00:31:08,000 --> 00:31:12,440
Speaker 1: doing relatively well. Domestic focused as opposed to international. Uh,

620
00:31:12,520 --> 00:31:14,720
Speaker 1: there's been some international tensions that have been going on.

621
00:31:15,320 --> 00:31:17,840
Speaker 1: And you're getting diversification though, so this is not just

622
00:31:18,080 --> 00:31:21,600
Speaker 1: a pure single industry product. You are getting not only biotech,

623
00:31:21,640 --> 00:31:24,160
Speaker 1: but you're getting healthcare equipment. But when you're not seeing

624
00:31:24,360 --> 00:31:27,040
Speaker 1: the larger cap Johnson and Johnson merks that people tend

625
00:31:27,080 --> 00:31:30,000
Speaker 1: to think of with healthcare stocks, good product. There's a

626
00:31:30,040 --> 00:31:31,880
Speaker 1: lot of good small cap products that are out there.

627
00:31:32,520 --> 00:31:35,160
Speaker 1: The number two top performing e t F here today

628
00:31:35,640 --> 00:31:39,480
Speaker 1: x web what's that also, by the way, Yes, so

629
00:31:39,560 --> 00:31:42,680
Speaker 1: this is um uh fairly new product. It's the spider

630
00:31:42,840 --> 00:31:44,840
Speaker 1: SMP Internet et F and I think f d N

631
00:31:44,960 --> 00:31:48,320
Speaker 1: is right behind it. That's the first trust Internet. Look,

632
00:31:48,400 --> 00:31:50,880
Speaker 1: this brings us back to the endless tech rally. This

633
00:31:51,080 --> 00:31:53,200
Speaker 1: is an Internet E t F S. By the way,

634
00:31:53,480 --> 00:31:56,120
Speaker 1: if you're looking for a fang play, that's where you go.

635
00:31:56,320 --> 00:31:58,760
Speaker 1: Internet ets typically have most of the fang stocks, if

636
00:31:58,800 --> 00:32:00,960
Speaker 1: not all of them, in high way to That's what's

637
00:32:01,000 --> 00:32:04,200
Speaker 1: been driving these I think that's pretty much the story here. Yeah,

638
00:32:04,240 --> 00:32:06,160
Speaker 1: and I mean this is an example of this can

639
00:32:06,240 --> 00:32:09,120
Speaker 1: be hidden gems out there. X web I think has

640
00:32:09,320 --> 00:32:12,240
Speaker 1: under twenty million in assets under management. It's a relatively

641
00:32:12,320 --> 00:32:15,400
Speaker 1: new product. People may have missed it. However, you may

642
00:32:15,440 --> 00:32:19,080
Speaker 1: not want to chase that performance because it could be fleeting.

643
00:32:19,120 --> 00:32:20,680
Speaker 1: You know, the tech rally has been strong, but as

644
00:32:20,720 --> 00:32:22,640
Speaker 1: we talked about it, you know, it could reverse itself.

645
00:32:23,440 --> 00:32:25,560
Speaker 1: And just one more thing about the Internet ETFs F

646
00:32:25,680 --> 00:32:28,000
Speaker 1: d N, which has a longer history, which is number

647
00:32:28,080 --> 00:32:32,080
Speaker 1: three year today and change right, let's stretch back ten

648
00:32:32,200 --> 00:32:35,080
Speaker 1: years just to explain this is just like a relentless

649
00:32:35,520 --> 00:32:38,080
Speaker 1: loop we're on with Internet. Is that this thing is

650
00:32:38,160 --> 00:32:41,720
Speaker 1: up five two in ten years. The market is up

651
00:32:41,760 --> 00:32:45,080
Speaker 1: a hundred and six, So I mean it's basically lapped

652
00:32:45,120 --> 00:32:48,200
Speaker 1: at by three or four times, and that's just what's amazing.

