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Speaker 1: Hello.

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Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the

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Speaker 2: Order Kerni Whoalbury and a waddery woman. And before we

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Speaker 2: get started on She's on the Money podcast, I would

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Speaker 2: like to acknowledge the traditional custodians of the land of

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Speaker 2: which this podcast is recorded on a wondery country, acknowledging

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Speaker 2: the elders, the ancestors and the next generation coming through

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Speaker 2: as this podcast is about connecting, empowering, knowledge sharing and

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Speaker 2: the storytelling of you to make a difference for today

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Speaker 2: and lasting impact for tomorrow.

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Speaker 3: Let's get into it.

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Speaker 4: She's on the Money, She's on the Money.

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Speaker 3: Hello, and welcome to She's on the Money, the pod

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Speaker 3: cast for people who want Financial Freedom. My name is

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Speaker 3: beck Syed and Victoria Divine is with me as always.

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Speaker 3: What are we talking about?

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Speaker 1: I'm so excited You're probably gonna go oh the second

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Speaker 1: I say this bit. Today, my friends, we are talking

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Speaker 1: about the top five ETFs of twenty twenty three. Okay,

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Speaker 1: oh you're in. I'm kind of in. Yeah, why are

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Speaker 1: you kind of in?

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Speaker 3: I know we've spoken about ets before, and I feel like,

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Speaker 3: in my mind they're like the easiest thing for me

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Speaker 3: to wrap my head around. Oh good, yeah, well not

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Speaker 3: easy to wrap my head around. But I'm like, this

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Speaker 3: seems like a good option if you're getting into investment

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Speaker 3: and twenty.

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Speaker 1: Twenty four is the year of beck starting. Yes, best, Yes,

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Speaker 1: And I feel like from the conversations we've been having

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Speaker 1: not on the podcast and ETFs, what you're planning on picking?

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Speaker 2: Right?

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Speaker 3: Oh yeah, so how about I.

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Speaker 1: Tell you about the top five ETFs?

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Speaker 3: Then perfect? But before we get started, Yes, this is

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Speaker 3: a really basic question. Yes, I just want to know

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Speaker 3: if you could run us through what an ETF actually

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Speaker 3: is before we die.

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Speaker 1: That's smart. Let's just like start at the basics. Obviously,

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Speaker 1: on this podcast, we have done an entire investing series historically.

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Speaker 1: We did it with shares these last year. It was

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Speaker 1: one of the most popular series we've ever done. It

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Speaker 1: was four episodes. It went through the investing basics, and

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Speaker 1: if you haven't listened to that, please go back and

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Speaker 1: listen to those because I think it is really important.

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Speaker 1: But to just get everyone on exactly the same page.

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Speaker 1: And ETF is in exchange traded fund sounds fancy, promise,

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Speaker 1: It's not that fancy or complicated. It's basically a basket

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Speaker 1: of shares, and what happens is you have decided Beck

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Speaker 1: and I'm using you as an example here that you're like,

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Speaker 1: you know what, I am not the type of girlie

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Speaker 1: who's gonna go out and you know, do my research

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Speaker 1: on every single individual share and then purchase every single

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Speaker 1: individual share and make sure they're consistently balanced. Yes, performing well,

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Speaker 1: doing not so well. You know, you're rebalancing your portfolio. Occasionally,

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Speaker 1: some people are really into this. Don't get me wrong,

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Speaker 1: I'm that girl. I love to play with direct shares,

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Speaker 1: but let's be honest, they're not for everybody. You're not

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Speaker 1: an investor full time. You do video and content, right,

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Speaker 1: so why would you go and get an investment that

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Speaker 1: doesn't make a lot of sense for your lifestyle. So

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Speaker 1: a lot of people will turn to an exchange traded

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Speaker 1: fund because essentially fund managers who are usually big dog

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Speaker 1: white men still sadly, but we trust them here because

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Speaker 1: they've got lots of experience. They go, you know what,

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Speaker 1: I'm going to make an ETF of my own. It's

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Speaker 1: going to be an exchange traded fund. Usually it's under

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Speaker 1: a brand, so you might have heard them under Vanguard.

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Speaker 1: You might have heard them under Global x. You might

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Speaker 1: have heard them under our friends are beta shares. There's

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Speaker 1: lots and lots of different providers. There's lots of individual providers.

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Speaker 1: If they're on the ASX SO the Australian Stock Exchange,

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Speaker 1: they're a legit ETF. It's all good like there's no

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Speaker 1: dodgy ones on there, if that makes sense. But you go,

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Speaker 1: all right, well, this person fun manager has gone and

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Speaker 1: done all of the work, all of the research, has

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Speaker 1: an entire team behind them that helps pick you know,

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Speaker 1: the shares that make up the ETF. And the ETF

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Speaker 1: could be of anything, beck. So there are ETFs here

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Speaker 1: in Australia of the top one hundred companies, the top

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Speaker 1: two hundred companies in Australia, the top five hundred companies.

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Speaker 1: Beyond that, it could just be a collection of tech

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Speaker 1: companies that this particular company is really passionate about and

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Speaker 1: it's gone. You know what, Beck, I've gone and done

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Speaker 1: all my research, and I reckon these are the you know,

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Speaker 1: best tech companies to put in my basket of shares.

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Speaker 1: There are thousands of different types of ETFs globally. In fact,

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Speaker 1: you can buy in the USC an ETF that only

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Speaker 1: invests in companies who have women on their boards.

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Speaker 3: Oh that's cool, right, So you.

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Speaker 1: Can nowadays find an ETF that reflects your values. Historically

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Speaker 1: it was kind of like just this big pulled fund

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Speaker 1: of like you only get the top two hundred, or

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Speaker 1: you only get the top three hundred, and you'd be like,

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Speaker 1: you know what, I'd like to trite the index. But now,

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Speaker 1: as time is going on, they're becoming more and more niche,

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Speaker 1: so women only companies, you might be looking at tech companies.

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Speaker 1: You might have an ETF that only invests in biopharmaceuticals.

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Speaker 1: You might have an ETF that invests in crypto. So

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Speaker 1: there are so many different options. But essentially it is

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Speaker 1: a basket of shares that a fund manager managers, and

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Speaker 1: you go, i'd back in on that, And in exactly

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Speaker 1: the same way that you purchase a share on the

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Speaker 1: stock market, you purchase an ETF. So you go, you

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Speaker 1: pay for your ETF, and instead of going, ah, this

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Speaker 1: share cost forty seven dollars, this ETF might cost forty

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Speaker 1: seven dollars. But by investing your forty seven dollars example,

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Speaker 1: obviously you get instant diversification and exposure to all of

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Speaker 1: those companies sitting in the basket.

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Speaker 3: Yeah, okay, does that make sense totally? So for me

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Speaker 3: it sounds like there's someone else doing all the thinking

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Speaker 3: for me. Yes, Like I don't want to be putting

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Speaker 3: all my eggs in one basket. Yes, But if I

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Speaker 3: put my basket in all the eggs, then that's what

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Speaker 3: an ETF kind of is. That's all you know what.

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Speaker 1: I'm just gonna let you get away with that, because

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Speaker 1: thank you, I and everyone listening knows exactly what you

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Speaker 1: meant by that so much. So. Typically BECK and ETF

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Speaker 1: is going to track I guess a particular index or

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Speaker 1: sector or commodity or other assets. So as I said before,

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Speaker 1: it might be the top one hundred, two hundred, three

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Speaker 1: hundred and four hundred whatever. It might be crypto, it

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Speaker 1: might be technology. So it's not as active as what

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Speaker 1: we call in Australia a managed fund. So a managed

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Speaker 1: fund is usually a lot more hands on. So you

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Speaker 1: might have less shares in that particular type of basket

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Speaker 1: than an ETF, but they're more highly managed. They're being

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Speaker 1: swapped out more often if necessary. You have somebody looking

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Speaker 1: at them each and every single day. It's not just

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Speaker 1: a collection of assets. The main difference between these two

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Speaker 1: types of assets, or these two types of investments, is

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Speaker 1: a managed fund has higher fees, so there's more people

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Speaker 1: working on it, more people to get paid. The fees

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Speaker 1: on a managed fund are always going to be higher

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Speaker 1: than an ETF that you can just go purchase in

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Speaker 1: the share market. Sure is one better than the other?

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Speaker 1: Absolutely not. It's actually down to your values and what

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Speaker 1: you want to purchase. Personally, I think I've said before

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Speaker 1: on the podcast, I own a couple of ETFs. I

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Speaker 1: have some money in a managed fund. I also have

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Speaker 1: direct shares. I double with all of them. But predominantly

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Speaker 1: my personal and this is not advice, this is me

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Speaker 1: just sharing because I think people are real pervy. Predominantly

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Speaker 1: my investment portfolio is made up of two ETFs.

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Speaker 3: But with that said, what makes ETFs appealing to the

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Speaker 3: everyday bidd.

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Speaker 1: Well, Actually, if you're at a bar Beck and you

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Speaker 1: say I've got ETFs, you immediately look smarter and you

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Speaker 1: can tells like, yeah, what ETF have you got, and

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Speaker 1: you can start to sound a little bit like a

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Speaker 1: finance bro.

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Speaker 3: So social, social statay, social status is what we're looking

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Speaker 3: for here.

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Speaker 1: Yeah, absolutely, we're going with social status.

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Speaker 3: I could go with that.

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Speaker 1: So obviously that doesn't matter. And we all know how

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Speaker 1: I feel about finance bros. Talking about the U sits

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Speaker 1: at the bar like sit down, your dad told you

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Speaker 1: all of that. But one of the best features of

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Speaker 1: an ETF for me is that instant diversification key. So

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Speaker 1: we talk about investing all the time on the podcast

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Speaker 1: and the importance of it, But for me, it's again

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Speaker 1: like you were saying, not putting all your eggs in

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Speaker 1: one basket. Like if I went and for some reason,

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Speaker 1: I keep picking BEHP as an option.

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Speaker 3: That sounds familiar. You spoken about BHP before.

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Speaker 1: Yeah, I think it's just because I've been in the

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Speaker 1: share market recently and it just keeps coming up. I

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Speaker 1: don't even invest in that, bro, It's not aligned to

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Speaker 1: my values at this point in time. But anyway, it

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Speaker 1: gives you instant diversification. So if you were to go,

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Speaker 1: all right, I'm gonna buy this one share in NAB

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Speaker 1: or BHP or you know, combank or whatever, you're getting

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Speaker 1: access to only one of those assets. So let's say

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Speaker 1: that you know a bank has a really bad year,

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Speaker 1: BECK and you know they're off fifteen percent your entire

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Speaker 1: portfolio is then off fifteen percent because you have one

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Speaker 1: hundred percent exposure to that asset. If you go with

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Speaker 1: an ETF and you know it might be the top

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Speaker 1: one hundred companies on the ASEX, and you go, great,

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Speaker 1: you're going to get those banks in there. Anyway, One

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Speaker 1: of them might have that negative fifteen. One of the

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Speaker 1: other banks might be just on par Another sector that

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Speaker 1: is in the top one hundred might have actually performed

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Speaker 1: at twenty three percent and looking pretty sexy. There might

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Speaker 1: be a few that are lower than that. There might

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Speaker 1: be some that have absolutely tanked. But what happens is

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Speaker 1: because you have so many investments and diversification across different

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Speaker 1: sectors and companies, you ultimately end up with an average return.

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Speaker 1: So instead of you know, just getting that one company's

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Speaker 1: losses or that one company's gains, everything averages out and

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Speaker 1: you get usually the average of that market. And to me,

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Speaker 1: I like slow and steady. I like to win the race.

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Speaker 1: I don't have to blow the lights out with my

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Speaker 1: investment portfolio. I also don't want to lose completely. So

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Speaker 1: an ETF is usually a good way of getting consistent

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Speaker 1: returns over the long term without having to be you know,

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Speaker 1: a really really smart investor who knows how to pick stocks.

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Speaker 3: Yeah, okay, I totally see what you're saying. And now

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Speaker 3: my next question is what do I do? Like, what's

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Speaker 3: the process? How do I even get started?

