WEBVTT - The Making of MAGA 0:00:06.280 --> 0:00:11.480 Welcome to Trillions. I'm Joel Webber and I'm Eric bel Tunis. Eric. 0:00:11.880 --> 0:00:14.520 One of our favorite guests so far has been Rachel Evans, 0:00:14.680 --> 0:00:17.960 who's a reporter in Bloomberg News who covers et F 0:00:18.079 --> 0:00:20.520 s and Rachel went on a little bit of a 0:00:20.520 --> 0:00:24.280 field trip for us. We outsourced an episode we did. 0:00:24.520 --> 0:00:26.960 This is an easy one, um and I like it 0:00:27.000 --> 0:00:29.440 because a lot of our conversation so far have been 0:00:29.440 --> 0:00:33.160 pretty broad or we've covered several tickers. This is really 0:00:33.240 --> 0:00:36.879 drilling down into one particular ETF and it goes to 0:00:36.920 --> 0:00:39.280 the story of how somebody launches an e t F. 0:00:39.400 --> 0:00:41.840 So it's it's kind of a deep dive into two 0:00:41.880 --> 0:00:45.040 things at once. And Rachel, which et F is this? 0:00:45.040 --> 0:00:49.160 This is the MAGA fund MAGA That's that is a ticker, 0:00:49.640 --> 0:00:51.839 right it is? And I know there's probably a lot 0:00:51.880 --> 0:00:54.760 of people they're triggered right about now. But before you 0:00:54.800 --> 0:00:58.000 tune out, this is the make America Great against slogan 0:00:58.120 --> 0:01:01.120 and uh connected with Trump. But before you tune out, 0:01:01.200 --> 0:01:03.360 this is an e t F I think a little 0:01:03.360 --> 0:01:07.240 ahead of its time. It is basically what's called partisan investing, 0:01:07.880 --> 0:01:10.200 and I know it might not be where we want 0:01:10.240 --> 0:01:12.200 things to go, but it's kind of where things are going, 0:01:12.240 --> 0:01:14.199 and it's sort of trying to divide the stock market 0:01:14.600 --> 0:01:16.399 into left and right, and this one is on the 0:01:16.480 --> 0:01:18.440 right side, and you sort of have E s G 0:01:18.640 --> 0:01:21.440 is more on the left side. And Rachel, this was 0:01:21.520 --> 0:01:25.240 really your idea. What was it about MAGA that resonated 0:01:25.280 --> 0:01:27.040 with you? Why did you want to do this episode? 0:01:27.520 --> 0:01:29.679 I think it's always interesting when someone comes onto the 0:01:29.680 --> 0:01:31.920 E t F scene and it's doing something completely different. 0:01:32.480 --> 0:01:35.240 We hadn't seen anything political in the way of E 0:01:35.319 --> 0:01:38.679 t F s until this MAGA fund came out. It 0:01:38.760 --> 0:01:40.960 was really the first to kind of actually propose a 0:01:41.000 --> 0:01:44.080 strategy in which you buy companies that are donating to 0:01:44.280 --> 0:01:48.240 Republican candidates. That struck me as a really interesting strategy 0:01:48.240 --> 0:01:50.200 and I was kind of curious to see whether it 0:01:50.280 --> 0:01:53.840 worked and exactly how that idea came about. I think 0:01:53.880 --> 0:01:55.560 this is a great E t F to drill down too. 0:01:55.560 --> 0:01:58.440 I actually the ticker to me was just Grand Slam 0:01:58.480 --> 0:02:00.840 home run, and that doesn't matter with these type of 0:02:00.960 --> 0:02:03.800 niche E t F s. I have to think this 0:02:03.840 --> 0:02:06.040 guy might be located down south that where did you 0:02:06.080 --> 0:02:08.360 have to go to interview him? You wouldn't be wrong. 0:02:08.440 --> 0:02:10.359 So this involved me getting up at a very very 0:02:10.360 --> 0:02:13.200 early hour to get a flight down to Dallas Fort Worth. 0:02:13.680 --> 0:02:16.320 So how Lambert who has set up point Bridge Capital, 0:02:16.440 --> 0:02:19.160 he runs the MAGA Fund to give it its full name, 0:02:19.160 --> 0:02:22.040 it's actually the point Bridge gop stock Tracker e t F, 0:02:22.280 --> 0:02:25.200 but MAGA is somewhat more catchy. So I met him 0:02:25.240 --> 0:02:28.359 at his offices in downtown Fort Worth. It's a nice 0:02:28.360 --> 0:02:31.120 little town. Actually, it's quite sort of historic. There's a 0:02:31.200 --> 0:02:33.840 nice old center. You've got a kind of old courthouse 0:02:33.880 --> 0:02:36.760 that's quite pretty, lots of kind of shops and restaurants around. 