WEBVTT - Cooking Up Returns with ETF Master Chefs 0:00:06.400 --> 0:00:13.200 Welcome to Trillions. I'm Joel Webber and I'm Eric Belchertis Eric. 0:00:13.240 --> 0:00:16.479 My Twitter has been blowing up so far this week 0:00:16.800 --> 0:00:20.880 because we did this video series with our colleagues at 0:00:20.880 --> 0:00:25.480 Bloomberg Quick Take that turned Trillions from the podcast that 0:00:25.560 --> 0:00:29.800 we hold so dear to us into a video show. Yeah. 0:00:29.840 --> 0:00:32.400 It's our second production, the first one being that et 0:00:32.520 --> 0:00:35.440 F Story audio documentary, but that still was audio only. 0:00:35.840 --> 0:00:38.120 This is our first foray into video and it was fun. 0:00:38.159 --> 0:00:41.080 I had had a good time, I thought, Um, I 0:00:41.159 --> 0:00:42.920 was proud that we were able to highlight a part 0:00:42.960 --> 0:00:46.680 of the industry that is rarely highlighted and for an 0:00:46.680 --> 0:00:50.360 audience that is more retail and is able to get 0:00:50.720 --> 0:00:55.160 inside look at how professionals assemble et F portfolios and 0:00:55.160 --> 0:00:58.080 pick ETFs and think about the market. And you had 0:00:58.080 --> 0:01:00.360 to kind of a I will credit you for this epiphany. 0:01:00.760 --> 0:01:03.640 I've long talked about food on the show, as any 0:01:03.840 --> 0:01:06.600 listener knows. Uh, you were the one that brought it 0:01:06.640 --> 0:01:09.520 all together. So, and we had some guests who are 0:01:09.520 --> 0:01:11.640 amazing and all of those guests are going to join 0:01:11.760 --> 0:01:15.840 us today. What was your epiphany? Well, we were debating 0:01:15.880 --> 0:01:19.080 what to do and UM, two things, Uh, one. A 0:01:19.120 --> 0:01:21.280 lot of our ideas were just despaired. It would require 0:01:21.360 --> 0:01:24.480 like so much different, like go to the gold Vault 0:01:24.520 --> 0:01:26.839 and it it was like, man, that's gonna take weeks 0:01:26.880 --> 0:01:30.600 to pull off for four minute episodes. So one of 0:01:30.600 --> 0:01:32.760 it was just convenience, you know, let's let's just shoot 0:01:32.760 --> 0:01:35.040 it all in one day. But the other thing was, 0:01:35.360 --> 0:01:37.320 you know, I get it comes back to when I 0:01:37.360 --> 0:01:40.600 wrote my book on e t F s in I 0:01:40.680 --> 0:01:44.400 was interviewing institutions, and none of them really knew about 0:01:44.440 --> 0:01:45.960 e t S. They knew like the top ten most 0:01:46.000 --> 0:01:48.240 traded one like SPY and i WM. But then I 0:01:48.240 --> 0:01:50.120 would interview a certain kind of investor called an e 0:01:50.160 --> 0:01:53.120 t F strategist, and they knew everything. I mean, I 0:01:53.120 --> 0:01:55.440 could throw the thirty seven tech et F at them 0:01:55.440 --> 0:01:57.760 and they would have an opinion on it. And and 0:01:57.800 --> 0:01:59.400 so for the whole second half of the book, I 0:01:59.480 --> 0:02:02.400 quote these strategists, and as I talked to them, I 0:02:02.480 --> 0:02:05.080 just felt that what they were doing was making E 0:02:05.200 --> 0:02:09.000 t F recipes. Essentially, I almost called the book the 0:02:09.080 --> 0:02:11.480 e t F Cookbook, and I was gonna put some 0:02:11.520 --> 0:02:14.520 of their recipes. It went a different direction, but that idea, 0:02:14.560 --> 0:02:16.400 I guess just sort of lingered in the back of 0:02:16.440 --> 0:02:18.919 my mind for the years after, and finally it found 0:02:18.960 --> 0:02:21.280 a home here. So we kind of made it like 0:02:21.320 --> 0:02:25.680 a Master Chef TV show. Oh it's like genius okay 0:02:25.840 --> 0:02:28.400 joining us in this episode that I don't I sense 0:02:28.400 --> 0:02:30.880 a little sarcasm there, but I'll take it. It was. 0:02:30.960 --> 0:02:33.800 It was rich with sarcasm, okay. So joining us on 0:02:33.840 --> 0:02:37.079 this episode we got John Davies, Shane iss Thistle to 0:02:37.200 --> 0:02:43.960 shar Yadava and Ben Levine this time on Trillions the 0:02:44.120 --> 0:02:50.680 e t F Master Chef's John Shana to shar Ben, 0:02:51.080 --> 0:02:54.400 thanks for joining us on on Trillions the podcast this time. 0:02:54.960 --> 0:02:58.320 Thanks for having us. Thank you. Yeah, welcome, happy to 0:02:58.360 --> 0:03:01.840 be here. Oh Gate too. Jar. I want to start 0:03:01.919 --> 0:03:05.480 with you. Can you describe when you're when we're not 0:03:05.600 --> 0:03:09.959 using a force metaphor like being a master Chef, how 0:03:09.960 --> 0:03:13.600 do you describe being an et F strategist. I mean, 0:03:13.680 --> 0:03:17.080 I would say, you know, um, credit to Eric right, 0:03:17.080 --> 0:03:19.400 and I'm gonna just blow smoke right in his direction 0:03:19.440 --> 0:03:22.359 and say that this is the king of all metaphors. 0:03:22.400 --> 0:03:25.000 But you know, look, I think what we're trying to 0:03:25.040 --> 0:03:28.040 do is we're trying to build portfolios for at least 0:03:28.240 --> 0:03:30.560 an our side, and portfolios that we're building for advisors 0:03:30.760 --> 0:03:33.040 that they can use to help scale their practice, help 0:03:33.080 --> 0:03:36.880 build wealth for their households. And so you know, really, 0:03:37.160 --> 0:03:39.320 if there wasn't something killer metaphor, I mean, maybe it 0:03:39.320 --> 0:03:41.840 would be you know, kind of like thinking about building blocks, 0:03:41.880 --> 0:03:44.200 but that's so hackneyed and so well traveled. I think 0:03:44.200 --> 0:03:46.280 in the E t F world that I think, you know, 0:03:46.400 --> 0:03:48.240 no one can see the screens now, but everyone's shaking 0:03:48.240 --> 0:03:50.360 their heads at me with disdain. So um, you know, 0:03:50.360 --> 0:03:52.920 I'd say maybe that's probably the closest experience you could 0:03:52.920 --> 0:03:55.600 think of. Um, But really, you know, it is about 0:03:55.640 --> 0:03:57.640 that sort of end product of just what you put 0:03:57.680 --> 0:03:59.760 out there, what the model looks like, what it's behaving like, 0:03:59.800 --> 0:04:02.680 ink it's like we've seen over this year, and what 0:04:02.760 --> 0:04:05.640 it's doing for households, uh and their end results, you know, 0:04:05.680 --> 0:04:07.600 which we're hoping to build that well for them and 0:04:08.440 --> 0:04:10.200 do it at a fees with less risk, which is 0:04:10.280 --> 0:04:13.400 kind of the big goal that we're looking for. And 0:04:13.480 --> 0:04:15.320 let me jump in here real quick, because one thing 0:04:15.360 --> 0:04:18.479 that I discovered when I was covering ETFs, it was 0:04:18.480 --> 0:04:21.640 about the years into covering them, that was that advisors 0:04:22.160 --> 0:04:25.599 don't really do a lot of investing. Um, that was 0:04:25.640 --> 0:04:27.880 something I you know, some do, but a lot of 0:04:27.880 --> 0:04:31.600 them outsource it. They're going to work on planning the 0:04:32.400 --> 0:04:35.440 like estate planning, and uh for the relationships and the 0:04:35.480 --> 0:04:38.960 behavioral coaching. UM, I guess I'll go to John for 0:04:39.000 --> 0:04:41.400 that one. Can you talk a little bit about what 0:04:41.440 --> 0:04:44.800 advisors are doing in that they're going to use your portfolio? 0:04:44.960 --> 0:04:47.640 What are they doing? Then, since you're doing the investing, 0:04:49.200 --> 0:04:51.680 it's it's exactly what you said, it's um. You know, 0:04:51.720 --> 0:04:56.640 they're worrying about the overall client relationships, so that doing taxes, insurance, 0:04:57.120 --> 0:05:01.960 state planning, behavioral coaching, um, you know. And and they 0:05:02.040 --> 0:05:04.920 their expertise isn't really to be markets people or to 0:05:05.320 --> 0:05:07.440 you know, how to design a portfolio, so that's where 0:05:07.440 --> 0:05:11.039 they leave that to, you know, subadvisors such as you 0:05:11.040 --> 0:05:14.479 know bend myself too, sure, Shanna. So I think it's 0:05:14.480 --> 0:05:16.920 a win win for everyone that the end client gets 0:05:16.920 --> 0:05:20.599 a better portfolio