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Speaker 1: It's really easy. I can do it, honestly. It's as

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Speaker 1: easy as like buying new shoes online. And once you

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Speaker 1: have a platform, mate, because you like then upload all

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Speaker 1: your personal information to that platform. You've obviously like you know,

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Speaker 1: signed all of their waivers and like you know, confirmed

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Speaker 1: that you're happy with their terms and conditions, and like

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Speaker 1: you've probably attached to your bank account and stuff. It's as

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Speaker 1: easy as ordering address on the Iconic.

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Speaker 3: That's easy enough.

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Speaker 1: It's too easy. It is too easy.

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Speaker 3: Unfortunately, slightly too easy.

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Speaker 1: Yeah, right, So to buy an ETF in Australia, you're

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Speaker 1: going to need a third party and you're going to

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Speaker 1: need either an online broker, which is less common, or

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Speaker 1: an investing platform. There are heaps of investing platforms out

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Speaker 1: there for you to choose from. I'm not going to

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Speaker 1: tell you right now, because we did a whole episode

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Speaker 1: on what investing platforms might work for you. Go listen

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Speaker 1: to that. We will link it in the show notes

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Speaker 1: to make it super easy. But obviously our community are

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Speaker 1: quite in love with Chazy's as an investing platform that

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Speaker 1: just works for them, right, and this isn't even me

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Speaker 1: plugging them, It just Chezey's does. These lots of other

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Speaker 1: places do this too. Give you access to the Australian

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Speaker 1: Stock Exchange, but the benefit of chair Z's is also

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Speaker 1: they give you access to other exchanges as well around

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Speaker 1: the world. So with Chaz's you get access to the

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Speaker 1: American Exchange, you also get access to the New Zealand

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Speaker 1: Exchange and they're always expanding, whereas if you just go

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Speaker 1: with an Australian one, you might not you know, be

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Speaker 1: able to buy American ETFs or shares. Does that matter no,

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Speaker 1: because you might not want to do that. Beck, Just

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Speaker 1: when you're looking for a platform, what you need to

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Speaker 1: do is just make sure that they're in line with

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Speaker 1: your expectations, because you wouldn't go and download a platform

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Speaker 1: that you know you've signed up for. You like their

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Speaker 1: marketing's great, makes sense, I really like this, but they

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Speaker 1: don't give you access to the American Stock Exchange if

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Speaker 1: that's all you wanted.

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Speaker 3: Sure, that's a bit silly, So I.

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Speaker 1: Think it's make sure that you're picking a platform that

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Speaker 1: works for you. All right, so you've picked your platform,

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Speaker 1: you're going to sign up to your account. You're going

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Speaker 1: to need to give them some personal information. This is

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Speaker 1: a once off thing. You don't have to do this

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Speaker 1: every time you go to invest money, but you need

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Speaker 1: to do this as kind of like a hygiene factor.

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Speaker 1: At the very beginning. You'll need to provide proof of ID,

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Speaker 1: so your driver's license or passport. You'll need to also

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Speaker 1: provide all of your personal details. A lot of platforms

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Speaker 1: will also ask for your tax file number, which is

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Speaker 1: not a red flag.

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Speaker 3: Sure.

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Speaker 1: It's actually them making sure that they have good disclosure

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Speaker 1: with the government, and in a lot of cases it's

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Speaker 1: now compulsory. So don't be like, oh, they shouldn't be

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Speaker 1: asking me for that, Yeah they should.

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Speaker 3: Okay, that one would be a red flag.

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Speaker 1: Meet Yeah, but it's actually not like they're making sure

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Speaker 1: sure that any income is disclosed to the tax agents.

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Speaker 1: And actually that's really good because if the ATO happened

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Speaker 1: to do an audit on a platform, which they can do,

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Speaker 1: and finds that, you know, miss besay Ed hadn't put

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Speaker 1: a TFN in and hadn't paid tax last year on

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Speaker 1: those investments, you could be in a sticky situation. So

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Speaker 1: it's actually putting you in the best possible position. Means. Also,

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Speaker 1: sometimes these things are just attached to the ATO portals,

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Speaker 1: so when you log in okay, they might be there

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Speaker 1: for you to go tick, Yeah I did that.

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Speaker 3: This is something you probably have told me, but I

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Speaker 3: didn't realize you had to pay tax on your earnings

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Speaker 3: or whatever.

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Speaker 1: On your income. You have to pay tax on any

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Speaker 1: income made in Australia. Okay, So if you are making money, baby,

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Speaker 1: you are paying tax. That is how the world works.

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Speaker 1: And you will pay tax on your investments at the

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Speaker 1: same rate as your marginal tax rate.

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Speaker 3: Gotcha.

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Speaker 1: If you are paying tax, that's sexy, Like it means beck,

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Speaker 1: you are making money. If you are losing money on

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Speaker 1: your share portfolio, it hurts. It has happened to me before,

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Speaker 1: and like it still sucks. Like even though I was

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Speaker 1: a financial advisor back, I look at my portfolio and

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Speaker 1: I'm like, hey, this sucks. I even doing the right thing.

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Speaker 1: And then I have to remind myself, like v this

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Speaker 1: is a long term game. You signed up for this,

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Speaker 1: Like you literally tell other people to do this. But

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Speaker 1: in those years where you have a loss, you get

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Speaker 1: to carry the loss forward, so you can offset those

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Speaker 1: losses against your tax, which is kind of sexy. And

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Speaker 1: in future years, if you make a profit, you can

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Speaker 1: carry forward those losses. So like just good bookkeeping, keeping

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Speaker 1: track of things. It's okay. Your platform will help you

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Speaker 1: there if they're a good platform. So you want to

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Speaker 1: do that, right, So let's say that you've signed up

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Speaker 1: to your platform of choice. Now you know that you

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Speaker 1: have to pay tax, and you've given them all of

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Speaker 1: your personal details. You are now going to you think

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Speaker 1: about the type of ETF that you are investing in.

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Speaker 1: So what are you investing in? What's it look like?

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Speaker 1: Start to do some research. If you are on a

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Speaker 1: platform that gives you access to the Australian Stock Exchange,

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Speaker 1: you might want to go off that platform to do

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Speaker 1: your research. You might want to do some googling, have

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Speaker 1: a look at some articles online, you know, ask some friends.

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Speaker 1: You might even want to invest small amounts in a

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Speaker 1: number of different ETFs just to like give it a

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Speaker 1: bit of a go. Like I've got a couple of

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Speaker 1: girlfriends who have just started investing and they're like, I

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Speaker 1: don't know what to pick, and I am like rock

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Speaker 1: in a hard place because I'm like, I wish I

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Speaker 1: could tell you, but like I can't. So they're like,

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Speaker 1: what if I just put, you know, a small amount

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Speaker 1: of money in each of them. I'm like, oh, yeah,

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Speaker 1: it's kind of like a gateway drug.

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Speaker 3: Beck.

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Speaker 1: Yeah, like, once you've had the gateway drug, you're pretty

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Speaker 1: comfortable with the rest of the situation. And is that

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Speaker 1: how we should see investing. No, but it makes a

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Speaker 1: lot of people really comfortable when you explain it that way,

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Speaker 1: because you go, oh, it makes sense. Like you know,

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Speaker 1: it's like your first drink when you're really young and

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Speaker 1: you like have never had out a goal before, when

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Speaker 1: you're like this is bad, and then you're at the

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Speaker 1: pub and you're like, oh, I know what type of

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Speaker 1: wine to order. I don't know how old you were

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Speaker 1: when you first started drinking, but like, let's be brutally honest.

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Speaker 1: I was probably like fourteen, ah, and I wouldn't know

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Speaker 1: the difference between a savvy b and a chardonna.

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Speaker 3: Oh my god, white wine, white wine, and.

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Speaker 1: Now those ones aren't bubbly.

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Speaker 3: Babe, I still don't know what that leg is.

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Speaker 1: If you become a bit of a Winoh yeah, which

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Speaker 1: I'm not right now because I'm pregnant. But yeah, But

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Speaker 1: like on a base level, we all know there's red wine,

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Speaker 1: there's white wine, sure, sparkling, get some beers. But like

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Speaker 1: if you went and spoke to a wine person, they'd

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Speaker 1: be like, oh, do you not offend us with that

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Speaker 1: very bleak description. Save blanc looks like this, a chardonna

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Speaker 1: looks like this. A pino gree is very different to

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Speaker 1: a pino greasy O.

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Speaker 3: This one's got legs.

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Speaker 1: But do you know how you find what you like

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Speaker 1: you drink? You try them, You try them, you try them.

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Speaker 1: So that I think is a good analogy of what

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Speaker 1: ETFs kind of like, they're all going to be slightly different.

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Speaker 1: You might look at a lot of ETFs and go, oh,

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Speaker 1: they kind of have the same top ten holdings. Yeah,

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Speaker 1: because probably they're really stable assets and everyone just wants

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Speaker 1: to whack them in their ETF to make sure they've

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Speaker 1: got some financial stability. And then it might be you know,

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Speaker 1: sustainable assets after that. It might be you know, tech

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Speaker 1: assets after that, or biopharmaceuticals or whatever it is. But like,

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Speaker 1: don't be surprised if lots of ETFs kind of sometimes

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Speaker 1: look similar. We actually need to find our taste. And

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Speaker 1: if you want to invest in a couple of them

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Speaker 1: at the beginning and see how they go and learn

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Speaker 1: a bit more about them, and then you know, pick

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Speaker 1: one from that short list and start investing more aggressively

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Speaker 1: in that. That's probably going to make you feel a

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Speaker 1: lot more comfortable than just like commission to one at

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Speaker 1: the very start and saying this is the B all

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Speaker 1: end all and I can never change yea, you can

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Speaker 1: have a savvy B. And then he keeps go back

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Speaker 1: up to the bar and be like, wants something different?

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Speaker 1: Now are yeah exactly? Does that make sense?

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Speaker 3: That is making a lot more sense.

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Speaker 1: So we're finding our taste. We are re searching out

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Speaker 1: ETF and working out what works for us. And just

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Speaker 1: because it works for me, beck might not work for you, right,

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Speaker 1: Like you don't even drink so like me picking a wine,

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Speaker 1: You might be like me, I don't even want a wine.

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Speaker 1: I want a water on a free sparkling water at

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Speaker 1: the pub. Absolutely, but we have different tastes and that's okay,

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Speaker 1: But that doesn't mean that we can't be on the

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Speaker 1: same page about having conversations about asset classes and having

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Speaker 1: conversations about what we invest in. It doesn't mean that

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Speaker 1: we have to pick the same thing though. Just because

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Speaker 1: you picked it doesn't mean that it's going to work

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Speaker 1: really well for me, because I'm telling you right now,

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Speaker 1: when I'm not pregnant, you can have a really nice,

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Speaker 1: savvy be and probably gonna put an ice cube in it.

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Speaker 1: But nobody judged me for that, right I was selling.

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Speaker 3: It to me.

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Speaker 1: I'm trying to welcome. You can come over and drink

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Speaker 1: with me, thank you. So then what you're going to

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Speaker 1: do is you've picked an ETF that you want to

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Speaker 1: start with, or you've picked a couple of ETFs that

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Speaker 1: you want to start with. You're then going to go

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Speaker 1: to your platform and just search the ticker code. Anything

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Speaker 1: that is traded on a stock exchange as a ticker code,

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Speaker 1: and this is essentially a unique individual code that identifies

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Speaker 1: a business or an investment in an abbreviated form. So

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Speaker 1: whenever you go to place a buy or a cell

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Speaker 1: you're going to need to know that ASX code to

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Speaker 1: be able to make that transaction. It is not complex, right,

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Speaker 1: National Australia Bank BECK their ticker code is NAB WOW

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Speaker 1: it's easy, right, it's actually not complex. They're not these

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Speaker 1: codes that you're not going to know. It's not like

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00:19:28,400 --> 00:19:30,320
Speaker 1: a Wi Fi password. No, it's not like a Wi

401
00:19:30,359 --> 00:19:32,480
Speaker 1: Fi password. It's not something that you're going to get

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Speaker 1: confused by. And once you have your investment portfolio, these

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00:19:36,160 --> 00:19:38,919
Speaker 1: ticker codes are basically going to be attached to everything,

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00:19:39,280 --> 00:19:42,159
Speaker 1: so you know, if you're looking at your investment, it

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00:19:42,200 --> 00:19:45,800
Speaker 1: will usually have like your ticker code in brackets always,

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Speaker 1: so you know what you're looking at, because some things

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Speaker 1: are really similar. Right, Like as I said before, Vanguard

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Speaker 1: they're one of the biggest issuers of ETFs in Australia.