0:02:37.120 --> 0:02:39.280 But I obviously chose the worst day to go down 0:02:39.360 --> 0:02:43.000 to Texas. It was cold, it was wet, it was windy. 0:02:43.240 --> 0:02:45.520 Wasn't exactly great timing on my part. And when did 0:02:45.520 --> 0:02:48.240 he launch the e t F? So the fund started 0:02:48.320 --> 0:02:52.639 in September UM of twenty seventeen, so we have now 0:02:52.720 --> 0:02:56.560 had just over six months of performance to to evaluate um. 0:02:56.600 --> 0:02:58.320 So it seemed like a good time to go down 0:02:58.400 --> 0:03:01.760 and see how that fund started life and how it's 0:03:01.760 --> 0:03:07.360 been doing since its launched. This weekend is the man 0:03:07.600 --> 0:03:14.600 who made MEGA, so I'm here to see how Lambert 0:03:14.720 --> 0:03:24.040 on thank you. How looks the consummate conservative professional think 0:03:24.200 --> 0:03:28.480 open neck shirt, chinos and a plaid blazer and blonde 0:03:28.480 --> 0:03:31.239 hair wants slightly long and swept back, a look not 0:03:31.320 --> 0:03:35.920 dissimilar to President Trump's good to see you again again 0:03:36.520 --> 0:03:41.240 for coming down, Thank you for having me appreciated Hope. 0:03:42.200 --> 0:03:45.280 His office in downtown Fort Worth has a similar vibe. 0:03:45.600 --> 0:03:48.480 It's all black, leather and chrome, with a picture of 0:03:48.520 --> 0:03:51.120 his daughter set on the table next to an award 0:03:51.200 --> 0:03:53.400 for best e t F ticker from this year's e 0:03:53.440 --> 0:03:56.720 t F dot Com Awards. I started by asking him 0:03:56.720 --> 0:03:58.600 to take me back to the beginning and tell me 0:03:58.640 --> 0:04:00.440 how he had first come up with the idea for 0:04:00.520 --> 0:04:04.600 political investing. I was sitting at my desk here in 0:04:04.640 --> 0:04:08.560 the office that run. I was watching the news, and 0:04:09.360 --> 0:04:13.200 that morning Target had come out and announced that they 0:04:13.200 --> 0:04:19.000 were going to allow anyone of any gender to use 0:04:19.160 --> 0:04:23.599 the dressing rooms and restrooms at their facilities. So how 0:04:23.600 --> 0:04:26.000 are they identified for that day? They could they could 0:04:26.120 --> 0:04:27.839 change in the dress rooms. And I saw this and 0:04:27.839 --> 0:04:30.279 I was like, Ah, that's going to be very negative 0:04:30.320 --> 0:04:32.839 for a Target stock. People were upset about it. I've 0:04:32.839 --> 0:04:35.400 got two daughters, we shop at Target. I mean, they're 0:04:35.400 --> 0:04:37.760 gonna go buy swimsuits at Target, They're gonna change in 0:04:37.760 --> 0:04:40.799 the dressing room. It's kind of a weird scenario. This morning, 0:04:40.800 --> 0:04:43.640 a petition against the retail giant Target is gaining a 0:04:43.640 --> 0:04:46.440 lot of momentum. Nearly eight and fifty thou people have 0:04:46.520 --> 0:04:49.800 already signed a boycott pledge by the American Family Association 0:04:50.160 --> 0:04:54.920 over targets bathroom policy. People are boycotting Target, and they 0:04:54.920 --> 0:04:57.800 don't realize they own it in their mutual funds. Once 0:04:57.839 --> 0:05:01.760 President Trump won and I started seeing more of what 0:05:01.839 --> 0:05:05.800 was going on politically as far as corporate America, you know, 0:05:05.920 --> 0:05:08.080 kind of moved into that mode of how do I, 0:05:08.240 --> 0:05:13.479 how do I capitalize for investors their ability to invest 0:05:13.560 --> 0:05:17.320 in companies that have their political views. Once you come 0:05:17.400 --> 0:05:20.039 up with this idea and exchange trade of funds seemed 0:05:20.040 --> 0:05:22.520 like the natural solution that The reason I thought the 0:05:22.560 --> 0:05:25.800 E t F approach was the best way for it 0:05:25.960 --> 0:05:28.920 was because it's the most scalable in my mind. Clients 0:05:29.000 --> 0:05:31.080 don't have to have an account at Point Bridge Capital. 