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Dave Nadig
3:12
So i dont think mutual funds go away -- i think they stay the default vehicle for retirement savers who are dollar cost averaging in over time.
3:13
the trick is to put a weather eye on what funds you use -- cost still matters, a lot.  So does how the money is managed.
joe
3:13
hi - have you heard anything new regarding the proposed ETF rule
Dave Nadig
3:13
If by "heard anything" you mean "is it coming?" the short answer is nope.  I haven't heard a peep from my various moles in the halls of Washington.
3:14
I read all the comments.  I'm sure the SEC is reading them to.  I would expect a NEW proposal, and another comment period, rather than final rulemaking, as the next step.
the first rule had enough loose ends to warrant that.
Jordan
3:14
I just read at ETF.com that the marijuana ETF "MJ" was the best performing ETF for the first quarter, it has $1.2 billion in assets.... why are there no other ETFs covering the space? Have you ever seen such a successful product not have copy-cats from other issuers?
Dave Nadig
3:14
So, MJ kind of "back ended" into being a Cannabis fund.  It used to be LARE -- a latin american real estate fund.
3:15
And the issuer basically just flipped a switch and started buying up mostly Canadian cannabis companies.
This caused no small amount of consternation among folks like custodians and such.
because they're paranoid the federal government will step in and cause a ruckus.
3:16
In the end they appointed a new custodian, from outside the industry, who is not a bank.  -- Wedbush
3:17
Whether thats a risk or not is kind of up to how much you care about things like custody -- it's clearly MORE risky than a big bank, but honestly, it's probably on the order of "speeding 5mph over the limit is more risky than staying 5mph below the limit"
In other words -- a bit of hair splitting.
but that concern is what's kept competitors at bay.  The SEC never "approved" a Cannabis ETF.  THe issuer forced the issue.
I don't think the SEC would look kindly on someone else doing it again, so we're at a bit of an impass, leaving MJ with a monopoly.
Tangent Style
3:18
Dave - Thanks as always for sharing your thoughts. Any POV on the "ETF heartbeat" trade story that got some attention recently?

Felt disingenuous / missing the point (in-kind = basis rollover) to me
Dave Nadig
3:18
So, I wrote a pretty long story on this:
3:19
in short I agree with you.  But a quick summary: one of the things ETFs use creation/redemption for is getting rid of securities they dont want, usually because of an index rebalance.
That keeps investors from owing taxes when they didnt actually personally book a gain, which to me is the right outcome.
whats wrong is how mutual funds work, where someone elses trading makes your tax bill go up.
But I go into a lot more detail above.
3:20
But ... not a fan of that particular article I gotta say.  BB does great work sometimes.  Just not this time.
Dane Sadler
3:20
Dave, I join your Live Chat each week, and I’m impressed: HOW FAST DO YOU ACTUALLY TYPE?!
Dave Nadig
3:20
Hilarious.  About 90wpm last time i checked, which was in college -- so a million years ago.  As I get older I get a bit slower I think.
John-John
3:20
Thoughts on BofA’s new ETF individual rating system? How does this differ from other entities' ratings, including ETF.com's, like with your "A-96" for SPY?
Dave Nadig
3:21
So we did an interview with Mary Ann recently on this, one sec:
I actually think it's pretty unique.  It basically takes all of the Efficiency work we did (and which FactSet now runs), and bolts on two new things, which are cool.
The first is a technical component -- essentially a momentum screen.
3:22
The last is basically a crib of Todd Rosenbluth's CFRA model, which looks at analyst ratings of individual holdings, and rolls it up.
They call that Fundamental
3:23
So they made their own E-T-F out of it, which I take as a bit of an homage to ours, but hey, its all good.  I ain't mad.  How can you be mad at Mary Ann Bartels.  She's so smart by the time I opened my mouth she'd have me feeling like a toddler, withering under her intellect.
So I'm actually a fan of it.  I think it opens up the dialog in a good way!
ibrahim@almohanna.info
3:23
Can I know what is wrong with this (CLM, AMZA, OXLC) many advisore say it is not save invesment is it BAD or GOOD
Dave Nadig
3:24
So, two of these aren't ETFs (CLM and OXLC) -- I'm gonna guess their closed end funds.  So I have no opinion at all.
AMZA is an MLP ETF:
MLPs are a WEIRD asset class, no way around it.
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