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Speaker 1: I've got heaps of them, so sometimes I even get

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Speaker 1: confused about looking at what the different ETFs are, but

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Speaker 1: I know the ticker codes and that's what helps me

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Speaker 1: decipher it. Most ASX listed companies have three characters in

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Speaker 1: their ticker codes. Most ETFs have four characters in their

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Speaker 1: ticker code. So start there, won't get too much into it.

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Speaker 1: I'm actually releasing an investment course later this year and

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Speaker 1: we'll like deep dive into absolutely everything so that you

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Speaker 1: guys become actual financial investment wizards. More on that later,

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Speaker 1: but Essentially, you'll have your ticker code, you'll key it in,

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Speaker 1: and then you just place an order to purchase in

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Speaker 1: exactly the same way that you do buy address on

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Speaker 1: the Iconic. It's not complex. You don't need to, you know,

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Speaker 1: fill in any more forms. You just get your platform,

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Speaker 1: get it sorted, put all your info on there, and

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Speaker 1: then whenever you want to invest, you go on there,

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Speaker 1: you pick it, you kit by, it's attached to your

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Speaker 1: bank account. Everything will be all good. Same thing when

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Speaker 1: it comes to selling. I feel like, don't want this

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Speaker 1: investment anymore. I want to get rid of it. You

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00:21:01,960 --> 00:21:05,360
Speaker 1: hit cell and it basically gets refunded into your account.

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Speaker 3: This is really good to know because my brain for

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Speaker 3: some reason, like even if I'm going it's complex, Yeah,

432
00:21:10,520 --> 00:21:14,000
Speaker 3: like I need to know every single step before you

433
00:21:14,040 --> 00:21:15,879
Speaker 3: know I do it to actually do it.

434
00:21:15,960 --> 00:21:18,600
Speaker 1: Your job after that is to log into the platform,

435
00:21:19,080 --> 00:21:23,040
Speaker 1: watch its performance. Don't do it too often because analysis paralysis.

436
00:21:23,080 --> 00:21:26,919
Speaker 1: But like, we're investing for the long term, so keep adding,

437
00:21:27,040 --> 00:21:30,120
Speaker 1: keep growing, and then essentially we're just gonna get really rich.

438
00:21:30,240 --> 00:21:33,200
Speaker 3: Right that love, that's our plan, that's the goal. Let

439
00:21:33,200 --> 00:21:35,720
Speaker 3: your hair down, watch it grow, maybe see how.

440
00:21:35,600 --> 00:21:37,639
Speaker 1: We go anytime you let your hair down, Beck, I

441
00:21:37,640 --> 00:21:39,879
Speaker 1: swear you just cut it off or bleed it. So, like,

442
00:21:40,000 --> 00:21:43,080
Speaker 1: I don't know if that's good advice, probably very risky.

443
00:21:43,240 --> 00:21:45,240
Speaker 3: We will keep it up. I'll keep it up. Okay.

444
00:21:45,280 --> 00:21:48,800
Speaker 3: So with ETFs, what actually makes a good ETF? Like

445
00:21:48,920 --> 00:21:51,159
Speaker 3: is it cheapest? Is it best performing? Is it one

446
00:21:51,200 --> 00:21:54,280
Speaker 3: that's been around for the longest, or like most reliable?

447
00:21:54,359 --> 00:21:55,920
Speaker 1: At least I could give you an answer on that.

448
00:21:56,040 --> 00:21:58,480
Speaker 3: Yeah, I'd a feeling you'd say something.

449
00:21:58,200 --> 00:22:00,359
Speaker 1: Like this, Yeah, I feel like I'm a little bit

450
00:22:00,359 --> 00:22:03,520
Speaker 1: of a broken record, nor I try to trick you. Yeah, okay.

451
00:22:03,640 --> 00:22:07,240
Speaker 1: So is the cheapest to the best not necessarily, Beck,

452
00:22:07,280 --> 00:22:10,639
Speaker 1: because sometimes you pay peanuts and you get monkeys, right, Like,

453
00:22:10,960 --> 00:22:13,880
Speaker 1: you might be looking at ETFs and starting to get

454
00:22:13,920 --> 00:22:16,439
Speaker 1: a little bit of analysis paralysis because you're like, you know,

455
00:22:16,600 --> 00:22:19,320
Speaker 1: literally comparing them and going, all right, well, the fee

456
00:22:19,359 --> 00:22:21,120
Speaker 1: on this is point five and the fee on this

457
00:22:21,160 --> 00:22:23,679
Speaker 1: is point six. Oh is it worth the extra fee? Like,

458
00:22:23,800 --> 00:22:25,719
Speaker 1: I don't know, I want the cheaper one, and then

459
00:22:25,760 --> 00:22:29,080
Speaker 1: you might go with the cheaper one. But sometimes when

460
00:22:29,080 --> 00:22:32,280
Speaker 1: you pay peanuts, you get monkeys. And you know, we

461
00:22:32,320 --> 00:22:34,600
Speaker 1: all know the story of you know, even just buying

462
00:22:34,600 --> 00:22:35,240
Speaker 1: school shoes.

463
00:22:35,320 --> 00:22:35,520
Speaker 2: Right.

464
00:22:35,560 --> 00:22:38,000
Speaker 1: We all know that if you buy the cheapest school shoes,

465
00:22:38,000 --> 00:22:39,720
Speaker 1: you're going to replace them more often and it might

466
00:22:39,720 --> 00:22:42,280
Speaker 1: cost you longer in the long term than just buying

467
00:22:42,400 --> 00:22:46,239
Speaker 1: the good investment at the start and wearing them for

468
00:22:46,320 --> 00:22:49,920
Speaker 1: twelve months. Right, But that is not all it comes

469
00:22:49,960 --> 00:22:52,400
Speaker 1: down to. It also comes down to returns. And after

470
00:22:52,440 --> 00:22:54,320
Speaker 1: the break, I'm going to be talking to you about

471
00:22:54,320 --> 00:22:58,480
Speaker 1: I guess the returns of the top five performing ETFs.

472
00:22:58,720 --> 00:23:00,520
Speaker 1: And what I want to be really clear you're about

473
00:23:00,600 --> 00:23:03,480
Speaker 1: is this is not normal, Like these are the top

474
00:23:03,560 --> 00:23:07,560
Speaker 1: five performing ETFs. It's actually really impressive. But we're talking

475
00:23:07,600 --> 00:23:11,639
Speaker 1: about like nearly fifty percent return on some of these ETFs.

476
00:23:11,680 --> 00:23:11,920
Speaker 3: Beck.

477
00:23:12,400 --> 00:23:15,560
Speaker 1: We're not talking about the average return of the Australian

478
00:23:15,600 --> 00:23:16,280
Speaker 1: share market.

479
00:23:16,280 --> 00:23:16,520
Speaker 3: Beck.

480
00:23:16,600 --> 00:23:20,639
Speaker 1: Here, we're talking about, you know, those top five performing

481
00:23:20,680 --> 00:23:24,800
Speaker 1: ETFs from twenty twenty three, because if we did and

482
00:23:24,840 --> 00:23:27,040
Speaker 1: we actually looked at the average rate of return of

483
00:23:27,080 --> 00:23:30,000
Speaker 1: the Australian market in twenty twenty three, if we look

484
00:23:30,040 --> 00:23:33,159
Speaker 1: at the SMP two hundred. So the SMP is a

485
00:23:33,280 --> 00:23:36,320
Speaker 1: very American term and it's something that I like to

486
00:23:36,359 --> 00:23:39,680
Speaker 1: talk about quite often. So it's the standard and pause

487
00:23:39,920 --> 00:23:43,359
Speaker 1: five hundred, which is basically the top five hundred companies

488
00:23:43,520 --> 00:23:47,000
Speaker 1: in a share market. In Australia, we just call it

489
00:23:47,040 --> 00:23:50,240
Speaker 1: like the ASX two hundred or what not. And here

490
00:23:50,359 --> 00:23:53,680
Speaker 1: in Australia, if we actually looked at the ASX Top

491
00:23:53,680 --> 00:23:57,879
Speaker 1: two hundred, which it's sicker code bec is XJO, the

492
00:23:58,040 --> 00:24:00,720
Speaker 1: average rate of return in twenty twenty three was seven

493
00:24:00,760 --> 00:24:04,680
Speaker 1: point eight percent. Okay, so that's pretty good as a return.

494
00:24:04,800 --> 00:24:08,800
Speaker 1: It's modest, it's normal. You know, the average historical benchmark

495
00:24:08,880 --> 00:24:12,040
Speaker 1: is nine point three for the ASEX Top two hundred.

496
00:24:12,560 --> 00:24:15,200
Speaker 1: And I guess much of this return when you look

497
00:24:15,240 --> 00:24:17,399
Speaker 1: at the I guess basket of shares, right, So this

498
00:24:17,560 --> 00:24:19,560
Speaker 1: basket of shares that we're talking about right now, Beck

499
00:24:19,600 --> 00:24:22,840
Speaker 1: has two hundred shares in it, two hundred different assets.

500
00:24:23,400 --> 00:24:26,560
Speaker 1: But much of the return of the ASEX Top two

501
00:24:26,640 --> 00:24:33,399
Speaker 1: hundred actually comes from the top twenty shares in that basket, Okay,

502
00:24:33,640 --> 00:24:37,959
Speaker 1: So the rest of it's for diversification and exposure. Obviously

503
00:24:38,000 --> 00:24:42,199
Speaker 1: there's like more prominent waiting inside those top twenty shares.

504
00:24:42,240 --> 00:24:45,160
Speaker 1: But it's really important to understand once we get into it,

505
00:24:45,600 --> 00:24:49,840
Speaker 1: that sometimes when picking an ETF, it slow and steady

506
00:24:49,880 --> 00:24:52,040
Speaker 1: wins the race. We're not trying to shoot the lights

507
00:24:52,040 --> 00:24:54,200
Speaker 1: out and try and you know, find the next crypto.

508
00:24:54,359 --> 00:24:56,399
Speaker 1: We're not trying to you know, invest in an after

509
00:24:56,440 --> 00:24:58,359
Speaker 1: pay which has really high returns. And all your friends

510
00:24:58,359 --> 00:25:00,240
Speaker 1: at the pub said that that was a really good idea,

511
00:25:00,400 --> 00:25:02,040
Speaker 1: do you know what I mean? So I think we

512
00:25:02,080 --> 00:25:03,920
Speaker 1: need to contextualize it, because are we going for the

513
00:25:04,000 --> 00:25:08,000
Speaker 1: highest returns? No, I've never ever ever beg picked an

514
00:25:08,119 --> 00:25:10,159
Speaker 1: ETF for a client when I was working as a

515
00:25:10,160 --> 00:25:13,480
Speaker 1: financial advisor based on the returns it had. I would

516
00:25:13,520 --> 00:25:17,879
Speaker 1: be picking an ETF because aligned to my client's values. Obviously,

517
00:25:17,960 --> 00:25:20,560
Speaker 1: as a hygiene factor, you want them to be performing.

518
00:25:20,880 --> 00:25:23,040
Speaker 1: If an ETF over a long period of time is

519
00:25:23,080 --> 00:25:26,520
Speaker 1: not performing, you might rebalance the portfolio and replace it

520
00:25:26,560 --> 00:25:30,200
Speaker 1: with something that does, because it's obviously important to get returns.