653
00:32:48,520 --> 00:32:51,600
Speaker 1: Um having Internet and some in biotech, which I think

654
00:32:51,680 --> 00:32:54,240
Speaker 1: is driving some of the healthcare ETF if you go

655
00:32:54,360 --> 00:32:57,479
Speaker 1: back and I'm telling the analysts every year forget flows,

656
00:32:57,520 --> 00:33:01,240
Speaker 1: but in performance, those two areas are just relentless. They're

657
00:33:01,320 --> 00:33:04,440
Speaker 1: they're either near the top or at the top. Biotech,

658
00:33:04,600 --> 00:33:07,440
Speaker 1: Internet and it's just the same thing this year. Yeah,

659
00:33:07,520 --> 00:33:09,640
Speaker 1: I mean, and the benefit of those industries tend to

660
00:33:09,680 --> 00:33:11,920
Speaker 1: do relatively well. Obviously with e t S you get

661
00:33:11,960 --> 00:33:14,720
Speaker 1: the benefits of diversification. So you mentioned about m and

662
00:33:14,800 --> 00:33:17,520
Speaker 1: a activity that can be happening within this space specifically

663
00:33:17,600 --> 00:33:21,080
Speaker 1: small caps or or and the spider product x web

664
00:33:21,160 --> 00:33:23,600
Speaker 1: is an equal weighted product, so you're all going to

665
00:33:23,680 --> 00:33:26,400
Speaker 1: get some small cap exposure to it. Not everything is

666
00:33:26,400 --> 00:33:28,760
Speaker 1: going to go up, but you get the benefits of diversification,

667
00:33:29,200 --> 00:33:31,240
Speaker 1: and you can look inside these products and get to

668
00:33:31,320 --> 00:33:34,360
Speaker 1: know these companies all right, Eric, when you look over

669
00:33:34,400 --> 00:33:37,600
Speaker 1: the rest of this list of top performing ones you're

670
00:33:37,640 --> 00:33:39,360
Speaker 1: to date, are there any other e t F that

671
00:33:39,640 --> 00:33:43,680
Speaker 1: pop to you? Yeah, nib every now and then you

672
00:33:43,800 --> 00:33:47,880
Speaker 1: just get some outrageous commodity that just either there's a number,

673
00:33:48,200 --> 00:33:51,120
Speaker 1: by the way, Yeah, this is the iPath Coco point

674
00:33:51,240 --> 00:33:53,440
Speaker 1: eight percent here to do. Yeah, this is the Coco

675
00:33:53,640 --> 00:33:57,280
Speaker 1: E t N. And you know, so occasionally these kind

676
00:33:57,320 --> 00:33:59,720
Speaker 1: of wacky commodities that you forgot about make it on

677
00:33:59,760 --> 00:34:02,080
Speaker 1: the US. Like coffee was all the rage maybe like

678
00:34:02,160 --> 00:34:05,240
Speaker 1: two or three years ago in my morning. Right, you

679
00:34:05,320 --> 00:34:07,920
Speaker 1: think coffee would be like on it every year, given

680
00:34:07,960 --> 00:34:11,319
Speaker 1: how much people drink it. But coco um, you know, look,

681
00:34:11,360 --> 00:34:15,759
Speaker 1: it's probably someplace where there's um a supply issue and

682
00:34:15,840 --> 00:34:19,279
Speaker 1: then boom it spikes up. So it's interesting. It reminds me,

683
00:34:19,560 --> 00:34:21,160
Speaker 1: by the way, and the reason I think it's it's

684
00:34:21,200 --> 00:34:24,200
Speaker 1: just how ETFs have wrapped up everything. And I would

685
00:34:24,239 --> 00:34:26,440
Speaker 1: be careful investing in like a Coco E t M

686
00:34:26,480 --> 00:34:29,560
Speaker 1: because it's holding futures, it's rolling, and typically it's down.

