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Speaker 1: She's on the Money. She's on the Money.

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Speaker 2: Hello, and welcome to She's on the Money, the podcast

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Speaker 2: for millennials who want financial freedom. That She's on the

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Speaker 2: Money podcast has been around since twenty nineteen and we

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Speaker 2: have covered everything in my personal opinion, from how to save,

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Speaker 2: to all the different types of asset classes you can

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Speaker 2: invest in, to what an estate plan actually is. But

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Speaker 2: something we haven't done deeply is discuss investment products and

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Speaker 2: what they are, because I really wanted you to focus

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Speaker 2: on the foundations first. However, my friend's twenty twenty two

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Speaker 2: is the year that we are going to become fluent

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Speaker 2: in the language of investment together. Now, before we dive

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Speaker 2: right in, it would be a miss of me to

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Speaker 2: not introduce my co host Sam sam Blacker. Welcome to

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Speaker 2: the Wednesday Deep Dive episode.

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Speaker 3: Hello of dond Mawig. I am filling in for Jess.

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Speaker 3: Thank you for having me.

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Speaker 2: You are so welcome.

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Speaker 3: Look, sorry to anyone who was expecting Jess's voice and

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Speaker 3: have been very disappointed with hearing mine. Unfortunately things got

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Speaker 3: a bit iffy with the recordings and Jess is unavailable

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Speaker 3: and so I'm stepping in. Hello.

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Speaker 2: It was actually a bit of a what would we

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Speaker 2: call it as she's on the money garbage fire where

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Speaker 2: I forgot to turn on my microphone when recording with

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Speaker 2: Jess last week. And this episode is being recorded the

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Speaker 2: day before it goes live with Sam. So cheers to Sam,

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Speaker 2: who's actually our podcast producer from the podcast Butler. So, Sam,

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Speaker 2: you're kind of a part of the show. You're just

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Speaker 2: like a background member.

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Speaker 3: It's weird to be on this site.

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Speaker 2: Welcome to front of House. This is how it goes.

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Speaker 2: Our podcast is an absolute garbage fire, not in reality.

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Speaker 2: But this week you've come onto the show not to

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Speaker 2: talk about a fluffy episode. I don't know how you're

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Speaker 2: gonna deal with this because Jess took Jess a good

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Speaker 2: twelve months to get used to talking about investment products,

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Speaker 2: and you've just been thrown in the deep end.

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Speaker 3: Yeah. And the other thing is that there is that

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Speaker 3: the episode that you recorded with her, like there's a

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Speaker 3: mystery episode. No one will ever hear of the whole

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Speaker 3: detailed ETF stuff.

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Speaker 2: It's never going to be here Jess asking really good questions.

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Speaker 2: But you know what, you've had a bit of a

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Speaker 2: skim of what Jess asked. You saw her side of

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Speaker 2: the conversation. So before we get into it and have

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Speaker 2: this conversation which I'm genuinely so excited to have a

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Speaker 2: conversation about, and I just want to talk more investing.

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Speaker 2: So she's on the money might become she's on the

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Speaker 2: investment in twenty twenty two, but that is okay. But

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Speaker 2: before we get there, I think it's really really important

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Speaker 2: that we actually disclaimer this episode. And I know that

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Speaker 2: we always do this at the end, but at the

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Speaker 2: end of the day, the conversations we have on this

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Speaker 2: podcast are absolutely not advice, but rather they are an

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Speaker 2: open ended conversation because we want to discuss particular products

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Speaker 2: and the performance and the underlying assets. But just because

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Speaker 2: we do that on this podcast does not mean I

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Speaker 2: necessarily recommend it. You'd need personal advice for this, and

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Speaker 2: the purpose of this podcast is actually for you to

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Speaker 2: be more educated so you can have more informed conversations

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Speaker 2: and make more informed decisions more often. So just because

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Speaker 2: I mentioned a particularly ETF does not mean, by any

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Speaker 2: stretch of the imagination, that I recommend it, or that

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Speaker 2: I want you to go invest in it, or that

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Speaker 2: I would even do that myself. It's just a conversation,

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Speaker 2: especially today where we're talking about the top five performing

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Speaker 2: ETFs of twenty twenty one. It's literally just statistics that

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Speaker 2: got them there. So without further ado, Sam, would you

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Speaker 2: like to talk about ETFs or exchange traded funds?

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Speaker 3: I'd love to. The first thing is also you guys

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Speaker 3: have done a whole episode on ETFs as well. If

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Speaker 3: people are wondering what the hell they are.

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Speaker 2: We absolutely have So before we dive in, if you

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Speaker 2: are thinking, wtf is an ETF, I would go back

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Speaker 2: to that episode. It is in our mini investment series

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Speaker 2: about all different types of investment assets that you can

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Speaker 2: invest in. Twenty twenty two is the year that we

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Speaker 2: take She's on the Money to the next level when

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Speaker 2: it comes to talking about money and investment and everything

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Speaker 2: related to She's on the Money. So if you haven't

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Speaker 2: listened to our first few seasons, you might be a

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Speaker 2: few steps behind, but that is okay. If you want

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Speaker 2: to still listen, I will still have you my friend.

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Speaker 2: So before we get into talking about what the top

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Speaker 2: five ETFs were, let's just talk about ETFs in general. So,

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Speaker 2: over the last twelve months, some pretty serious money SAM

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Speaker 2: has flowed into Australia's ETF industry. In fact, according to

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Speaker 2: our friends at the ASX, the market cap, or the

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Speaker 2: amount of the industry is worth, has grown nearly forty

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Speaker 2: four percent, So the industry is now worth one hundred

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Speaker 2: and thirty two point eight billion dollars as at the

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Speaker 2: end of November last year. It's a few dollar rus

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Speaker 2: just a couple just a couple of dollar ruse. And

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Speaker 2: according to ETF Tracker, which is a website that I

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Speaker 2: frequent quite often, financials, property and technology focused ETFs generated

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Speaker 2: the best returns so far in twenty twenty one, with

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Speaker 2: the ETFs in each of these categories delivering investors an

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Speaker 2: average return of for financials twenty one point four to

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Speaker 2: six percent, for property twenty point six seven percent, and

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Speaker 2: for technology focused ETFs twenty point five nine percent. Now

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Speaker 2: I'd be pretty happy with any of those returns. Let's

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Speaker 2: be honest. That's a bit above what I would usually

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Speaker 2: say is the average between five and seven point five percent,

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Speaker 2: sen just by.

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Speaker 3: A tiny bit. So what are we looking at with these.

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Speaker 2: So we're looking at lots of things. This episode, we

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Speaker 2: are going to discuss the top five, and we're also

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Speaker 2: going to discuss why they made the top five because

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Speaker 2: one of the most important things that I need you

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Speaker 2: guys to remember is not just picking it because it's

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Speaker 2: popular or because it's performing really well, because the markets

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Speaker 2: do really differently each and every single season. And as

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Speaker 2: you guys know, over the last couple of years, COVID

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Speaker 2: has been a massive feature in the markets. It has

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Speaker 2: impacted it significantly. It has meant that some businesses have

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Speaker 2: absolutely boomed, and it's also meant that some industries have

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Speaker 2: absolutely been ruined. So it would be a miss of

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Speaker 2: us to look at the last performance of even the

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Speaker 2: last three years and go, all right, well, they've done

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Speaker 2: really well over the last three years, that's what I'm

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Speaker 2: going to invest in. But rather I want to have

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Speaker 2: a conversation about the top five, about what they mean,

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Speaker 2: about how they've worked, and maybe why they've performed, So

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Speaker 2: we can start having more conversations about particular asset classes

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Speaker 2: and particular industries and what you might want to invest in,

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Speaker 2: and you just start the general conversation one because this

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Speaker 2: is the type of stuff I get excited talking about.

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Speaker 2: So I'm hoping that my excitement and my engagement in

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Speaker 2: this topic is going to wear off on you guys,

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Speaker 2: and that the next time I into one of you

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Speaker 2: at brunch. You're gonna be like, oh my gosh, So

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Speaker 2: did you see that ETF's performance O the last three

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Speaker 2: years compared to one your performances like wild And I'll

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Speaker 2: be like, oh my gosh, Yes I know, Sam.

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Speaker 3: So we'll be using these five more as a learning

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Speaker 3: tool and just little things to pull apart from them.

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Speaker 2: Yes, absolutely, So do you want to dive right?

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Speaker 3: Just get in. So we're going five to one right,

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Speaker 3: all right?

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Speaker 2: We can go five to one. We could go one

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Speaker 2: to five, but I feel like that doesn't leave a

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Speaker 2: whole heap to the imagination. Like it's kind of like

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Speaker 2: here's number one and here's the four that didn't do

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Speaker 2: as well. Whereas if we do the countdown, like, that's

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Speaker 2: more radio waves, isn't it? Like that's cooler. You're a

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Speaker 2: radio anticipation. Yeah, you know your stuff. So, Sam, would

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Speaker 2: you like to know what the number five performing ETF

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Speaker 2: in Australia over the last twelve months was?

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Speaker 3: I'd absolutely love to hear what is it?

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Speaker 2: Would you like to guess? Or is that just not

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Speaker 2: an option?

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Speaker 3: I have no financial background and I love you throwing

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Speaker 3: me in the deep in there. No, I'm not gonna

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Speaker 3: guess what I'm here for.

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Speaker 2: Okay, sorry, But had you chosen to guess, I'm absolutely

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Speaker 2: certain that you would have chosen the ETFs FANG plus ETF.

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Speaker 2: Would I be on the money with that? That's what

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Speaker 2: you were going to say?

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Speaker 3: Right, Oh yeah, no, it it was really there. You know,

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Speaker 3: it just wasn't one hundred percent confident.

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Speaker 2: Yeah, you were like, is it FANG or FANGS.

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Speaker 3: I don't know, maybe they were fourth, you know, I

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Speaker 3: just wasn't sure.

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Speaker 2: Yeah, yeah, exactly. But the ETF FANG plus ETF over

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Speaker 2: the last twelve month SAM has returned thirty nine point

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Speaker 2: three two percent for its investors.

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Speaker 3: Wow.

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Speaker 2: Look, it is pretty large, and to be honest, from

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Speaker 2: my perspective, it is relatively interesting understanding what it is,

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Speaker 2: because if I'm going to be so brazen, that sounds

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Speaker 2: like you're really boring ETF. From just looking at it,

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Speaker 2: you go, what is that? But essentially, the FANG ETF

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Speaker 2: offers investors exposure to highly traded next generation technologies and

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Speaker 2: tech enabled companies, which doesn't sound that sexy, But if

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Speaker 2: you think about it, over the last three issuears and

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Speaker 2: in particular over the last twelve months, technology has been

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Speaker 2: more in that it ever has been to keep us

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Speaker 2: connected and keep the world moving, and I mean everyone's

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Speaker 2: moving to socializing online, so it kind of makes sense

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Speaker 2: that a tech ETF would make the top five. So

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Speaker 2: to make it a little bit more, what will we

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Speaker 2: call it? Is it relatable or understandable or just contextualize

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Speaker 2: it a little bit? Some of it's holding So it's

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Speaker 2: top five holdings. Number one Tesla. We know that's gone

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Speaker 2: wild because it's all over Twitter. Every second meme that

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Speaker 2: I see about investment has Tesla in it, so we've

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Speaker 2: seen that on Instagram. And then there's buy Do, which

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Speaker 2: you might not have heard of before, but that's a

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Speaker 2: Chinese multinational technology company that specializes in Internet related services

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Speaker 2: and AI so artificial intelligence, which kind of makes sense,

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Speaker 2: especially over the last twelve months. Then Ali Barber, which

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Speaker 2: is an e commerce retail internet website which also does

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Speaker 2: really well. Then there's Neveda. I think I'm.

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Speaker 1: Saying that right.

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Speaker 2: If I'm not, that's okay, But they essentially design graphics

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Speaker 2: processing units for the gaming and professional market systems, which

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Speaker 2: I don't particularly understand. But Sam, that sounds definitely like

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Speaker 2: something that would have performed well over the last twelve months,

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Speaker 2: and then they also own Apple and Meta Platforms, which

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Speaker 2: was formerly known as Facebook, but they are now the

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Speaker 2: parent company of Facebook, Instagram, and WhatsApp, among other subsidiaries.

