WEBVTT - ETF Tank 0:00:06.480 --> 0:00:12.399 Wokeroom trillions. I'm Joel Webber and I'm Eric Belchernes Eric. 0:00:12.480 --> 0:00:14.880 Last year at this time we did a March Madness 0:00:14.920 --> 0:00:18.320 inspired episode maybe my favorite of the year of all 0:00:18.320 --> 0:00:20.439 the episodes of what we did, and this year we 0:00:20.480 --> 0:00:23.320 wanted to one of it. Yeah, this is the episode 0:00:23.320 --> 0:00:25.360 where we bring in as many people as possible, just 0:00:25.400 --> 0:00:28.280 a total pile on. And this time we thought of 0:00:28.320 --> 0:00:31.040 an idea. You know, we're fans of the show Shark Tank, 0:00:31.480 --> 0:00:33.560 and we thought of an idea of how about we 0:00:33.600 --> 0:00:35.919 get a bunch of people to pitch their idea for 0:00:35.960 --> 0:00:39.440 a new ETF. Right, I've got a great idea. Yeah, 0:00:39.440 --> 0:00:41.120 I know you actually, you're you actually pitched. Here's the 0:00:41.120 --> 0:00:43.839 bloomberg innecks is so yours is legit um. And the 0:00:43.920 --> 0:00:45.960 reason I thought this was good this year is because 0:00:46.000 --> 0:00:48.760 this year is the first year ever we're closures are 0:00:48.800 --> 0:00:51.920 outnumbering new launches and ETFs um. The industry is getting 0:00:51.920 --> 0:00:55.040 harder and harder. I think the fee war the downmarket 0:00:55.080 --> 0:00:57.880 last year has created even more hesitancy to launch new products. 0:00:57.920 --> 0:01:00.040 And I was speaking with Mike Venuto at tie To 0:01:00.200 --> 0:01:03.120 et F Services, which helps launch new ETF He said 0:01:03.120 --> 0:01:05.760 only about one per cent of e t f s pitched, 0:01:06.000 --> 0:01:08.000 you know, in the world, get greenlit and make it 0:01:08.040 --> 0:01:11.200 to market, So the bar is pretty high. And the 0:01:11.200 --> 0:01:12.720 other thing is when you look at how much it 0:01:12.760 --> 0:01:14.560 costs to launch an e t F, it's about fifty 0:01:15.120 --> 0:01:19.000 then it cost two to support it. So with all 0:01:19.040 --> 0:01:21.319 that and the difficulty of getting new assets and well 0:01:21.400 --> 0:01:24.600 we've talked about that a lot um, the pitch is important. 0:01:24.640 --> 0:01:26.600 So we thought this would be a fun way to 0:01:26.800 --> 0:01:30.200 explore maybe how pitch has happened and to help us 0:01:30.319 --> 0:01:35.040 judge these pitches. We brought back last year's judge, David Papadopoulos, 0:01:35.040 --> 0:01:38.840 who's a senior editor with Bloomberg News. And David isn't 0:01:38.840 --> 0:01:41.080 going to play the issuer per se. He's gonna play 0:01:41.120 --> 0:01:44.720 the seed capital investor. Because Mike Venuta was also saying 0:01:44.760 --> 0:01:48.520 that if you come with prepared seed capital, you have 0:01:48.640 --> 0:01:51.680 way more likely to get greenlit than how much he's 0:01:51.680 --> 0:01:54.200 gonna have a hundred million dollars to distribute. That's a 0:01:54.200 --> 0:01:57.720 pretty good race. Yeah, going from an editor at Bloomberg 0:01:57.840 --> 0:02:02.520 News to like seed investor, a senior Okay, all right, 0:02:05.320 --> 0:02:08.200 so he's going to basically hear a bunch of pitches 0:02:08.240 --> 0:02:12.040 from people in Bloomberg Intelligence who work with you and 0:02:12.080 --> 0:02:14.639 also within Bloomberg News, and we're gonna hear a bunch 0:02:14.639 --> 0:02:18.600 of ideas. Everybody's got one. You've got basically one minute 0:02:18.639 --> 0:02:21.520 minute to make your pitch, and Mr Papadopolis is going 0:02:21.600 --> 0:02:25.480 to judge us all on our ideas and then pick 0:02:25.880 --> 0:02:28.240 a winner and some runners up. I was thinking he'd 0:02:28.280 --> 0:02:31.880 do fifty million to the top prize, thirty million to 0:02:32.000 --> 0:02:34.959 number two, and then twenty million to number three. Okay, 0:02:35.000 --> 0:02:37.560 So Mr Papadopoulos, what are you gonna be looking for 0:02:37.880 --> 0:02:41.280 as we make our pitches? So I'm looking for a 0:02:41.320 --> 0:02:45.560 few things here. Um one is at some ovel course, 