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Dave Nadig
3:11
So, short answer, I don't know of any index or ETF that specifically REJECTS or intentionally minimizes dividend distributions.
3:12
Again, going back to our ETF finder, you can certainly sort by inverse dividend yield
ALso, if you're really wading into the deep end of the pool
3:13
ETNs and levered products generally dont make ANY distributions at all
So for example, the Barclays ETN+ - CAPE - is a large cap-trackign ETN that pays out nothing.
3:14
but the big caveat there is that many of those products have very specific skews, or are very thinly traded
and in the case of leverage, well, obviously you've got leverage risk, and the rebalancing effect that can change your returns pretty dramatically.
Hector
3:14
Hi Dave! Now that Vanguard is offering commission-free trades for almost all ETFs, how do you see this affecting competition among brokerages, especially in attracting new and low net-worth clients? Relatedly, what enables brokers to have zero commissions on trades with ETFs, but not stocks, Robinhood and the like excepted?
Dave Nadig
3:15
So, the decision by Vanguard not to charge commissions on 1800 funds will, I believe, be followed my the big discount brokers.
It won't happen overnight, but the pressure is only going one way.
3:16
As for how - in this case, it's just a decision to forgo revenue.
Historically, ETF issuers have had to pay for shelf space in non-transaction programs
call it 20-30 basis points of the assets of the funds in the program there.
thats the "old school" way
but obviously, you can't do that on a fund that only makes 5 basis points in the first place, so it's always been an odd fit for ETFs.
3:17
Theres absolutely no reason they couldn't do the same thing with a list of stocks, for what its worth.
it's just a question of where they make revenue.
at many brokerages, cash management, house products and services actually pay more of the rent then raw comissions anyway
Here's about the simplest question ever:
Guest
3:18
How do I invest in the Russell 2000
Dave Nadig
3:18
There are 10 ETFs pegged to some version of the Russell2k
IWM is the monster, at 47 Billion, followed by VTWO, which is vanguards version, at 1.6B
then there are 8 versions of leverage and inverse on it.
3:19
As for which one to buy?  Well, as is often the case:  Vanguard's is cheaper by a few basis points, iShares trades better, shaving a few basis points in spread.
Ben G.
3:20
Hi Dave. I'm sure you saw the news that Wells Fargo is now using automated portfolio management for its high net worth clients. This goes against the idea of customization (which they pitch) given that there are only a few models to choose from. Do you think automation is going to be the norm across the investment management world? And if yes, is that good or bad for investors?
Dave Nadig
3:20
I thought that was a SUPER interesting story, and really makes you wonder what the Wells Fargo advisor experience is like right now
In general, a basic model portfolio probably suits 90% of mass affluent investors, and that's the core target here.
3:21
So what's the advisor doing? Hopefully financial planning -- actually getting to know the customer's peculiarities and needs.
The portfolio really should just be one tool in the toolbox of those conversations.
I think we're seeing more and more large shops go towards these kinds of models -- whether they're this blatant about it, and whether its truly automated, or not.
3:22
This is really just kind of backing into the "bionic" roboadvisor model that both Schwab and Vanguard are pitching.
but those came "down" from the robo, and this seems to have come "up" from a more traditional advisory practice.
somewhere in the middle is where it will all settle out - tech doing what it does well, people doing what they do well.
Guest
3:22
What's the best ETF to buy if there is a bear market?
Dave Nadig
3:22
With a limit order!!!
3:23
In all seriousness, the ETF structure doesn't care much about the market -- the plumbing will work just as well in 12 months whether the market is up or down 25% from here.
just avoid panic selling - or buying -- just like you should with any traded vehicle, and use limit orders to avoid surprises.
Alex L.
3:23
I've seen things like the "gender equality" ETF or the "racial equality" ETF. How do you invest in equality?
Dave Nadig
3:24
Hi Alex - so there are a variety of approaches to the "S" here in ESG.
Mostly, they're relying on data sources around things lie board and hiring diversity, whether companies have specific HR policies in place to ensure fair pay, and so on.
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