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Speaker 2: So they're all companies that a lot of us would

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Speaker 2: have heard of before, or if we haven't heard of

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Speaker 2: them before, we've probably engaged with.

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Speaker 3: Right. Okay, it's interesting because it is over a bunch

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Speaker 3: of companies but all on the same niche really, isn't it.

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Speaker 2: Yes, And something that's really important to point out here

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Speaker 2: is sam when you say, oh, they're all in a

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Speaker 2: similar industry, is that not all ETFs are well diversified

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Speaker 2: across all asset classes and across all different markets. So

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Speaker 2: this one particularly focuses on technology based companies. So if

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Speaker 2: that's what you're interested in and that's what you want

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Speaker 2: to invest in, this could be an option. In saying that,

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Speaker 2: I probably would be a little bit weary. And I'm

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Speaker 2: not saying be wary because any of those companies aren't

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Speaker 2: doing well. I'm saying be wary because something that's really

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Speaker 2: important to take into consideration when looking at different ETFs

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Speaker 2: and making a decision about what you might want to

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Speaker 2: invest in is actually their inception day, So this will

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Speaker 2: be listed. If you go to the ASX website or

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Speaker 2: literally any information pack that you get about an ETF,

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Speaker 2: it's inception date will be on there, and you need

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Speaker 2: to go and look at that.

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Speaker 3: Right, what's important about the inception date?

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Speaker 2: Look, inception dates are important because at the end of

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Speaker 2: the day, we need to know how long it's existed.

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Speaker 2: As much as I'm a financial advisor and I always

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Speaker 2: say things like past performance is not a reliable predict

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Speaker 2: your future performance and sound like a brock and record,

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Speaker 2: it's really important to see that they have had a

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Speaker 2: good track record, like how long have you been around?

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Speaker 2: What does that actually mean for me? Because as much

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Speaker 2: as you know past performance not a reliable predict or

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Speaker 2: a future performance, I do want to know that they've

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Speaker 2: been tried and true and tested and maybe had a

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Speaker 2: little bit of exposure to the markets, and that other

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Speaker 2: people have tried this and seen at work. Because I'm

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Speaker 2: a pretty conservative investor, and as much as i'm you know,

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Speaker 2: I'm looking at these, I'm like, Nope, they're all solid

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Speaker 2: companies and I'm not worried about any of them. Who's

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Speaker 2: the fund manager who's actually been looking after this ETF,

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Speaker 2: and given they've only been doing it for twelve months,

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Speaker 2: do I trust them? Do I not trust them? Like?

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Speaker 2: What does that look like? So the inception date of

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Speaker 2: the fang ETF is actually the twenty seventh of February

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Speaker 2: twenty twenty, and that's not a bad thing at all,

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Speaker 2: but it's definitely worth taking into consideration because if you

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Speaker 2: go to one of our beta shares, put fault. But

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Speaker 2: if you go and look at maybe one of the

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Speaker 2: beta shares ETFs, they've been around significantly longer. We know

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Speaker 2: who beta shares are, we know what their performance in

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Speaker 2: the market is, we know who their fund managers are,

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Speaker 2: and I think that it's just different horses for different courses.

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Speaker 2: And everything we do in investing comes back to our

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Speaker 2: risk profile. So we really want to understand, like am

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Speaker 2: I willing to take on this risk? Is this perfect

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Speaker 2: for me? Or is it a bit risky? Like what

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Speaker 2: does that mean? And how does that work?

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Speaker 3: Right? You say, there, we look at our beta shares.

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Speaker 3: For those maybe who aren't aware what's a beta share?

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Speaker 2: Beta shares is actually just another company and they're going

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Speaker 2: to come up in hot second. So I'm sure that'll

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Speaker 2: answer the question. But Essentially, they are a company that

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Speaker 2: put together ETFs, much like Vanguard or a black rock.

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Speaker 2: They are a big organization and their job is ETFs

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Speaker 2: and different portfolios.

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Speaker 3: All right, well, that makes sense as to why they're

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Speaker 3: in the top five. But what's number four?

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Speaker 2: All right, good question. Top four coming in SAM with

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Speaker 2: a total return over the last one year of forty

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Speaker 2: two point nine two percent, is the Beta Shares Global

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Speaker 2: Cybersecurity ETF, which now will make sense as to who

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Speaker 2: Beta Shares are.

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Speaker 3: I only feel slightly dumb for engineer. I didn't know

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Speaker 3: them right before.

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Speaker 2: Makesh No, No, it's not. No, it's not and you

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Speaker 2: wouldn't know they're SAM. But the office that I have

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Speaker 2: in Melbourne is actually in the same space as Beta Shares,

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Speaker 2: so I like to think that we know each other.

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Speaker 2: We're friends. I really respect Beta Shares and what they

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Speaker 2: get up to, so it's quite cool to then see

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Speaker 2: them on the list. So without further ado, I know

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Speaker 2: you cannot wait to hear what the fund objective is.

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Speaker 3: Cannot I'm just waiting on the edge of my chair.

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Speaker 2: You're like, oh my gosh, I'm so glad Victoria asked

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Speaker 2: me to be on this episode because the first one

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Speaker 2: didn't work. So essentially, the Beta Shares Global Cybersecurity ETF

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Speaker 2: aims to track the performance of an index, so an

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Speaker 2: index is an average. And also, before I go any further,

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Speaker 2: it's really important for me to point out here that

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Speaker 2: the returns I'm telling you about have already excluded the

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Speaker 2: fees and charges for each ETF, so we are actually

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Speaker 2: comparing apples to apples. I don't want you to go

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Speaker 2: oh v but like, what about fees and stuff? Does

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Speaker 2: that come into it? Yes, it does, but their performance

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Speaker 2: has already had the fees taken out, so that we're

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Speaker 2: all on a level playing field before I presented this information,

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Speaker 2: So back to our friends, Beta shares their Global Cybersecurity ETF. Essentially,

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Speaker 2: it gives you exposure to the leading companies in the

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Speaker 2: global cybersecurity sector, which I think is pretty interesting given

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Speaker 2: that cyber crime over the last three or four years

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Speaker 2: has absolutely been on the rise, and the demand for

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Speaker 2: cybersecurity services over the last twelve eighteen twenty four months

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Speaker 2: has been absolutely massive because of the move to work

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Speaker 2: from home and everything that's been going on. And I

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Speaker 2: wouldn't be surprised if we see pretty strong growth over

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Speaker 2: the foreseeable future in an area like this, so kind

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Speaker 2: of makes sense that they made the top four semn.

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Speaker 3: Yeah, absolutely, So what do they actually hold, Like, what

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Speaker 3: are sort of the companies that would be in side.

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Speaker 2: So there are a few companies and I think most

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Speaker 2: of us would have heard of them before. I won't

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Speaker 2: list off the top ten, but they own companies like Cisco,

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Speaker 2: which is you know, when you go into boardrooms and

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Speaker 2: you see those teleconference phones on the tables, they're made

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Speaker 2: by Cisco, So that kind of makes sense that they're

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Speaker 2: in there. Then they've got Accenture, which is an international business.

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Speaker 2: They've got companies like cloud Flare, which you might not

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Speaker 2: have heard of, but they're a cyber security company that

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Speaker 2: I actually use and have on our website.

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Speaker 3: All right, so that's really interesting. But you mentioned with

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Speaker 3: the previous one inception date, what's the inception date for

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Speaker 3: this one?

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Speaker 2: So the Beta Shares Global Cybersecurity ETF's birthday is actually

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Speaker 2: on the thirtieth of August twenty sixteen, so it's been

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Speaker 2: around a little bit longer than our friend's fang right now.

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Speaker 3: Obviously, we always say past performance isn't an indicator, absolutely not.

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Speaker 3: What can we take away from this.

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Speaker 2: Well, it's important to have a look at it just

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Speaker 2: so you can see what they've performed over the long

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Speaker 2: term and something like cybersecurity, right, it's a new ish area.

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Speaker 2: I mean, I wouldn't say it's new in the last

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Speaker 2: two or three years. It's existed for the last twenty years.

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Speaker 2: But what does that actually mean for us and how

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Speaker 2: has it been performing as an asset class? Is really

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Speaker 2: interesting to have a look when you start to get

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Speaker 2: a little bit of tenure out of the fund. Right,

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Speaker 2: So the fund returns after fees over the last one year,

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Speaker 2: as I said, was forty two point nine two percent

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Speaker 2: in twenty twenty one, which was very very cool. But

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Speaker 2: over the last three years it's performed at thirty point

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Speaker 2: five one percent, and then over the last five years

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Speaker 2: it's performed at twenty two point four percent, which means

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Speaker 2: that since inception or since it existed, that fund on

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Speaker 2: average has returned twenty two point three four percent for

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Speaker 2: its investors, which again is not something to be relied upon.

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Speaker 2: It's not something that you go, oh my gosh, if

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Speaker 2: I invest in these, these are the returns I'm going

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Speaker 2: to get. It's more how steady is this? How consistent

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Speaker 2: is this, And for me, I look at it and go, Okay,

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Speaker 2: that's interesting. It's actually been growing over the last few years,

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Speaker 2: and I kind of like to see that. But again,

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Speaker 2: when it comes to things that are growing, we have

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Speaker 2: to think when's it going to top out? Like where

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Speaker 2: is the top? Is anything going to happen in the

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Speaker 2: future that could really jeopardize returns like this if you're

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Speaker 2: going to sign up, Like what's going to happen with

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Speaker 2: the economy, what's going to happen when we all move

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Speaker 2: back to working from work? So who knows what that

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Speaker 2: looks like. But it is really interesting to look at

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Speaker 2: from my personal perspective.

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Speaker 3: Yeah, absolutely, Okay, so from there we move to number three.

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Speaker 2: We do, so this one comes in at number three,

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Speaker 2: but it definitely wouldn't be something that I invest in, Sam,

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Speaker 2: even though in twenty twenty one it had returns of

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Speaker 2: fifty nine point three three percent for its investors. We've

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Speaker 2: got the beta shares, good company, but it's the Crude

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Speaker 2: Oil Index ETF currency hedged synthetic fund, which that you

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Speaker 2: were like, of course, it's that fund. I knew that

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Speaker 2: was coming, Victoria. I've been looking at that all day.

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Speaker 3: I mean, yeah, I work out. First thing. I looked

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Speaker 3: at my phone, I was like, got to see where

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Speaker 3: the crude oil's at. And I'm glad you brought it up.

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Speaker 3: But I guess the thing to take away from that is,

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Speaker 3: I mean, you know, I know you a fair bit

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Speaker 3: from listening to your voice when I edit the episode Unlucky.

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Speaker 3: That might sound creepy, but I get a bit of

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Speaker 3: a gather that you have a fair ethical point of view,

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Speaker 3: and I feel like this would not really slot in

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Speaker 3: with that.

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Speaker 2: No, I don't think it would, Sam, And I guess

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00:19:11,200 --> 00:19:14,240
Speaker 2: that's a pretty interesting call out as well, because we

384
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Speaker 2: all have different goals, we all have different value sets,

385
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Speaker 2: we all have different ethics, and we all have different

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Speaker 2: ways we want to live our lives. And that's not

387
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Speaker 2: to say that if you invested in this fund, I'd

388
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Speaker 2: think any less of you. I actually just want people

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Speaker 2: to be super educated on what they're investing in so

390
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Speaker 2: that they're making the right decision for them. And if

391
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Speaker 2: you're there going wow, I think that oil is the

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Speaker 2: way of the future, and I'd really like to invest

393
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Speaker 2: in it. Maybe this is a fund that you pick

394
00:19:35,480 --> 00:19:38,200
Speaker 2: up and go, Okay, no problems, It's not my job

395
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Speaker 2: to tell you what to invest in. It's not my

396
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Speaker 2: job to put my ethics and my personal beliefs and

397
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Speaker 2: opinions on you. But I do think it's pretty interesting

398
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Speaker 2: because it's kind of hard to avoid given I'm so

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Speaker 2: much like these are my opinions, listen to them.