0:02:45.600 --> 0:02:48.399 there's gotta be a certain wow factor, right like you've 0:02:48.400 --> 0:02:51.000 got to You've got to you've got to get get 0:02:51.000 --> 0:02:54.560 my attention. This might seem slightly contradictory. At the same time, 0:02:54.600 --> 0:02:56.239 I don't want a whole lot of b s. I 0:02:56.240 --> 0:02:58.400 don't want a lot of I don't want gimmicks. They 0:02:58.440 --> 0:03:02.640 have to be you know, um, smart themes, you know, 0:03:02.720 --> 0:03:05.360 with good fundamentals and things I can believe in. And 0:03:05.400 --> 0:03:08.320 it's also important for me that they're not overly complex 0:03:08.400 --> 0:03:12.280 or complicated I'm ultimately not sophisticated enough here to get 0:03:12.320 --> 0:03:15.520 the hocus focus. So that's that's kind of where I'm 0:03:15.520 --> 0:03:17.760 coming from, right, Okay, I'll take it. So, joining us 0:03:17.800 --> 0:03:22.760 from Bloomberg News Carolina Wilson, Sarah Ponzac, Any Massa, Ben Stepman, 0:03:23.240 --> 0:03:26.840 Rachel Evans, and Suzanne Woolley. Eric. On the b I side, 0:03:26.919 --> 0:03:31.280 we have James Seffert, myself, Tom Sarah Fagus, and Morgan Barna, 0:03:31.680 --> 0:03:34.600 who is our newest member and she's coming into us 0:03:34.600 --> 0:03:41.560 from d C. And I'm joining also from episode did 0:03:41.600 --> 0:03:48.600 week on Trilliant et F Tank. Alright, first up, Carolina Wilson, 0:03:48.600 --> 0:03:50.000 you were the first one to walk in the door. 0:03:50.200 --> 0:03:52.640 Let's hear your pitch, Papa Abels, let me introduce you 0:03:52.680 --> 0:03:55.720 to my taker FRAT, which is my college focus Consumer 0:03:55.800 --> 0:03:58.240 e t F. The latest string of e t F 0:03:58.320 --> 0:04:01.080 s that have actually found success and growth in today's 0:04:01.080 --> 0:04:03.880 et F market are thematic funds that can subbend for 0:04:04.000 --> 0:04:06.480 some type of sector exposure. In this case, it would 0:04:06.480 --> 0:04:09.720 be something like consumer Discretionary. FRAT is a win win 0:04:09.840 --> 0:04:12.760 for issuers and money managers trying to carouse the next 0:04:12.800 --> 0:04:15.880 generation of money. Why not give them a theme that 0:04:15.920 --> 0:04:18.719 they're all too familiar with holding products that have governed 0:04:18.720 --> 0:04:21.560 their day to day lives. But in a measure diversified way, 0:04:21.720 --> 0:04:24.760 FRAT has four equally weighted sector bands and one shorting 0:04:24.760 --> 0:04:27.520 component that makes up fifteen percent of the portfolio. The 0:04:27.560 --> 0:04:30.440 four sector bands will market cap weight their constituents, which 0:04:30.480 --> 0:04:36.799 include one cannabis companies to food and drink think Chipotle, Anahizer, Bush, 0:04:36.960 --> 0:04:43.120 Monster Energy, three technology entertainment thinks Spotify, Facebook, Netflix, gaming 0:04:43.680 --> 0:04:46.320 stocks and for retail, which I have dominated by none 0:04:46.320 --> 0:04:49.640 other than Amazon. And that fifteen percent shorting component I 0:04:49.720 --> 0:04:53.720 mentioned FRAT will short navy At the student loan company. 0:04:53.760 --> 0:04:56.279 But oh, I like that. Not only are you getting 0:04:56.279 --> 0:04:59.279 a boost from marijuana focus names, but you're also neatly 0:04:59.320 --> 0:05:02.920 exposed to them. Market's favorite fang coort And my favorite 0:05:02.960 --> 0:05:04.960 part of it all, there's a ten percent that has 0:05:04.960 --> 0:05:07.520 not been accounted for, and that's because FRAT has a 0:05:07.520 --> 0:05:10.120 temper cent allocation to cash, which is saving up for 0:05:10.160 --> 0:05:14.799 when uber I p o s. So I'm long dope 0:05:15.600 --> 0:05:21.160 and this thing, and I'm sure student's interesting. Now there's 0:05:21.160 --> 0:05:23.520 some appeal to this. I I do see the value 0:05:23.560 --> 0:05:27.919 of this, But who do you anticipate. Who are your 0:05:28.000 --> 0:05:32.080 natural buyers of this at so not likely not college 0:05:32.080 --> 0:05:34.760 students because they're broke and they have money. But people 0:05:34.800 --> 0:05:38.080 that believe in the college consumer. And the amount of 0:05:38.080 --> 0:05:41.240 stuff that these people are consuming. Why should I believe 0:05:41.320 --> 0:05:45.080 in the college consumer? Do they take a growth prospect? 