521
00:25:30,600 --> 00:25:34,560
Speaker 1: But sometimes picking an ETF that is going to be

522
00:25:34,720 --> 00:25:37,119
Speaker 1: tried and true and steady, and you're like, you know

523
00:25:37,160 --> 00:25:39,240
Speaker 1: what it's going to do what it says on the

524
00:25:39,320 --> 00:25:43,040
Speaker 1: serial packet, sometimes that's way better than trying to shoot

525
00:25:43,040 --> 00:25:46,040
Speaker 1: the lights out. And I can guarantee we did this

526
00:25:46,119 --> 00:25:48,840
Speaker 1: episode last year. We did the top five ETFs of

527
00:25:48,840 --> 00:25:52,080
Speaker 1: twenty twenty two. I have since looked at those top

528
00:25:52,080 --> 00:25:55,280
Speaker 1: five ETFs and yeah, they definitely don't have the same

529
00:25:55,320 --> 00:25:58,120
Speaker 1: performance the year after. So if you're going to listen

530
00:25:58,160 --> 00:26:00,880
Speaker 1: to this episode and go, oh, vise've done the top

531
00:26:00,880 --> 00:26:04,400
Speaker 1: five ETFs twenty twenty three, we're gonna go invest in them.

532
00:26:04,840 --> 00:26:09,640
Speaker 1: Terrible idea. Okay, just because they performed this year. Sure,

533
00:26:09,680 --> 00:26:11,560
Speaker 1: I mean they're going to do it again. I mean

534
00:26:11,600 --> 00:26:13,919
Speaker 1: they might, but like I can't guarantee that.

535
00:26:14,240 --> 00:26:17,119
Speaker 3: No, I mean rogue. And sometimes it's kind of like,

536
00:26:17,600 --> 00:26:19,159
Speaker 3: why did you make so much money in such a

537
00:26:19,160 --> 00:26:22,280
Speaker 3: short amount of time? Surely that's unsustainable. But who am I?

538
00:26:22,280 --> 00:26:23,680
Speaker 3: I know, financial advisor, but.

539
00:26:23,680 --> 00:26:27,119
Speaker 1: You're getting there, Like this year bexied is going to

540
00:26:27,160 --> 00:26:27,480
Speaker 1: be an.

541
00:26:27,480 --> 00:26:32,160
Speaker 3: Investor qualified financial advisor, no unqualified investor.

542
00:26:32,440 --> 00:26:35,040
Speaker 1: I think is probably what we could reduce it too happy,

543
00:26:35,080 --> 00:26:37,439
Speaker 1: But I reckon we should go to a really quick break.

544
00:26:37,640 --> 00:26:39,520
Speaker 1: I really wanted to get into what the top five

545
00:26:39,600 --> 00:26:42,080
Speaker 1: ETFs were for twenty twenty three. We're going to look at,

546
00:26:42,119 --> 00:26:44,639
Speaker 1: you know, the average return, We're going to look at

547
00:26:44,640 --> 00:26:46,560
Speaker 1: the fees, We're going to look at the performance. I

548
00:26:46,600 --> 00:26:48,919
Speaker 1: think something that you'll be really surprised about is a

549
00:26:48,960 --> 00:26:51,800
Speaker 1: lot of these onns are brand new, so that'll be

550
00:26:51,880 --> 00:26:54,800
Speaker 1: really fun. Guys, don't go anywhere because it's about to

551
00:26:54,800 --> 00:26:57,119
Speaker 1: get a little bit SPICYO.

552
00:27:01,119 --> 00:27:04,200
Speaker 3: Okay, welcome back everyone. Now at the moment, we've all

553
00:27:04,240 --> 00:27:06,520
Speaker 3: been absolutely dying.

554
00:27:06,240 --> 00:27:09,760
Speaker 1: For, have we You're so dramatic. I love it. Tell

555
00:27:09,840 --> 00:27:11,880
Speaker 1: us it's like me, I'm like, I will die if

556
00:27:11,920 --> 00:27:13,440
Speaker 1: I don't get a frozen coach.

557
00:27:13,680 --> 00:27:15,360
Speaker 3: I honestly think I might die if you don't tell

558
00:27:15,400 --> 00:27:16,760
Speaker 3: us in the next three minutes.

559
00:27:17,040 --> 00:27:18,720
Speaker 1: All right, all right, right, let me get into it.

560
00:27:18,960 --> 00:27:21,440
Speaker 1: I've obviously got the top five. I have sourced these

561
00:27:21,560 --> 00:27:26,000
Speaker 1: from the ASX. This is from twenty twenty three. The

562
00:27:26,119 --> 00:27:29,000
Speaker 1: period ending is the thirtieth of November, which is a

563
00:27:29,080 --> 00:27:32,320
Speaker 1: very normal reporting period. So if you went and googled

564
00:27:32,320 --> 00:27:34,879
Speaker 1: these right now and what their returns are, their returns

565
00:27:34,880 --> 00:27:36,719
Speaker 1: are not going to be what I am reporting on

566
00:27:36,760 --> 00:27:39,960
Speaker 1: this podcast, because I have just done the reporting to

567
00:27:40,119 --> 00:27:42,480
Speaker 1: November twenty twenty three. Because we're looking at like a

568
00:27:42,520 --> 00:27:45,720
Speaker 1: defined period, not something that's moving like what happened last year, Beck,

569
00:27:45,800 --> 00:27:49,040
Speaker 1: not what's happening now what happened last year. So I'm

570
00:27:49,080 --> 00:27:53,359
Speaker 1: gonna go lowest performing all the way through to like

571
00:27:53,480 --> 00:27:57,400
Speaker 1: the number one highest performing asset. We have numbered these

572
00:27:57,480 --> 00:28:00,800
Speaker 1: based on return, not on fees or anything like that.

573
00:28:01,160 --> 00:28:03,560
Speaker 1: So let's kick it off. Are you ready?

574
00:28:03,840 --> 00:28:04,800
Speaker 3: I'm so ready.

575
00:28:04,960 --> 00:28:08,119
Speaker 1: Coming in At number five, we have the Global X

576
00:28:08,320 --> 00:28:09,840
Speaker 1: Semiconductor ETF.

577
00:28:10,359 --> 00:28:13,160
Speaker 3: Okay, something to do with trains. No, I just think

578
00:28:13,200 --> 00:28:14,240
Speaker 3: of Tom's tank engine.

579
00:28:14,800 --> 00:28:17,360
Speaker 1: I mean, you're not that far off, Beck. The description

580
00:28:17,480 --> 00:28:21,560
Speaker 1: of this ETF is the Global X Semiconductor ETF. Ticker

581
00:28:21,600 --> 00:28:25,800
Speaker 1: code is SEMI seeks to invest in companies that stand

582
00:28:25,960 --> 00:28:30,440
Speaker 1: to potentially benefit from the broader adoption of tech enabled

583
00:28:30,480 --> 00:28:36,600
Speaker 1: devices that require semiconductors. This includes the development and manufacturing

584
00:28:36,880 --> 00:28:38,160
Speaker 1: of semiconductors.

585
00:28:39,120 --> 00:28:41,320
Speaker 3: So I don't know what sounds so funny to me?

586
00:28:41,400 --> 00:28:42,640
Speaker 3: It is, okay, so niche.

587
00:28:42,720 --> 00:28:45,360
Speaker 1: If I look at the top holdings in this ETF,

588
00:28:45,720 --> 00:28:48,680
Speaker 1: I can almost guarantee you've never heard of them. So

589
00:28:48,880 --> 00:28:51,440
Speaker 1: number one holding at ten point eight one percent of

590
00:28:51,480 --> 00:28:55,680
Speaker 1: their portfolio is broad Colm Inc. Number two at nine

591
00:28:55,720 --> 00:29:01,240
Speaker 1: point two percent is TSMC. Then we have Nevada Corp.

592
00:29:01,440 --> 00:29:04,440
Speaker 1: Then we have ASML holding Envy and all of these

593
00:29:04,480 --> 00:29:06,840
Speaker 1: things that, honestly, as a financial advisor, I had never

594
00:29:06,880 --> 00:29:09,320
Speaker 1: heard of either, which makes sense because it's actually a

595
00:29:09,360 --> 00:29:12,400
Speaker 1: relatively new ETF. Right, So if we have a look

596
00:29:12,400 --> 00:29:15,920
Speaker 1: at the sector breakdown, ninety nine percent of this sector

597
00:29:15,960 --> 00:29:19,040
Speaker 1: breakdown is made up of information technology, and then you've

598
00:29:19,040 --> 00:29:23,640
Speaker 1: got zero point one percent cash because sometimes ETFs will

599
00:29:23,680 --> 00:29:26,000
Speaker 1: carry some cash just to be safe. They don't have

600
00:29:26,120 --> 00:29:29,520
Speaker 1: much cash. If you look at a country breakdown, most

601
00:29:29,560 --> 00:29:32,280
Speaker 1: of it comes from the United States, so sixty six

602
00:29:32,320 --> 00:29:35,040
Speaker 1: percent of the assets they hold are based in the US.

603
00:29:35,320 --> 00:29:38,479
Speaker 1: Then you've got twelve percent in Taiwan. You've got eleven

604
00:29:38,520 --> 00:29:40,800
Speaker 1: point eight percent in the Netherlands. Then you've got Japan,

605
00:29:41,000 --> 00:29:44,360
Speaker 1: South Korea, Germany and France, which makes sense as to

606
00:29:44,400 --> 00:29:46,400
Speaker 1: why you and I haven't heard of them, because none

607
00:29:46,440 --> 00:29:50,320
Speaker 1: of them for Australia makes sense. So what puts this

608
00:29:50,400 --> 00:29:54,400
Speaker 1: at number five? Back I hear you asking. It's one

609
00:29:54,480 --> 00:29:58,200
Speaker 1: year return of forty seven point ninety five percent?

610
00:29:58,480 --> 00:30:01,520
Speaker 3: WHOA, How's that even wild possible?

611
00:30:02,080 --> 00:30:05,960
Speaker 1: They just returned really well. Interestingly, they don't have a

612
00:30:06,000 --> 00:30:08,160
Speaker 1: three or a five year return. Because this is a

613
00:30:08,160 --> 00:30:11,880
Speaker 1: brand new ETF just entered the market, doesn't mean that

614
00:30:11,960 --> 00:30:14,280
Speaker 1: it has had great return just because people have gotten

615
00:30:14,280 --> 00:30:17,120
Speaker 1: in on it. It's inception date, so it's start date

616
00:30:17,160 --> 00:30:20,320
Speaker 1: when it like kind of was invented is August twenty

617
00:30:20,360 --> 00:30:25,320
Speaker 1: twenty one, and interestingly it's doing really well. But yes,

618
00:30:25,440 --> 00:30:27,400
Speaker 1: this is something that I don't think any of us

619
00:30:27,440 --> 00:30:31,440
Speaker 1: would have heard of prior to this podcast.

620
00:30:31,080 --> 00:30:32,600
Speaker 3: Episode unless you're a semiconductor.

621
00:30:33,000 --> 00:30:34,920
Speaker 1: But imagine if we've got in on that, then.

622
00:30:35,200 --> 00:30:39,000
Speaker 3: I know that sounds incredible. But also we shouldn't because

623
00:30:39,000 --> 00:30:40,440
Speaker 3: I'm the type that would rush into that and be like,

624
00:30:40,440 --> 00:30:42,120
Speaker 3: oh my god, maybe I could still get on this train.

625
00:30:42,320 --> 00:30:44,320
Speaker 1: Yeah, And I mean a lot of people are probably

626
00:30:44,360 --> 00:30:46,200
Speaker 1: going to go and do a lot of research. I

627
00:30:46,240 --> 00:30:50,720
Speaker 1: mean there's you know, if you go onto any website

628
00:30:50,720 --> 00:30:54,080
Speaker 1: that does research on things that are listed, you'll find

629
00:30:54,080 --> 00:30:57,760
Speaker 1: heaps of reasons why to invest. And also you've got

630
00:30:57,760 --> 00:30:59,080
Speaker 1: to kind of take all of that with a grain

631
00:30:59,120 --> 00:31:03,320
Speaker 1: of salt, you know. I do quite like global x

632
00:31:03,360 --> 00:31:06,360
Speaker 1: as an ETF provider. They're nice people, they do a

633
00:31:06,360 --> 00:31:09,880
Speaker 1: good job. I really like I guess how they evaluate

634
00:31:09,920 --> 00:31:13,440
Speaker 1: performance at holdings in different characteristics. But if you went

635
00:31:13,480 --> 00:31:15,920
Speaker 1: to their website global x and how to look at that,

636
00:31:16,040 --> 00:31:18,160
Speaker 1: it's kind of a marketing platform as well. So I've

637
00:31:18,280 --> 00:31:20,920
Speaker 1: just got to be careful when we're doing research that

638
00:31:21,000 --> 00:31:23,720
Speaker 1: we know where our research is coming from, because obviously

639
00:31:24,040 --> 00:31:26,280
Speaker 1: global X is going to put their best foot forward

640
00:31:26,360 --> 00:31:28,719
Speaker 1: for their ETF and be like, here's this shiny marketing

641
00:31:28,760 --> 00:31:32,560
Speaker 1: and here are the reasons to consider semi as in investment.