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Speaker 3: But I guess this is a point where we've discussed

401
00:19:54,160 --> 00:19:59,440
Speaker 3: a little earlier on But these specific area funds, you

402
00:19:59,480 --> 00:20:00,960
Speaker 3: can get it into so many different ways, not just

403
00:20:01,040 --> 00:20:03,880
Speaker 3: oil and not just security and stuff. There's all these

404
00:20:03,880 --> 00:20:05,080
Speaker 3: other ones as well, right.

405
00:20:05,160 --> 00:20:09,119
Speaker 2: Yeah, absolutely, And with this particular fund, so with the

406
00:20:09,160 --> 00:20:13,240
Speaker 2: Beta Shares Crude Oil Index ETF, that one tracks an

407
00:20:13,240 --> 00:20:16,639
Speaker 2: index as we said before, tracc and average before fees

408
00:20:16,640 --> 00:20:20,600
Speaker 2: and expenses, and it provides exposure to crude oil futures

409
00:20:20,880 --> 00:20:24,160
Speaker 2: which is actually hedged for currency movements in the Australian

410
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Speaker 2: and USD exchange rate, which is kind of interesting to

411
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Speaker 2: talk about.

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Speaker 1: Right.

413
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Speaker 3: So when you say hedged, like a hedged fund, and

414
00:20:31,480 --> 00:20:32,600
Speaker 3: isn't that just for rich people?

415
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Speaker 2: Yeah, that sounds boogie right. No, it's not just for

416
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Speaker 2: rich people, but if you've watched gossip Girl you might

417
00:20:37,600 --> 00:20:40,879
Speaker 2: think it actually is only for rich people. But hedging

418
00:20:40,960 --> 00:20:44,760
Speaker 2: is actually just an investment strategy that strategically uses financial

419
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Speaker 2: instruments or different market strategies to offset the risk of

420
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Speaker 2: any adverse price movement. So when you look at this fund,

421
00:20:51,880 --> 00:20:54,960
Speaker 2: they're hedging the currency, which means they are making sure

422
00:20:55,040 --> 00:20:58,480
Speaker 2: that you, as the consumer, aren't feeling the difference between

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Speaker 2: the Australian and the US market. So you wouldn't understand, Sam,

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00:21:02,720 --> 00:21:05,119
Speaker 2: I'm assuming that you're not going to understand this, but

425
00:21:05,160 --> 00:21:08,040
Speaker 2: a most owshes on the money listeners will before I

426
00:21:08,119 --> 00:21:10,600
Speaker 2: buy anything from the US in USD whether that is

427
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Speaker 2: a pair of shoes or a top, I will literally

428
00:21:13,000 --> 00:21:16,159
Speaker 2: look at what the exchange rate is online. If I'm like,

429
00:21:16,240 --> 00:21:19,240
Speaker 2: oh that's pretty bad, I won't purchase it and I

430
00:21:19,320 --> 00:21:23,040
Speaker 2: will wait because there are different fluctuations in price, right

431
00:21:23,160 --> 00:21:26,080
Speaker 2: like in pre COVID if we can remember back then,

432
00:21:26,480 --> 00:21:30,520
Speaker 2: remember when going to America was actually really really expensive

433
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Speaker 2: because it was like sixty cents on the dollar, So

434
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Speaker 2: every one dollar that you exchanged to the US would

435
00:21:36,080 --> 00:21:40,240
Speaker 2: be significantly more expensive than having your one dollar in Australia.

436
00:21:40,280 --> 00:21:44,240
Speaker 2: That's essentially what they are protecting you against when you're

437
00:21:44,280 --> 00:21:49,119
Speaker 2: investing in a US based fund or a US currency fund.

438
00:21:49,560 --> 00:21:53,359
Speaker 2: So we're still investing with Australian dollars into an Australian fund,

439
00:21:53,720 --> 00:21:56,479
Speaker 2: but they're hedging the risk to make sure that you

440
00:21:56,600 --> 00:21:59,760
Speaker 2: don't have as riskier of an investment as you would

441
00:21:59,800 --> 00:22:03,280
Speaker 2: if you'd invested in USD, and then what if the

442
00:22:03,359 --> 00:22:05,960
Speaker 2: USD absolutely falls, you'll be in a bit more trouble.

443
00:22:06,200 --> 00:22:08,399
Speaker 3: Right, Okay, that makes a lot of sense.

444
00:22:08,440 --> 00:22:11,560
Speaker 2: Does that actually make sense? You're staring at me like, Victoria,

445
00:22:11,720 --> 00:22:14,200
Speaker 2: why have I signed up to do this episode?

446
00:22:14,520 --> 00:22:16,840
Speaker 3: I'm hitting at I'm getting a lot of facts and

447
00:22:16,880 --> 00:22:19,040
Speaker 3: I'm processing. But that does actually make a lot of

448
00:22:19,119 --> 00:22:21,760
Speaker 3: sense though, So the points of bringing on the others.

449
00:22:21,840 --> 00:22:24,439
Speaker 3: Then let's look at inception. What's the inception on this

450
00:22:24,480 --> 00:22:25,400
Speaker 3: one and what's the performance?

451
00:22:25,520 --> 00:22:29,400
Speaker 2: Like, so it's birthdays the eleventh of November twenty eleven,

452
00:22:29,480 --> 00:22:32,240
Speaker 2: which actually means it's birthdays the eleventh of the eleventh,

453
00:22:32,320 --> 00:22:36,359
Speaker 2: twenty eleven. That's a pretty good date. But you asked

454
00:22:36,359 --> 00:22:39,760
Speaker 2: me before about performance, right, and we want to know

455
00:22:39,880 --> 00:22:42,520
Speaker 2: what performance is because that's why they've made it into

456
00:22:42,560 --> 00:22:45,480
Speaker 2: the top five, Like they're the third best performing ETF

457
00:22:45,480 --> 00:22:47,639
Speaker 2: of twenty twenty one. So you'd be like, all right,

458
00:22:47,880 --> 00:22:51,000
Speaker 2: well with a return of fifty nine point three three percent,

459
00:22:51,200 --> 00:22:53,520
Speaker 2: you'd be doing pretty well over the long term.

460
00:22:53,400 --> 00:22:54,879
Speaker 3: Right, That's what I would take away.

461
00:22:55,040 --> 00:22:59,800
Speaker 2: Absolutely not. So if you look at their three year performance,

462
00:23:00,240 --> 00:23:05,280
Speaker 2: they've done negative fourteen point three two percent. Over five years,

463
00:23:05,440 --> 00:23:09,600
Speaker 2: they've done negative twelve point eight percent, which means since inception,

464
00:23:09,800 --> 00:23:13,920
Speaker 2: so since the fund began, they've had an average return

465
00:23:14,000 --> 00:23:19,400
Speaker 2: of negative sixteen point seven three which means if you'd

466
00:23:19,440 --> 00:23:22,840
Speaker 2: started investing in twenty eleven when they started, you're quite

467
00:23:22,840 --> 00:23:25,800
Speaker 2: possibly even with this year's performance of fifty nine point

468
00:23:25,800 --> 00:23:29,679
Speaker 2: three three percent, you could still be significantly behind in

469
00:23:29,720 --> 00:23:32,760
Speaker 2: this investment, even though they've done really well over one year.

470
00:23:32,960 --> 00:23:34,560
Speaker 2: So you might see that and go, oh my gosh,

471
00:23:34,600 --> 00:23:38,320
Speaker 2: I should invest Like That's why performance is definitely not

472
00:23:38,400 --> 00:23:41,280
Speaker 2: a reliable predictor of what they will do, but also

473
00:23:41,960 --> 00:23:44,439
Speaker 2: is not a reason to pick a fund because how

474
00:23:44,440 --> 00:23:46,320
Speaker 2: do you know they won't go negative again? Like that

475
00:23:46,359 --> 00:23:48,240
Speaker 2: could potentially be quite risky.

476
00:23:48,560 --> 00:23:52,600
Speaker 3: Why would people have joined them in the past couple

477
00:23:52,640 --> 00:23:54,640
Speaker 3: of years if they've just had that negative history before

478
00:23:54,640 --> 00:23:56,680
Speaker 3: they've had this recent positive.

479
00:23:56,320 --> 00:23:59,800
Speaker 2: Look, they might actually believe in the industry or in oil.

480
00:24:00,160 --> 00:24:02,080
Speaker 2: And I mean at the end of the day. I

481
00:24:02,119 --> 00:24:05,200
Speaker 2: don't know how into understanding the markets and understanding oil

482
00:24:05,560 --> 00:24:09,080
Speaker 2: is to you, but you drive a car, right, Sam.

483
00:24:09,240 --> 00:24:11,879
Speaker 2: Over the last two years, has petrol increased in price?

484
00:24:12,280 --> 00:24:13,560
Speaker 3: Very true? Way too much?

485
00:24:13,640 --> 00:24:17,520
Speaker 2: Yeah, So petrol prices have increased significantly, which is where

486
00:24:17,560 --> 00:24:20,439
Speaker 2: we as a consumer might feel it the most. But

487
00:24:21,000 --> 00:24:24,680
Speaker 2: crude oil has actually gained more than sixty percent this year,

488
00:24:24,720 --> 00:24:29,479
Speaker 2: so it has increased in value significantly. And after I

489
00:24:29,480 --> 00:24:31,920
Speaker 2: did a little bit of research, the research is telling

490
00:24:31,960 --> 00:24:34,919
Speaker 2: me that prices have risen as more vaccinated populations are

491
00:24:34,920 --> 00:24:38,120
Speaker 2: brought out of COVID lockdowns, and it's supporting a revival

492
00:24:38,160 --> 00:24:41,639
Speaker 2: in economic activity. At the same time, we're seeing lots

493
00:24:41,640 --> 00:24:44,480
Speaker 2: of people not actually able to work and lots of

494
00:24:44,520 --> 00:24:48,239
Speaker 2: people actually at a standstill, and that makes oil a

495
00:24:48,280 --> 00:24:52,359
Speaker 2: pretty attractive commodity for generating power and keeping the economy

496
00:24:52,400 --> 00:24:55,679
Speaker 2: relatively steady. And thus the higher demand is pushing crude

497
00:24:55,680 --> 00:24:58,879
Speaker 2: markets even higher. So it makes sense as to why

498
00:24:58,960 --> 00:25:02,800
Speaker 2: the oil industry is doing really well, But historically it wasn't.

499
00:25:02,840 --> 00:25:04,760
Speaker 2: And that's why I'm saying over the last twelve months,

500
00:25:04,760 --> 00:25:07,639
Speaker 2: markets have been absolutely wild, like we're only just working

501
00:25:07,680 --> 00:25:10,920
Speaker 2: out what COVID normal could actually look like. But it's

502
00:25:10,960 --> 00:25:13,960
Speaker 2: interesting to see that a company that never would have

503
00:25:14,080 --> 00:25:16,760
Speaker 2: even come close to the top five, let alone the

504
00:25:16,800 --> 00:25:20,680
Speaker 2: top fifty, is now literally sitting at number three because

505
00:25:20,680 --> 00:25:23,480
Speaker 2: of the way the markets are reacting to COVID, and

506
00:25:23,560 --> 00:25:25,440
Speaker 2: a lot of people and a lot of countries are

507
00:25:25,440 --> 00:25:29,040
Speaker 2: wanting to hoard oil because that's obviously energy and it

508
00:25:29,040 --> 00:25:32,400
Speaker 2: actually helps the economy go round, Like it's an asset

509
00:25:32,520 --> 00:25:35,400
Speaker 2: that during a time of turmoil, countries want to hold

510
00:25:35,440 --> 00:25:37,000
Speaker 2: on too. So that kind of makes.

511
00:25:36,800 --> 00:25:39,760
Speaker 3: Sense, super interesting and look makes a lot of sense,

512
00:25:39,760 --> 00:25:41,920
Speaker 3: even if you're not intending to ever invest with them,

513
00:25:41,960 --> 00:25:44,360
Speaker 3: there's definitely some lessons to take away from that. So

514
00:25:44,720 --> 00:25:46,160
Speaker 3: we've got the top two that we're going to look

515
00:25:46,160 --> 00:25:47,200
Speaker 3: at right after the break.

