You are viewing the chat in desktop mode. Click here to switch to mobile view.
X
ETF.com Live Chat!
powered byJotCast
Prev Page View Full Chat Next Page
Dave Nadig
3:12
You're right on the fee side: there are still folks paying 2% for core equity mutual funds in Canada, but the "low cost beta" movement in Canada is still a real thing.
3:13
the "cheapest ETF portfolio" we publish regularly for the US may not be 6-7 basis points yet, but it is aroudn 14-15, which is still crazy cheap.
Part of the issue is that the big banks so dominate both distribution and manufacture, that getting top of mind on "cheap is good" has just taken a little longer.
3:14
but its hapenning, and I think it accelerates.  The prediction I made today was that by 2025, we see 800B canadian in ETFs, up from 150B or so now.  Thats a crazy hockey stick.
and fees will be a big, big part of that ramp.
Todd Rosenbluth - CFRA research
3:14
We saw sizable trades into and out of emerging market bond ETFs EMLC and EMB this week. Does this further prove to that there’s ample liquidity in bond ETFs. People got out not just in the door.
Dave Nadig
3:14
Hi Todd, yeah, I think EMLC is a bit of a posterchild here.
3:15
and it's a great example too because Van Eck is REALLY good about publishing data around trading.
Here's their fund page, for instance:
3:16
you can click on the "excel" icon there and download the Premium/Discount info up to date, and like you said, huge volume days just don't make much of a difference.
now to some extent there's some lead lag issues there, as the markets for all that local currency debt aren't synced to the U.S. trading hours.
but over time, what you see is pretty clear -- the flows and volumes just dont seem to move the needle on premiums/discoutns.
3:17
Of course, never say never -- we haven't seen, for instance, a GIANT move in the underlyings -- like some sort of 20% crash up or down.
and on a day like that, who knows.
but course of business -- these things just work.
Ace Weatherby
3:17
Hey Dave, Does a changing makeup of an index impact ETFs at all?
Dave Nadig
3:17
We see a fair amount of index changes from time to time.
3:18
I seem to recall seeing quite a few lately, actually, but the short answer is -- the impact is all down to underlying exposure.
So for instance, when Vanguard made the huge move to the CRSP indexes for all their core US equity exposures, they did it very very slowly.
they had a whole transition period where they slloooowly changed out the positions that would vary.
3:19
And when you go from the beginning to the end -- yeah, there were some small portfolio level differences.  Capitalization ranges changed, things like that.
but it wasnt like you woke up one day and owned something different.
that CAN happen, if an issuer makes a sudden and dramatic change to an ETF.
3:20
We saw this when LARE (a latin american real estate fund) just "became" MJ (the only cannabis ETF in the U.S.).
Obviously completely unrelated portfolios, which, if you were in a cave, could have caught you as a surprise, if you held LARE!
But most index changes are actually quite subtle, and managed over decent lengths of time.
3:21
Still, if you have an ETF in your portfolio, it pays to follow the news on it just as much as you might for your AAPL shares.  Things DO change -- expense ratios can change, indexes, splits, and so on.
so treat them just like you'd treat a stock in that regard.
Anonymous
3:21
Per Mistake's question, doesn't Schwab have commission-free ETFs?
Dave Nadig
3:22
Good followup - yeah, MOST brokers now have a list of commission free ETFs.  I cant tell you who has the most off the top of my head, but I'm pretty sure Schwab was the first...
ETrades list is pretty small, Schwabs is huge, Fidelity's is very big, etc...
so it pays to at least look!
3:23
As far as I know, every issuer that ALSO runs a brokerage (Vanguard, Fidelity, Schwab, Etc.) lets you trade their house brand for free, as you'd expect.
Tim Fugatt
3:23
i sometimes see comparisons of ETFs to mutual funds, but what are the differences/similarities between ETFs and stocks, other than the former could give you exposure to segments, and the latter to individual companies?
Dave Nadig
3:23
A trickier question that it would first seem.
3:24
The biggest similarity to stocks is that they trade just like stocks.  And I mean just like stocks.
you put in orders the same way (using limits i hope!), you can short them, you'll pay the same commissions (baring the above discussion on commission free platforms).
3:25
From a portfolio perspective - how "stock like" an ETF is is a function of how narrow it's exposure.
So if you're invested in something like MJ, from above, well, you're in something like 30 companies, all pretty much pure play agriculture/cannabis companies, most of theme canadian, all of them small or micro cap.
Connecting…