One of the “most helpful plain-English resources for investors who want to demystify exchange-traded funds” – Bloomberg Businessweek
Will Rhind, Founder & CEO of GraniteShares, dives into their YieldBOOST lineup of ETFs and offers perspective on the growing demand for options-based ETF strategies overall. Zeno Mercer, Senior Research Analyst at VettaFi, breaks down one of the hottest segments in the market: artificial intelligence ETFs. He covers fund flows, performance trends, and the key drivers behind investor interest.
ETF Prime is hosted by Nate Geraci. Learn how to make ETFs a part of your investment portfolio as Nate spotlights individual ETFs and interviews experts from across the country. ETF Prime is available on Apple Podcasts, Android, Spotify, and most other major podcasting platforms. Specific guest interviews can be accessed by visiting the ETF Expert Corner.
ETF.com’s Sumit Roy highlights this year’s best and worst performing ETFs. State Street’s Matt Bartolini discusses the investment case for mid-cap stocks and offers perspective on the recent broker wars. BlueStar Indexes’ Steven Schoenfeld explains potential shortcomings of traditional emerging market indexes.
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Most will recall the 1970s hit song “Signs” by Five Man Electrical Band. Even if you don’t initially recognize the tune, the iconic refrain will likely jog your memory:
“Sign, sign, everywhere a sign
Blockin’ out the scenery, breakin’ my mind
Do this, don’t do that, can’t you read the sign?”
The song was written by the band’s lead singer, Les Emmerson, after a California road trip. From Songfacts:
“Emmerson wrote the song after taking a road trip on Route 66 in California, where he noticed a plethora of billboards that obscured the beautiful scenery. This posed a question: Who is allowed to put up signs that interfere with nature? This led to another query: Who gets to make the rules that appear on so many signs?”
“Signs” is the perfect description of investing in 2019. The S&P 500 is up 20%, broad U.S. bonds have gained close to 9%, and nearly every major global asset class is positive. However, a plethora of “signs” is obscuring the beautiful returns. China trade war, yield curve inversion, mixed signals from the Fed, negative interest rates globally, Brexit, impeachment… every day there’s a new sign, blockin’ out the scenery and breakin’ your mind!
Worse, the signs are often contradictory. Imagine driving to an intersection with a large traffic light flashing green and red! That’s investing in 2019. Sentiment on the China trade war sways back-and-forth based on tweets, news headlines, and tenuous trade talks. A yield curve inversion (where longer-term U.S. Treasuries yield less than shorter-term U.S. Treasuries) has preceded every recession since the 1950s, though some believe “this time is different” given unprecedented central bank stimulus since the global financial crisis. The unemployment rate is at a 50-year low, yet the Federal Reserve is beginning purchases of shorter-term treasuries – more stimulus. Negative interest rates are, in and of themselves, a confusing sign. Shouldn’t you get paid to lend money? Good luck deducing how Brexit, the United Kingdom’s pending withdrawal from the European Union, plays out. Politicians, the British people, and smart economists can’t seem to agree. A possible impeachment hearing for President Trump? Does anyone really want to handicap how that might go? Do this, don’t do that, can’t you read the sign?
Another complicating factor is investors may interpret the exact same signs differently. Consider how political affiliation impacts sentiment on the economy. Everyone has access to the same economic data, but draws wildly different conclusions!
Conflicting economic signs, along with differing interpretations of those signs, is reflected in how investors are approaching financial markets right now. Investors are buying stocks, while also flocking to safe havens like gold and long-term Treasury bonds. It doesn’t help to have a 24/7 financial media complex with a fondness for creating flashy, confusing signs of their own. CNBC has produced 28 “Markets in Turmoil” specials since stocks bottomed in 2009, including three this year! Attempting to read these signs not only interferes with your investment journey, but can lead you in an entirely wrong direction altogether.
The point in all of this is not to say signs have no value. The challenge is, in the past, some of the current signs in isolation may have been excellent indicators for what might lie ahead. In today’s environment, there are contradictory signs everywhere. Sometimes, the best thing to do is weigh the evidence and realize there isn’t a particular sign that’s an ultimate indicator.
The good news is investors can make their own rules and decide which signs to follow. Often times, the best way to experience a long road trip is to set the GPS on your car or phone, crank up the music (Five Man Electrical Band included) and ignore the signs. You will arrive safely at your final destination, having enjoyed the beautiful scenery along the way.