0:05:31.640 --> 0:05:33.200 They can have an account at Schwab, they can have 0:05:33.240 --> 0:05:35.200 AG account TD maror Trade. They can have an account 0:05:35.200 --> 0:05:38.359 at ubs basically or wherever they have a brokerage account, 0:05:38.360 --> 0:05:41.640 they can purchase it. How's idea to turn his political 0:05:41.720 --> 0:05:45.760 views into a fund wasn't new, per se. Values based 0:05:45.760 --> 0:05:47.960 investing has been a rail for years for folks who 0:05:47.960 --> 0:05:52.360 want to avoid energy producers, tobacco companies, or weapons manufacturers 0:05:52.360 --> 0:05:55.680 for example. You might have heard these types of strategies 0:05:55.720 --> 0:05:59.960 called e s G short for Environmental, social and governance 0:06:00.480 --> 0:06:03.760 or socially responsible, and these types of products have become 0:06:03.800 --> 0:06:06.760 all the rage in recent years. But How saw a 0:06:06.800 --> 0:06:09.000 gap in the market for investors with a different set 0:06:09.000 --> 0:06:13.080 of values, a conservative set of values. He wasn't coming 0:06:13.120 --> 0:06:16.120 at this cold. How has been involved in Republican politics 0:06:16.160 --> 0:06:19.240 more than a decade, most recently running a superpack for 0:06:19.279 --> 0:06:22.800 Ted Cruise's tilt at the presidency in twenty sixteen, a 0:06:22.880 --> 0:06:26.880 battle that President Trump and his margas slogan ultimately one. 0:06:28.080 --> 0:06:31.120 There were the SG funds, and those e SG funds 0:06:31.120 --> 0:06:35.039 are typically mostly left. There's nothing out there from the 0:06:35.160 --> 0:06:38.599 from the conservative or Republican side. But through my work 0:06:38.640 --> 0:06:41.560 in politics, I realized, you know what really matters is 0:06:41.600 --> 0:06:44.840 the money in politics. So that's really what I are 0:06:44.880 --> 0:06:47.080 to do, is see, well, where are they giving their money, 0:06:47.160 --> 0:06:51.039 because that's really what's determining how people are getting elected 0:06:51.240 --> 0:06:54.440 and whether people are getting elected, and so that's really 0:06:54.480 --> 0:06:56.320 what sorry. I was like, I'll follow the money and 0:06:56.360 --> 0:06:59.479 see what that leads to. Thus began a series of 0:06:59.480 --> 0:07:01.440 phone call to find out what it would take to 0:07:01.520 --> 0:07:04.720 realize his funds and how he would get approval from 0:07:04.720 --> 0:07:07.680 the regulators for something known as exemptive relief. So I 0:07:07.720 --> 0:07:10.760 just started calling people and saying, you know, and learning 0:07:11.280 --> 0:07:14.320 how to do it. There are different types of incubators 0:07:14.360 --> 0:07:17.080 out there that can that are kind of turn key 0:07:17.280 --> 0:07:20.560 approaches to launching e t s. And I basically just 0:07:20.800 --> 0:07:26.520 learned that market through conversations with people, and I realized 0:07:27.000 --> 0:07:29.040 that really what I wanted to do was get my 0:07:29.080 --> 0:07:34.000 own exemptive relief. And then basically I created a timeline. 0:07:34.040 --> 0:07:36.400 I have a white board over here where I put 0:07:36.440 --> 0:07:38.760 up on the white board. Okay, what do I need 0:07:38.800 --> 0:07:41.640 to do first? I mean, if you want to walk, 0:07:41.640 --> 0:07:43.360 we can walk over to the white board and show 0:07:43.360 --> 0:07:45.400 you the white board. So this is the the white 0:07:45.400 --> 0:07:49.120 boarder which he sketched out kind of the process to market, right, 0:07:49.240 --> 0:07:53.640 and then I made I made decisions on kind of 0:07:54.320 --> 0:07:56.680 you can see these are all you know, you've got 0:07:56.720 --> 0:07:59.800 us bank, You've got cbo how lined up the custodian 0:08:00.160 --> 0:08:02.800 spoke with market makers and authorized participants to make sure 0:08:02.840 --> 0:08:05.240 that the fund would trade smoothly on in exchange and 0:08:05.320 --> 0:08:07.440 that investors could put their cash in and get it 0:08:07.480 --> 0:08:11.239 out again. But one crucial ingredient was still missing, something 0:08:11.280 --> 0:08:13.440 we talk a lot about on this show. The ticker. 