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Dave Nadig
3:29
Good afternoon and welcome to ETF.com Live!
As always, you can enter your questions in the box below.  I’ll get to as many as I can in the next 30 minutes or so.
3:30
Fair warning, my hands are really cold so I may type a bit slower than usual, but I'll do my best!
After we’re done, well post a transcript at this same address, in case you missed something.
With that, lets get to the questions!
I'll bundle the Pot ones together here:
anthony
3:30
any cannabis etfs ?
Todd Rosenbluth - CFRA Research
3:30
Hi Dave. Now that pot is legal in Canada, do you expect we'll see a competing ETF to MJ, perhaps an equal weighted approach?
Dave Nadig
3:31
So, the singular Pot ETF is MJ right now
To Todd's question: the issue is really whether any of the mainstream ETF servicing companies are willing to play ball.
MJ had to change it's custodian and transfer agent to two firms that have (to my knowledge) never touched an ETF before.
Because of the legal issues around it.
3:32
I think that climate is changing (particularly now because of Canada).
But in the near term, I don't think we'll see a mainstream ETF company like Blackrock wade in.
until theres more legal clarity.
Chris Kucich
3:32
Hi Dave, What's the BEST investing tip you'd give (or have ever gotten), besides, you know, "don't bet on Rico in the 5th"?
Dave Nadig
3:32
What a great question.  I will tell you the best investing advice I've ever gotten, and it's in two parts:
3:33
Both of these came from my GrandFather, who was a broker.
1: Paying interest on debt is the dumbest thing you can do.
His point was: worrying about your portfolio while you're paying off a 20% credit card is stupid.
3:34
Obviously some debt is useful (mortgages and so on) but I think the general point, especially for younger investors, holds.
2: You are dumber than you think you are.
Now, he may have said this because he knew me personally (grin).
But I think this point is also true: we all have massive bias about our own ability to game the system, time the market, pick the right products and so on.
We suffer from both confirmation and hindsight bias, all the time.
Riley
3:35
Is there a difference how you make money off of ETFs (compared to stocks/bonds/mutual funds)? Is it dividends, or interest, or ...?
Dave Nadig
3:35
Hi Riley -- not really.  You "make money" on an ETF because either its value goes up, or you collect a distribution of some sort.
Whether those two things happens is entirely dependant on what the ETF holds.
3:36
If the ETF holds a lot of bonds, well, you'll probably get regular distributions from the ETF that generate income, just like you held the underlying bonds.
If you hold an ETF that owns, say, Gold Bars in a vault, the value of the ETF will go up with the price of gold, etc..
ETFs are just wrappers for other investments in the end -- just like a mutual fund.
Jayme T.
3:36
I saw in your Hot Reads today ... https://www.etf.com/sections/daily-hot-reads/wed-hot-reads-etfs-rewrit... ... an article about how the mditerm elections will impact stocks & bonds. Will those impact ETFs similarly?
Dave Nadig
3:37
Pretty much the same answer despite the question being very different -- since ETFS are just the wrapper, they'll respond exactly like what they own.
So for example, if your in a tech-stock ETF, like XLK, well, you had a really bad week last week, just like everyone who owned tech stocks individually.
3:38
However the markets react to the mid terms will just roll right through.  If, for instance, there's a huge November Rally in U.S. equities, SPY will go up along with the stocks it owns.
If the bond market continues to decline, well, the price of the bonds will just be reflected in the price of the bond ETFs.
and so on.
Guest
3:38
I miss the old conference calls you use to have.
Dave Nadig
3:39
I do to!  We used to do a daily public call you could dial into with our friends at FactSet, covering new launches and so on.
3:40
It became a bit too much of a daily chore, to be honest.  We've tried to cover the same content in our daily ETF watch
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