experience, a better outcome that they're looking 0:05:20.600 --> 0:05:23.480 to solve for. And um, you know, everyone is happy 0:05:23.520 --> 0:05:26.279 in the end. Do they ever come back or they 0:05:26.320 --> 0:05:28.280 ever look at it and go, hey, man, why did 0:05:28.279 --> 0:05:31.480 you pick uh, you know XLK instead of v G 0:05:31.680 --> 0:05:34.080 T or whatever, Like do they ever needle you over 0:05:34.160 --> 0:05:38.200 your picks? Well, I mean what happens nowadays? You know, 0:05:38.240 --> 0:05:40.479 the SMP has gone straight up the last ten years, 0:05:40.480 --> 0:05:42.520 so everyone wants to just know why you didn't do 0:05:42.560 --> 0:05:45.600 as good as the SMP. But that's a separate conversation. 0:05:45.720 --> 0:05:48.640 I mean, you know, Shannon myself and I mean, we 0:05:48.680 --> 0:05:51.960 could spend hours talking about that alone. But they don't 0:05:51.960 --> 0:05:53.760 really go too much into the weeds. They just like 0:05:53.839 --> 0:05:56.760 to look at like how they count as growing and um. 0:05:57.320 --> 0:06:00.240 You know, sometimes the financial advisor will actually say why 0:06:00.240 --> 0:06:03.400 did you pick this one ETF This is down whereas 0:06:03.440 --> 0:06:05.800 the market's up, And then you gotta explain, Okay, you know, 0:06:05.800 --> 0:06:09.120 when you go to portfolio, it's like a recipe. All 0:06:09.120 --> 0:06:12.880 the ingredients fit together. Someone was supposed to spice, someone 0:06:12.960 --> 0:06:16.359 supposed to be you know, sweet savory. But in collection, 0:06:16.520 --> 0:06:19.360 and you know the collection, the entire recipe works on 0:06:19.400 --> 0:06:21.839 the end. So sometimes you just explain, like, Okay, this 0:06:21.880 --> 0:06:25.359 one ETIF is meant to like be your portfolio dampener. 0:06:25.760 --> 0:06:30.880 We're supposed to provide protection. Shana, you had kind of 0:06:30.920 --> 0:06:35.800 the rock star portfolio, so I'm gonna ask you if 0:06:35.839 --> 0:06:39.280 there's one other portfolio that you most invied other than 0:06:39.320 --> 0:06:42.760 your own, which one was it? I I like, uh 0:06:42.880 --> 0:06:46.120 John Davids portfolios as a matter of fact. It's it's 0:06:46.120 --> 0:06:48.960 one of those portfolios that complements well some of the 0:06:49.000 --> 0:06:50.960 stuff we do, which is a little more exotic, a 0:06:50.960 --> 0:06:54.279 little more as you put rock star ish, those inflation 0:06:54.400 --> 0:06:58.320 oriented types of portfolios actually are a great heads that 0:06:58.360 --> 0:07:00.920 we can layer on top and and we do look 0:07:00.960 --> 0:07:06.320 at a story as products at Spotlight, uh to complement 0:07:06.360 --> 0:07:08.400 some of those things we're doing. Because you know, we're 0:07:08.400 --> 0:07:11.160 a small organization, we can't do everything in house, so 0:07:11.240 --> 0:07:14.720 we look to people, just like everybody that's here, whether 0:07:14.720 --> 0:07:18.600 it be John or Ben or Touchar, we are looking 0:07:18.640 --> 0:07:22.120 to use their expertise is along with our own in 0:07:22.240 --> 0:07:26.160 house to layer upon and complement depending on our client's needs. 0:07:27.040 --> 0:07:29.240 And just talk a little bit about you were you 0:07:29.320 --> 0:07:32.239 had some clients that were athletes, and everybody is always 0:07:32.240 --> 0:07:34.640 intrigued about that because we we actually hear about athletes 0:07:34.680 --> 0:07:38.560 getting ripped off by their advisors pretty frequently, where movie 0:07:38.560 --> 0:07:42.640 stars getting into bad deals. Everybody remembers made off. Um, 0:07:42.720 --> 0:07:45.520 what's a conversation with an athlete, like when you're sharing 0:07:45.520 --> 0:07:49.280 your portfolio or with the relationship manager who shares the portfolio, 0:07:49.680 --> 0:07:52.760 do they kind of care what the tickers are or 0:07:52.880 --> 0:07:55.120 they just sort of trust you. How's it work. It's 0:07:55.160 --> 0:07:59.440 interesting because I think