ETF.com’s Dave Nadig discusses the recent moves by major brokerages to offer commission-free trading, including the impact to investors and ETF issuers. GraniteShares’ Will Rhind spotlights the new GraniteShares XOUT U.S. Large Cap ETF (XOUT), along with the GraniteShares Gold Trust (BAR). Nottingham’s Kip Meadows offers a behind-the-scenes look at cannabis ETFs and fields rapid-fire ETF questions.
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ETF.com’s Lara Crigger goes in-depth on the recently approved “ETF Rule”, explaining what it is and why it matters to investors. DWS’ Luke Oliver discusses investing in China, including spotlighting several Xtrackers China-focused ETFs. Teucrium’s Sal Gilbertie explains the investment rationale for agricultural commodity ETPs such as the Teucrium Corn Fund (CORN).
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One of the “most helpful plain-English resources for investors who want to demystify exchange-traded funds.” – Bloomberg BusinessWeek
In addition to the following guests, be sure to catch our weekly segment with the experts at ETF.com! Subscribe to receive the latest ETF Prime podcast directly to your inbox here.
October 1st – Luke Oliver, Head of Index Investing at DWS, discusses investing in China, including spotlighting several Xtrackers China A-Shares ETFs. Sal Gilbertie, Founder of Teucrium, goes in-depth on agricultural commodity ETPs such as the Teucrium Corn Fund (CORN).
October 8th – Will Rhind, Founder & CEO of GraniteShares, talks gold, crypto, and commodities. Kip Meadows, Founder & CEO of Nottingham, provides a behind-the-scenes look at how cannabis ETFs operate and offers perspective on the non-transparent ETF structure.
October 15th – Matt Bartolini, Head of SPDR Americas Research, fields rapid-fire ETF questions and delves into several SPDR ETFs. Steven Schoenfeld, Founder & CIO of BlueStar Indexes, explains potential shortcomings of popular emerging market ETFs and describes an alternative approach to help avoid unintended country and sector bets.
October 22nd – Bob Tull, Co-Founder & President of ProcureAM, discusses his unique background and experience in the ETF space, along with his broader outlook for the industry. Will Hershey, Co-Founder & CEO of Roundhill Investments, spotlights the Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD).
October 29th – Gabor Gurbacs, Director of Digital Assets Strategy at VanEck/MVIS, and Matt Hougan, Global Head of Research at Bitwise Asset Management, offer the latest on bitcoin ETFs and the overall crypto market.
November 5th – Brad Camden, Director of Fixed Income Strategy for Northern Trust, focuses on fixed income, including high yield bonds and the FlexShares High Yield Value-Scored Bond Index Fund (HYGV). Matt Markiewicz, Managing Director of The Cannabis ETF (THCX), discusses the recent pressure on cannabis stocks, how the industry is evolving, and what to expect in 2020.
November 19th – Sarah Kjellberg, Head of US iShares Sustainable ETFs, discusses iShares’ Sustainable Core ETF lineup and what the future holds for sustainable investing. Sean Brown, CEO of YCharts, explains the importance of proper ETF due diligence.
December 3rd – Rich Powers, Head of ETF Product Management at Vanguard, highlights increasing adoption of bond ETFs and what’s next for the bond ETF space. Todd Rosenbluth, Sr. Director of ETF & Mutual Fund Research at CFRA, talks recent ETF flows and trends.
December 10th – Ed Nini, Head of ETF Marketing at Principal, explains Principal’s evolution in the ETF space and spotlights several Principal ETFs. Steve Houston, Partner at M+ Funds, discusses the opportunities and challenges facing the new category of funds known as “defined outcome investments” and why he views it as the next wave of innovation within the ETF space.
December 17th – Ben Johnson, Director of Global Research at Morningstar, recaps the year in ETFs and looks ahead to 2020. John Davi, Founder & CIO of Astoria Portfolio Advisors, offers his key investment themes heading into next year.
All guest interviews are available through our featured section “ETF Expert Corner” at etfstore.com and can be played directly from any mobile device. Full podcasts of ETF Prime can be downloaded for free at etfprime.com, etf.com, Apple Podcasts, Spotify, Android, and other major podcast apps.
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