0:08:14.360 --> 0:08:18.520 I decided I knew I wanted the ticker to be MAGA, 0:08:18.760 --> 0:08:23.840 so I called up my contact at cbo E and said, hey, 0:08:24.040 --> 0:08:27.000 you know I need to reserve this ticker. Well, they 0:08:27.040 --> 0:08:31.480 tell me that ticker is already taken. So I was like, oh, 0:08:32.040 --> 0:08:33.959 but I don't think they're going to use it, so 0:08:34.120 --> 0:08:36.480 let me let me check with them. Sure enough they were. 0:08:36.559 --> 0:08:38.600 They said yeah, we're not going to use this ticker. 0:08:39.240 --> 0:08:41.920 And I figured they would probably say, hey, you know, 0:08:42.480 --> 0:08:44.400 give us some money and you can have the ticker. 0:08:45.080 --> 0:08:47.320 But they didn't do that, so it was pretty nice. 0:08:47.320 --> 0:08:49.000 It was pretty quick. Actually, within a day or so 0:08:49.520 --> 0:08:52.320 we exchanged emails. They're like, yeah, we're fine to release it. 0:08:52.440 --> 0:08:54.280 They felt like the ticker might be a little too 0:08:54.520 --> 0:08:58.720 a little too hot, but you didn't obviously, like when 0:08:58.720 --> 0:09:01.360 did you first think that MARGA, that's the ticket for 0:09:01.400 --> 0:09:04.920 me obviously after President Trump won the election. That's a 0:09:04.960 --> 0:09:08.760 campaign slogan, and I just thought that that that ticker 0:09:09.040 --> 0:09:12.000 would be an interesting way to let the public know 0:09:12.120 --> 0:09:14.960 that this is a Republican e t F. Were you 0:09:15.000 --> 0:09:17.800 trying to come up with other alternatives that were up fitted? 0:09:18.160 --> 0:09:21.920 I was, And in fact another alternative was GOP and 0:09:22.000 --> 0:09:24.640 that ticker was taken as well, and that ticker had 0:09:24.679 --> 0:09:27.400 only been taken if I recall, maybe just a few 0:09:27.400 --> 0:09:30.840 weeks before before I had called about it, so that 0:09:30.920 --> 0:09:32.960 ticker was gone, and so I was like, wow, this 0:09:33.040 --> 0:09:35.880 is um, this could be a problem because I know tickers. 0:09:35.920 --> 0:09:38.040 Tickers are really important in the t F world. People 0:09:38.040 --> 0:09:39.960 don't really care what the names are. It's all about 0:09:40.000 --> 0:09:42.319 the ticker. So you know, I'll say, well, the names 0:09:42.320 --> 0:09:44.640 that you know the point Bridge GP, stock Track or 0:09:44.679 --> 0:09:47.360 e t F, but the tickers MAGA. So that's what 0:09:47.559 --> 0:09:49.680 That's the way you need to think about it. All told, 0:09:49.800 --> 0:09:52.360 it took about seven months from making his first calls 0:09:52.520 --> 0:09:56.559 to starting the fund. Texas based point Bridge Capital was 0:09:56.679 --> 0:10:00.160 launching its first e t F and it's investing in 0:10:00.360 --> 0:10:04.640 GOP friendly company. Just understand that you go What about 0:10:04.640 --> 0:10:06.920 a hundred and fifty companies, with all of which are 0:10:07.160 --> 0:10:17.640 sympathetic to Republican causes is brilliant conversation. So how's the 0:10:17.679 --> 0:10:22.160 fund doing well? It's report card, It's somewhat mixed. The 0:10:22.200 --> 0:10:25.920 fund has thirty nine million dollars in assets. That's not nothing, 0:10:26.120 --> 0:10:29.360 but it's somewhat below the million dollars the e t 0:10:29.520 --> 0:10:33.840 f s typically need to break even. It ended seventeen 0:10:33.920 --> 0:10:36.720 with strong returns, but those have lagged somewhat this year. 0:10:37.520 --> 0:10:40.080 It's easy to see why when you look at Margot's holdings. 