516
00:25:47,320 --> 00:25:49,439
Speaker 2: All right, Sam, we are back, and I know that

517
00:25:49,480 --> 00:25:51,640
Speaker 2: you are super excited to hear about the top two.

518
00:25:51,720 --> 00:25:53,680
Speaker 2: I am looking at you and you are like, wow,

519
00:25:53,720 --> 00:25:57,320
Speaker 2: what is going on? But genuinely, I am really really

520
00:25:57,440 --> 00:26:00,359
Speaker 2: enjoying this conversation. One because this is my bread and butter,

521
00:26:00,400 --> 00:26:03,040
Speaker 2: this is what I do every day. But two, I

522
00:26:03,080 --> 00:26:05,919
Speaker 2: think what we're seeing from the last three that we

523
00:26:06,040 --> 00:26:08,560
Speaker 2: have spoken about is a lot of this is actually

524
00:26:08,640 --> 00:26:10,960
Speaker 2: driven by what's going on in the world. So like,

525
00:26:11,200 --> 00:26:13,200
Speaker 2: if we look at the performance of ETFs and I'd

526
00:26:13,240 --> 00:26:15,840
Speaker 2: just given you the list, you would have been like, yeah, cool, Victoria,

527
00:26:16,000 --> 00:26:19,879
Speaker 2: Like they performed well. But understanding why oil might have

528
00:26:20,000 --> 00:26:23,560
Speaker 2: performed really well, and why the cybersecurity ETF has performed well,

529
00:26:23,600 --> 00:26:26,640
Speaker 2: and why the fang technology ETF was doing well, I think,

530
00:26:26,680 --> 00:26:29,520
Speaker 2: you go, ah, kind of makes sense that they would

531
00:26:29,560 --> 00:26:31,840
Speaker 2: have made it into the top five. And I mean,

532
00:26:31,920 --> 00:26:34,840
Speaker 2: it's not toilet paper, but we knew that was popular,

533
00:26:35,280 --> 00:26:37,639
Speaker 2: and it's kind of like that, like people are starting

534
00:26:37,680 --> 00:26:41,080
Speaker 2: to invest in things that are running the economy during

535
00:26:41,080 --> 00:26:43,520
Speaker 2: a time of turmoil, So it kind of makes sense.

536
00:26:43,680 --> 00:26:45,440
Speaker 2: But at the same time, I don't know, I hope

537
00:26:45,440 --> 00:26:48,520
Speaker 2: everyone's enjoying learning a little bit more about why they

538
00:26:48,600 --> 00:26:50,159
Speaker 2: might have made it to the top five and what

539
00:26:50,240 --> 00:26:52,800
Speaker 2: that actually means and what they're made up of.

540
00:26:53,000 --> 00:26:55,359
Speaker 3: Well, I think like looking at this and the bits

541
00:26:55,359 --> 00:26:57,080
Speaker 3: that we're pulling apart from this gives us a bit

542
00:26:57,119 --> 00:26:58,879
Speaker 3: of insight so that we can look at the world

543
00:26:58,960 --> 00:27:01,000
Speaker 3: now and then be like, or what could it mean

544
00:27:01,040 --> 00:27:03,840
Speaker 3: going forward to the what else could we be investing in?

545
00:27:04,040 --> 00:27:05,960
Speaker 2: Yeah, And it kind of gives you a good insight

546
00:27:06,040 --> 00:27:08,160
Speaker 2: as to what you might accept and what you might

547
00:27:08,280 --> 00:27:11,000
Speaker 2: not accept. So saying all right, well the crude oil

548
00:27:11,080 --> 00:27:14,800
Speaker 2: index performed at fifty nine point three three percent, I go, great,

549
00:27:14,840 --> 00:27:17,000
Speaker 2: but I don't want to invest in that, Like, that's

550
00:27:17,040 --> 00:27:19,480
Speaker 2: not where I want my returns. But then on top

551
00:27:19,520 --> 00:27:22,080
Speaker 2: of that, if you take the ethical conversation out of it,

552
00:27:22,440 --> 00:27:25,520
Speaker 2: for me, that industry fluctuates far too much for me

553
00:27:25,600 --> 00:27:28,480
Speaker 2: to feel secure investing in that asset. You've kind of

554
00:27:28,480 --> 00:27:29,919
Speaker 2: got to look at it and go, would I be

555
00:27:30,040 --> 00:27:32,639
Speaker 2: interested in that even if it was one thousand percent

556
00:27:32,680 --> 00:27:36,159
Speaker 2: ethical and definitely up my alley? Probably not, because it

557
00:27:36,280 --> 00:27:38,960
Speaker 2: just carries too much risk and too much volatility, and

558
00:27:39,040 --> 00:27:41,280
Speaker 2: I just don't want to be that person. That's not

559
00:27:41,400 --> 00:27:44,520
Speaker 2: for me. But what is for me is understanding it

560
00:27:44,600 --> 00:27:47,040
Speaker 2: all so that I make the decision that actually aligns

561
00:27:47,080 --> 00:27:49,400
Speaker 2: to my values and actually aligns to what I want

562
00:27:49,400 --> 00:27:52,120
Speaker 2: to do. So, Sam, let's not hold back anymore. I'm

563
00:27:52,119 --> 00:27:53,680
Speaker 2: going to introduce number two.

564
00:27:53,760 --> 00:27:54,880
Speaker 3: OK, what do we got?

565
00:27:54,960 --> 00:27:55,040
Speaker 2: Oh?

566
00:27:55,119 --> 00:27:55,640
Speaker 3: My gosh.

567
00:27:55,880 --> 00:27:58,879
Speaker 2: Number two comes in at a return in twenty twenty

568
00:27:58,920 --> 00:28:04,160
Speaker 2: one of sixty nine point four four percent. And when

569
00:28:04,200 --> 00:28:06,520
Speaker 2: I was recording with Jess, she was like, oh, my gosh,

570
00:28:06,520 --> 00:28:09,040
Speaker 2: hahha sixty nine. So if you could just do that too,

571
00:28:09,320 --> 00:28:11,320
Speaker 2: that would be really really great.

572
00:28:12,359 --> 00:28:14,159
Speaker 3: To be professional and not acknowledge it.

573
00:28:14,200 --> 00:28:18,280
Speaker 2: But that's really professional podcast. She had a good laugh.

574
00:28:19,600 --> 00:28:24,280
Speaker 2: We're all friends here. But that ETF is actually again

575
00:28:24,680 --> 00:28:28,080
Speaker 2: from Beta Shares, and that is the geared US equity

576
00:28:28,119 --> 00:28:32,359
Speaker 2: fund currency hedged hedged fund, which sounds real bougie, but

577
00:28:32,480 --> 00:28:34,560
Speaker 2: when you start breaking it down, you'll be like, oh,

578
00:28:34,600 --> 00:28:35,639
Speaker 2: that kind of makes sense.

579
00:28:35,840 --> 00:28:37,480
Speaker 3: Okay, so well let's break it down.

580
00:28:37,560 --> 00:28:39,200
Speaker 2: Oh no, that's your job, what is it?

581
00:28:40,760 --> 00:28:43,400
Speaker 3: Let me just go get an MBA. I'll just need

582
00:28:43,640 --> 00:28:44,720
Speaker 3: what five years?

583
00:28:45,080 --> 00:28:46,000
Speaker 2: How long did you want?

584
00:28:46,120 --> 00:28:48,160
Speaker 3: Okay, but before you tell me what they invest in,

585
00:28:49,240 --> 00:28:52,600
Speaker 3: this is going to be another maybe dumb question from

586
00:28:52,600 --> 00:28:53,680
Speaker 3: maybe what does geared mean?

587
00:28:53,920 --> 00:28:56,920
Speaker 2: No such thing, Oh my gosh. So geared is actually

588
00:28:56,920 --> 00:28:59,840
Speaker 2: super common when it comes to the investment world, but

589
00:29:00,160 --> 00:29:04,040
Speaker 2: not something that I think the average investor would engage

590
00:29:04,080 --> 00:29:07,200
Speaker 2: in it, especially off the bat, because a geared fund

591
00:29:07,360 --> 00:29:10,760
Speaker 2: is essentially taking an investor's original investment and their money

592
00:29:10,840 --> 00:29:14,760
Speaker 2: and borrowing additional money with the aim of increasing its size.

593
00:29:14,840 --> 00:29:18,360
Speaker 2: So essentially, a geared investment fund, also known as a

594
00:29:18,440 --> 00:29:22,240
Speaker 2: leveraged fund is often a way to increase your exposure

595
00:29:22,280 --> 00:29:24,960
Speaker 2: in the share market. So what this fund is doing

596
00:29:25,080 --> 00:29:28,360
Speaker 2: is actually getting your money, putting it into the ETF,

597
00:29:28,760 --> 00:29:31,880
Speaker 2: borrowing some money to maybe match or even you know,

598
00:29:32,120 --> 00:29:34,239
Speaker 2: make up some of the money you did so that

599
00:29:34,360 --> 00:29:37,880
Speaker 2: you get more exposure to more shares. Because say Sam,

600
00:29:37,920 --> 00:29:40,720
Speaker 2: you invest ten bucks and you can buy ten units

601
00:29:40,720 --> 00:29:43,920
Speaker 2: in this ETF. What they're saying is you won't just

602
00:29:44,000 --> 00:29:47,560
Speaker 2: get ten units, you might get fourteen or fifteen units,

603
00:29:47,600 --> 00:29:51,440
Speaker 2: and therefore more exposure and more return. So for what

604
00:29:51,600 --> 00:29:54,560
Speaker 2: you're investing, you might actually get the return of fourteen

605
00:29:54,640 --> 00:29:57,680
Speaker 2: units or fifteen units instead of the ten units that

606
00:29:57,760 --> 00:30:00,960
Speaker 2: you could afford. Because there's a level of debt involved.

607
00:30:01,480 --> 00:30:04,480
Speaker 2: Important to note though, as much as that sounds super sexy,

608
00:30:04,520 --> 00:30:06,880
Speaker 2: or it sounds sexy to me as a financial advisor,

609
00:30:07,320 --> 00:30:11,200
Speaker 2: it significantly increases your risk because it's not just investing anymore.

610
00:30:11,360 --> 00:30:14,600
Speaker 2: It's investing and you're taking on debt, or that ETF

611
00:30:14,640 --> 00:30:18,280
Speaker 2: is taking on some debt, which means you might lose

612
00:30:18,320 --> 00:30:20,720
Speaker 2: some money. Obviously in the share market, we've got to

613
00:30:20,760 --> 00:30:24,280
Speaker 2: be really vigilant and understand that. But you're also increasing

614
00:30:24,320 --> 00:30:27,440
Speaker 2: your risk to losing some money. And still having some debt,

615
00:30:27,680 --> 00:30:29,840
Speaker 2: so it might be for some people, it might not

616
00:30:29,920 --> 00:30:32,840
Speaker 2: be for other people. You can actually leverage a lot

617
00:30:32,840 --> 00:30:34,720
Speaker 2: of things, so you don't just have to pick a

618
00:30:34,760 --> 00:30:38,200
Speaker 2: leveraged ETF. You as an individual investor, can actually go

619
00:30:38,240 --> 00:30:42,080
Speaker 2: get your own what's called margin loan and borrow money

620
00:30:42,160 --> 00:30:44,960
Speaker 2: so that you can then invest that money into the

621
00:30:44,960 --> 00:30:48,040
Speaker 2: share market. So that's actually a really common way of investing.

622
00:30:48,080 --> 00:30:51,240
Speaker 2: And no, it's not just for wealthy people, but it

623
00:30:51,320 --> 00:30:54,520
Speaker 2: does significantly increase your risk, which is why maybe as

624
00:30:54,560 --> 00:30:57,120
Speaker 2: first time investors, we haven't heard of something like that,

625
00:30:57,280 --> 00:31:00,360
Speaker 2: because to be honest, I don't think I've ever in

626
00:31:00,400 --> 00:31:04,280
Speaker 2: my entire career recommended a leveraged fund to somebody who's

627
00:31:04,360 --> 00:31:06,360
Speaker 2: only just starting out. I just feel like it's not

628
00:31:06,560 --> 00:31:07,640
Speaker 2: the right gateway.