0:05:45.160 --> 0:05:48.120 Bro like these are twenty two year old consumers, but 0:05:48.120 --> 0:05:50.600 but for down the road. But they have no money 0:05:50.640 --> 0:05:54.800 now growth potential, and they do spend like money that 0:05:54.960 --> 0:05:57.120 they don't have, right, which is why I also we 0:05:57.240 --> 0:06:01.680 have this students. That is true, that's fact checked. Example, 0:06:01.720 --> 0:06:03.960 back test shows that Fred over the past five years 0:06:03.960 --> 0:06:08.799 has returned more than over what period of time five years. 0:06:09.400 --> 0:06:20.120 Of course, past performance is no guarantee of ure. Next up, Sarah. Now, 0:06:20.160 --> 0:06:23.200 Sarah has taken this really seriously. I think she may 0:06:23.400 --> 0:06:25.760 have slept in this room overnight to get ready for it, 0:06:26.240 --> 0:06:28.719 all right, and she's been like talking trash to me 0:06:28.800 --> 0:06:34.320 all week about okay, alright, well, let's let's end it 0:06:34.360 --> 0:06:37.480 all right, all right, It seems everyone is always talking 0:06:37.520 --> 0:06:41.440 about millennials nowadays, but what about Generation Z? This year? 0:06:41.520 --> 0:06:44.120 Gen Z is expected to surpass millennials as the most 0:06:44.120 --> 0:06:47.240 populous generation. As some agents of their mid twenties. So 0:06:47.279 --> 0:06:49.880 to gouge future spending patterns, you have to get into 0:06:49.880 --> 0:06:53.000 the psyche of this new largest demographic. Gen Z cares 0:06:53.040 --> 0:06:55.400 about who is who, who is doing what. They grew 0:06:55.480 --> 0:06:58.640 up on social media platforms like Instagram and Snapchat, and 0:06:58.680 --> 0:07:02.280 the influencer culture is real. Take Kylie Jenner for instance, 0:07:02.440 --> 0:07:04.680 she promoted her makeup line on Instagram and is now 0:07:04.720 --> 0:07:09.640 the youngest self made billionaire. Influencers are powerful. The influencer 0:07:09.720 --> 0:07:13.680 economy et F ticker who Who is a new exchange 0:07:13.720 --> 0:07:16.720 traded fund that holds companies that partner with the top 0:07:16.800 --> 0:07:21.360 twenty influencers from athletes to actors, public figures, and more. 0:07:21.600 --> 0:07:24.360 Stocks will be weighted based on their associated influencers rank. 0:07:24.400 --> 0:07:28.400 And this is the global diversified fund. Take Christian Christiano 0:07:28.480 --> 0:07:32.200 Ronalda right now, he's the number one top influencer Electronic arts, Nike, 0:07:32.320 --> 0:07:35.360 Abbott Labs, all companies he partners with, Selena Comes, she 0:07:35.440 --> 0:07:39.200 partners with Adidas and Coca Cola, Arianna Grande, the Rock 0:07:39.320 --> 0:07:43.320 under Armor. You get the idea. So who who not 0:07:43.440 --> 0:07:47.720 the band? No? Not the band? Um alright, so give 0:07:47.760 --> 0:07:49.480 me a sense of some more of the products here 0:07:49.520 --> 0:07:52.120 We're we're some more of the companies we're talking about here, 0:07:52.280 --> 0:07:55.600 so some other companies. Beyonce is the top six influencer 0:07:55.680 --> 0:07:58.120 right now. She partners with PepsiCo. You also have Kylie 0:07:58.200 --> 0:08:01.680 Jenner of course with makeup at Alta ut Taylor Swift Ups, 0:08:01.800 --> 0:08:05.080 Target A, T and T, Comcast, So you really get 0:08:05.160 --> 0:08:09.440 this mix of different sectors. So right now it's holding 0:08:09.440 --> 0:08:15.320 consumer discretionary companies, consumer staple companies, telecom, healthcare. So that way, 0:08:15.360 --> 0:08:17.240 when you have a downturn like we did at the 0:08:17.320 --> 0:08:20.400 end of last year, who actually fell less than the 0:08:20.440 --> 0:08:23.600 broader market? And there are there what do we know 0:08:23.640 --> 0:08:26.080 out there in terms of e t F already that 0:08:26.200 --> 0:08:30.320 that approach gen Z? There are not any This would 0:08:30.320 --> 0:08:34.079 be the first e t F at this who my 0:08:34.280 --> 0:08:36.920 e t F would be the first one that actually 0:08:36.960 --> 0:08:41.240 acknowledges gen Z. So who is Sarah? That's who first 0:08:41.280 --> 0:08:46.360 of its kinds um all right, I mean I'm hearing 0:08:46.400 --> 0:08:48.959 a lot of more gen Z talk, including in our 0:08:48.960 --> 0:08:56.640 own newsroom, which is probably a contrarian indicator. All right. 