we understand the risks that a 0:07:59.440 --> 0:08:02.840 lot of athlete to have in terms of um they 0:08:02.960 --> 0:08:06.840 have capital, they have assets, and so they are often 0:08:07.000 --> 0:08:12.200 asked to invest in, you know, relatively risky things as 0:08:12.240 --> 0:08:15.800 an angel or an a venture capacity. Uh So we're 0:08:15.840 --> 0:08:18.800 aware of those concerns that they have, and we actually 0:08:19.000 --> 0:08:22.880 try to present ourselves and uh as a gatekeeper for them. 0:08:23.120 --> 0:08:25.720 You know, we look at these core portfolios as a 0:08:25.760 --> 0:08:29.040 way of you know, having that trust and saying, look, 0:08:29.040 --> 0:08:31.520 we're not going to sell you anything exotic. Here's a 0:08:31.600 --> 0:08:36.360 nice core model for you to to begin with the 0:08:36.400 --> 0:08:39.960 foundation of your assets. And then as things get presented 0:08:40.000 --> 0:08:42.720 to you, where your gatekeeper, We're gonna do the due 0:08:42.720 --> 0:08:45.400 diligence for you, We're gonna help you make these decisions. 0:08:45.600 --> 0:08:47.280 We're gonna be honest with you and tell you this 0:08:47.400 --> 0:08:50.559 sounds like a scheme because quite frankly, as a fiduciary 0:08:50.600 --> 0:08:53.839 and with the expertise that we have me in particular, 0:08:53.880 --> 0:08:56.760 working in the private fund market, I can look at 0:08:56.760 --> 0:09:00.679 some fine prints on on a pit deck and tell 0:09:00.720 --> 0:09:04.120 you right away, like this is not gonna fly for me, 0:09:04.400 --> 0:09:07.080 asking the right questions, finding out who other backers are. 0:09:07.360 --> 0:09:09.760 You know, our goal is to present ourselves and to 0:09:09.920 --> 0:09:14.600 sort of be that trusted gatekeeper for our athlete clients. 0:09:14.840 --> 0:09:16.640 And I think that's why they trust us. We're not 0:09:16.960 --> 0:09:20.640 selling them anything overly exotic. If there's something in particular 0:09:20.640 --> 0:09:22.920 that they're interested in looking into, we can do that. 0:09:22.960 --> 0:09:25.840 But more often than not, they get in trouble because 0:09:25.840 --> 0:09:28.800 they get presented with opportunities and no one's doing the 0:09:28.920 --> 0:09:31.880 real due diligence for them. They're kind of doing it 0:09:31.920 --> 0:09:34.880 on their own, and that's where they end up with problems. 0:09:34.920 --> 0:09:37.679 And not all financial advisors have the capacity to do that. 0:09:38.200 --> 0:09:41.240 And we're just lucky and that someone like myself, who 0:09:41.240 --> 0:09:44.760 has been doing private fundue diligence for the last fifteen years, 0:09:45.120 --> 0:09:48.040 does have some expertise in that that area and can 0:09:48.080 --> 0:09:50.040 look at some of the things that they get presented 0:09:50.080 --> 0:09:52.560 with and say, look, this isn't good for your brand. 0:09:53.120 --> 0:09:55.760 Maybe it's a fine investment, but maybe it's done aligned 0:09:55.800 --> 0:09:59.000 with their brand. Or you know, I just don't think 0:09:59.040 --> 0:10:02.400 this is an appropriate way to to invest your money 0:10:02.480 --> 0:10:04.360 right now. And let me tell you all the red 0:10:04.360 --> 0:10:06.160 flags I found along the way and the do deal 0:10:06.280 --> 0:10:16.840 just process. Ben, Um, you've been quiet so far. Uh. 0:10:17.000 --> 0:10:20.600 You had one of the most I think impressive video 0:10:20.640 --> 0:10:23.360 performances out of all of us. Eric and I both 0:10:23.400 --> 0:10:26.200 looked fat and shlowby on camera, and you were like, uh, 0:10:26.400 --> 0:10:29.000 you know, Keto, by the way, can I just address 0:10:29.040 --> 0:10:31.360 this anybody who's watched this video. I've lost ten pounds 0:10:31.440 --> 0:10:34.240 since we shot that. Um. But yeah, Ben shut us 0:10:34.240 --> 0:10:37.480 all up. But Ben, I thought Ben also Ben dove 0:10:37.559 --> 0:10:40.440 into the metaphor the hardest. He went all the way. 0:10:41.559 --> 0:10:45.320 What kind