642
00:31:32,600 --> 00:31:34,560
Speaker 1: Here are the reasons that you should look at, you know,

643
00:31:35,240 --> 00:31:37,040
Speaker 1: investing in this in the future, and this is the

644
00:31:37,040 --> 00:31:40,040
Speaker 1: next big thing. And basically every marketing page is going

645
00:31:40,080 --> 00:31:41,720
Speaker 1: to say that. So if I were I would be

646
00:31:41,720 --> 00:31:45,240
Speaker 1: looking a bit broader than just the marketing websites for

647
00:31:45,320 --> 00:31:48,640
Speaker 1: the ETF that you know is owned by that company.

648
00:31:48,720 --> 00:31:50,480
Speaker 3: Does that make sense, Yeah, it totally does.

649
00:31:50,920 --> 00:31:53,520
Speaker 1: Touching on fees right before we move on. Their fees

650
00:31:53,560 --> 00:31:57,640
Speaker 1: are pretty reasonable, So I, as an ex financial advisor,

651
00:31:57,680 --> 00:32:00,520
Speaker 1: would usually look at an ETF fee. I would call

652
00:32:00,560 --> 00:32:03,480
Speaker 1: it reasonable. If it's one percent or below, okay, I'm

653
00:32:03,720 --> 00:32:07,680
Speaker 1: usually pretty surprised. If it's more than one percent doesn't

654
00:32:07,720 --> 00:32:10,480
Speaker 1: mean it's bad. Again, there's usually a really good reason

655
00:32:10,520 --> 00:32:12,600
Speaker 1: for it. It could have more management, it could have,

656
00:32:12,720 --> 00:32:14,720
Speaker 1: you know, a whole heap of other resources being thrown

657
00:32:14,760 --> 00:32:16,360
Speaker 1: at it that you go, well, I'm having to pay

658
00:32:16,400 --> 00:32:20,600
Speaker 1: extra for that. But usually ETFs have fees below one percent,

659
00:32:20,960 --> 00:32:23,560
Speaker 1: and the Global ex Semiconductor ETF has a fee of

660
00:32:23,640 --> 00:32:25,840
Speaker 1: point to five seven percent per annum.

661
00:32:26,160 --> 00:32:27,720
Speaker 3: That sounds really good, not bad.

662
00:32:27,760 --> 00:32:29,280
Speaker 1: Would you like to move on, my friend?

663
00:32:29,400 --> 00:32:33,200
Speaker 3: Sure? Yeah, let's say number two. If that's the least. Wait,

664
00:32:33,320 --> 00:32:34,480
Speaker 3: we're talking we're talking.

665
00:32:34,280 --> 00:32:37,680
Speaker 1: About going lowest to highest lost highest in terms of return,

666
00:32:37,960 --> 00:32:40,960
Speaker 1: in terms of return, So that's the least. That's the least.

667
00:32:40,960 --> 00:32:44,120
Speaker 1: Forty seven was the worst that they did this year. Okay,

668
00:32:44,720 --> 00:32:50,800
Speaker 1: So number four ETF is the Hyperion Growth Global Stunning. Yeah,

669
00:32:51,040 --> 00:32:54,200
Speaker 1: I knew you'd know that was next. So if we

670
00:32:54,200 --> 00:32:56,720
Speaker 1: look this one up, this says the fund seeks to

671
00:32:56,760 --> 00:33:00,720
Speaker 1: achieve consistent average investment returns over a row five year

672
00:33:00,720 --> 00:33:05,680
Speaker 1: period by investing in high quality, predictable businesses with superior

673
00:33:05,760 --> 00:33:09,680
Speaker 1: growth prospects and attractive risk adjusted return profiles.

674
00:33:09,800 --> 00:33:10,440
Speaker 3: Oh lovely.

675
00:33:10,720 --> 00:33:13,840
Speaker 1: So this one again has an asset allocation that is

676
00:33:13,920 --> 00:33:17,760
Speaker 1: semi similar to the first ETF we talked about. So

677
00:33:17,880 --> 00:33:20,640
Speaker 1: this one has an asset allocation of ninety eight point

678
00:33:20,720 --> 00:33:24,720
Speaker 1: ninety one percent of international equity and it's only carrying

679
00:33:24,760 --> 00:33:28,160
Speaker 1: one point oh nine percent cash. So good to know,

680
00:33:28,640 --> 00:33:31,560
Speaker 1: nothing too exciting. But this one has some assets that

681
00:33:31,600 --> 00:33:33,800
Speaker 1: you might actually know. So if we look at the

682
00:33:33,880 --> 00:33:36,880
Speaker 1: assets that the portfolio is made up of twelve point

683
00:33:36,960 --> 00:33:38,960
Speaker 1: one five percent Tesla.

684
00:33:39,200 --> 00:33:40,720
Speaker 3: Sounds familiar, familiar.

685
00:33:41,080 --> 00:33:43,360
Speaker 1: Then you've got ten point eight nine percent of a

686
00:33:43,360 --> 00:33:48,680
Speaker 1: company called service Now Inc. You then have Microsoft, Amazon, Spotify,

687
00:33:49,000 --> 00:33:53,840
Speaker 1: work Day Block Inc. Meta Visa, and companies that you're

688
00:33:53,840 --> 00:33:57,160
Speaker 1: probably gonna know sure, which should not come as a

689
00:33:57,200 --> 00:34:00,840
Speaker 1: surprise because remember what we said, they are looking for

690
00:34:00,960 --> 00:34:05,880
Speaker 1: consistent growth in relatively conservative companies. So you go, all right,

691
00:34:05,920 --> 00:34:08,600
Speaker 1: well that makes sense. Hyperion sounds fancy, though.

692
00:34:08,600 --> 00:34:09,880
Speaker 3: Does sound very fancy.

693
00:34:09,960 --> 00:34:12,160
Speaker 1: I think this is a really good checking point as well,

694
00:34:12,200 --> 00:34:14,920
Speaker 1: because if I'd said to you without the context I

695
00:34:15,000 --> 00:34:19,200
Speaker 1: just provided, but let's talk about the Hyperion Global Growth ETF,

696
00:34:19,239 --> 00:34:19,839
Speaker 1: you would have been like.

697
00:34:20,040 --> 00:34:23,520
Speaker 3: I'm way out of my depth pre this episode exactly.

698
00:34:23,560 --> 00:34:24,799
Speaker 3: I have pretended I didn't hear.

699
00:34:25,200 --> 00:34:27,560
Speaker 1: But it's actually just a fancy name for the ETF,

700
00:34:27,640 --> 00:34:29,680
Speaker 1: because you know what, if I had an ETF, I'd

701
00:34:29,680 --> 00:34:30,680
Speaker 1: want it to have a good name too.

702
00:34:30,960 --> 00:34:32,240
Speaker 3: I'll tell this beautiful name.

703
00:34:32,200 --> 00:34:34,000
Speaker 1: Right, so we don't have to think about the name.

704
00:34:34,080 --> 00:34:36,600
Speaker 1: Don't let the names overwhelm you if you're starting to

705
00:34:36,600 --> 00:34:39,759
Speaker 1: do your ETF research, because honestly, you might go through

706
00:34:39,760 --> 00:34:42,080
Speaker 1: this and be like, well, Actually, I do want exposure

707
00:34:42,120 --> 00:34:45,120
Speaker 1: to Tesla and Microsoft and Amazon and Spotify and Workday

708
00:34:45,160 --> 00:34:46,959
Speaker 1: and all of these companies that kind of make sense.

709
00:34:47,200 --> 00:34:50,560
Speaker 1: I actually aligned to the values of this particular ETF

710
00:34:50,880 --> 00:34:53,319
Speaker 1: might work for you, Right, It's not what we're here for.

711
00:34:53,520 --> 00:34:55,799
Speaker 1: I'm just giving context because I feel like I like

712
00:34:55,920 --> 00:35:01,080
Speaker 1: doing that. It's asx code is hy doubleg beck. It

713
00:35:01,200 --> 00:35:03,960
Speaker 1: comes in at a one year return. Again, it doesn't

714
00:35:03,960 --> 00:35:07,160
Speaker 1: have like our previous ETF three or five year returns.

715
00:35:07,719 --> 00:35:11,960
Speaker 1: One year return of fifty three point six eight percent. Wow,

716
00:35:12,200 --> 00:35:13,120
Speaker 1: that's so nice.

717
00:35:13,320 --> 00:35:15,799
Speaker 3: Am I wrong in feeling like no three and five

718
00:35:15,880 --> 00:35:18,640
Speaker 3: year return is like very disconcerting.

719
00:35:19,000 --> 00:35:22,520
Speaker 1: No, I don't think so. And I think it's important

720
00:35:22,600 --> 00:35:24,719
Speaker 1: to kind of weigh up the pros and cons. Okay,

721
00:35:25,040 --> 00:35:27,680
Speaker 1: is it something that I would personally invest in? Look,

722
00:35:28,040 --> 00:35:31,719
Speaker 1: I haven't done that. I'm a more tried to. Like,

723
00:35:31,920 --> 00:35:35,080
Speaker 1: I really like a company that has, you know, consistent

724
00:35:35,160 --> 00:35:38,919
Speaker 1: dividend payout and is actually quite steady. And a lot

725
00:35:39,000 --> 00:35:42,279
Speaker 1: of the ETFs that I own do have the three, five,

726
00:35:42,480 --> 00:35:45,640
Speaker 1: even ten year growth that it can report on, because

727
00:35:45,680 --> 00:35:47,799
Speaker 1: that makes me feel comfortable that they've kind of been

728
00:35:47,840 --> 00:35:50,080
Speaker 1: doing the job for a long time. Does that mean

729
00:35:50,120 --> 00:35:53,200
Speaker 1: that it's a bad thing to invest in a company

730
00:35:53,239 --> 00:35:57,120
Speaker 1: like this, No, because it's basically a global equity managed fund. Like,

731
00:35:57,480 --> 00:35:59,640
Speaker 1: have a look at the company behind it. You know what?

732
00:35:59,680 --> 00:36:03,120
Speaker 1: That company behind it might have been doing ETFs for

733
00:36:03,200 --> 00:36:06,040
Speaker 1: thirty forty years and they've just created a brand new one.

734
00:36:06,120 --> 00:36:08,040
Speaker 1: So that would take a bit of pressure off when

735
00:36:08,080 --> 00:36:10,000
Speaker 1: it comes to oh, well who are they? That gives

736
00:36:10,000 --> 00:36:13,160
Speaker 1: me anxiety and then you go, oh, am I actually anxious? Beck,

737
00:36:13,200 --> 00:36:14,759
Speaker 1: if they've been doing this for fifty the years and

738
00:36:14,800 --> 00:36:18,000
Speaker 1: they've just got a new product. Whereas if they are

739
00:36:18,080 --> 00:36:20,799
Speaker 1: a brand new business putting ETFs into the market and

740
00:36:20,840 --> 00:36:23,839
Speaker 1: don't have a tried, true track record, I'd be like, oh,

741
00:36:23,960 --> 00:36:26,279
Speaker 1: that makes me feel a little bit uncomfortable. So we're

742
00:36:26,320 --> 00:36:28,160
Speaker 1: just trying to keep ourselves safe. But the best way

743
00:36:28,160 --> 00:36:30,759
Speaker 1: to keep ourselves safe is to keep ourselves educated and

744
00:36:31,000 --> 00:36:34,040
Speaker 1: understanding what's happening. And this is what I mean when

745
00:36:34,040 --> 00:36:37,680
Speaker 1: I talk about research, right, Like research sounds really overwhelming.

746
00:36:38,000 --> 00:36:41,840
Speaker 1: But Beck, go and google top five ETFs. Now click

747
00:36:41,920 --> 00:36:44,400
Speaker 1: into one of those profiles and look at what they hold.