0:08:56.720 --> 0:09:00.000 Next up, we have Joel Weber. Okay, as you guys 0:09:00.120 --> 0:09:06.240 might know, Bloomberg Intelligence tracks more thies in industries from energy, 0:09:06.320 --> 0:09:10.679 to technology, to retail, to finance. Once a year, Bloomberg 0:09:10.679 --> 0:09:14.800 business Week, the magazine that I edit, partners with b 0:09:15.040 --> 0:09:19.000 I Bloomberg Intelligence to do something called fifty Companies to Watch. 0:09:19.720 --> 0:09:22.760 Not all of those are winners. We call it watch. 0:09:23.320 --> 0:09:26.440 Some might be up, some you might be down. Thirty 0:09:26.440 --> 0:09:30.600 of those are US listed. So the goal of this 0:09:30.679 --> 0:09:34.400 exercise is to identify companies that will face an unusual 0:09:34.480 --> 0:09:37.640 challenge in the coming year or opposed to release blockbuster 0:09:37.760 --> 0:09:44.240 products or services. The analysts considers stuff like revenue growth, margins, 0:09:44.520 --> 0:09:48.599 market share, debt, and even other factors like economic conditions. 0:09:49.400 --> 0:09:52.120 I got reader fanmail on this one. When we did 0:09:52.160 --> 0:09:55.439 this just a couple of weeks ago, portfolio manager emailed 0:09:55.480 --> 0:09:57.920 me to say, I don't know what your crystal ball is. 0:09:58.440 --> 0:10:02.440 Forty of those companies our way up. So here's here's 0:10:02.480 --> 0:10:07.600 my idea. We're gonna rebalance this thing quarterly. We're gonna 0:10:07.640 --> 0:10:14.920 be long, forty short ten. Here's the ticker fitty fitty Wait, 0:10:14.920 --> 0:10:17.120 how many letters f I D Y f I T 0:10:17.400 --> 0:10:21.600 Y which is currently held by a Fidelity fund. But 0:10:21.640 --> 0:10:30.199 we'll take it's it's up there, forty long ten short, um, Like, 0:10:30.600 --> 0:10:33.880 who who would be in this long list right now, 0:10:33.880 --> 0:10:36.600 and who would be sure? It's a great question, right 0:10:36.640 --> 0:10:40.240 because I think the part of this is US versus international, 0:10:40.600 --> 0:10:43.240 So you're gonna have this. It's gonna be very global. 0:10:44.000 --> 0:10:46.240 But the stuff that you'd be long on right now 0:10:46.720 --> 0:10:49.400 would be like Fast Retailing would be one based on 0:10:49.440 --> 0:10:52.200 the research that we did. That's a company that we 0:10:52.240 --> 0:10:56.000 think has great international growth. But you'd be short something 0:10:56.040 --> 0:11:03.360 probably like Ford or uh, General Motors. I'm afford right, Geer, 0:11:03.400 --> 0:11:07.920 you should all for it. But basically you'd be rebalancing 0:11:07.960 --> 0:11:10.400 this so that you'd constantly have tin that you're short 0:11:10.559 --> 0:11:14.280 forty that you're long. Got it? No hit me? What's 0:11:14.320 --> 0:11:17.600 the criteria again for this? Beyond you know, your big 0:11:17.640 --> 0:11:19.880 brain and the big brains of the b I folks. 0:11:20.280 --> 0:11:23.320 So I think this is a great amplifier because we're 0:11:23.320 --> 0:11:26.960 going to curate a list that we're confident just like 0:11:27.040 --> 0:11:30.360 this guy recognized we've been out performing. So we're gonna 0:11:30.400 --> 0:11:33.480 go along the ones that that we we have great 0:11:33.800 --> 0:11:36.480 confidence in out performing. And then we're going to amplify 0:11:36.480 --> 0:11:39.199 it even more by being short ones that we think 0:11:39.200 --> 0:11:50.880 are going to underperform the market. Okay, Mic drop next up? 0:11:50.960 --> 0:11:54.800 James sever, an analyst with Bloomberg Intelligence. James