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Dave Nadig
3:24
And it would give you control over your own tax timing.  Like, why would you rebalance in December and lock in a gain, if you could wait a week, and so on.
Powell Put
3:24
When I look at ETF returns, are they usually posted as after cap gains (if there were) or not. How can I evaluate ETFs against each other including cap gains impact?
Dave Nadig
3:24
So, performance for ETFs is usually standardized to be total returns (meaning, as if all distributions are reinvested, whether those are dividends or cap gains or return of capital).
3:25
and without any assumption of what you might pay on the gains.
The industry does that because there are so many variables, obviously.
I mean, even in your own account, you don't care about the gains in your IRA, but you would in your after tax account.
3:26
The good news is that the VAST majority of ETFs - certainly equity ETFs - have never made a capital gains distribution.
So any gains you get are yours to track and deal with, when you sell
But if your very tax sensitive, it makes sense to check on the issuer websites to see if theres a pattern of distributions, for sure.
3:27
(and, having waded deep into the data swamp there, I would really ONLY trust direct from the issuer data on distribution tax categorization, it's rife with errors).
Tom
3:27
I saw you on the new ETF Edge thing on CNBC talking about equal weighting a lot .  Is it always better than market cap weighting?
Dave Nadig
3:27
So, in that segment Monday the question was "can you do better than XLK, given it's Apple weight" -- XLK, being a tech ETF thats cap weighted, has 17% in Apple.
3:28
(You can see that at https://www.etf.com/stock/AAPL)
My point there (and in another segment) was that this is an easy fix -- there are equal weighted versions of most popular strategies).
The pro: you dont get single stock blow up risk like you do with the big topheavy funds.   You potentially get better performance over LONG cycles.
3:29
THe con: reballance friction in the funds, generally higher expense ratio, and of course, you'll miss the 20% rally in whatever stocks at the top when it happens.
Nobody complained about XLK when apple could do no wrong!
its only on the downside.
So-- no equal weighting isn't always "better" but it does always solve one problem: over exposure in topheavy funds.
Bill Perlman
3:30
How can one get historical ETF Creation/Redemption values for a set of ETFs.
Dave Nadig
3:30
Hi Bill -- I'm sort of not sure what you mean here.  Historical prices? Historical portfolios?  Historical costs to create?  Short answer is that other than the Net Asset Values, I don't know an easy way to find, for instance, what the basket for HYG was 4 years ago on a given date.
3:31
I THINK FactSet and Markit have that data, but I'm 100% sure they'd charge you a lot for it (grin).
Sean F.
3:31
So there's about, what, 2200 (US) ETFs currently? New ones get launched regularly, but because there are also frequent closures, do you think this number will remain about steady, or constantly grow year over year?
Dave Nadig
3:31
We're still at about a 2:1 launch ratio I believe, so I don't think we're stable yet.
3:32
Toroso actually tracks this explicitly as part of the material around their ETF-ETF - TETF.
and it looks like abotu 1.2 opens per closure right now on a trailing basis
so youre more right than wrong, it's stabilizing.
3:33
I suspect the land rush phase is probably, if not over, at least slowing.  THis is a good thing.  Launches are getting more thoughtful.
I'll close with this one:
DanMan
3:33
you have some themes like “world’s cheapest etf portfolio” and “cheapest ESG Etf portfolio.” Do you plan to do this for other asset classes as regular themes as well?
Dave Nadig
3:34
I think doing these kinds of models, as long as their educational, is probably a great idea.  As part of what CNBC is doing on ETF Edge, I know they want to highlight a portfolio-for-a-purpose at least once a month, so I imagine I'll be kicking a few new ideas to them there, and we'll of course write them up for ETF.com
I think that's a wrap for today.  A few quick housekeeping notes.
3:35
We're doing a broad, global macro and trading webinar on Wednesday next week, where I'd love to field questions.  You can register for that here:
Also, don't forget our weekly podcast with ETF Prime.  That's really been fun lately.  Some great guests and interviews:
3:36
THanks folks, and we'll see you next week!
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