629
00:31:07,800 --> 00:31:10,520
Speaker 3: Yeah right, okay, I guess it's the sort of thing

630
00:31:10,640 --> 00:31:12,160
Speaker 3: I mean that's why wealthy people do it, right, Like,

631
00:31:12,200 --> 00:31:14,160
Speaker 3: if they have the money, they're more likely to be

632
00:31:14,200 --> 00:31:15,080
Speaker 3: able to take the risk.

633
00:31:15,320 --> 00:31:17,720
Speaker 2: Yes, absolutely, And at the end of the day, that's

634
00:31:17,760 --> 00:31:20,120
Speaker 2: what they can do because they can afford to lose

635
00:31:20,160 --> 00:31:22,880
Speaker 2: a bit more and they might not invest their entire

636
00:31:22,920 --> 00:31:25,920
Speaker 2: portfolio in a GID portfolio, right, They might have their

637
00:31:25,920 --> 00:31:28,560
Speaker 2: one hundred grand invested in. Ten percent of that might

638
00:31:28,600 --> 00:31:31,640
Speaker 2: be geared so they get better returns, but it's not

639
00:31:31,680 --> 00:31:34,720
Speaker 2: one hundred percent of their makeup. So it's important to

640
00:31:34,760 --> 00:31:37,480
Speaker 2: have that conversation and understand it. And I mean, you

641
00:31:37,560 --> 00:31:39,280
Speaker 2: might be listening to this and you go, oh my god,

642
00:31:39,320 --> 00:31:41,920
Speaker 2: a geared fund. I'm a risky guy. I'm going to

643
00:31:42,000 --> 00:31:44,600
Speaker 2: go and get one of those. That's fine, But what

644
00:31:44,640 --> 00:31:46,520
Speaker 2: I want you to understand is what that means and

645
00:31:46,560 --> 00:31:50,040
Speaker 2: how that works, and how that increases your risk and

646
00:31:50,080 --> 00:31:52,960
Speaker 2: what that actually means in relation to our risk tolerance.

647
00:31:53,000 --> 00:31:56,280
Speaker 2: And we did Sam, you'd know because you edited a

648
00:31:56,440 --> 00:32:01,040
Speaker 2: you lucky person. We did an entire air on risk

649
00:32:01,160 --> 00:32:04,640
Speaker 2: profiles and what that actually means. And before you even

650
00:32:04,720 --> 00:32:06,800
Speaker 2: go and pick an ETF or before you go and

651
00:32:06,840 --> 00:32:09,760
Speaker 2: pick any kind of investment, you need to go back

652
00:32:09,760 --> 00:32:12,640
Speaker 2: and go, well, what is my tolerance to risk? Am

653
00:32:12,680 --> 00:32:16,040
Speaker 2: I a conservative person? Am I more of an aggressive

654
00:32:16,120 --> 00:32:18,800
Speaker 2: type of investor? Like what am I willing to take on?

655
00:32:19,320 --> 00:32:23,040
Speaker 2: Because there are some investment assets that you would go Well, Victoria,

656
00:32:23,120 --> 00:32:26,760
Speaker 2: you told me you were conservative, because I am. But Tommy,

657
00:32:26,760 --> 00:32:29,360
Speaker 2: you were conservative and you're putting on the table investments

658
00:32:29,360 --> 00:32:32,120
Speaker 2: that don't actually align to that profile. So you're not

659
00:32:32,160 --> 00:32:34,000
Speaker 2: going to be comfortable, you're not going to be able

660
00:32:34,080 --> 00:32:36,240
Speaker 2: to sleep well at night. This isn't actually aligned to

661
00:32:36,280 --> 00:32:38,960
Speaker 2: your goals and the things you said you wanted to achieve.

662
00:32:39,200 --> 00:32:42,960
Speaker 2: So before you even consider looking at any type of investment,

663
00:32:43,200 --> 00:32:45,840
Speaker 2: you need to understand who you are, what your goals are.

664
00:32:46,120 --> 00:32:48,720
Speaker 2: For example, are you planning on investing for five years

665
00:32:48,960 --> 00:32:51,960
Speaker 2: or the next fifty? Like? What is the plan? Because

666
00:32:51,960 --> 00:32:55,440
Speaker 2: your risk tolerance will absolutely change. If your plan is

667
00:32:55,480 --> 00:32:58,440
Speaker 2: to invest for five years, you're going to be significantly

668
00:32:58,600 --> 00:33:01,760
Speaker 2: more conservative because you have less time to play with.

669
00:33:01,920 --> 00:33:02,720
Speaker 2: Does that make sense?

670
00:33:03,080 --> 00:33:05,480
Speaker 3: Yeah, absolutely, Okay, so we're looking at this it is

671
00:33:05,480 --> 00:33:07,320
Speaker 3: a little bit more risky. One of the other things

672
00:33:07,360 --> 00:33:09,760
Speaker 3: we've clearly gathered that can add to risk is taking

673
00:33:09,760 --> 00:33:12,520
Speaker 3: a look back at the past. Obviously, again, pery performance

674
00:33:12,560 --> 00:33:14,720
Speaker 3: not an indicator, but let's look at the inception date.

675
00:33:14,840 --> 00:33:15,880
Speaker 3: How long ago was this one?

676
00:33:15,960 --> 00:33:18,920
Speaker 2: So this one's been around a farewell as well. This

677
00:33:19,000 --> 00:33:22,640
Speaker 2: one was born on the seventeenth of August twenty fifteen,

678
00:33:23,320 --> 00:33:26,080
Speaker 2: and as we said, has had epic performance over the

679
00:33:26,160 --> 00:33:29,280
Speaker 2: last one year. So sixty nine point four four percent

680
00:33:29,400 --> 00:33:34,360
Speaker 2: in twenty twenty one, which yes, you are twelve, you

681
00:33:34,400 --> 00:33:37,480
Speaker 2: are our twelve year old boy. But over the last

682
00:33:37,720 --> 00:33:40,920
Speaker 2: five years has performed at thirty one point one six

683
00:33:41,280 --> 00:33:43,920
Speaker 2: over the last three years has performed at forty nine

684
00:33:43,960 --> 00:33:48,680
Speaker 2: point two zero, and since inception has performed twenty five

685
00:33:48,760 --> 00:33:51,840
Speaker 2: point seven five percent, which I think is a pretty

686
00:33:51,880 --> 00:33:56,480
Speaker 2: good return. And as we said before, this fund is geared,

687
00:33:56,520 --> 00:33:59,880
Speaker 2: which means it does borrow additional money to invest on

688
00:34:00,080 --> 00:34:03,800
Speaker 2: your behalf as the investor. It's also hedged, which means

689
00:34:03,880 --> 00:34:07,480
Speaker 2: it is hedged for currency risk, which is interesting and

690
00:34:07,560 --> 00:34:10,400
Speaker 2: nice to know. But then with that money, it is

691
00:34:10,440 --> 00:34:14,160
Speaker 2: investing in the SMP five hundred Index Fund, which is

692
00:34:14,280 --> 00:34:16,920
Speaker 2: quite interesting and you might not have heard of it before,

693
00:34:17,000 --> 00:34:20,200
Speaker 2: but it is the US fund that essentially invests in

694
00:34:20,239 --> 00:34:24,200
Speaker 2: each of the five hundred companies in the SMP five hundred,

695
00:34:24,200 --> 00:34:27,960
Speaker 2: which is essentially just the top five hundred companies in

696
00:34:28,000 --> 00:34:31,040
Speaker 2: the US, which is essentially just investing in the top

697
00:34:31,080 --> 00:34:35,000
Speaker 2: five hundred companies in America on average. So if we

698
00:34:35,239 --> 00:34:38,560
Speaker 2: compare it, because as we said before, they're borrowing money,

699
00:34:38,680 --> 00:34:41,839
Speaker 2: how much value does this bring? What does that actually mean?

700
00:34:42,239 --> 00:34:45,400
Speaker 2: So if we look at over the last three years,

701
00:34:45,760 --> 00:34:49,040
Speaker 2: I said that this fund had performed forty nine point

702
00:34:49,120 --> 00:34:52,400
Speaker 2: two zero percent if you compare it to just the

703
00:34:52,480 --> 00:34:55,360
Speaker 2: SMP five hundred index, if you went and purchased that

704
00:34:55,960 --> 00:34:59,839
Speaker 2: not inside the geared US fund with beta shares over

705
00:34:59,840 --> 00:35:02,920
Speaker 2: the same period of time, that would have performed at

706
00:35:02,960 --> 00:35:06,600
Speaker 2: twenty five point four one percent in comparison to the

707
00:35:06,680 --> 00:35:09,239
Speaker 2: forty nine point two zero So you can see that

708
00:35:09,320 --> 00:35:13,320
Speaker 2: there's actually a pretty significant difference. But again, you're taking

709
00:35:13,360 --> 00:35:14,760
Speaker 2: on a lot more risk.

710
00:35:15,160 --> 00:35:18,600
Speaker 3: Okay, So I mean, just before you mentioned the SMP

711
00:35:18,719 --> 00:35:21,759
Speaker 3: five hundred, I know you said the top businesses, but

712
00:35:21,760 --> 00:35:23,480
Speaker 3: would that have businesses in there that I'd.

713
00:35:23,360 --> 00:35:27,000
Speaker 2: Know, Yes, absolutely, So the SMP five hundred is actually

714
00:35:27,000 --> 00:35:30,000
Speaker 2: made up of five hundred of the largest US companies,

715
00:35:30,040 --> 00:35:33,040
Speaker 2: which means it includes some of the most recognizable and

716
00:35:33,200 --> 00:35:36,359
Speaker 2: I would say popular stocks in the world. So, Sam,

717
00:35:36,400 --> 00:35:40,040
Speaker 2: they've got companies like Alphabet, which is Google. They've got Amazon,

718
00:35:40,200 --> 00:35:43,839
Speaker 2: They've got Apple, they've got eBay, they've got Meta, which

719
00:35:43,880 --> 00:35:47,239
Speaker 2: is Facebook's new name. They're trying to reshape themselves for

720
00:35:47,280 --> 00:35:52,760
Speaker 2: twenty twenty two. I believe they've got McDonald's. I've got Microsoft, Netflix, Nike, Tesla, Twitter,

721
00:35:52,840 --> 00:35:55,359
Speaker 2: Like I could go on, they've got Disney, Like all

722
00:35:55,400 --> 00:35:58,960
Speaker 2: of the companies that you've probably heard of having shares

723
00:35:59,040 --> 00:36:02,200
Speaker 2: are very life to be in the SMP five hundred.

724
00:36:02,280 --> 00:36:04,480
Speaker 2: So it's not companies that you've never heard of, like,

725
00:36:04,520 --> 00:36:07,759
Speaker 2: they're literally the five hundred biggest companies in the US.

726
00:36:07,960 --> 00:36:10,759
Speaker 3: And you every name you just mentioned, oh.

727
00:36:10,600 --> 00:36:15,120
Speaker 2: Look at you, you investing Wizards. But the important thing

728
00:36:15,200 --> 00:36:19,319
Speaker 2: to understand there is it is an index. And as

729
00:36:19,360 --> 00:36:22,840
Speaker 2: we said before, it's not just oh, well, I invested

730
00:36:22,880 --> 00:36:25,840
Speaker 2: in Nike, therefore I get Nike's returns. You're getting the

731
00:36:25,920 --> 00:36:29,560
Speaker 2: average of those five hundred companies, which from my perspective

732
00:36:29,680 --> 00:36:32,080
Speaker 2: is pretty incredible, and they're all picked out by a

733
00:36:32,080 --> 00:36:35,560
Speaker 2: fund manager. It is managed ongoing, but it's very interesting

734
00:36:35,600 --> 00:36:39,000
Speaker 2: to see how these things get put into different portfolios,

735
00:36:39,640 --> 00:36:42,680
Speaker 2: like the ETF that purchases that and then gives it

736
00:36:42,719 --> 00:36:45,200
Speaker 2: and hedges it. Like that's kind of cool to see it.

737
00:36:45,280 --> 00:36:49,439
Speaker 2: And obviously in twenty twenty one that performed pretty well.