go Alright, 0:11:54.840 --> 0:11:56.880 so my e t F s, I have a pair 0:11:56.920 --> 0:12:00.160 of ETFs and they're revolving around two. Where is that 0:12:00.200 --> 0:12:01.920 We hear a lot when you watch any sort of 0:12:01.920 --> 0:12:05.240 financial news risk on and risk off. So when you 0:12:05.280 --> 0:12:07.120 see risk on, there are certain e t f s, 0:12:07.160 --> 0:12:09.520 are certain stocks that you're gonna own, and when you're 0:12:09.559 --> 0:12:11.600 thinking risk off, there's certain stocks you're gonna go to 0:12:11.640 --> 0:12:14.199 if you need to maintain equity exposure. So this combines 0:12:14.280 --> 0:12:16.400 multiple factors and sectors into two et F So the 0:12:16.520 --> 0:12:21.360 risk on factor E t F is gonna hold growth, momentum, size, 0:12:21.400 --> 0:12:23.720 and high beta e t f s, And on the 0:12:23.760 --> 0:12:26.680 sector side right now, it's gonna hold tech, consumer discretionary, 0:12:26.760 --> 0:12:29.800 and communications. On the risk off side, you're gonna hold 0:12:29.840 --> 0:12:34.680 low ball quality, dividend, growth and value. And from the 0:12:34.679 --> 0:12:37.240 sector side, on risk off, you're gonna hold consumer staples 0:12:37.240 --> 0:12:41.839 and utilities. Now, past past returns is an indicative of 0:12:41.880 --> 0:12:43.920 future returns, but if you look at the returns over 0:12:43.960 --> 0:12:47.079 the past five to seven years, you're gonna see the 0:12:47.160 --> 0:12:49.840 risk on is outperformed by on the risk off. With 0:12:49.960 --> 0:12:52.080 spy in the middle, there and then if you look 0:12:52.080 --> 0:12:54.439 over the biggest downturn in December, it worked just as 0:12:54.480 --> 0:12:59.480 expected with the risk off being down and the risk 0:12:59.559 --> 0:13:02.839 on being down again with Spy in the middle over 0:13:02.880 --> 0:13:08.800 that twenty four day period. Um, I am fascinated by this. 0:13:08.920 --> 0:13:11.040 I think this is pretty cool. At the same time 0:13:11.120 --> 0:13:14.560 as I said it to be getting I'm not smart 0:13:14.679 --> 0:13:16.240 enough to understand all the ins and out. So again, 0:13:16.320 --> 0:13:20.440 so explain to me. So I simultaneously am owning two ets. 0:13:20.600 --> 0:13:24.360 Is that right where you've broken? Yeah, So you would 0:13:24.360 --> 0:13:26.400 own if you if you believe there's risk on in 0:13:26.440 --> 0:13:27.920 the market, or you think that there's gonna be a 0:13:27.920 --> 0:13:29.880 bull market going forward for the next couple of years, 0:13:30.040 --> 0:13:32.360 you're going to own the risk on factor e t F. 0:13:33.120 --> 0:13:34.920 And if you're not, you're going to own the risk off. 0:13:34.960 --> 0:13:37.400 So if if you're predicting a future downturn, you need 0:13:37.440 --> 0:13:41.000 to maintain equity exposure. Theoretically people will go to utilities 0:13:41.080 --> 0:13:43.160 or some lower volatility stocks, and this is just going 0:13:43.240 --> 0:13:46.520 to group all those low volatility factors or risk off 0:13:46.520 --> 0:13:49.160 factors together. Well, I think Sarah Pons wants to wants 0:13:49.200 --> 0:13:51.680 to chime in here. Do I have a question you 0:13:51.679 --> 0:13:54.440 said in risk on Right now, it's holding momentum. But 0:13:54.520 --> 0:13:58.320 haven't you yourself done a lot of research lately that 0:13:58.400 --> 0:14:02.200 momentum is actually risk off right now. Momentum momentum is 0:14:02.200 --> 0:14:05.360 more highly correlated. Right now. It is a good point, 0:14:05.400 --> 0:14:07.520 and I was thinking about it. But over the longer periods, 0:14:07.520 --> 0:14:10.000 this is just an instance that and what's going on 0:14:10.080 --> 0:14:13.240 with specific rebalance that happened to a certain et F. 0:14:13.720 --> 0:14:16.920 It's not all. It's not all momentum ETFs. But right 0:14:16.920 --> 0:14:18.920 now that's just a stint in. What's going over over 0:14:18.920 --> 0:14:22.400 the long term, momentum is gonna outperform Noble markets. What's 0:14:22.400 --> 0:14:25.080 the ticker r O n N for risk on