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Dave Nadig
3:28
ETFs have a solid use case (easy trading of massive portfolios, tax efficiency, etc...)
those use cases don't go away.
I just think direct indexing competes with both for a certain portion of the wealth market.
I think it WILL be big, but it's not "killing" anything.  Just competing.
OK, time for a last question:
Bob
3:28
On ETF Edge you seem to talk a lot about "how to avoid XYZ earnings surprise."  Is this a smart way to think about long term investing??!
Dave Nadig
3:29
First, thanks for watching!  I love with CNBC is doing with ETF Edge (monday's around 12:30) and I'm honored to be a part of it.
By nature of being CNBC, we have to respond to news, which has been earnings driven these last few weeks.
BUt in general, (see above) I do think building portfolios to minimize idiosyncratic risk is just smart.
3:30
Do you really want 15% of your portfolio in apple? Or 50% of your portfolio in 10 names?  Personally, I don't, and I'm willing to sacrifice a few good days when those few stocks explode, to avoid those days when they fall apart.
3:31
So I think, to reword your question, "how to avoid single event risk" is a great way to think about a portfolio.  Doesn't just have to be earnings.  It could mean asking dozens of questions about what you own.
What happens if Oil goes to 100?  How exposed am I?
What happens if interest rates go up another 1%?
What happens if we have another shutdown?
What happens if EM collapses?
3:32
those are good questions to ask.  And diversification usually answers them.
That's gonna do it for today.  I'll be skipping next week to get ready for the Florida conference (and hope to see many of you there, don't be a stranger! Come say hi!)
And we'll pick this up again two weeks from today.
Have a great afternoon.
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