738
00:36:49,600 --> 00:36:52,000
Speaker 3: Awesome. Okay, so that's the SMP five hundred and what

739
00:36:52,040 --> 00:36:54,560
Speaker 3: that means there for us. But you've genuinely built my

740
00:36:54,600 --> 00:36:58,439
Speaker 3: anticipation for this. I am excited for number one. It's

741
00:36:58,560 --> 00:37:01,840
Speaker 3: like top twenty countdown of hits and I'm excited to

742
00:37:02,160 --> 00:37:03,680
Speaker 3: hear what's going to be at number one? What have

743
00:37:03,719 --> 00:37:04,080
Speaker 3: we got?

744
00:37:04,239 --> 00:37:06,880
Speaker 2: It really wasn't a triple J top one hundred, Like

745
00:37:06,960 --> 00:37:10,919
Speaker 2: the anticipation for that countdown is definitely more than Victoria's

746
00:37:11,000 --> 00:37:15,160
Speaker 2: countdown of the five ETFs from twenty twenty one, but

747
00:37:15,800 --> 00:37:18,600
Speaker 2: coming in at a one year return of eighty six

748
00:37:18,640 --> 00:37:22,919
Speaker 2: point seven two percent was get this really sexy name,

749
00:37:23,280 --> 00:37:28,359
Speaker 2: the ETFs Ultralong NASDAQ one hundred hedge Fund, which will

750
00:37:28,400 --> 00:37:31,279
Speaker 2: start breaking down and explain because that doesn't sound nearly

751
00:37:31,320 --> 00:37:34,239
Speaker 2: as sexy as it definitely could have, Like it would

752
00:37:34,280 --> 00:37:36,600
Speaker 2: have been more sexy if beta shares was in there.

753
00:37:37,480 --> 00:37:40,160
Speaker 3: Sexy there was Did you say ultralong? Was that in

754
00:37:40,200 --> 00:37:42,240
Speaker 3: the name? Yes?

755
00:37:42,360 --> 00:37:44,839
Speaker 2: It is, yep, yep, No, I didn't make that up.

756
00:37:44,880 --> 00:37:50,040
Speaker 2: It is called the ETFs Ultralong NASDAQ one hundred Hedge Fund.

757
00:37:50,320 --> 00:37:52,040
Speaker 3: I mean it's a long name and that even put

758
00:37:52,080 --> 00:37:52,719
Speaker 3: it in the name.

759
00:37:52,880 --> 00:37:55,520
Speaker 2: Yeah, they're like, by the way, we're a long fund.

760
00:37:55,760 --> 00:37:58,200
Speaker 2: But that's a thing, right, So this is actually an

761
00:37:58,239 --> 00:38:01,560
Speaker 2: ETF that aims to provide it's investors with geared returns.

762
00:38:01,600 --> 00:38:03,879
Speaker 2: And before we learned what gear returns were so they're

763
00:38:03,920 --> 00:38:07,200
Speaker 2: borrowing money to invest that are positively related to the

764
00:38:07,239 --> 00:38:11,360
Speaker 2: returns of the Nasdaq one hundred index, which is another

765
00:38:11,520 --> 00:38:15,440
Speaker 2: index fund, which is a fund managed by Nasdaq, which

766
00:38:15,520 --> 00:38:18,080
Speaker 2: Sam you'll be very excited to know, also has an

767
00:38:18,080 --> 00:38:20,360
Speaker 2: office in my building. It's as though we live in

768
00:38:20,400 --> 00:38:23,240
Speaker 2: a building that is just full of financial services. Go figure,

769
00:38:23,400 --> 00:38:26,920
Speaker 2: I'm also a financial services company. But that's like kind

770
00:38:26,920 --> 00:38:29,440
Speaker 2: of cool to be, like, oh, where's your office, Victoria, Like, oh,

771
00:38:29,520 --> 00:38:31,759
Speaker 2: it's swear Beta ches and NASDAKA. Do you know that?

772
00:38:32,120 --> 00:38:34,680
Speaker 3: Like, well jokes, you hang out at the same cafe

773
00:38:35,239 --> 00:38:35,920
Speaker 3: coffees together.

774
00:38:36,120 --> 00:38:37,840
Speaker 2: I mean we do hang out at the same cafe

775
00:38:37,840 --> 00:38:40,560
Speaker 2: because it's literally in the building. But like they probably

776
00:38:40,600 --> 00:38:43,560
Speaker 2: don't know who I am for good reason, Like they're Nasdak,

777
00:38:43,719 --> 00:38:47,040
Speaker 2: I'm Victoria. But the Nasdaq one hundred is one of

778
00:38:47,080 --> 00:38:51,000
Speaker 2: the world's pre eminent large cap growth indexes, which sounds

779
00:38:51,160 --> 00:38:54,839
Speaker 2: like a very complicated term, but when you say large cap,

780
00:38:54,880 --> 00:38:57,120
Speaker 2: it essentially just means companies that are worth more than

781
00:38:57,160 --> 00:39:00,160
Speaker 2: ten billion dollars, so they're small caps, mid caps, and

782
00:39:00,239 --> 00:39:02,520
Speaker 2: large caps. A large cap would mean that that company

783
00:39:02,560 --> 00:39:05,240
Speaker 2: is worth more than ten billion dollars. A med cap

784
00:39:05,600 --> 00:39:08,359
Speaker 2: means that the market value sits between ten and three

785
00:39:08,400 --> 00:39:11,480
Speaker 2: billion dollars, and then small caps are under that. So

786
00:39:11,520 --> 00:39:15,040
Speaker 2: it's kind of interesting to understand that because you know,

787
00:39:15,200 --> 00:39:17,440
Speaker 2: in the investment world, people throw that around like you'll

788
00:39:17,480 --> 00:39:20,960
Speaker 2: beat a cafe and you'll hear some finance bro being like, oh, yeah,

789
00:39:21,160 --> 00:39:23,560
Speaker 2: invested in the small caps this weekend. You'll be like,

790
00:39:23,560 --> 00:39:25,680
Speaker 2: what the hell is that? He's literally just talking about

791
00:39:25,719 --> 00:39:28,240
Speaker 2: companies who have a certain income and there's nothing sexy

792
00:39:28,239 --> 00:39:31,880
Speaker 2: about that. In fact, I am convinced that the finance

793
00:39:31,960 --> 00:39:36,440
Speaker 2: industry makes up these terms to sound smarter, when in reality,

794
00:39:36,440 --> 00:39:40,080
Speaker 2: they could have just said rich companies and it would

795
00:39:40,080 --> 00:39:43,120
Speaker 2: have meant the same thing to me, like, oh, company's

796
00:39:43,160 --> 00:39:45,400
Speaker 2: worth more than ten billion dollars. Ah, there you go, Victoria.

797
00:39:45,560 --> 00:39:49,640
Speaker 2: That makes a lot more sense. But essentially, the Nasdaq

798
00:39:49,680 --> 00:39:52,520
Speaker 2: one hundred includes one hundred of the largest domestic and

799
00:39:52,680 --> 00:39:57,080
Speaker 2: international non financial companies that is listed on the Nasdaq

800
00:39:57,200 --> 00:39:59,960
Speaker 2: stock market based on how much money they bring in.

801
00:40:00,200 --> 00:40:03,719
Speaker 2: So that's kind of interesting. But then also what's interesting

802
00:40:03,920 --> 00:40:08,120
Speaker 2: is that across these ETFs that we've discussed have been

803
00:40:08,360 --> 00:40:12,359
Speaker 2: lots and lots of different stock markets, and here in Australia,

804
00:40:12,480 --> 00:40:15,120
Speaker 2: we only have exposure. I mean, we can invest in

805
00:40:15,160 --> 00:40:19,040
Speaker 2: any but as Australians we only have the ASX, so

806
00:40:19,120 --> 00:40:22,719
Speaker 2: we have one stock market, whereas in the US they

807
00:40:22,760 --> 00:40:26,920
Speaker 2: actually have thirteen different stock exchanges. So for a lot

808
00:40:26,920 --> 00:40:29,879
Speaker 2: of Australians, I think the assumption is that, oh, well,

809
00:40:29,880 --> 00:40:32,320
Speaker 2: if you live in Australia, we have the Australian Stock

810
00:40:32,360 --> 00:40:34,480
Speaker 2: Exchange and if you live in America you must have

811
00:40:34,560 --> 00:40:37,839
Speaker 2: the American Stock Exchange, when in reality that's not it.

812
00:40:37,920 --> 00:40:40,400
Speaker 2: There are lots of different stock exchanges. In fact, the

813
00:40:40,480 --> 00:40:44,520
Speaker 2: US has literally thirteen different ones. And what's been interesting

814
00:40:44,800 --> 00:40:49,279
Speaker 2: is that over this conversation lots of different stock exchanges

815
00:40:49,320 --> 00:40:52,400
Speaker 2: have come to play in the top five and what

816
00:40:52,600 --> 00:40:54,839
Speaker 2: these portfolios have been made up of and what these

817
00:40:54,920 --> 00:40:58,640
Speaker 2: ETFs hold. But from my perspective, what's been really interesting

818
00:40:58,880 --> 00:41:01,080
Speaker 2: is that they're all impact did by the same market

819
00:41:01,160 --> 00:41:03,080
Speaker 2: conditions at the moment. So if you look at the

820
00:41:03,120 --> 00:41:07,719
Speaker 2: world like COVID is global, whereas historically that might not

821
00:41:07,840 --> 00:41:10,880
Speaker 2: be true, so you might find something is only going

822
00:41:10,920 --> 00:41:14,440
Speaker 2: on in America and therefore only US stock exchanges are

823
00:41:14,520 --> 00:41:17,520
Speaker 2: impacted by that. Or you know, way back when the

824
00:41:17,640 --> 00:41:20,880
Speaker 2: drought was happening in Australia and it wasn't in America

825
00:41:20,960 --> 00:41:24,120
Speaker 2: and it wasn't impacting them, but it did impact our

826
00:41:24,200 --> 00:41:27,040
Speaker 2: services and what was going on, whereas right now what

827
00:41:27,080 --> 00:41:29,160
Speaker 2: we're going through with COVID is actually global. And I

828
00:41:29,239 --> 00:41:31,840
Speaker 2: just find it really interesting to have this conversation about

829
00:41:32,040 --> 00:41:35,520
Speaker 2: what drives markets and which markets are impacted and what

830
00:41:35,560 --> 00:41:38,680
Speaker 2: does that mean as an investor and should I buy,

831
00:41:38,760 --> 00:41:40,839
Speaker 2: should I sell? Should I get out? Like what does

832
00:41:40,880 --> 00:41:43,480
Speaker 2: that mean? And the summary of that is no, you

833
00:41:43,520 --> 00:41:45,560
Speaker 2: don't want to get out, you want to ride it out.

834
00:41:46,520 --> 00:41:49,439
Speaker 3: Would that be so like using America and the US

835
00:41:49,480 --> 00:41:51,560
Speaker 3: as an example, you'd look at, Okay, in a couple

836
00:41:51,600 --> 00:41:53,319
Speaker 3: of years, we're going to have another US election that's

837
00:41:53,320 --> 00:41:56,640
Speaker 3: probably going to for whatever way, influence markets as well.

838
00:41:56,840 --> 00:41:59,760
Speaker 2: Yes, absolutely, And we've actually seen that over the last

839
00:41:59,760 --> 00:42:03,400
Speaker 2: few years about how volatile the markets can be based

840
00:42:03,400 --> 00:42:06,840
Speaker 2: on what presidents and what government are doing. Because remember

841
00:42:06,840 --> 00:42:09,839
Speaker 2: back when Trump was president and he would tweet one

842
00:42:09,880 --> 00:42:12,759
Speaker 2: thing and the markets would go crazy. I think there's

843
00:42:12,800 --> 00:42:16,680
Speaker 2: a lot to be said about how media, social media

844
00:42:16,760 --> 00:42:20,160
Speaker 2: and the internet now play into the way that markets

845
00:42:20,160 --> 00:42:24,520
Speaker 2: are valued. Because we also saw semi recently what happened

846
00:42:24,600 --> 00:42:27,040
Speaker 2: last year with game Stop. So at the start of

847
00:42:27,120 --> 00:42:30,000
Speaker 2: last year, a whole heap of people on an internet

848
00:42:30,000 --> 00:42:34,480
Speaker 2: forum decided to short game Stop and were super successful

849
00:42:34,560 --> 00:42:37,719
Speaker 2: at changing market prices, making a lot of money, and

850
00:42:37,800 --> 00:42:41,160
Speaker 2: essentially screwing the share market. So I don't know where

851
00:42:41,200 --> 00:42:43,280
Speaker 2: this is going to go or what that actually means

852
00:42:43,320 --> 00:42:44,799
Speaker 2: if you don't know what I'm talking about when it

853
00:42:44,800 --> 00:42:47,440
Speaker 2: comes to GameStop, I did a whole IGTV on it.