0:10:40.600 --> 0:10:44.920 Remember these are all companies that donate to Republican candidates, 0:10:45.000 --> 0:10:48.080 and drilling down, you can see that the portfolio is 0:10:48.160 --> 0:10:52.360 heavily tilted towards oil and gas companies. This means that 0:10:52.400 --> 0:10:55.439 the fund thrives when energy does well, but it also 0:10:55.520 --> 0:10:59.280 suffers when the sector struggles. The opposite is true of technology, 0:10:59.480 --> 0:11:03.600 in which the and is very underweight. But Margaret also 0:11:03.640 --> 0:11:07.880 owns some companies that might give conservatives pause. Berkshire Hathaway 0:11:07.960 --> 0:11:11.240 and Goldman Sachs, both one by CEOs that have expressed 0:11:11.280 --> 0:11:14.160 socially liberal views in the past, are also in the mix. 0:11:14.920 --> 0:11:17.560 I asked how how investors react when they learned that 0:11:17.600 --> 0:11:20.040 these companies are part of the Market Fund. You know, 0:11:20.080 --> 0:11:21.920 you can have a CEO that's a Democrat, you can 0:11:21.920 --> 0:11:24.360 have a CEO that's that's a big liberal, and they 0:11:24.360 --> 0:11:28.400 can spout off about things. Lloyd blanklynd talking about Donald 0:11:28.440 --> 0:11:31.880 Trump's Twitter doesn't affect things as much as Goldman sacks 0:11:31.880 --> 0:11:36.000 pack giving money to Republican candidates. So I'll take the 0:11:36.160 --> 0:11:39.600 I'll take the dollars given all day long over an 0:11:39.600 --> 0:11:44.440 interview where he criticizes somebody. So I think companies say 0:11:44.440 --> 0:11:48.240 things publicly and then they do things differently than what 0:11:48.280 --> 0:11:52.320 they're saying publicly. I found this argument particularly interesting. On 0:11:52.360 --> 0:11:54.760 the one hand, it makes a lot of sense. Money 0:11:54.840 --> 0:11:57.920 is something far more tangible than talk. But it also 0:11:57.960 --> 0:12:01.640 seems to contradict one of Hall's pitches to possible buyers, namely, 0:12:01.720 --> 0:12:05.320 the companies like Target, for example, damage their share price 0:12:05.360 --> 0:12:09.200 when they express liberal political views. Using his methodology, the 0:12:09.240 --> 0:12:12.800 fund still owns some of these companies. It also made 0:12:12.800 --> 0:12:15.720 me wonder how much you can tell about companies ideology 0:12:15.760 --> 0:12:18.720 from the dollars it donates. To dig into this further, 0:12:19.040 --> 0:12:21.880 I turned to Michael you Seem, a professor of management 0:12:21.880 --> 0:12:25.680 at the University of Pennsylvania's Wharton School, who researches leadership 0:12:25.679 --> 0:12:30.160 and decision making. His business giving ideologically driven that as 0:12:30.200 --> 0:12:34.160 you want to support parties that say advocate policies you 0:12:34.200 --> 0:12:38.760 want yourself or is it access driven? You want access 0:12:38.840 --> 0:12:44.240 to individuals who especially are in positions of chairs of 0:12:44.320 --> 0:12:50.400 House and Senate committees and most top executive money it 0:12:50.559 --> 0:12:53.200 was long gone to the Republican Party, no surprise there, 0:12:53.840 --> 0:12:56.679 but there are periods where more than half of the 0:12:56.760 --> 0:13:01.400 pack money over which they preside actually goos two Democrats. 0:13:02.640 --> 0:13:06.080 There's also the cost. The fund charge is seventy two 0:13:06.080 --> 0:13:09.160 basis points or seven dollars and twenty cents for every 0:13:09.160 --> 0:13:13.280 one thousand dollars invested. That's significantly higher than the average 0:13:13.280 --> 0:13:15.120 of forty nine basis points for e t f s 0:13:15.120 --> 0:13:18.640 in the US. So why might an investor decide it's 0:13:18.640 --> 0:13:21.679 the right product for them? To find out? I spoke 0:13:21.679 --> 0:13:25.760 to another academic, Mayor Stateman, who specializes in behavioral finance 0:13:26.000 --> 0:13:30.839 at Santa Clara University. In finance, we have a tendency 0:13:30.960 --> 0:13:36.480 to separate the production of returns from their consumption. That is, 0:13:37.000 --> 0:13:42.280 we say, first, make the most money. However, whatever it takes, 0:13:42.840 --> 0:13:46.480 then use it to buy stuff to satisfy you or 0:13:46.480 --> 0:13:50.760 to support the causes that you want. And and that 0:13:50.960 --> 0:13:54.839 is silly, because finance just just made itself very narrow 0:13:54.920 --> 0:13:58.880 and saying the goal must be getting the highest return, 