687
00:34:29,640 --> 00:34:31,920
Speaker 1: If I go look at the five year performance of

688
00:34:32,000 --> 00:34:34,480
Speaker 1: the Coco E t N Todd, what do you think

689
00:34:34,520 --> 00:34:36,560
Speaker 1: the performances over the last five years, I would think

690
00:34:36,560 --> 00:34:41,080
Speaker 1: you would have lost money down eight percent um, which

691
00:34:41,160 --> 00:34:43,200
Speaker 1: isn't bad. It's better than I thought. But a lot

692
00:34:43,239 --> 00:34:45,440
Speaker 1: of this is from rolling and it's very complicated, but

693
00:34:45,920 --> 00:34:48,040
Speaker 1: these commodity futures tend to pop up with the ones

694
00:34:48,040 --> 00:34:50,759
Speaker 1: that tracked the single commodity. You'll find them here and

695
00:34:50,800 --> 00:34:52,480
Speaker 1: there on the top twenty. And I think what you

696
00:34:52,560 --> 00:34:54,920
Speaker 1: also see here, based on the Bloomberg data that you

697
00:34:55,040 --> 00:34:57,279
Speaker 1: made available to help me out for this effort, is

698
00:34:57,400 --> 00:35:00,759
Speaker 1: his net outflows. So usually you see money chase, seeing performance.

699
00:35:00,840 --> 00:35:03,680
Speaker 1: This is actually people take either taking chips off the

700
00:35:03,760 --> 00:35:07,000
Speaker 1: table of a relatively small product to begin with, We're

701
00:35:07,000 --> 00:35:09,759
Speaker 1: gonna take our chips off the table. Todd rosen Booth,

702
00:35:10,160 --> 00:35:11,920
Speaker 1: thank you so much for your good to be with

703
00:35:12,000 --> 00:35:17,480
Speaker 1: you guys, Joel. I know you like your plugs. You

704
00:35:17,600 --> 00:35:19,480
Speaker 1: do business week plugs all the time. I have one

705
00:35:19,560 --> 00:35:22,279
Speaker 1: for myself. You know, we do audio, we have TV,

706
00:35:22,560 --> 00:35:26,120
Speaker 1: but we occasionally do in person appearances. It's like catching

707
00:35:26,200 --> 00:35:29,520
Speaker 1: this live and um my colleague Tom Sara Vegas, who

708
00:35:29,600 --> 00:35:31,239
Speaker 1: was a guest on one of the episodes. He's great.

709
00:35:31,320 --> 00:35:34,399
Speaker 1: He's going to be touring Europe and we have four

710
00:35:34,440 --> 00:35:38,560
Speaker 1: events planned for four major cities there in Amsterdam, Frankfort, Paris,

711
00:35:38,680 --> 00:35:41,839
Speaker 1: and Zurich uh starting next week through the next two weeks.

712
00:35:41,880 --> 00:35:43,960
Speaker 1: So if you are in Europe and anywhere and you're

713
00:35:44,000 --> 00:35:46,160
Speaker 1: one of those cities and you want to go. You

714
00:35:46,200 --> 00:35:48,520
Speaker 1: can go on the terminal and type SCMR to sign up,

715
00:35:48,680 --> 00:35:51,880
Speaker 1: or just send me an email ed Baltunists at Bloomberg

716
00:35:51,920 --> 00:35:54,080
Speaker 1: dot net and I will get you signed up for

717
00:35:54,120 --> 00:35:56,160
Speaker 1: the event. It's free and there's gonna be really cool.

718
00:35:56,200 --> 00:35:59,759
Speaker 1: We've got some issuers there, Vanguard, etcetera. UM, so check

719
00:35:59,800 --> 00:36:06,000
Speaker 1: it out. Thanks for listening to Trillions until next time.

720
00:36:06,200 --> 00:36:09,000
Speaker 1: You can find us on the Bloomberg terminal, Bloomberg dot com,

721
00:36:09,480 --> 00:36:13,120
Speaker 1: Apple Podcasts, and whever else you like to listen to podcasts.

722
00:36:13,760 --> 00:36:16,239
Speaker 1: We'd love to hear from you. We're on Twitter, I'm

723
00:36:16,440 --> 00:36:20,320
Speaker 1: at Joel Weber Show, He's at Eric Baltunas, and you

724
00:36:20,360 --> 00:36:24,520
Speaker 1: can get Todd at Todd c f r A. Trillions

725
00:36:24,600 --> 00:36:27,799
Speaker 1: is produced by Magnus Hendrickson. Francesca Leedy is the head

726
00:36:27,800 --> 00:36:29,840
Speaker 1: of Bloomberg podcast Bye