854
00:42:47,480 --> 00:42:50,759
Speaker 2: Go and check it out on our Instagram. But GameStop

855
00:42:50,880 --> 00:42:54,440
Speaker 2: was a really interesting, I guess learning for the world

856
00:42:54,800 --> 00:42:57,359
Speaker 2: to see that now it's not just markets, it's not

857
00:42:57,400 --> 00:43:00,560
Speaker 2: just performance, it's not just CEOs, it's not just what

858
00:43:00,600 --> 00:43:03,880
Speaker 2: your company is selling that can drive its share price.

859
00:43:04,360 --> 00:43:07,360
Speaker 2: And I think that that's quite quite worrying. At the

860
00:43:07,360 --> 00:43:09,120
Speaker 2: same time has been quite fascinating.

861
00:43:09,200 --> 00:43:13,400
Speaker 3: Absolutely so taking a look at our number one again, yes.

862
00:43:13,640 --> 00:43:17,040
Speaker 2: The ETFs Ultra long NASDAQ one hundred hedge fund.

863
00:43:17,400 --> 00:43:19,160
Speaker 3: I mean, the one thing I've been taking away from

864
00:43:19,200 --> 00:43:21,080
Speaker 3: this is the inception dates, because I can get a

865
00:43:21,080 --> 00:43:22,960
Speaker 3: bit of an understanding there as well. What's the inception

866
00:43:23,080 --> 00:43:23,880
Speaker 3: date for this one?

867
00:43:23,920 --> 00:43:27,360
Speaker 2: It was the tenth of July twenty twenty which means

868
00:43:27,440 --> 00:43:30,040
Speaker 2: we don't have three year and we don't have five

869
00:43:30,120 --> 00:43:33,799
Speaker 2: year performance to compare it to. But what I can

870
00:43:33,880 --> 00:43:36,000
Speaker 2: tell you is that do you know there is twenty

871
00:43:36,040 --> 00:43:38,880
Speaker 2: point one seven million dollars in that fund as of

872
00:43:39,000 --> 00:43:41,000
Speaker 2: January this year when I had a look at it.

873
00:43:41,200 --> 00:43:42,320
Speaker 2: That's a lot of money.

874
00:43:43,160 --> 00:43:43,719
Speaker 3: That is a lot.

875
00:43:43,800 --> 00:43:46,520
Speaker 2: That is a lot of money. And it's interesting to

876
00:43:46,560 --> 00:43:49,680
Speaker 2: see how that has grown since the tenth of July

877
00:43:49,800 --> 00:43:53,520
Speaker 2: twenty twenty, Like someone has created an ETF, started putting

878
00:43:53,520 --> 00:43:57,120
Speaker 2: it together, and over the last twelve now what eighteen months,

879
00:43:57,120 --> 00:43:59,719
Speaker 2: because it was started in July, they've managed to raise

880
00:43:59,719 --> 00:44:02,319
Speaker 2: twenty million dollars and they now have twenty million dollars

881
00:44:02,360 --> 00:44:05,279
Speaker 2: worth of responsibility. Like that's really interesting.

882
00:44:05,080 --> 00:44:07,719
Speaker 3: So super interesting and taking away a lot from this.

883
00:44:08,040 --> 00:44:09,480
Speaker 3: One of the things I'm taking away from it is

884
00:44:09,480 --> 00:44:11,319
Speaker 3: that a lot of them are even though they're like

885
00:44:11,320 --> 00:44:14,360
Speaker 3: in the top five ones I wouldn't probably go for

886
00:44:14,560 --> 00:44:16,719
Speaker 3: or would probably be too scared off by risk, and

887
00:44:16,880 --> 00:44:19,520
Speaker 3: like there's just because they're there, isn't necessarily what they're

888
00:44:19,520 --> 00:44:20,080
Speaker 3: ones you go.

889
00:44:20,120 --> 00:44:22,239
Speaker 2: For no, And that's why I really wanted to do

890
00:44:22,280 --> 00:44:25,640
Speaker 2: this episode and have this conversation because I get asked

891
00:44:25,680 --> 00:44:27,239
Speaker 2: all the time, and I can never give you guys

892
00:44:27,239 --> 00:44:30,239
Speaker 2: an answer on this because it's frankly unethical for me

893
00:44:30,320 --> 00:44:32,600
Speaker 2: to tell you which ETF to pick, or which share

894
00:44:32,600 --> 00:44:35,799
Speaker 2: to pick, or whatever you're asking me. But a lot

895
00:44:35,880 --> 00:44:37,799
Speaker 2: of people will slide into my DM so and be like, Oh,

896
00:44:37,800 --> 00:44:39,719
Speaker 2: I looked at the top performing ones last year, and

897
00:44:39,719 --> 00:44:42,439
Speaker 2: I'm going to pick this and go that's not how

898
00:44:42,480 --> 00:44:45,799
Speaker 2: you pick a share. But who taught you how to

899
00:44:45,840 --> 00:44:48,120
Speaker 2: pick a share? Nobody? So I'm going to do that.

900
00:44:48,160 --> 00:44:50,480
Speaker 2: I'm going to teach you, guys, exactly how to pick

901
00:44:50,480 --> 00:44:52,520
Speaker 2: a share, how to pick an ETF, what that means,

902
00:44:52,560 --> 00:44:55,279
Speaker 2: how to evaluate your own personal beliefs and values and

903
00:44:55,320 --> 00:44:57,759
Speaker 2: goals to make sure that you're picking something that you're

904
00:44:57,880 --> 00:44:59,840
Speaker 2: comfortable with. I'm not going to tell you what it

905
00:45:00,040 --> 00:45:01,840
Speaker 2: it is, but I will give you the tools and

906
00:45:01,880 --> 00:45:04,440
Speaker 2: the resources and the conversation so that you can look

907
00:45:04,480 --> 00:45:06,760
Speaker 2: at something and be like, ah, yes, Victoria, the ETFs

908
00:45:06,840 --> 00:45:09,560
Speaker 2: Ultra long NASDAQ one hundred hedge fund is absolutely not

909
00:45:09,600 --> 00:45:11,960
Speaker 2: aligned to my values because it's good and it's a

910
00:45:12,000 --> 00:45:14,040
Speaker 2: hedge fund, and you know, I just don't want to

911
00:45:14,080 --> 00:45:16,880
Speaker 2: carry that amount of risk, even though they've got great return.

912
00:45:16,960 --> 00:45:19,480
Speaker 2: I'm probably looking for something that's more aligned to my

913
00:45:19,600 --> 00:45:22,720
Speaker 2: personal preferences. And I don't know, there's something really sexy

914
00:45:22,760 --> 00:45:25,920
Speaker 2: about people being able to say no that doesn't suit

915
00:45:25,960 --> 00:45:28,280
Speaker 2: me for these reasons, or as a lot of people

916
00:45:28,280 --> 00:45:30,839
Speaker 2: would just go, oh, what do my friends have, or

917
00:45:30,840 --> 00:45:33,239
Speaker 2: how have they invested, or what did they pick? And

918
00:45:33,360 --> 00:45:35,640
Speaker 2: it's not to say that that wouldn't work for you,

919
00:45:36,120 --> 00:45:39,040
Speaker 2: but I think there's something really empowering about going no.

920
00:45:39,040 --> 00:45:41,439
Speaker 2: Now I know why the top five performed the way

921
00:45:41,480 --> 00:45:43,719
Speaker 2: they did. Does that mean that they're the top five

922
00:45:43,800 --> 00:45:46,320
Speaker 2: ETFs that a financial advisor would pick for their clients.

923
00:45:46,600 --> 00:45:49,880
Speaker 2: Absolutely not. But it's really interesting to see what drives

924
00:45:49,920 --> 00:45:52,520
Speaker 2: them and what creates the performance. And Sam, even one

925
00:45:52,520 --> 00:45:55,480
Speaker 2: of those ETFs that made the top five had literally

926
00:45:55,520 --> 00:45:58,360
Speaker 2: over the last five years, had nothing but negative performance,

927
00:45:58,719 --> 00:46:02,480
Speaker 2: and somehow because of them, conditions has absolutely bounced back.

928
00:46:02,760 --> 00:46:06,440
Speaker 2: But that's where to invest properly, we actually have to

929
00:46:06,560 --> 00:46:09,279
Speaker 2: understand the market and understand what's going on. And if

930
00:46:09,280 --> 00:46:12,720
Speaker 2: you're not super empowered by that, and you're like, wow, Victoria,

931
00:46:12,800 --> 00:46:14,680
Speaker 2: I don't really want to pick my own stuff, which

932
00:46:14,719 --> 00:46:17,359
Speaker 2: you absolutely can. You can go and do all of

933
00:46:17,400 --> 00:46:20,719
Speaker 2: this yourselves. But if not, there are solutions for you.

934
00:46:20,760 --> 00:46:24,000
Speaker 2: For example, I organize my partnership with six Park, So

935
00:46:24,080 --> 00:46:26,120
Speaker 2: if you don't want to pick any of these and

936
00:46:26,160 --> 00:46:28,560
Speaker 2: you just go, Victoria, I've got this amount of money

937
00:46:28,680 --> 00:46:30,880
Speaker 2: and I want to invest ethically or I want to

938
00:46:30,920 --> 00:46:34,800
Speaker 2: invest sustainably, Can you tell us what to do? Six

939
00:46:34,880 --> 00:46:37,840
Speaker 2: Park can provide you with financial advice so that you

940
00:46:38,040 --> 00:46:40,920
Speaker 2: can go and do that. And that's why I'm partnering

941
00:46:40,960 --> 00:46:43,600
Speaker 2: with them, because there's so much more to the investment

942
00:46:43,680 --> 00:46:46,719
Speaker 2: world than just going, Hey, what do my friends own?

943
00:46:46,760 --> 00:46:48,680
Speaker 2: Maybe I'll just go buy that ETF for the rest

944
00:46:48,719 --> 00:46:51,200
Speaker 2: of my days. Like it's just not going to work

945
00:46:51,280 --> 00:46:53,920
Speaker 2: in saying that. It doesn't mean you can't go do that. Like,

946
00:46:53,960 --> 00:46:56,719
Speaker 2: we have so many different investment platforms that we could

947
00:46:56,719 --> 00:46:58,680
Speaker 2: go and pick and choose, and I don't know. I

948
00:46:58,719 --> 00:47:01,920
Speaker 2: just think it's really empowering to be equipped with the

949
00:47:02,120 --> 00:47:04,399
Speaker 2: choice and equipped with the education so that you can

950
00:47:04,400 --> 00:47:06,600
Speaker 2: go what am I looking for? And Sam, you might

951
00:47:06,600 --> 00:47:09,520
Speaker 2: turn around and go, Victoria, I only want to invest

952
00:47:09,560 --> 00:47:12,319
Speaker 2: in an ETF that picks companies that have women on

953
00:47:12,360 --> 00:47:16,759
Speaker 2: their boards. Sam, that ETF exists, Like that's super empowering

954
00:47:16,800 --> 00:47:19,960
Speaker 2: to know that your money is going to be invested

955
00:47:20,000 --> 00:47:22,520
Speaker 2: in line with your values, whether you're investing a dollar

956
00:47:22,719 --> 00:47:25,080
Speaker 2: or a million, Like, it's very cool to think that

957
00:47:25,160 --> 00:47:29,120
Speaker 2: we now have access to the same opportunities that someone

958
00:47:29,160 --> 00:47:32,640
Speaker 2: with a million dollars does if we're starting with five bucks, Like,

959
00:47:32,760 --> 00:47:33,759
Speaker 2: that's cool, is there?

