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Dave Nadig
3:14
First: Use limit orders.  SO if your ETF is out there trading at $100 to buy, $101 to sell.  Don't just put in a market order.
3:15
At a minimum, put in the order as a limit at $101.  Then you know you'll get $101 or less as a buyer.
if you REALLY need to know yoru trade will be accepted, put in the order for even $101.50.  Obbviously you're offerign too much, but you will get the fill (and likely at $101 anyway).
3:16
If you DON'T do this, you run the (small) risk of hitting the market PRECISELY as something blows up, and you could get priced WAY away from what your seeing on screen.  Limit orders don't cost more, so take the precaution.
It's also generally best to trade NOT at the open or close.
THere's too little information, and the likelihood you get a surprise price is much higher than at, say, 1030 or 3PM.
3:17
So those are two good rules of thumb for most investors.
Jake
3:17
Have any new trends emerged this year that you are watching.  I know you have discussed Direct Indexing quite a bit. As well as commission-free trading.  What else is going on that might make the news in the coming months that we arent paying attention to right now?
Dave Nadig
3:17
So this isn't so much a product trend as just a market issue, but my inbox is FULL of requests for comments on how to play defense.
It's like, outsized, compared to the usual flow.
3:18
Everyone wants to talk about short duration bonds.  Gold.  Old-economy dividend stocks. Value.  Minimum variance funds.  Etc.  All D.
3:19
I think the combo platter of the political environment, this really really long bull market, and the mixed data we get on a daily basis makes a little caution understandable.
So I suspect if you wanted to bet on one thing, I'd bet on more uncertaintiy -- probably more market vol -- in the next 12 months, than weve seen in any trailing 12 month window in the past few years.
Amelia B.
3:19
Is the fact that all investors might not know the difference between “ESG” “impact investing,” etc. potentially skewing any results that gurus or media might report about these types of funds; and might investors not be getting precisely the exposure they intended because there is some confusion/blurring of these concepts?
Dave Nadig
3:20
I am 100% certain you are correct here.
3:21
ESG, SRI and Impact Investing mean different things to different people.  So of course they mean something different between an issuer (or rather, a marketer at an issuer) building the story, and the story an individual investor experiences.
I actually think this is a big part of the allure of direct indexing.  It's not necessarily that you get a different set of stocks than you might get in a certain fund, but the process of going through a DI platform will ensure that you understand what you own and more importantly, why you're owning it.
3:22
ESG just isn't once size fits all.  So either we need another 500 ESG funds, or people will need flexibility.
High-Yielder
3:22
Why is there so much fuss in the news about high-yield savings options from places like Betterment & Wealthfront, when something as easy at 'BIL' will pay just as much as what those firms are offering?
Dave Nadig
3:22
Believe it or not my wife asked me just this question the other day.
It's because no matter how low, there's more risk in buying any fund then there is in an actual FDIC insured bank account.
3:23
People LOVE knowing something is guaranteed.  It's why the annuity business even exists.
So yes, you can get a percent or two in all sorts of short duration fixed income products.
3:24
And to be really clear -- when a firm like Wealthfront does this, THEY take that risk.
They're making a guarantee, but they take the risk on the other side, no matter how small it is.  Just like your bank takes a risk -- no matter how small -- when they offer you a CD.
3:25
OK, that's going to be a wrap for today.   Thanks for the great questions as always, and we'll be back, same bat-time, same bat-channel next week.  Have a great Friday and weekend everyone!
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