748
00:36:44,719 --> 00:36:47,080
Speaker 1: Do you know the companies? Does that make you comfortable?

749
00:36:47,320 --> 00:36:48,799
Speaker 1: You know what we might talk to some of our

750
00:36:48,880 --> 00:36:50,880
Speaker 1: listeners on the show and they'll be like, I would

751
00:36:51,120 --> 00:36:54,279
Speaker 1: never invest in Tesla, Like, ill absolutely not going to

752
00:36:54,320 --> 00:36:57,879
Speaker 1: support that. Cool, Well, maybe that's just not the etfu's

753
00:36:57,960 --> 00:36:59,960
Speaker 1: move on. What's the next ETF you're going to look at?

754
00:37:00,400 --> 00:37:02,000
Speaker 1: On the flip side, we might have someone who goes,

755
00:37:02,040 --> 00:37:04,040
Speaker 1: oh my gosh, I love that, like this is made

756
00:37:04,120 --> 00:37:05,799
Speaker 1: up of a whole heap of assets that I do

757
00:37:05,880 --> 00:37:10,400
Speaker 1: want exposure to. I love this idea. Right, And obviously

758
00:37:10,440 --> 00:37:13,600
Speaker 1: this fifty three point six eight percent growth pretty sexy,

759
00:37:14,040 --> 00:37:16,759
Speaker 1: But we also need to realize that it's not just

760
00:37:16,840 --> 00:37:19,960
Speaker 1: the ETF driving that growth. Right, Like, if we look

761
00:37:20,000 --> 00:37:25,800
Speaker 1: at this portfolio that Hyperion has, twelve point one five

762
00:37:25,880 --> 00:37:28,880
Speaker 1: percent of that portfolio is made up of Tesla, and

763
00:37:28,960 --> 00:37:31,920
Speaker 1: we also know that one year return on Tesla in

764
00:37:31,960 --> 00:37:35,879
Speaker 1: twenty twenty three was one hundred and fifteen point two three,

765
00:37:36,600 --> 00:37:40,640
Speaker 1: So that's actually really high and it's driving a lot

766
00:37:40,680 --> 00:37:43,319
Speaker 1: of the growth. We then drop down and look at

767
00:37:43,320 --> 00:37:46,440
Speaker 1: the individual performance of each of the assets that are

768
00:37:46,480 --> 00:37:49,480
Speaker 1: in that list and go, well, actually, it makes sense

769
00:37:49,520 --> 00:37:53,160
Speaker 1: that Hyperion had you know, fifty three percent growth because

770
00:37:53,280 --> 00:37:56,360
Speaker 1: the companies that hell did really well. We need to

771
00:37:56,360 --> 00:37:59,160
Speaker 1: then dive deeper and go will they continue to perform

772
00:37:59,320 --> 00:38:01,719
Speaker 1: as well as they did this year? Was their good

773
00:38:01,760 --> 00:38:03,960
Speaker 1: reason as to why they performed as well as they

774
00:38:03,960 --> 00:38:05,320
Speaker 1: did this year? Does that make sense?

775
00:38:05,440 --> 00:38:05,960
Speaker 4: Yeah?

776
00:38:06,000 --> 00:38:06,480
Speaker 3: Definitely.

777
00:38:06,600 --> 00:38:09,320
Speaker 1: So to touch on fees, we said before we like

778
00:38:09,400 --> 00:38:12,000
Speaker 1: anything below one percent BECK, and that is zero point

779
00:38:12,120 --> 00:38:14,880
Speaker 1: seven percent four fees on hyperion.

780
00:38:15,080 --> 00:38:15,600
Speaker 3: Very nice.

781
00:38:15,760 --> 00:38:18,480
Speaker 1: Any questions from the class.

782
00:38:18,000 --> 00:38:21,040
Speaker 3: Not yet good. I'm liking what I'm hearing.

783
00:38:21,200 --> 00:38:21,880
Speaker 1: Is it exciting?

784
00:38:22,080 --> 00:38:24,839
Speaker 3: Especially excited because I know those are the least turn

785
00:38:25,000 --> 00:38:27,160
Speaker 3: But also I feel like when we start to talk

786
00:38:27,160 --> 00:38:29,560
Speaker 3: about the top five and I break it down, you go, oh,

787
00:38:29,560 --> 00:38:31,960
Speaker 3: it's not that complicated, is it? It's making sense.

788
00:38:32,040 --> 00:38:35,120
Speaker 1: Here is the NEXTDTF BECK coming in at number three

789
00:38:35,840 --> 00:38:39,520
Speaker 1: with arguably one of the longer names that makes people

790
00:38:39,520 --> 00:38:42,480
Speaker 1: feel overwhelmed. But we will break this down is the

791
00:38:42,480 --> 00:38:46,800
Speaker 1: Global x Ultralong NASDAK one hundred hedge fund WHOA.

792
00:38:47,120 --> 00:38:49,960
Speaker 3: Okay, I was going to try and repeat it after you,

793
00:38:50,000 --> 00:38:50,400
Speaker 3: but I've.

794
00:38:50,239 --> 00:38:52,799
Speaker 1: Got Global x ulter it on NASDAK one hundred hedge funds.

795
00:38:52,880 --> 00:38:56,760
Speaker 1: WHOA Yep, that comes in at a one year return

796
00:38:56,840 --> 00:38:59,280
Speaker 1: BECK eighty three point one nine percent.

797
00:38:59,480 --> 00:39:02,000
Speaker 3: WHOA, Oh that is so wild?

798
00:39:02,360 --> 00:39:05,200
Speaker 1: They have a three year return. I bet you're assuming

799
00:39:05,239 --> 00:39:08,240
Speaker 1: it's going to be high, but it's actually five point

800
00:39:08,480 --> 00:39:13,680
Speaker 1: six four percent. We will break it down and explain

801
00:39:13,719 --> 00:39:16,560
Speaker 1: exactly how this has happened. So first things first, let's

802
00:39:16,560 --> 00:39:17,600
Speaker 1: talk about the actual product.

803
00:39:17,719 --> 00:39:17,919
Speaker 3: Sure.

804
00:39:18,160 --> 00:39:21,520
Speaker 1: The Global x Ultralong Nasdaq one hundred Hedge Fund, which

805
00:39:21,880 --> 00:39:25,160
Speaker 1: we could just use the ticker code of l NAS,

806
00:39:25,800 --> 00:39:29,520
Speaker 1: is an actively managed fund that aims to provide investors

807
00:39:29,520 --> 00:39:33,240
Speaker 1: with geared returns. So geared returns means there is money

808
00:39:33,280 --> 00:39:37,880
Speaker 1: being borrowed to be invested that are positively related to

809
00:39:37,960 --> 00:39:41,400
Speaker 1: the return of the NASDAQ one hundred index by investing

810
00:39:41,480 --> 00:39:46,399
Speaker 1: primarily in a portfolio of long E mini NASDAQ one

811
00:39:46,520 --> 00:39:51,920
Speaker 1: hundred futures contracts listed on the Chicago Mercantile Exchange.

812
00:39:52,200 --> 00:39:53,960
Speaker 3: I am so sorry. I don't know.

813
00:39:54,600 --> 00:39:56,160
Speaker 1: No, I just thought that you already knew that.

814
00:39:56,560 --> 00:39:57,920
Speaker 3: What's an e mini?

815
00:39:58,000 --> 00:40:00,360
Speaker 1: Yeah, we'll get to that, Okay. The OBJECTI of this

816
00:40:00,480 --> 00:40:03,719
Speaker 1: fund is to provide investors with positively geared exposure to

817
00:40:03,760 --> 00:40:05,279
Speaker 1: the Nasdaq one hundred.

818
00:40:05,120 --> 00:40:08,040
Speaker 3: Positively geared borrowed money, yes, okay.

819
00:40:08,120 --> 00:40:13,960
Speaker 1: Geared investment means that it is borrowed money, it's currency hedged,

820
00:40:14,080 --> 00:40:18,000
Speaker 1: so that means that exposure to currency movements between I

821
00:40:18,000 --> 00:40:21,360
Speaker 1: guess the US dollar and the Australian dollar is reduced.

822
00:40:21,800 --> 00:40:25,439
Speaker 1: Doesn't mean it's eliminated completely. But hedging, you know how

823
00:40:25,520 --> 00:40:28,520
Speaker 1: like the currency goes up and down, hedging means it's

824
00:40:28,560 --> 00:40:30,440
Speaker 1: a little bit more stable. It does go up and

825
00:40:30,480 --> 00:40:33,040
Speaker 1: down a little bit. But it's really important to understand

826
00:40:33,080 --> 00:40:37,719
Speaker 1: what hedged versus unhedged means. Unhedged literally just means that

827
00:40:37,760 --> 00:40:42,480
Speaker 1: they're not accounting for any like currency changes. So this one,

828
00:40:42,840 --> 00:40:45,759
Speaker 1: being a hedge fund, I'm unable to break it down

829
00:40:45,800 --> 00:40:47,720
Speaker 1: for you, so I can't go all right, Their biggest

830
00:40:47,760 --> 00:40:51,400
Speaker 1: holding is abc D and E because what they actually

831
00:40:51,440 --> 00:40:54,480
Speaker 1: track is the Nasdaq one hundred index, and that is

832
00:40:54,520 --> 00:40:57,320
Speaker 1: one of the world's most I guess pre eminent large

833
00:40:57,360 --> 00:41:00,799
Speaker 1: cap So large cap just means a big company indices

834
00:41:01,239 --> 00:41:04,080
Speaker 1: it has some of the planet's most iconic companies. So

835
00:41:04,200 --> 00:41:08,360
Speaker 1: essentially it includes one hundred of the largest American domestic

836
00:41:08,400 --> 00:41:11,840
Speaker 1: and international non financial companies that are listed on the

837
00:41:11,920 --> 00:41:16,040
Speaker 1: Nasdaq stock market. And essentially it has a market cap

838
00:41:16,239 --> 00:41:21,800
Speaker 1: of fifteen trillion dollars back and the Nasdaq one hundred

839
00:41:21,880 --> 00:41:26,279
Speaker 1: essentially has proven growth history, impact and performance. Like I'm

840
00:41:26,280 --> 00:41:29,320
Speaker 1: assuming you've heard of the NASDAK before, whether you understand

841
00:41:29,360 --> 00:41:32,000
Speaker 1: it or not, it's a word that it's on the

842
00:41:32,040 --> 00:41:34,240
Speaker 1: telly all the time. It makes a lot of sense.

843
00:41:34,640 --> 00:41:37,160
Speaker 1: It's made up of I guess the world's most popular companies,

844
00:41:37,200 --> 00:41:41,120
Speaker 1: so I can guarantee you'll see Apple, Google, Intel, Tesla,

845
00:41:41,320 --> 00:41:45,000
Speaker 1: all of those types of companies in there, and of

846
00:41:45,040 --> 00:41:48,880
Speaker 1: this technology companies make up about fifty percent of the

847
00:41:48,960 --> 00:41:52,920
Speaker 1: Nasdaq waiting, but all the listed companies are essentially what

848
00:41:53,000 --> 00:41:57,680
Speaker 1: they call disrupting markets, which is essentially new technology, which

849
00:41:57,800 --> 00:42:00,200
Speaker 1: you know makes a lot of sense. But essentially what

850
00:42:00,200 --> 00:42:03,880
Speaker 1: they're looking for is companies that accelerate change and have

851
00:42:04,080 --> 00:42:06,760
Speaker 1: what they are deeming to be out of the box

852
00:42:07,160 --> 00:42:11,200
Speaker 1: and robust solutions. So obviously they put it together. It's

853
00:42:11,239 --> 00:42:14,000
Speaker 1: been around for a little while, first couple of years,

854
00:42:14,719 --> 00:42:17,480
Speaker 1: Like during this economy five point six y four, you

855
00:42:17,520 --> 00:42:20,560
Speaker 1: wouldn't be super angry, you'd be all right, not the

856
00:42:20,560 --> 00:42:22,960
Speaker 1: worst I reckon. A few people were like, what the

857
00:42:23,000 --> 00:42:24,960
Speaker 1: her can when they have found out that in twenty

858
00:42:25,000 --> 00:42:27,120
Speaker 1: twenty three they had an average rate of return of

859
00:42:27,640 --> 00:42:29,839
Speaker 1: a three point one nine percent.