and 0:14:25.400 --> 0:14:31.040 r o f F for risk of roth. But this 0:14:31.120 --> 0:14:33.640 is like the Yang last year a little bit. Yeah, 0:14:33.680 --> 0:14:36.240 but I need to decide which of these two I'm 0:14:36.240 --> 0:14:38.880 moving in and out of. Theoretically, yes, or you could 0:14:38.920 --> 0:14:41.960 listen to the or you could listen to the talking heads, 0:14:41.960 --> 0:14:46.480 but you could listen to the talking heads on on 0:14:46.480 --> 0:14:48.200 Bloomer TV to know which one to put in. But 0:14:48.240 --> 0:14:51.800 typically when you launch these dual type of partnerships, dual 0:14:51.800 --> 0:14:54.000 ETFs are more than one et F, they split them 0:14:54.000 --> 0:14:57.200 evenly and then let the allocators go and they benefit 0:14:57.240 --> 0:14:59.480 when something is going good in that area. So if 0:14:59.560 --> 0:15:05.560 much of people a phone, money there. So next up 0:15:05.560 --> 0:15:08.040 we have from our DC studio is Morgan Barnet, who 0:15:08.080 --> 0:15:11.440 is a new associate for Bloomberg Intelligence Fund and ETF Research. 0:15:11.800 --> 0:15:15.120 U Mo're gonna take it away, Okay, I am pitching 0:15:15.280 --> 0:15:19.840 a largely US based equity theme fund. So the Supreme 0:15:19.880 --> 0:15:23.880 Court reversed a sports betting ban that I think is 0:15:23.920 --> 0:15:27.960 going to really open the door for UM companies that 0:15:28.080 --> 0:15:32.680 do gaming and uh sort of gambling to really capture 0:15:32.880 --> 0:15:36.640 what was formerly sort of offline betting. So more states 0:15:36.640 --> 0:15:39.400 are going to fall the first seven and this is 0:15:39.480 --> 0:15:42.480 about a hundred and fifty billion in off market sports 0:15:42.480 --> 0:15:47.760 wagering annually. UM. Along with that, there's so much UM 0:15:47.800 --> 0:15:51.840 content on demand for entertainment, and so I kind of 0:15:51.840 --> 0:15:56.080 think the stirs a counter current for more live entertainment experiences. 0:15:56.080 --> 0:15:59.320 So is this a theme fund UM? Well? Equal weight 0:15:59.480 --> 0:16:03.680 company is UM here that have direct exposure companies like 0:16:03.840 --> 0:16:09.520 Live Nation, Trip Advisor, Event Bright Madison, Square Garden, And 0:16:09.560 --> 0:16:12.720 then there's some new listings of pure play E sports companies. 0:16:12.760 --> 0:16:16.440 I know we've talked about UM gaming, but sports you 0:16:16.480 --> 0:16:19.040 got to wrap it up. E Sports Companies, Allied Sports, 0:16:19.080 --> 0:16:21.560 super League Gaming, and Modern Times are all coming online. 0:16:22.520 --> 0:16:26.320 Got it well? As a lifelong gambler, Yeah, I mean 0:16:26.360 --> 0:16:30.560 she just like it. I can see his heart trains 0:16:32.880 --> 0:16:35.040 up when she said gambling. You know, I was just like, whoa, 0:16:35.120 --> 0:16:38.600 you got me so? All right? So you're both tapping 0:16:38.640 --> 0:16:41.160 into like the Live Nations and the trip Advisors, right, 0:16:41.240 --> 0:16:44.320 that could ride this way a bit. But tell me again, 0:16:44.360 --> 0:16:47.800 the names are the more the companies that are actually 0:16:47.840 --> 0:16:50.120 more directly involved in the game. Because I also maybe 0:16:50.120 --> 0:16:54.920 I need to set up some accounts that MGM, Eldorado, 0:16:55.040 --> 0:16:59.240 and BOYD have all made um decent partnerships and acquisitions 0:16:59.240 --> 0:17:03.320 in the space god and what's the ticker E L 0:17:03.360 --> 0:17:10.440 I V Entertainment Live L Live. I think he likes 0:17:10.480 --> 0:17:14.320 the gambling part more more than the entertainment party. You 0:17:14.359 --> 0:17:17.200 don't get out much, do you know. I'm too busy gambler. 