of movie deals have you struck since your 0:10:45.360 --> 0:10:50.679 your Trillions debut? I'm still a low profile O our 0:10:50.800 --> 0:10:54.920 podcast numbers and the hundred's not the thousands. Okay, So 0:10:54.920 --> 0:10:57.800 so Ben, what did you what did you learn from 0:10:57.840 --> 0:11:01.040 from uh the other guests that we had on and 0:11:01.040 --> 0:11:03.120 and just the whole experience of of doing the video 0:11:03.200 --> 0:11:06.439 series with us jes sa, there's more than one type 0:11:06.480 --> 0:11:10.800 of chef. Uh. To extend the metaphor, Um, you can 0:11:10.880 --> 0:11:13.880 look at an ETF portfolio. EI there as a recipe 0:11:14.080 --> 0:11:16.440 that has combined ingredients, or you can look at as 0:11:16.480 --> 0:11:19.040 a bento box that has kind of its own individual 0:11:19.679 --> 0:11:24.560 dishes pulled together and to sort of one cohesive lunchtime meal. 0:11:25.440 --> 0:11:28.600 I would say that there isn't just a one size 0:11:28.679 --> 0:11:33.000 fits all approach to asset allocation. What we have discovered 0:11:33.040 --> 0:11:37.360 over the years with e t fs is it really 0:11:37.559 --> 0:11:42.079 is a technological advancement from traditional acid allocation that has 0:11:42.120 --> 0:11:45.760 been historically done with either mutual funds or with separate accounts, 0:11:46.360 --> 0:11:49.559 and e t fs just extends that asset allocation exercise 0:11:49.600 --> 0:11:54.240 in a much more efficient, practical, tax effective manner. And 0:11:54.840 --> 0:11:59.319 and so the chefs can basically apply their their their 0:11:59.440 --> 0:12:03.839 style there, their chef making skills and create portfolios UM 0:12:04.000 --> 0:12:08.280 in a much more seamless fashion using ETFs. Whereas with 0:12:08.720 --> 0:12:12.199 with mutual funds that didn't have intry day pricing that 0:12:12.360 --> 0:12:14.719 didn't have the same kind of transparency that we have 0:12:14.880 --> 0:12:17.280 with e t f s, you can still cook a 0:12:17.360 --> 0:12:20.079 meal with them, but it's it's it's different in the 0:12:20.160 --> 0:12:22.120 sense that that you really just sort of don't have 0:12:23.040 --> 0:12:27.480 as UM I would say, transparent access to what it 0:12:27.600 --> 0:12:29.559 is that you're putting together, Like you do with with 0:12:29.679 --> 0:12:33.559 the E T F structure and like when you're all 0:12:33.679 --> 0:12:35.160 you guys, when I when I worked with you to 0:12:35.280 --> 0:12:37.760 pick the portfolio, we had this prep call, like which 0:12:37.800 --> 0:12:39.960 one should we choose? And we try to be diverse, 0:12:40.040 --> 0:12:42.320 so some are a little more aggressive and some are 0:12:42.360 --> 0:12:45.920 more I think too. Sure you had the most vanilla sixty. 0:12:46.400 --> 0:12:48.959 But do you guys just walk down the street and 0:12:48.960 --> 0:12:50.839 then one day you're like, you know what that's the 0:12:50.920 --> 0:12:54.120 next portfolio? Or like, what where do you get the 0:12:54.240 --> 0:12:58.520 idea to add to your menu? So to speak? I 0:12:58.559 --> 0:13:00.600 guess I'll start with Ben and then go to two Shark. Sure. 0:13:00.760 --> 0:13:03.920 I mean some of the newer portfolios we've launched have 0:13:04.080 --> 0:13:07.520 come from our advisors, and typically that's where you see 0:13:07.559 --> 0:13:11.079 the best product development occur or the best solution development occurs. 