0:13:59.360 --> 0:14:05.199 because like the expressive and emotional benefits of being true 0:14:05.240 --> 0:14:08.240 to their values, not just pretending to be true to 0:14:08.360 --> 0:14:12.000 their values. I asked, how about this motivation, whether it 0:14:12.000 --> 0:14:14.040 could be one of the reasons people buy his fund. 0:14:15.000 --> 0:14:18.000 I'm not sure how much people are making investments bit 0:14:18.080 --> 0:14:21.320 necessarily based on being part of a club, but I 0:14:21.320 --> 0:14:23.840 mean i'd certainly be happy for that. And I think that, 0:14:24.200 --> 0:14:25.960 you know, friends do tend to talk to each other 0:14:26.000 --> 0:14:28.000 at cocktail parties, Hey what are you buying? What are 0:14:28.000 --> 0:14:31.120 you looking at? From a you know, investment standpoint, So 0:14:31.160 --> 0:14:33.720 hopefully we'll get to the point where that's a topic 0:14:33.760 --> 0:14:39.040 that comes up. I'd certainly welcome it. Why do you 0:14:39.040 --> 0:14:42.160 think people get more upset about politics these days, that 0:14:42.360 --> 0:14:45.920 polarization is a positive thing or a negative thing. Well, 0:14:45.960 --> 0:14:48.680 I don't think necessarily polarization is a good thing. I 0:14:48.680 --> 0:14:51.200 think it's great for people have different views. I wish 0:14:51.240 --> 0:14:55.640 people would then be able to still be friends and 0:14:55.640 --> 0:14:58.920 and have the different views, right, So I guess I asked, 0:14:58.920 --> 0:15:01.160 because I mean, is there a argument there that you know, 0:15:01.280 --> 0:15:04.360 something like the Marga Fund is sort of capitalizing on 0:15:04.400 --> 0:15:07.280 that polonization. I don't know that. I would say it's 0:15:07.320 --> 0:15:10.360 capitalizing on it. I'd say it's giving it investors a 0:15:10.440 --> 0:15:14.480 vehicle that they haven't had as a way to invest 0:15:14.600 --> 0:15:18.240 based on things based on political views. So capitalizes and 0:15:18.320 --> 0:15:20.200 necessarily the right word for it, I'd say it's more 0:15:20.280 --> 0:15:22.400 trying to keep create an opportunity for people to do 0:15:22.440 --> 0:15:30.040 something that they don't have. Did you know there are 0:15:30.040 --> 0:15:33.120 a lot of company who heavily support liberal politicians like 0:15:33.200 --> 0:15:36.280 Hillary by donating millions to Democrats. There's now a way 0:15:36.280 --> 0:15:39.520 to invest without owning these stocks. How Lambert and his 0:15:39.680 --> 0:15:42.640 company point Bridge Capital created the first. Now that his 0:15:42.720 --> 0:15:45.160 fund is up and running, How's main focus is on 0:15:45.240 --> 0:15:47.880 making investors aware of it in that he has a 0:15:47.880 --> 0:15:51.120 different approach to many of the larger firms, taking spots 0:15:51.120 --> 0:15:53.600 on conservative talk radio for example. And of course the 0:15:53.600 --> 0:15:56.240 ticker is MAGA. MAGA m A g A Go to 0:15:56.280 --> 0:15:59.600 invest politically dot com and learn about MAGA and lets 0:15:59.600 --> 0:16:02.600 you own the top One thing I'm doing differently than 0:16:02.680 --> 0:16:05.840 most E T F s is I'm not trying to 0:16:05.880 --> 0:16:08.680 go out and have a bunch of wholesalers hit the 0:16:08.800 --> 0:16:12.040 different brokers houses. I think mine, mine is going to 0:16:12.080 --> 0:16:14.600 be driven more by investors calling up and saying I 0:16:14.600 --> 0:16:18.360 want to buy this, versus necessarily their advisor calling them 0:16:18.400 --> 0:16:20.800 and saying, hey, you should buy this. You know, I've 0:16:20.840 --> 0:16:23.000 had someone say to me. I think they said to me, yeah, 0:16:23.040 --> 0:16:25.280 you know, that's a that's a really interesting niche product. 0:16:25.400 --> 0:16:28.360 I'm like, well, you know, it's really not niche. Since 0:16:28.400 --> 0:16:31.400 sixty million people voted for Donald Trump, you know, so 0:16:31.680 --> 0:16:34.800 there's a big market out there. Certainly found some high 0:16:34.840 --> 0:16:39.360 profile support among House political colleagues since President Trump's intuguration. 