0:17:18.040 --> 0:17:25.920 Thank you Morgan? All right, I think Eric, I think 0:17:25.920 --> 0:17:29.359 it's your turn. Okay, what's the one thing we all hate? Okay, 0:17:29.359 --> 0:17:32.800 don't answer that, but I know one thing we all hate, um, 0:17:32.840 --> 0:17:35.520 and that is Monday's And guess who else hates Monday's 0:17:35.640 --> 0:17:38.120 the market. If you look at the days of the week, 0:17:38.560 --> 0:17:41.480 Monday is the only day since where the market is 0:17:41.520 --> 0:17:45.080 down on average. Every other day it's positive. So this 0:17:45.160 --> 0:17:48.439 is a very simple idea. It's called x mon the 0:17:48.560 --> 0:17:52.240 calendar shares S and P five x Monday's e t F. 0:17:52.760 --> 0:17:55.239 All it does is hold I V V right, it's 0:17:55.280 --> 0:17:59.320 gonna buy it at Friday close because between the clothes 0:17:59.320 --> 0:18:00.879 and the open you can pick up a few basis 0:18:00.920 --> 0:18:03.000 points too. That's a good time to hold it, and 0:18:03.000 --> 0:18:05.480 then it will um. So it'll sell it on Friday 0:18:05.520 --> 0:18:08.040 and buy it on Tuesday. Monday the clothes and so 0:18:08.119 --> 0:18:11.120 essentially you're going to get the market return minus Monday. Now, 0:18:11.240 --> 0:18:13.160 there's a lot of theories on why Mondays are bad. 0:18:13.440 --> 0:18:16.320 Companies report bad news on Friday's a lot of times 0:18:16.600 --> 0:18:19.720 people get paranoid over the weekend. Right, the idle hands 0:18:19.720 --> 0:18:21.919 are the devil's playthings. So people come in and selling 0:18:22.240 --> 0:18:25.199 and guess what you would avoid catastrophe? What are the 0:18:25.200 --> 0:18:29.320 worst market crashes known as Black Monday and Black Monday too, 0:18:29.359 --> 0:18:34.000 which is August. You would have avoided those two. So 0:18:34.040 --> 0:18:38.800 I'm selling Friday and I'm buying it Monday. What about 0:18:38.840 --> 0:18:43.359 trading costs, comes a voice from the crowd. Yeah, sure, 0:18:43.440 --> 0:18:47.120 so i VV trades at a point oh one percent spread, 0:18:47.560 --> 0:18:50.280 so you would incur those but you're hoping to pick 0:18:50.359 --> 0:18:52.520 up more than those trading costs over the long term. 0:18:52.600 --> 0:18:55.119 So i VV I picked on purpose because it has 0:18:55.160 --> 0:18:58.159 a real low expense ratio, but it's more liquid than VOO, 0:18:58.400 --> 0:19:00.239 So to me, it's the perfect et F to use 0:19:00.280 --> 0:19:02.000 for the strategy. All Right, I'm a little I'm just 0:19:02.040 --> 0:19:04.520 a little surprised if I can chime in. Like all 0:19:04.680 --> 0:19:06.879 the e t f s that Eric could come up 0:19:06.880 --> 0:19:12.560 with with, this one feels a little lazy, lazy. Well, 0:19:12.600 --> 0:19:15.640 my other idea was a little I don't know uma 0:19:15.720 --> 0:19:20.359 of the time, we don't have more ideas well know 0:19:20.440 --> 0:19:23.000 the reason ever, though it's hey, hold on a second, 0:19:23.119 --> 0:19:25.840 I um, I think it's kind of cool. I got 0:19:25.840 --> 0:19:31.760 two questions. So are we sure that it's not gimmicky? Though? Right? Like, 0:19:31.800 --> 0:19:36.120 this isn't just some odd statistic laboration. This is like legit. 0:19:36.520 --> 0:19:39.320 I mean, there's really something there. There are fundamental factors 0:19:39.359 --> 0:19:42.560 for Monday always sucking. Yeah, Like I said, there's the 0:19:42.920 --> 0:19:46.359 human behavioral people come in Monday they're cranky A lot 0:19:46.440 --> 0:19:48.800 of times. If something bad happens on a Friday, it 0:19:48.840 --> 0:19:51.240 gets worse on Monday because people have all weekend and 0:19:51.280 --> 0:19:53.840 they don't think, oh, I'll be okay. Their brains go 0:19:53.920 --> 0:19:56.520 to the negative there, like I better sell out? Are 0:19:56.520 --> 0:20:02.320 you a shrink? Uh No, but I'm to psychology class. 