0:13:11.280 --> 0:13:13.959 Is you get requests from advisors, hey can you do this? 0:13:14.760 --> 0:13:16.920 So we did that with the Global Growth Model that 0:13:17.000 --> 0:13:19.079 we profiled on your show. We've done that with the 0:13:19.360 --> 0:13:23.360 s G. We did that more recently with a downside 0:13:23.400 --> 0:13:27.559 protection strategy that doesn't look to do tactical asset allocation 0:13:27.720 --> 0:13:31.800 but instead invest in the new newly launched buffery ETFs 0:13:31.880 --> 0:13:35.440 that are invested in color option programs. So these are 0:13:35.480 --> 0:13:39.480 all uh ideas that came from our advisor base, and 0:13:39.600 --> 0:13:42.600 I think that's where you basically get your best best 0:13:42.720 --> 0:13:45.080 ideas in terms of what you could be doing differently 0:13:46.160 --> 0:13:49.719 and to sharm. You know, black Rock is massive and 0:13:49.800 --> 0:13:54.520 I'm you know, obviously the biggest asset manager, biggest model 0:13:54.559 --> 0:13:57.560 portfolio maker. And when you make a shift, I mean 0:13:57.840 --> 0:13:59.400 I can see it in the flows. I mean I 0:13:59.480 --> 0:14:02.440 have my my NAV screen and I was like, Okay, 0:14:02.480 --> 0:14:04.320 they must have done something. It's either you or Meryl. 0:14:06.280 --> 0:14:08.959 So you know, there's a lot of pressure on you. 0:14:09.040 --> 0:14:10.400 How many how many people do you have to get 0:14:10.400 --> 0:14:12.959 approval from before you move out of say us m 0:14:13.000 --> 0:14:15.560 V into empty um or something. Yeah, I mean from 0:14:15.600 --> 0:14:20.000 the portfolio management team M that there is some very 0:14:20.080 --> 0:14:21.960 heavy debate that goes on. There's a lot of committee 0:14:22.600 --> 0:14:24.880 uh you know meeting that goes on, and you know 0:14:25.120 --> 0:14:27.920 it's something that is extremely you know, we can do 0:14:28.040 --> 0:14:29.760 it in a heartbeat if we have to respond to 0:14:29.800 --> 0:14:32.720 a market environment, but it's also something that isn't done 0:14:32.800 --> 0:14:35.040 lightly right, and there's a lot of work that goes 0:14:35.080 --> 0:14:37.200 into preparing any kind of trade. You want to think 0:14:37.240 --> 0:14:39.520 about it and make sure you're sort of ex anti 0:14:39.800 --> 0:14:43.560 kind of changes in risk, what you're looking for, um 0:14:43.960 --> 0:14:46.680 in your information ratio, all these kind of wonkish ways 0:14:46.760 --> 0:14:50.240 of thinking about how you're adjusting your portfolio to make 0:14:50.320 --> 0:14:53.360 sure the move that you're making is additive, it is 0:14:53.440 --> 0:14:56.600 really important. And then there's just the basic portfolio hygiene 0:14:56.640 --> 0:14:59.040 of of rebalancing every quarter. I think that that we 0:14:59.160 --> 0:15:01.640 do that that's important as well. And you know, a 0:15:01.680 --> 0:15:04.240 lot of what we do comes back to you said vanilla, like, 0:15:04.400 --> 0:15:06.720 you know, pejoratively, but I'll remind you that vanilla is 0:15:06.760 --> 0:15:10.200 the most popular flavor in the United States, and everyone's 0:15:10.240 --> 0:15:12.600 had bad vanilla, and you know everyone's had to heat 0:15:13.000 --> 0:15:16.680 should vanilla in the little gelato like you know, glass 0:15:17.160 --> 0:15:19.400 jar thing that you pay eight dollars for. And you 0:15:19.480 --> 0:15:22.160 know you're trying to impress family with And I try 0:15:22.240 --> 0:15:24.520 and believe that we're truly in that, you know, And 0:15:24.640 --> 0:15:26.280 I said I think on the show is like it's 0:15:26.280 --> 0:15:28.360 a very simple product, but if you can deliver it 0:15:28.400 --> 0:15:31.320 in a really powerful manner that that resonates. And I 0:15:31.440 --> 0:15:34.640 think when you look inside our model, you've got things 0:15:34.720 --> 0:15:36.640 like E. S. G. In there as a stock selection 0:15:36.760 --> 0:15:40.880 that you've got commodities in there as inflation protection. You know, 0:15:41.000 --> 0:15:44.520 we're looking at fallen angels, we're looking at sectors. So 0:15:44.760 --> 0:15:47.520 it's not your basic sixty forty, you know, just sort 0:15:47.560 --> 0:15:49.760 of set it and forget it. And we're trading on 0:15:49.880 --> 0:15:53.920 things like, you know, the worst of COVID or you know, 0:15:54.080 --> 0:15:57.440 the aftermath of the election last year. So we consider 0:15:57.520 --> 0:15:59.520 ourselves and pride ourselves and being active managers. And I 0:15:59.600 --> 0:16:02.640 think the Furey reflects that. Um, even if it is 0:16:02.680 --> 0:16:04.240 a bit vanilla and I didn't come up with the 0:16:04.320 --> 0:16:06.880 fantastic analogy of the Bento box. Bend had to have 0:16:06.920 --> 0:16:12.400 written that down. Isn't an amazing how easy the food 0:16:12.520 --> 0:16:14.960 metaphor is, though, Like when it's just like it's just 0:16:15.160 --> 0:16:17.280 like right there, it's like so easy, how can you 0:16:17.960 --> 0:16:20.040 this swing? And he just pulled it out and just 0:16:20.320 --> 0:16:24.360 laid it out there. I'm so not a food person. 