0:16:39.560 --> 0:16:42.040 I know Don JR. Now, so I didn't know him prior, 0:16:42.160 --> 0:16:45.480 but we've become acquainted and I don't know, I guess 0:16:45.520 --> 0:16:47.200 we could say we're friends. What does he think of 0:16:47.240 --> 0:16:50.400 the margarite TF? Oh he likes it. Yeah, he told 0:16:50.400 --> 0:16:52.200 me he likes it, like he loves the idea, and 0:16:52.760 --> 0:16:55.240 I think he's a fan. How about your whole boss 0:16:55.320 --> 0:16:58.480 head craze. He likes it, he likes the idea. I 0:16:58.520 --> 0:17:00.400 don't know if he's bought it. I'm you know, I'm 0:17:00.400 --> 0:17:03.200 gonna have to call up, you know, his wife. His 0:17:03.280 --> 0:17:05.960 wife's in the investment field. So I think I need 0:17:06.000 --> 0:17:08.040 to talk to Heidi and say, hey, you need to 0:17:08.320 --> 0:17:10.399 look into this a little more. Have you put your 0:17:10.400 --> 0:17:12.320 money into it? Oh? Yes, you know all of my 0:17:12.359 --> 0:17:15.919 liquid retirement is in it. My mother's in it, my 0:17:15.960 --> 0:17:19.679 wife's in it. There was just one final thing I 0:17:19.720 --> 0:17:22.600 needed to know before leaving, how and for worth? Do 0:17:22.680 --> 0:17:26.800 you have the hat? I have a I'll tell you 0:17:26.840 --> 0:17:28.720 what I have. I have a maggot e t F hat. 0:17:28.760 --> 0:17:30.720 I'll show it to you before we leave. But I 0:17:30.760 --> 0:17:32.520 do have a red hat that I that I've made 0:17:32.560 --> 0:17:35.080 up that says magat et f on it. It's kind 0:17:35.080 --> 0:17:37.760 of your own, that's my own. It's my own brand 0:17:37.800 --> 0:17:40.720 of the of the hat. Yes, not the Trump happened, 0:17:40.720 --> 0:17:43.520 not the actual Trump hat. But in fair I'm not 0:17:43.560 --> 0:17:45.520 a big slogan guy. I don't have a I don't 0:17:45.560 --> 0:17:48.320 have a Ted Cruise had either. I don't have I 0:17:48.359 --> 0:17:50.560 didn't do a lot of the slogan stuff. Now you're 0:17:50.560 --> 0:17:52.720 in the business, I know now I need to I 0:17:52.760 --> 0:17:59.560 know I've had to revamp my thoughts on that Rachel, 0:17:59.720 --> 0:18:02.080 what do you think the biggest takeaways for you were? 0:18:02.400 --> 0:18:04.840 The biggest takeaway from me was really just that this 0:18:04.880 --> 0:18:08.320 isn't a very interesting idea that that kind of, you know, 0:18:08.400 --> 0:18:10.720 the fact that you can try and invest in a 0:18:10.800 --> 0:18:13.520 way that aligns with your political values I thought was 0:18:13.560 --> 0:18:16.399 a really novel concept. I'm not sure whether it's something 0:18:16.440 --> 0:18:20.359 that um I necessarily think is a great development for 0:18:20.440 --> 0:18:22.840 the world per se in that I think, you know, 0:18:22.880 --> 0:18:25.680 when you look at where things are politically these days, 0:18:25.720 --> 0:18:28.920 you know, we have so much polarization between right and left, 0:18:28.920 --> 0:18:30.760 and whether the right and left talk to each other 0:18:30.880 --> 0:18:34.040 enough anymore, I think is an area for debate. I 0:18:34.080 --> 0:18:36.720 do wonder whether you know, when you get into investing 0:18:36.760 --> 0:18:40.240 politically as well as kind of donating politically or going 0:18:40.280 --> 0:18:43.280 to rallies, whether that kind of takes that polarization one 0:18:43.320 --> 0:18:46.360 step further. But I think the idea about investing according 0:18:46.400 --> 0:18:49.920 to your political values as well as you know, maybe 0:18:49.960 --> 0:18:53.040 your morals or or know whether you think that energy 0:18:53.080 --> 0:18:55.080 stocks are going up, or whether the government's going to 0:18:55.160 --> 0:18:56.959 build roads in your your town, I think that's an 0:18:56.960 --> 0:18:59.520 interesting idea. I mean, the part that interests me a 0:18:59.600 --> 0:19:01.840 little bit. It's just that if if you want to 0:19:01.920 --> 0:19:04.200 build it, you can build it. And