960
00:47:33,960 --> 00:47:37,959
Speaker 3: Yeah? Purely off my own personal interests. Could I find

961
00:47:38,000 --> 00:47:40,240
Speaker 3: one that's purely based off companies around audio?

962
00:47:40,360 --> 00:47:43,279
Speaker 2: Don't know? I feel it, yes, absolutely, because I just

963
00:47:43,360 --> 00:47:45,359
Speaker 2: googled this and you could go and pick the round

964
00:47:45,480 --> 00:47:50,000
Speaker 2: Hill Streaming Service and Technology ETF, Like there is an

965
00:47:50,040 --> 00:47:54,279
Speaker 2: ETF for everything, and this ETF, I mean doesn't look

966
00:47:54,320 --> 00:47:56,040
Speaker 2: like it performs well, so I'm not sure if I

967
00:47:56,040 --> 00:47:59,240
Speaker 2: would pick it. But it's literally just holding a whole

968
00:47:59,239 --> 00:48:03,239
Speaker 2: bunch of audio your engineering companies, Like that's kind of cool.

969
00:48:03,480 --> 00:48:06,799
Speaker 3: M absolutely, that's that's really interesting. And I just wanted

970
00:48:06,800 --> 00:48:08,439
Speaker 3: to pick up one thing you said earlier as well,

971
00:48:08,520 --> 00:48:11,759
Speaker 3: Like you were saying, you know, we might look at

972
00:48:11,800 --> 00:48:13,120
Speaker 3: these lists, so we might look at you know, our

973
00:48:13,120 --> 00:48:16,000
Speaker 3: friends make recommendations. I love the idea of taking what

974
00:48:16,080 --> 00:48:18,480
Speaker 3: we've taken from this episode and applying it also to

975
00:48:18,520 --> 00:48:21,439
Speaker 3: the suggestions f friends make, you know, and being like cool,

976
00:48:21,440 --> 00:48:23,960
Speaker 3: you've made a suggestion. Now I'll look into it closer

977
00:48:24,000 --> 00:48:25,400
Speaker 3: as to whether or not I'll make a decision.

978
00:48:25,960 --> 00:48:28,839
Speaker 2: Yes, that's actually a really really good point because too

979
00:48:28,880 --> 00:48:31,839
Speaker 2: often you go, oh, what do you hold? And your

980
00:48:31,840 --> 00:48:34,600
Speaker 2: friend might be like, oh, I hold the Vanguard Ethical

981
00:48:34,640 --> 00:48:38,640
Speaker 2: ETF and you go, okay, no problems, but you don't

982
00:48:38,719 --> 00:48:40,840
Speaker 2: take the time to look at what you should be

983
00:48:40,880 --> 00:48:43,960
Speaker 2: looking at. Because, to be honest, when you do google

984
00:48:44,280 --> 00:48:47,040
Speaker 2: the fact sheet and try and understand what's going on,

985
00:48:47,120 --> 00:48:48,759
Speaker 2: and you go on the website and it says what

986
00:48:48,800 --> 00:48:51,239
Speaker 2: are the key facts, what's the performance, what's the distribution,

987
00:48:51,400 --> 00:48:54,640
Speaker 2: you do get really overwhelmed and having a look at Okay,

988
00:48:54,680 --> 00:48:56,359
Speaker 2: I'm going to go find the inception date and you

989
00:48:56,400 --> 00:48:58,080
Speaker 2: know how long it's existed for. You can have a

990
00:48:58,120 --> 00:49:00,480
Speaker 2: look at its past performance. You can go and have

991
00:49:00,520 --> 00:49:02,719
Speaker 2: a look at what it's made up of, like what

992
00:49:02,920 --> 00:49:07,000
Speaker 2: sectors are they allocating the assets towards? Like are you

993
00:49:07,080 --> 00:49:10,399
Speaker 2: looking at one particular industry so for example, we looked

994
00:49:10,400 --> 00:49:14,120
Speaker 2: at a crude oil ETF just before, obviously that's in

995
00:49:14,239 --> 00:49:17,080
Speaker 2: one area. Or are we looking at a really well

996
00:49:17,160 --> 00:49:20,920
Speaker 2: diversified portfolio of assets. Are they holding healthcare? Do they

997
00:49:20,960 --> 00:49:24,200
Speaker 2: have financials. Do they have industrials, do they have real

998
00:49:24,320 --> 00:49:26,160
Speaker 2: estate or information technology?

999
00:49:26,239 --> 00:49:26,359
Speaker 3: Like?

1000
00:49:26,719 --> 00:49:29,719
Speaker 2: What do you want from an ETF is really really

1001
00:49:29,800 --> 00:49:32,799
Speaker 2: important to understand before you invest, because I think too

1002
00:49:32,840 --> 00:49:35,399
Speaker 2: often people get caught up in the I just want

1003
00:49:35,440 --> 00:49:38,680
Speaker 2: to invest, Victoria, and I go okay, But like you're smart,

1004
00:49:38,719 --> 00:49:42,359
Speaker 2: Like you're smart and you're empowered. Do you want exposure

1005
00:49:42,480 --> 00:49:46,240
Speaker 2: to global markets? Like do you want SAM international shares?

1006
00:49:46,239 --> 00:49:48,160
Speaker 2: And you might go no, Victoria, I only want to

1007
00:49:48,160 --> 00:49:50,759
Speaker 2: invest in Australia And I go, okay, no problems. But

1008
00:49:50,840 --> 00:49:53,440
Speaker 2: you might say, well, actually, Victoria, I really want to

1009
00:49:53,480 --> 00:49:57,879
Speaker 2: invest internationally because if Australian markets aren't performing well, then

1010
00:49:57,880 --> 00:50:01,480
Speaker 2: I've got a backup of US SMAR or an international

1011
00:50:01,480 --> 00:50:03,919
Speaker 2: market because if something's going down in Australia, I want

1012
00:50:03,920 --> 00:50:06,000
Speaker 2: to balance it out. You go, okay, that makes sense,

1013
00:50:06,080 --> 00:50:08,120
Speaker 2: let's look for something that might have that for you.

1014
00:50:08,680 --> 00:50:12,080
Speaker 2: So I think from my perspective as a financial advisor,

1015
00:50:12,200 --> 00:50:15,879
Speaker 2: that's what's really important to take into consideration. Obviously, then

1016
00:50:15,960 --> 00:50:18,080
Speaker 2: we do need to take into consideration fees, and we

1017
00:50:18,120 --> 00:50:20,680
Speaker 2: didn't really discuss that because I took them out before

1018
00:50:20,800 --> 00:50:25,759
Speaker 2: presenting portfolio performance. But on average, I would fully expect

1019
00:50:26,080 --> 00:50:28,759
Speaker 2: the fees of an ETF if you're going directly, to

1020
00:50:28,760 --> 00:50:30,799
Speaker 2: be less than one percent, and if not, I'd be

1021
00:50:30,880 --> 00:50:32,640
Speaker 2: a bit like, hmm, what are you putting on the

1022
00:50:32,680 --> 00:50:36,000
Speaker 2: table that makes it worth that? But yeah, it's an

1023
00:50:36,040 --> 00:50:38,960
Speaker 2: interesting conversation and to be honest, I cannot wait, Sam

1024
00:50:39,040 --> 00:50:41,200
Speaker 2: for you to have to edit hours and hours more

1025
00:50:41,239 --> 00:50:45,440
Speaker 2: content of me ranting about different investment assets. And in

1026
00:50:45,480 --> 00:50:47,080
Speaker 2: the next couple of weeks, I'm going to drop an

1027
00:50:47,080 --> 00:50:50,040
Speaker 2: episode that is the top five shares like direct shares

1028
00:50:50,080 --> 00:50:52,880
Speaker 2: and why they performed really well and what that actually

1029
00:50:52,920 --> 00:50:55,160
Speaker 2: means and how it works, because I think that a

1030
00:50:55,200 --> 00:50:58,120
Speaker 2: lot of people would be surprised at why and how

1031
00:50:58,239 --> 00:51:01,160
Speaker 2: and I am, But Sam, I hate to do this

1032
00:51:01,239 --> 00:51:03,760
Speaker 2: to you. I think that's all we have time for today.

1033
00:51:04,120 --> 00:51:06,520
Speaker 3: My only episode wrapped up already.

1034
00:51:07,480 --> 00:51:10,640
Speaker 2: You're already being booted off. I mean, if Georgia decides

1035
00:51:10,680 --> 00:51:13,439
Speaker 2: to quit, you can definitely pop your resume in. If

1036
00:51:13,840 --> 00:51:16,799
Speaker 2: Jess isn't around again, we'll have you back. But it

1037
00:51:16,840 --> 00:51:20,200
Speaker 2: has been an absolute pleasure. Enter cheers, saving my button.

1038
00:51:20,239 --> 00:51:23,280
Speaker 2: Still getting this episode in people's ears on a Wednesday morning.

1039
00:51:23,400 --> 00:51:24,319
Speaker 2: We love you for that.

1040
00:51:24,480 --> 00:51:26,720
Speaker 3: Listen to us talking and edit this all together again.

1041
00:51:27,800 --> 00:51:31,279
Speaker 2: You are so welcome. All right, guys, that is all

1042
00:51:31,320 --> 00:51:34,120
Speaker 2: we have time for today. But just before we head off,

1043
00:51:34,280 --> 00:51:37,680
Speaker 2: we'd like to acknowledge and pay respect to Australia's Aboriginal

1044
00:51:37,719 --> 00:51:41,360
Speaker 2: and Torres Strait Islander peoples. They're the traditional custodians of

1045
00:51:41,440 --> 00:51:45,239
Speaker 2: the lands, the waterways and the skies all across Australia.

1046
00:51:45,680 --> 00:51:47,920
Speaker 2: We thank you for sharing and the caring for the

1047
00:51:48,000 --> 00:51:50,600
Speaker 2: land on which we are able to learn. We pay

1048
00:51:50,600 --> 00:51:53,279
Speaker 2: our respects to elders past and present, and we share

1049
00:51:53,320 --> 00:51:56,400
Speaker 2: our friendship and our kindness. Sam, do you want to

1050
00:51:56,440 --> 00:51:58,799
Speaker 2: give it a crack at our reading our disclaimer? Or

1051
00:51:58,800 --> 00:52:00,399
Speaker 2: do you want me to have a pot got oh?

1052
00:52:00,440 --> 00:52:01,359
Speaker 3: No, I'll have a hot girl?

1053
00:52:01,360 --> 00:52:04,160
Speaker 2: All right, your turn? Do it better than jess Oh?

1054
00:52:04,440 --> 00:52:06,440
Speaker 3: The advice shared on She's on the Money is general

1055
00:52:06,440 --> 00:52:09,680
Speaker 3: in nature and does not consider your individual circumstances. She's

1056
00:52:09,719 --> 00:52:12,520
Speaker 3: on the Money exists purely for educational purposes and should

1057
00:52:12,520 --> 00:52:14,360
Speaker 3: not be relied upon to make an investment or a

1058
00:52:14,400 --> 00:52:18,239
Speaker 3: financial decision. And we promise that Victoria Devine is an

1059
00:52:18,280 --> 00:52:22,520
Speaker 3: authorized representative of Australia Pacific Funds Management Proprietary Limited ABN

1060
00:52:22,680 --> 00:52:25,080
Speaker 3: three four one three two four six, three two five

1061
00:52:25,200 --> 00:52:29,040
Speaker 3: seven AFSL double three nine one nine five one check

1062
00:52:29,120 --> 00:52:29,480
Speaker 3: you out.

1063
00:52:29,560 --> 00:52:31,239
Speaker 2: You probably knew that off the top of your head

1064
00:52:31,239 --> 00:52:33,680
Speaker 2: from having to edit it literally three times a week

1065
00:52:33,719 --> 00:52:34,200
Speaker 2: every week.

1066
00:52:34,320 --> 00:52:35,600
Speaker 3: Let's say that.

1067
00:52:35,880 --> 00:52:38,600
Speaker 2: We can say that, but we'll see you next week, guys.

1068
00:52:38,800 --> 00:52:45,840
Speaker 2: Behe