0:16:24.600 --> 0:16:26.800 I just want to jump on some things that Charter said. 0:16:27.160 --> 0:16:29.840 You know, I think it's really interesting. I'm not sure 0:16:29.960 --> 0:16:33.800 people really understand some of the thought process that has 0:16:33.840 --> 0:16:35.600 to go in, especially if you're a larger or a 0:16:35.720 --> 0:16:39.960 larger percentage of a fund. Having worked for Fidelity Strategic Advisors, 0:16:40.240 --> 0:16:43.880 you know, there's there's exemptive relief issues. There's there's just 0:16:44.000 --> 0:16:47.320 a courtesy that occurs where if you're a large investor 0:16:47.400 --> 0:16:49.720 and a fund and perhaps you have exempted relief, you 0:16:49.800 --> 0:16:51.720 give a lot of notice or you try to give 0:16:51.760 --> 0:16:54.720 a lot of notice to the funds you're invested in, 0:16:55.600 --> 0:16:59.520 because you understand that if you move into or out 0:16:59.520 --> 0:17:01.720 of a fund, you are going to affect the price 0:17:01.840 --> 0:17:04.480 of that that product. It's not a big a deal 0:17:04.560 --> 0:17:08.240 as in e T s because ets have the ability 0:17:08.359 --> 0:17:13.280 to u through the creation redemption process get rid of 0:17:13.280 --> 0:17:18.960 the arbitrage related to those individual um inflows outflows. In 0:17:19.040 --> 0:17:21.880 the mutual fund world, it's a lot harder because if 0:17:22.080 --> 0:17:25.400 you know you are a large investor and you're gonna 0:17:25.600 --> 0:17:28.040 move your money, you have to understand the second you 0:17:28.160 --> 0:17:31.920 do that, unless you do it in a really organized way, 0:17:32.160 --> 0:17:34.960 over days or months, you are going to move the 0:17:35.040 --> 0:17:38.239 price of that either upwards or downwards, depending on how 0:17:38.280 --> 0:17:40.080 your money is going in. And there's a lot of 0:17:40.119 --> 0:17:42.119 thought gos into that, even at a small firm like 0:17:42.240 --> 0:17:46.840 Spotlight UM. You know, I'm a big user of alternative funds, 0:17:46.920 --> 0:17:49.760 whether they be mutual funds, e T s or you know, 0:17:49.920 --> 0:17:52.760 we talked about crypto a little bit on my UH 0:17:52.880 --> 0:17:56.320 little segment. These are products that are don't have a 0:17:56.400 --> 0:17:59.440 ton of liquidity and don't have a lot of market cap. 0:17:59.800 --> 0:18:03.400 So even a small firm like Spotlight, you know, last 0:18:03.480 --> 0:18:06.520 year we had a fairly substantial position and e t 0:18:06.680 --> 0:18:09.680 F called b T a l UH and even at 0:18:10.040 --> 0:18:12.680 you know, a small firm like us, we actually did 0:18:13.240 --> 0:18:16.560 UH have impact on that funds pricing. We had to 0:18:16.640 --> 0:18:19.880 work with a market maker at our custodian to help 0:18:19.960 --> 0:18:21.920 us move out of that so that we were not 0:18:22.200 --> 0:18:27.520 negatively impacting the price of that product. And you do 0:18:27.640 --> 0:18:30.800 have to think about those things. It's huge for for 0:18:31.000 --> 0:18:33.120 for even the smallest or even the largest of sort 0:18:33.160 --> 0:18:35.520 of provide is it's something that I don't think a 0:18:35.560 --> 0:18:38.880 lot of people you know, appreciate that. You know, even 0:18:38.960 --> 0:18:43.160 all of us, right John and Ben and yourself are 0:18:43.200 --> 0:18:45.240 trying to make sure that we're having a positive experience 0:18:45.240 --> 0:18:47.520 in the market as well. And you know, people in 0:18:47.600 --> 0:18:49.480 the model that are still in the model that I'm 0:18:49.600 --> 0:18:51.560 you know, staying in the model with how you're trading. 