if it works, 0:19:04.240 --> 0:19:05.800 it works, and if it doesn't, it doesn't. And like 0:19:05.800 --> 0:19:07.560 if somebody wants to invest in that, they can invest 0:19:07.600 --> 0:19:09.480 in that. But here's this guy who had an idea, 0:19:09.520 --> 0:19:11.160 anyone out and did it right. I mean, that's when 0:19:11.160 --> 0:19:12.800 you can look at the e t F marketplace. It's 0:19:12.800 --> 0:19:15.919 a democracy. It's not something that necessarily you have to 0:19:16.000 --> 0:19:17.879 kind of be coming from a black rock or a 0:19:17.960 --> 0:19:20.639 vanguard to get success. If you have an idea and 0:19:20.720 --> 0:19:22.760 you go through the right kind of process, you can 0:19:22.760 --> 0:19:24.600 see your fund realized and then it's up to the 0:19:24.640 --> 0:19:27.639 marketplace whether it succeeds. I'm a little more bullish on 0:19:27.640 --> 0:19:30.280 the ETF then I think most people for two reasons. One, 0:19:30.880 --> 0:19:34.480 if this thing starts to become something that Sean Hannity 0:19:34.640 --> 0:19:37.040 or the conservative crowd starts talking about, you know, every 0:19:37.040 --> 0:19:38.840 time somebody on the left says something bad, they want 0:19:38.840 --> 0:19:41.359 to boycott the other side. This is a way to 0:19:41.440 --> 0:19:43.560 act with your dollars. And if it starts making its 0:19:43.560 --> 0:19:47.160 way in conservative circles, that's half the country as an audience. 0:19:47.440 --> 0:19:50.840 The second thing is this is heavy energy and industrials 0:19:50.840 --> 0:19:54.120 and has no tech. If the fang stocks crumble, they've 0:19:54.119 --> 0:19:56.920 had a few like hits, but they're back if they crumble. 0:19:57.359 --> 0:20:00.400 This thing has a lot of stocks that are more 0:20:00.440 --> 0:20:03.119 on the value side, and if it starts to outperform 0:20:03.200 --> 0:20:05.879 and ripped past the SMP five hundred, it could it 0:20:05.920 --> 0:20:09.320 could get assets just because it's outperforming. So it's got 0:20:09.400 --> 0:20:12.440 a couple of things that could garner assets that are 0:20:12.520 --> 0:20:15.000 legitimate in my opinion. Yeah, that's one thing that that 0:20:15.080 --> 0:20:17.120 how mentioned to me is that when he ran kind 0:20:17.119 --> 0:20:18.919 of back tests on on this fund and kind of 0:20:18.920 --> 0:20:21.440 how it performed in the past, I can pleasantly surprised 0:20:21.440 --> 0:20:23.359 to find that it didn't really correlate with the SMP 0:20:23.440 --> 0:20:25.800 five hundred, which when obviously you're using the SMP five 0:20:25.840 --> 0:20:29.159 hundred as your base universe, you'd expect that potentially to 0:20:29.160 --> 0:20:31.280 be more overlapped there. But it seemed that, you know, 0:20:31.320 --> 0:20:34.320 there is either outperformance or under performance. It's not really 0:20:34.359 --> 0:20:36.920 just tracking the SMP. At the beginning we talked about 0:20:36.920 --> 0:20:38.560 how E s G sort of on the left side 0:20:38.600 --> 0:20:40.240 of the map and MAGA might be on the right. 0:20:40.680 --> 0:20:42.600 It really shows in the numbers. If you look, there's 0:20:42.640 --> 0:20:45.600 only eight percent overlap between the two big E S 0:20:45.640 --> 0:20:48.040 G t F S and MAGA. That is not a 0:20:48.040 --> 0:20:51.159 lot considering they're both large caps. I personally think of E. 0:20:51.359 --> 0:20:54.000 S G went and sort of called itself liberal values. 0:20:54.080 --> 0:20:56.119 I think it might get off the ground faster and 0:20:56.200 --> 0:20:59.800 just recognize that's its audience anyway. But anyway, this is 0:21:00.000 --> 0:21:02.080 ascinating to see if the stock market continues to get 0:21:02.119 --> 0:21:06.119 divided via politics. Pretty crazy also that somebody had the 0:21:06.200 --> 0:21:09.760 ticker and relinquished it. You don't know who actually had 0:21:09.800 --> 0:21:13.040 the ticker. Wasn't the guy who There's another issuer who 0:21:13.040 --> 0:21:15.800 has GOP and dem how to tell me, and he 0:21:15.800 --> 0:21:18.639