0:20:02.400 --> 0:20:07.800 You know you're psychoanalyzing the market. Well, behavior is a 0:20:07.840 --> 0:20:10.000 big deal. That's why factors work. To me, this is 0:20:10.040 --> 0:20:12.520 somewhat of a factor kind of play. My last question 0:20:12.560 --> 0:20:15.480 for you is, like wise, guys like you who come 0:20:15.480 --> 0:20:18.120 in and say, oh, I'm gonna short Monday, I mean, 0:20:18.400 --> 0:20:21.600 is it possible that as you bring attention to this, 0:20:21.800 --> 0:20:24.200 your e t F takes off that you're gonna wind 0:20:24.240 --> 0:20:27.680 up are being out? You know the down mondays. If 0:20:27.680 --> 0:20:30.240 this et F gets that big, you and I will 0:20:30.280 --> 0:20:35.680 both be filthy rich by the time. So but yeah, ultimately, 0:20:35.720 --> 0:20:37.960 if if everybody starts buying this, then yeah, there could 0:20:37.960 --> 0:20:41.679 be an our super duper last question for you. So, like, 0:20:41.800 --> 0:20:44.120 give me a rough sense of like what a typical 0:20:44.160 --> 0:20:46.680 Monday return looks like these over the over a certain 0:20:46.720 --> 0:20:49.440 period of time versus Tuesday, Wednesday, Thursday, Friday on average, 0:20:49.480 --> 0:20:53.920 Mondays are down eight basis points on average since on Tuesday. 0:20:53.920 --> 0:20:56.520 It's up five BIPs, Wednesday eight pips. Wednesday's actually the 0:20:56.520 --> 0:20:59.840 best performing day for whatever reason, and Thursday four BIPs 0:20:59.840 --> 0:21:03.040 for day five. So it's really like a seven almost 0:21:03.080 --> 0:21:08.399 a ten basis point swing between Monday and any other day. Okay, 0:21:08.800 --> 0:21:11.200 and you had ten basis points up, you know, over 0:21:11.280 --> 0:21:13.479 weeks after weeks, after weeks, that's going to add up 0:21:13.480 --> 0:21:19.480 to some alpha. Next up, Ben Steve Berman, who's on 0:21:19.520 --> 0:21:22.560 the Wealth team at Bloomberg News, been the reigning champion 0:21:22.600 --> 0:21:25.520 from last year. What was your idea with with last 0:21:25.600 --> 0:21:29.040 year's March Madness winner. I was going for empty, which 0:21:29.080 --> 0:21:33.160 is the retail et fright, and how was that done? 0:21:33.240 --> 0:21:40.840 After I I have not checked. Give me four seconds here. 0:21:41.440 --> 0:21:43.440 I did warn you that it wasn't gonna do well, 0:21:43.720 --> 0:21:47.000 uh negative two. But we're waiting. We're still waiting for 0:21:47.040 --> 0:21:50.720 the big home run, right, the big grand for me. 0:21:50.880 --> 0:21:53.760 On the personal finance guy, I think long term, not 0:21:53.920 --> 0:22:02.160 like the no this is I think in decades, not days, 0:22:03.119 --> 0:22:10.960 and I won't be but alright, so as I said, 0:22:11.000 --> 0:22:14.040 I'm I'm a personal finance guy. I think long term. 0:22:14.080 --> 0:22:16.000 I was thinking about long term trends. How do how 0:22:16.000 --> 0:22:18.040 do we invest in some of the big global long 0:22:18.160 --> 0:22:20.920 term trends climate change? Okay, you can do that. There's 0:22:20.920 --> 0:22:25.160 ways to do that. UM urbanization. You look at rural 0:22:25.200 --> 0:22:28.600 areas all around the world, including the United States. They're shrinking, 0:22:28.680 --> 0:22:31.720 populations going down. The economy of rural areas is shrinking. 0:22:32.200 --> 0:22:36.920 Cities are booming, especially in Africa and especially in Asia, 0:22:37.000 --> 0:22:39.800 but also the United States. UM, big cities are doing 0:22:39.800 --> 0:22:42.960 really well, and outside metro prolitan areas, it's hard to 0:22:42.960 --> 0:22:47.240 get a job. So it's thinking about UM. A urban 0:22:48.400 --> 0:22:52.840 basically an urban ETF. So it's a it's it invests 0:22:52.960 --> 0:23:00.640 in a whole range of sectors. So it could be finance, reets, uh, industrial, cranes, elevators, retail. 0:23:00.720 --> 0:23:03.680 It goes after retail stores and retail companies that really 0:23:03.800 --> 0:23:11.280 go after that urban consumer. The ticker is well, okay, 0:23:11.280 --> 0:23:14.440 this the ticker could be city that's available, could be well, 0:23:14.680 --> 0:23:17.600 I have a better one. You tell me why you 0:23:17.840 --> 0:23:26.080 p p yuppy, Why we are gentrifying et F investing. 0:23:26.480 --> 0:23:34.720 We're gentrifying EFF investing. As if et F investing needed gentrifying. UM, 0:23:34.960 --> 0:23:37.000 give me some name, all right, so you said finance, 0:23:37.040 --> 0:23:39.640 you said reach, you said cranes, Like, so what am I? 0:23:39.960 --> 0:23:43.160 The man to walk would be the crane idea lift 0:23:43.320 --> 0:23:44.840