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
3:15
MAGA is different, in that its explicitly tied to campaign contributions.
which -- again, not to be negative -- I'm not super convinced is a source of alpha, but if you're looking to chase politics, it's a way to do it.
Davis Angelo
3:16
Hey Dave, Since Canada only recently made cannibis legal, why is that country ahving more success with their marijuana ETFs then the US, since it's been legal in many states here for awhile now? Or is there not an implied relationship with that necessarily? Thanks
Dave Nadig
3:16
So, it has less to do with Cannabis and a bit more to do with the Ontario Securities Exchange vs. the SEC.
3:17
The issue is much less the ETF angle, and much more the public company angle, and the custodial system.
While Cannabis hasn't been fully recreationally legal, companies that GROW cannabis haven't had the same kinds of restrictions in canada as they have here.
So they can use banks, and more importantly, they can go public.
which is why, when you look at any of the cannabis funds in any country, they're LOADED with small cap canadian aggriculture.
3:18
In the U.S. - growers can't readily list, or even use the banks.
so everythign is basically private.
on top of that, custodians in the U.S. have been hesitant to hold the shares of the canadian cannabis growers at all, which has made launching cannabis funds here tricky.
3:19
the one we have - MJ - backdoored this by taking an existing fund (LARE) - a latin american real estate fund - and just changing the index it tracked.
the custodial relationship just kind of came along for the ride.
I suspect there were some heated words about it, but in the end, the fund now has 500m in assets or so, and the custodian seems to have gotten comfortable with it.
3:20
ok, a few more quickies here:
BondMan
3:20
For AGG investors, which enhanced AGG product would you suggest, NUAG or AGGY (or something else) and why?
Dave Nadig
3:21
So, the AGG has an issue, honestly, which is it was never designed as an investable index.
it just holds too many bonds, for one thing, and also has weird ways of dealing with things like yankee bonds.
3:22
so in that sense it's an "easy" target to try and beat, whether you're building an index or you're an active manager
As for the two you mentioned -- this is a place you really need to dig into holdings.
they both say they're after similar things, but the portfolios look quite different.
3:23
In particular (last I looked) NUAG gets pretty in the weeds on the investment grade corporates
big loadings on financials, industrials, etc.
3:24
But truly - its very hard to tease either one apart without getting deeply into the weeds
Id point out the expense differences are real though
3:25
I think AGGY is 11-12bps, and NUAG is something like 20.
That may not sound like a lot, but when we're looking at fixed income, that actually is a meaningful difference
but my advice is not to try and shorthand these funds, but really wade into the individual funds and match it up with whatever other fixed income exposure you might have.
OK, one or two more here:
Guest
3:26
Can you create an ETF that is not benchmarked to an index?
Dave Nadig
3:26
100% yes, and we have quite a few already out there.
3:27
Active ETFs have been around for a while (which is what a non index ETF is by definition). PIMCO pushed the envelope when they launched BOND, a clone of their Total Return strategy.
Active ETFs have to explicitly disclose their full portfolio every day.
It's worth noting that the new SEC ETF Rule doesn't distinguish Active ETFs from Index ETFs apparently, which is probably a good thing.
3:28
One caveat, you say "benchmarked" - pretty much every active manager has some sort of benchmark they measure against, but I assume you mean that's not TRACKING an index.
Even Fidelity Magellan has a "benchmark" - the S&P 500 I'm guessing.
3:29
OK, last question -- a meatier one.
Anonymous
3:29
Whats with the liquidity rule thing from todays meeting?
Dave Nadig
3:29
So, different than the ETF rule discussion, there was another agenda item about the mutual fund liquidity rule (which covers ETFs and Mutual Funds equally).
3:30
A few years ago, they floated a reporting regime that goes into effect next year, which has funds take their holdings and put them in "buckets" of liquidity
Connecting…