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Dave Nadig
2:59
Howdy folks, and welcome back to ETF.com Live!
As always, you can enter your questions in the box below, and I'll get to as many as I can in the next 30 minutes or so.
3:00
One housekeeping note: I'm doing a version of this on video, with live demos of how I dig into various ETFs in a week.
Thats Wednesday the 18th at 2PM.
With that let's get rolling.
ANon
3:00
Soundtrack?
Dave Nadig
3:00
Its a Postal Service kind of day:
Guest
3:01
Hi Dave, any investing “super themes” you’re seeing recently?
Dave Nadig
3:01
Well, the one everyone is talking about is (I hate this term) "the great rotation."
The theory is, people are nervous, so they're playing defense.  We've seen SOME flows data to back this up.  People are putting money into consumer stocks, gold, miners, value stocks, and so on.
3:02
I think the thing folks are most interested in is whether we are at the end of the Value bear market.  THere's some recent evidence we might be getting a BIT of relief for value lovers.
and certainly, Value is itself often seen as a defensive play.
3:03
I'd say some version of the "playing D" story is going to linger with us through the election.  It will morph and shift of course.  But I doubt the headlines go away.
Denise DeSilva
3:03
Why has value investing been underperforming for so long? Wasn’t it a rock solid strategy for quite some time? What’s changed about those fundamentals?
Dave Nadig
3:03
See, there ya go.
lol
Value has underperformed because, frankly, so many folks are seeing the performance at the top of the cap table.
3:04
Broad market performance has really just been dominated by outside moves in a handful of huge stocks, most of them tech related.
Now not all those stocks are avoided in every value fund.  You'll even find Apple in some of them.
But traditional ben graham style value just hasn't captured investor interest in this near-endless bull market we've been in.
I do suspect, however, we'll see some of that balance back out.
3:05
But it's been a long, long road of pain for hardcore value investors, no question about it.
Diandra Platt
3:05
Do issuers always make it 100% transparent when they’re changing an ETF name, or what the ETF provides exposure to? How much does the SEC mandate they do this, and how soon?
Dave Nadig
3:05
Boy I wish!  We spend a decent amount of time and energy staying on top of things like this.
3:06
The short answer is: there's very little required of an ETF (or mutual fund) when the change their name or their investment objective.  Generally just a refile of the prospectus.  Theoretically, a new prospectus should get sent to you by your broker, but in reality, many people opt out of getting it on paper so the notices sit in your brokerage account.
Or you just roundfile the big envelope from Schwab or whomever when it comes.
3:07
Is it "transparent?"  Yes. THere's no way to hide the fact you changed your index, you have to file it.
but in reality, i suspect a lot of people dont notice.  When LARE changed to MJ, and thus went from latin american real estate to cannabis, we contacted the largest holder of LARE and they had no idea just days before the switch.
Note this isnt an ETF issue, this is a fund issue writ large.
3:08
luckily it's actually quite rare for anything but the most simple change to happen - name changes due to re branding or acquisitions and so on.
Anonymous
3:08
Can you buy all ETFs commission free, or what variables dictate that?
Dave Nadig
3:08
So, whether to charge a commission to trade something is entirely up to your broker.
3:09
Many of the big firms (Schwab, Fido, TD, etc.) have commission free programs, where they make some subset of the ETF universe available to trade for free, but this actually costs them money.
To make up for that, they strike deals with ETF issuers to get reimbursed, based on AUM, trades, simple platform presence, etc...
3:10
those deals are generally not public - so we don't now how much, for instance, BlackRock might be paying Fidelity to have a set of their funds comission free.
As an investor, it doesn't really matter.  There's no hidden fee you can't see.  Your expense ratio and your commissions are what they are.
If the fund company wants to separately fund a no-commission deal, well, that's just a marketing expense you get to take advantage of.
Shiloh G.
3:10
Need investors use limit orders when buying ETFs?
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