860
00:42:30,040 --> 00:42:30,800
Speaker 3: That's incredible.

861
00:42:30,800 --> 00:42:34,840
Speaker 1: Wouldn't be mad? Oh, I'd probably keep my money in there. Actually, yeah,

862
00:42:34,960 --> 00:42:37,200
Speaker 1: would I invest more in it now? Though maybe not,

863
00:42:37,480 --> 00:42:41,520
Speaker 1: because past performance is not a reliable predictor of future performance.

864
00:42:41,560 --> 00:42:44,080
Speaker 1: Back just because they did it in one year doesn't

865
00:42:44,120 --> 00:42:45,920
Speaker 1: mean they are going to do it consistently.

866
00:42:46,080 --> 00:42:47,000
Speaker 3: Yes, very true.

867
00:42:47,000 --> 00:42:48,759
Speaker 1: So we need to be really careful that we don't

868
00:42:48,840 --> 00:42:51,000
Speaker 1: kind of buy into the hype and go, oh my gosh,

869
00:42:51,000 --> 00:42:53,319
Speaker 1: this is great, because remember how that happened with the

870
00:42:53,360 --> 00:42:55,719
Speaker 1: after pay shares, and every man and his dog in

871
00:42:55,760 --> 00:42:57,839
Speaker 1: every officer around Australia was like, did you get after

872
00:42:57,840 --> 00:42:59,640
Speaker 1: pay chares? And then everyone bought them? And then everyone

873
00:42:59,640 --> 00:43:02,480
Speaker 1: lost my because they are buying them purely based on hype,

874
00:43:02,480 --> 00:43:05,440
Speaker 1: not because they're done market researches. Yeah, so we don't

875
00:43:05,440 --> 00:43:08,840
Speaker 1: want to be the afterpay guys, right, all right? So

876
00:43:08,920 --> 00:43:12,000
Speaker 1: that is the global x Ultralong NASDAK one hundred hedge fund.

877
00:43:12,320 --> 00:43:13,440
Speaker 1: Do you want to know what the fee is and

878
00:43:13,440 --> 00:43:14,319
Speaker 1: then we'll go to number two?

879
00:43:14,440 --> 00:43:15,160
Speaker 3: Yeah, good idea.

880
00:43:15,239 --> 00:43:16,640
Speaker 1: The fee is a flat one percent.

881
00:43:16,960 --> 00:43:19,840
Speaker 3: Okay, okay, okay, that's fine, that's fine.

882
00:43:20,280 --> 00:43:22,759
Speaker 1: Literally anything one percent or below we're not mad about,

883
00:43:22,880 --> 00:43:24,080
Speaker 1: not mad, all right?

884
00:43:24,520 --> 00:43:25,200
Speaker 3: Cuting it fine.

885
00:43:25,320 --> 00:43:28,000
Speaker 1: The next one coming in at number two. It's actually

886
00:43:28,000 --> 00:43:32,160
Speaker 1: another global x ETF beck doing very well. It's global

887
00:43:32,400 --> 00:43:37,279
Speaker 1: x Fang plus ETF. Okay, fancy doesn't that it does,

888
00:43:37,840 --> 00:43:41,480
Speaker 1: So the global x Fang plus ETF. It's ticker code

889
00:43:41,719 --> 00:43:44,560
Speaker 1: is going to come as no surprise. It is fang easy.

890
00:43:44,840 --> 00:43:47,600
Speaker 1: It seeks to invest in companies at the leading edge

891
00:43:47,640 --> 00:43:52,120
Speaker 1: of next generation technology that includes household names and some newcomers,

892
00:43:52,840 --> 00:43:54,480
Speaker 1: So that's nice for them. Do you know what the

893
00:43:54,520 --> 00:43:55,520
Speaker 1: performance on that was?

894
00:43:56,160 --> 00:43:56,480
Speaker 2: What?

895
00:43:57,160 --> 00:44:02,719
Speaker 1: Eighty four point two nine percent twenty three these technology companies.

896
00:44:02,880 --> 00:44:05,040
Speaker 3: I feel like that's the main theme here, is a

897
00:44:05,080 --> 00:44:07,280
Speaker 3: lot of like techy sort of five.

898
00:44:07,680 --> 00:44:10,880
Speaker 1: It does have historical performance, so not five year, but

899
00:44:10,920 --> 00:44:13,799
Speaker 1: it does have three year because it's inception date so

900
00:44:13,920 --> 00:44:17,480
Speaker 1: essentially the date it was born is February twenty twenty.

901
00:44:17,520 --> 00:44:21,320
Speaker 1: So it's three year return. Pretty good to be honest.

902
00:44:21,640 --> 00:44:23,800
Speaker 1: Seventeen point zero three percent.

903
00:44:23,880 --> 00:44:24,640
Speaker 3: Oh that is good.

904
00:44:24,719 --> 00:44:28,320
Speaker 1: That's good for a three year return, especially in this economy. Yeah, seriously,

905
00:44:28,600 --> 00:44:32,120
Speaker 1: like after twenty twenty getting that greater performance, right, we're

906
00:44:32,120 --> 00:44:35,400
Speaker 1: not mad. Eighty four point two nine percent though, that's

907
00:44:35,440 --> 00:44:36,280
Speaker 1: pretty exciting.

908
00:44:36,480 --> 00:44:37,600
Speaker 3: Yeah, that's really good.

909
00:44:37,840 --> 00:44:40,520
Speaker 1: ETF is made up of a number of assets you

910
00:44:40,520 --> 00:44:44,200
Speaker 1: would have heard of before. So you have Meta as

911
00:44:44,239 --> 00:44:46,640
Speaker 1: the number one holding, coming in at ten point six

912
00:44:46,719 --> 00:44:54,200
Speaker 1: three percent of the portfolio. Then you have Alphabet, Tesla, Netflix, Microsoft, Amazon, Broadcom, Apple,

913
00:44:54,920 --> 00:44:57,880
Speaker 1: all these companies That kind of makes sense. It's obviously

914
00:44:57,880 --> 00:44:59,680
Speaker 1: got a lot more, but those are some of the top.

915
00:45:00,880 --> 00:45:04,880
Speaker 1: When it comes to fees, Global ex Fang Plus ETF

916
00:45:05,200 --> 00:45:06,719
Speaker 1: has a fee of point three to five.

917
00:45:07,200 --> 00:45:08,200
Speaker 3: Oh that's very good.

918
00:45:08,960 --> 00:45:09,840
Speaker 1: A lot lower.

919
00:45:09,920 --> 00:45:12,560
Speaker 3: Expecting something higher for some reason or don't know.

920
00:45:12,960 --> 00:45:14,840
Speaker 1: Yeah, I expected a little bit higher, but I'm not

921
00:45:14,920 --> 00:45:18,680
Speaker 1: surprised because it is more of a traditional etfure. So

922
00:45:19,160 --> 00:45:22,000
Speaker 1: when it's a more traditional ETF it does what it

923
00:45:22,040 --> 00:45:24,799
Speaker 1: says on the box you're usually looking at. I would

924
00:45:24,800 --> 00:45:28,200
Speaker 1: say under zero point six percent in fees when they

925
00:45:28,200 --> 00:45:30,640
Speaker 1: become a little bit more managed. So before we were

926
00:45:30,640 --> 00:45:34,440
Speaker 1: talking about Hyperion, their fee was point seven because it's

927
00:45:34,440 --> 00:45:37,920
Speaker 1: a bit more managed. Then you've got a hedge fund,

928
00:45:38,000 --> 00:45:40,480
Speaker 1: which obviously involves a lot more admin because they're doing

929
00:45:40,520 --> 00:45:43,640
Speaker 1: the hedging, and it was geared that came in at

930
00:45:43,640 --> 00:45:45,279
Speaker 1: one percent, and that made a lot of sense to

931
00:45:45,320 --> 00:45:46,600
Speaker 1: me because I was like, well, there's a bit more

932
00:45:46,640 --> 00:45:50,960
Speaker 1: complexity in this particular asset as opposed to know a

933
00:45:51,000 --> 00:45:53,000
Speaker 1: straight ETF where they've picked a whole bunch of shares,

934
00:45:53,000 --> 00:45:54,919
Speaker 1: popped them in the basket and caught it a day.

935
00:45:55,440 --> 00:45:56,520
Speaker 3: So its on at the.

936
00:45:56,520 --> 00:46:00,360
Speaker 1: Breakdown because I'm excited about this all the time. Percent.

937
00:46:00,440 --> 00:46:03,799
Speaker 1: So basically, half of this ETF is made up of

938
00:46:03,800 --> 00:46:08,080
Speaker 1: information technology, thirty one percent is communication services, nineteen point

939
00:46:08,200 --> 00:46:11,319
Speaker 1: nine percent is consumer discretionary sector, and then it has

940
00:46:11,360 --> 00:46:14,520
Speaker 1: point one percent cash. So these ETFs, the thing that

941
00:46:14,560 --> 00:46:16,600
Speaker 1: I'm seeing that they have all in common is they're

942
00:46:16,640 --> 00:46:19,480
Speaker 1: not carrying much cash all because cash doesn't have.

943
00:46:19,440 --> 00:46:21,480
Speaker 3: Good returns, No, certainly doesn't.

944
00:46:21,719 --> 00:46:24,920
Speaker 1: So again country breakdown, ninety nine point ninety five percent

945
00:46:24,920 --> 00:46:28,960
Speaker 1: of the company's in this ETF for American Classic no surprise. No,

946
00:46:29,560 --> 00:46:32,439
Speaker 1: I can see you are waiting on bated breath. Beck,

947
00:46:32,719 --> 00:46:34,680
Speaker 1: I am you liken't just tell me the number one.

948
00:46:34,680 --> 00:46:36,160
Speaker 1: I don't even care about fang anymore.

949
00:46:36,440 --> 00:46:41,319
Speaker 3: If the second highest is eighty four, I'm dying to

950
00:46:41,360 --> 00:46:42,160
Speaker 3: know what number one.

951
00:46:42,080 --> 00:46:44,799
Speaker 1: Is, all right, So number one has a return of

952
00:46:44,920 --> 00:46:49,520
Speaker 1: ninety one zero point six zero percent. Whoh, that's like

953
00:46:49,600 --> 00:46:52,479
Speaker 1: photomically three. Basically that's a good deal.

954
00:46:52,680 --> 00:46:54,319
Speaker 3: That's very, very very good.

955
00:46:54,400 --> 00:46:58,680
Speaker 1: I would like that consistently in my portfolio. Unobtainable, unrealistic.

956
00:46:58,719 --> 00:47:00,640
Speaker 1: But that's not the point, right, too much to ask?

957
00:47:00,760 --> 00:47:03,960
Speaker 1: Is it too much to ask to get consistently good returns?

958
00:47:04,920 --> 00:47:07,560
Speaker 1: So this fund, I think is a bit rogue, And

959
00:47:07,640 --> 00:47:09,480
Speaker 1: I say it's a bit rogue because I'm looking at

960
00:47:09,480 --> 00:47:12,799
Speaker 1: it going of course you are, of course you are.

961
00:47:12,960 --> 00:47:13,880
Speaker 1: Do you know what it's called?

962
00:47:14,200 --> 00:47:15,040
Speaker 3: What is it?

963
00:47:15,040 --> 00:47:17,719
Speaker 1: It's the beta shares. We like Beta shares if you

964
00:47:17,719 --> 00:47:19,920
Speaker 1: haven't heard of them, they are a really good ETF

965
00:47:20,000 --> 00:47:24,920
Speaker 1: provider here in Australia. The Beta Shares Crypto Innovators ETF.

966
00:47:25,080 --> 00:47:28,560
Speaker 1: Oh crypto, I who knows how I feel about crypto?

967
00:47:28,800 --> 00:47:31,280
Speaker 3: Yeah, this seems very controversial.

968
00:47:31,320 --> 00:47:34,200
Speaker 1: It's a little bit spicy. But did you know you

969
00:47:34,200 --> 00:47:36,600
Speaker 1: can buy crypto in the form of an ETF on

970
00:47:36,680 --> 00:47:38,560
Speaker 1: the AX that you didn't know that?