0:18:51.880 --> 0:18:55.040 You don't want that kind of you know, negative experience 0:18:55.160 --> 0:18:58.000 that's connected to your UH, to your sort of day 0:18:58.000 --> 0:19:00.760 to day operations, and so that's really really important. People 0:19:00.760 --> 0:19:03.359 think you're just putting poor photos together, but we spend 0:19:03.400 --> 0:19:06.440 a ton of time thinking about the market impact of 0:19:06.560 --> 0:19:07.960 what we have on these e t s. And you 0:19:08.000 --> 0:19:10.120 mentioned the t F. It's beautiful with the creation redemption 0:19:10.160 --> 0:19:12.240 structure that you can get around a lot of that. 0:19:12.440 --> 0:19:14.399 But Eric mentioned earlier as well. You can look at 0:19:14.400 --> 0:19:16.679 his NAV screen and he could point to our prints 0:19:16.840 --> 0:19:18.960 right as soon as they hit the tape um and 0:19:19.000 --> 0:19:20.399 so there's a lot of eyes that are on that 0:19:20.520 --> 0:19:22.160 as well. Right, and then with a mutual fund, maybe 0:19:22.160 --> 0:19:24.399 you just have some cash drag and you know it 0:19:24.720 --> 0:19:27.000 doesn't ever get seen. But with the t F world, 0:19:27.080 --> 0:19:29.440 it's it's very visible and you have to make sure 0:19:29.520 --> 0:19:33.200 that you're um, you know, doing no harm, so to speaking. 0:19:33.359 --> 0:19:38.200 Prints are on the cookie jar exactly. I call it footprints. 0:19:38.680 --> 0:19:41.880 And that's why I call Meryl bigfoot. You you there's 0:19:41.920 --> 0:19:43.520 a sighting every once in a while and you just 0:19:43.640 --> 0:19:45.359 you you just know it when it's a it's a 0:19:45.400 --> 0:19:47.439 big footprint. But it's too sure. I will I will 0:19:47.480 --> 0:19:51.080 say kudos to your Pierre department for acknowledging now when 0:19:51.119 --> 0:19:54.440 it is you like notice lately when news calls you 0:19:54.720 --> 0:19:57.680 and says, was this big flow out of such and such, 0:19:57.720 --> 0:20:00.240 You're like, yeah, it was us, Um, we appreciate at that. 0:20:00.280 --> 0:20:02.480 But anyway, UM, one thing I would like to talk about, 0:20:02.560 --> 0:20:04.719 and SHANEA brought it up, and I'll go to Ben 0:20:04.840 --> 0:20:07.359 on this. Because you have a lot of products that 0:20:07.680 --> 0:20:09.399 some of them I've never even heard of. I mean, 0:20:09.560 --> 0:20:12.760 or I guess I saw once but forgot about. This 0:20:12.960 --> 0:20:16.359 is very different than a normal, bigger professional institutional investor 0:20:16.400 --> 0:20:19.200 who tends to stay to the top fifty products. Could 0:20:19.240 --> 0:20:21.719 just talk about how deep you go in the toolbox 0:20:21.880 --> 0:20:25.000 and do you do you analyze every new ETF that 0:20:25.359 --> 0:20:27.119 comes out on the market. I mean, how much of 0:20:27.200 --> 0:20:30.560 your job is just keeping your eye on the smaller, 0:20:30.920 --> 0:20:34.680 less known stuff. So this will be a shameless plug 0:20:34.840 --> 0:20:37.320 for a Bloomberg, but I couldn't do my job without 0:20:37.560 --> 0:20:41.800 having my Bloomberg terminal and morning Star analytics available. Bloomberg 0:20:41.880 --> 0:20:45.240 port is a analogical tool we use that can basically 0:20:45.400 --> 0:20:48.680 dig behind the holdings of the tfs, whether their equity 0:20:48.840 --> 0:20:52.200 or fixed income. We're gonna look at what they Essentially, 0:20:52.400 --> 0:20:57.000 the systematic risks are associated with the underlying portfolio, and 0:20:57.119 --> 0:20:59.879 that basically gives us a pretty good idea of not 0:21:00.160 --> 0:21:04.280 only what the portfolio looks like from a wrist standpoint, 0:21:04.400 --> 0:21:07.159 but then when you combine that portfolio with other portfolios, 0:21:07.200 --> 0:21:10.720 which is very again, very handy tool to have something 0:21:10.800 --> 0:21:13.040