971
00:47:39,000 --> 00:47:40,800
Speaker 3: Oh? The ETF is crypto.

972
00:47:41,200 --> 00:47:45,640
Speaker 1: It invests in crypto technology companies. So the fund objective

973
00:47:46,280 --> 00:47:48,800
Speaker 1: is to track the performance of an index before fees

974
00:47:48,840 --> 00:47:52,759
Speaker 1: and expenses. That provides exposure to global companies at the

975
00:47:52,800 --> 00:47:57,560
Speaker 1: forefront of the dynamic crypto economy. So you're investing in

976
00:47:57,640 --> 00:48:02,320
Speaker 1: companies that are you know, working with crypto working on crypto.

977
00:48:02,800 --> 00:48:04,920
Speaker 1: I'm on the Beta shares website. So again, some of

978
00:48:04,960 --> 00:48:07,800
Speaker 1: this is definitely marketing, but it does explain it very simply.

979
00:48:08,120 --> 00:48:13,279
Speaker 1: But essentially cryp is their ticker code. It invests in

980
00:48:13,360 --> 00:48:18,080
Speaker 1: up to fifty different crypto leaders like coinbase, Riot, Blockchain,

981
00:48:18,440 --> 00:48:23,319
Speaker 1: micro Strategy, and more. So these are all crypto providers.

982
00:48:23,640 --> 00:48:26,520
Speaker 1: You're not investing in the actual cryptocurrency, so you're not

983
00:48:26,520 --> 00:48:28,920
Speaker 1: going to buy the bitcoin, beck You're investing in the

984
00:48:28,960 --> 00:48:30,040
Speaker 1: company that makes a bitcoin.

985
00:48:30,320 --> 00:48:32,840
Speaker 3: Okay, that feels a bit better, makes.

986
00:48:32,680 --> 00:48:34,719
Speaker 1: More sense, right, So if we look at this, as

987
00:48:34,800 --> 00:48:38,040
Speaker 1: I said, one year return ninety one point six zero percent,

988
00:48:38,160 --> 00:48:40,640
Speaker 1: it doesn't have three or five year return. Because this

989
00:48:40,760 --> 00:48:44,040
Speaker 1: is one of the first, if not the first crypto

990
00:48:44,280 --> 00:48:48,800
Speaker 1: ETF that has been accessible in our market. Its fees

991
00:48:48,880 --> 00:48:51,319
Speaker 1: are very good given you know, I would kind of

992
00:48:51,360 --> 00:48:54,960
Speaker 1: have expected a cryptocurrency ETF to be a bit higher

993
00:48:55,000 --> 00:48:58,520
Speaker 1: purely because there's more research, it's a newer emerging market rara.

994
00:48:58,840 --> 00:49:01,840
Speaker 1: But it's point six seven percent. Oh, very reasonable, not

995
00:49:01,920 --> 00:49:04,160
Speaker 1: too bad. If we then have a look at the

996
00:49:04,200 --> 00:49:07,520
Speaker 1: portfolio holding, so like, what is that investment actually made

997
00:49:07,560 --> 00:49:10,800
Speaker 1: up of? Sure, fifteen percent is a company called Marathon

998
00:49:10,880 --> 00:49:15,080
Speaker 1: Digital Holdings, obviously a tech crypto company. Coinbase comes in

999
00:49:15,120 --> 00:49:18,799
Speaker 1: at nine point four percent, Galaxy Digital Holdings is nine

1000
00:49:18,840 --> 00:49:22,239
Speaker 1: point three percent, and then it goes through Riot Platforms,

1001
00:49:22,239 --> 00:49:26,960
Speaker 1: Micro Strategy, Bit Farms, Northern Data, Applied Digital Corp, HUT

1002
00:49:26,960 --> 00:49:31,160
Speaker 1: eight Corp, and Bank Holdings. So all of that obviously

1003
00:49:31,320 --> 00:49:33,800
Speaker 1: makes not a lot of sense if you don't follow crypto,

1004
00:49:33,880 --> 00:49:37,959
Speaker 1: but all of those companies are creating cryptocurrency and trying

1005
00:49:38,000 --> 00:49:40,360
Speaker 1: to make it the future, which I think is really cool.

1006
00:49:40,520 --> 00:49:43,239
Speaker 1: When it comes to that, I guess sector allocation and

1007
00:49:43,239 --> 00:49:47,640
Speaker 1: that breakdown, you won't be surprised that application software companies

1008
00:49:47,640 --> 00:49:51,759
Speaker 1: make up fifty three percent of the portfolio. Then you've

1009
00:49:51,800 --> 00:49:56,640
Speaker 1: got financial exchanges and data asset management and custody banking,

1010
00:49:56,840 --> 00:50:01,960
Speaker 1: transaction and payment processing systems, diverse banks, and they do

1011
00:50:02,000 --> 00:50:03,560
Speaker 1: not hold any cash.

1012
00:50:03,640 --> 00:50:04,520
Speaker 3: You don't really need it.

1013
00:50:04,600 --> 00:50:07,040
Speaker 1: If we look at country though, you're not going to

1014
00:50:07,040 --> 00:50:10,760
Speaker 1: be surprised. Seventy six point six percent of this country

1015
00:50:10,800 --> 00:50:14,839
Speaker 1: allocation is made up of American businesses, then seven point

1016
00:50:15,080 --> 00:50:18,480
Speaker 1: seven percent, Canadian companies, four point six percent Germany. Then

1017
00:50:18,520 --> 00:50:23,640
Speaker 1: it goes China, Brazil, Australia one point five percent, Cayman Islands,

1018
00:50:23,760 --> 00:50:27,239
Speaker 1: which makes me laugh because it's so rogue. Usually the

1019
00:50:27,239 --> 00:50:29,160
Speaker 1: company is not in the Cayman Islands.

1020
00:50:29,280 --> 00:50:29,560
Speaker 3: Beck.

1021
00:50:29,800 --> 00:50:33,719
Speaker 1: It means that whoever owns the company has set up

1022
00:50:33,760 --> 00:50:37,759
Speaker 1: their banking in the Cayman Islands, which obviously is a

1023
00:50:37,880 --> 00:50:41,240
Speaker 1: little bits of a red flag because it's usually people

1024
00:50:41,280 --> 00:50:46,239
Speaker 1: trying to honestly legally avoid tax. Legally, it is legal

1025
00:50:46,360 --> 00:50:48,680
Speaker 1: to set up your company in the Cayman Islands, okay,

1026
00:50:48,760 --> 00:50:51,160
Speaker 1: but there will be good reasons as to why they

1027
00:50:51,200 --> 00:50:54,080
Speaker 1: do that, and they are usually to circumvent the laws

1028
00:50:54,120 --> 00:50:56,320
Speaker 1: in the country that they actually live in. I see,

1029
00:50:56,560 --> 00:50:59,759
Speaker 1: and then one point four percent of other So I

1030
00:51:00,120 --> 00:51:03,000
Speaker 1: find that really interesting. And the number one who would

1031
00:51:03,040 --> 00:51:06,400
Speaker 1: have thought wow is a crypto etf.

1032
00:51:06,040 --> 00:51:08,759
Speaker 3: Wow, and would not have thought I'd see the day.

1033
00:51:09,000 --> 00:51:11,120
Speaker 1: I didn't think i'd see the day. And if I

1034
00:51:11,120 --> 00:51:12,560
Speaker 1: had a grave, i'd be rolling in it.

1035
00:51:13,200 --> 00:51:13,839
Speaker 3: Haha.

1036
00:51:13,880 --> 00:51:16,640
Speaker 1: But that is okay. I think it's really interesting. Does

1037
00:51:16,640 --> 00:51:18,120
Speaker 1: that mean you guys should run out and go and

1038
00:51:18,200 --> 00:51:21,880
Speaker 1: invest in these ETFs? Absolutely not, that's a terrible idea.

1039
00:51:22,280 --> 00:51:25,120
Speaker 1: You need to do your research and understand what you're

1040
00:51:25,160 --> 00:51:28,239
Speaker 1: investing in and why. And obviously, as we went through

1041
00:51:28,280 --> 00:51:31,040
Speaker 1: the top five. There were good reasons as to why

1042
00:51:31,080 --> 00:51:34,000
Speaker 1: they had that type of growth and that type of return,

1043
00:51:34,360 --> 00:51:37,839
Speaker 1: And usually it wasn't the ETF itself, it was some

1044
00:51:37,920 --> 00:51:41,240
Speaker 1: of the holdings inside of that ETF, And we already

1045
00:51:41,400 --> 00:51:45,719
Speaker 1: identified Tesla was one of the main investments in a

1046
00:51:45,760 --> 00:51:48,640
Speaker 1: lot of those ETFs, and they're the ones that were

1047
00:51:48,680 --> 00:51:52,279
Speaker 1: carrying a lot of that weight. Yes, so interesting to

1048
00:51:52,320 --> 00:51:55,200
Speaker 1: know something to deep dive into. Hopefully that, like I

1049
00:51:55,239 --> 00:51:58,160
Speaker 1: don't know, sparks some people's interest in doing some more research,

1050
00:51:58,200 --> 00:51:59,720
Speaker 1: because I promise it's not that.

1051
00:51:59,719 --> 00:52:01,520
Speaker 3: Comp Yeah, it's scary.

1052
00:52:01,600 --> 00:52:04,120
Speaker 1: It's not scary. It's actually really interesting. And once you

1053
00:52:04,120 --> 00:52:05,759
Speaker 1: start looking at it, you're like, oh, they did what

1054
00:52:06,160 --> 00:52:07,759
Speaker 1: And then you go and look at another ETF and

1055
00:52:07,760 --> 00:52:11,000
Speaker 1: you're like, oh, spicy, who's that? Like, I promise it's

1056
00:52:11,040 --> 00:52:13,880
Speaker 1: way more exciting than it sounds before you've gotten involved.

1057
00:52:14,000 --> 00:52:15,960
Speaker 3: Yes, okay, I've got a bit of googling too. I

1058
00:52:16,040 --> 00:52:18,440
Speaker 3: also want to unpack this Cayman Island tax fiasco.

1059
00:52:18,600 --> 00:52:20,080
Speaker 1: So yeah, it's a bit spicy.

1060
00:52:20,239 --> 00:52:22,880
Speaker 3: Yeah, this sounds very douicy to me, but thank you

1061
00:52:22,920 --> 00:52:24,080
Speaker 3: so much for this has helped me.

1062
00:52:24,280 --> 00:52:25,960
Speaker 1: It's fun. I feel like this was a long one,

1063
00:52:26,000 --> 00:52:26,839
Speaker 1: but it was a good one.

1064
00:52:26,920 --> 00:52:27,680
Speaker 3: Long bit, goodie.

1065
00:52:27,719 --> 00:52:30,360
Speaker 1: We'll see you guys on Friday. Bye bye, guys.

1066
00:52:36,600 --> 00:52:39,160
Speaker 4: The advice shared on She's on the Money is general

1067
00:52:39,200 --> 00:52:43,040
Speaker 4: in nature and does not consider your individual circumstances. She's

1068
00:52:43,120 --> 00:52:46,560
Speaker 4: on the Money exists purely for educational purposes and should

1069
00:52:46,600 --> 00:52:49,760
Speaker 4: not be relied upon to make an investment or financial decision.

1070
00:52:50,160 --> 00:52:52,760
Speaker 1: If you do choose to buy a financial product.

1071
00:52:52,400 --> 00:52:55,960
Speaker 4: Read the PDS TMD and obtain appropriate financial.

1072
00:52:55,520 --> 00:52:59,440
Speaker 1: Advice tailored towards your needs. Victoria Divine and She's on

1073
00:52:59,480 --> 00:52:59,880
Speaker 1: the Money.

1074
00:53:00,160 --> 00:53:03,520
Speaker 4: Authorized Representatives of Money sherper P T Y L t

1075
00:53:03,640 --> 00:53:06,399
Speaker 4: D A b N three two one six four nine

1076
00:53:06,520 --> 00:53:09,480
Speaker 4: two seven seven zero eight a F s L four

1077
00:53:09,560 --> 00:53:13,480
Speaker 4: five one two eight nine