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Dave Nadig
2:12
As to why? Well, I think its a combo of "risk off" trading (people are nervous about all the stuff I just typed above), and the continued underperformance of active bond managers, as a class.
2:13
Yes, of course some bond managers will outperform, but the SPIVA data suggests that picking that outperforming bond manager for next year is just has much of a mugs game as picking stocks.
So some of it's just pent up active to passive switching, and some of its just risk off I think.
Nemo
2:13
Why has GLBY seen so little interest? The world bond etf space seems pretty sparse and Vanguard's entrant BNDW seems to have gained assets easily enough. The U.S.-only older sibling AGGY has about a billion assets and performance chasers should love the record which is only 3 months shorter than BNDW. Add in a reasonable ER and the fact that Wisdomtree actually has a reputation for currency hedged products and I just don't get why this fund has gained essentially no assets since launch.
Dave Nadig
2:14
So, it's always hard to prove a negative, but I suspect that it's just a tough niche ...
GLBY owns AGGY, and then some global stuff, and a currency hedge.
But GLBY and AGGY have performed essentially identically since GLBY's launch.
2:15
AGGY has a billion in assets.  So it's the logical audience for a global version of the same strategy.
but there hasn't been any real proof that it ads anything but uncertainty to your portfolio.
I think the IDEA is sound.  But in the year since launch, it just hasn't really proven out.
2:16
Im not suggesting you SHOULD chase performance here, I'm just suggesting it hasn't created any real differentiation against it's bigger brother.
(which is also, I think, cheaper).
Keith Rodriguez
2:16
Should retired investors have different ESG securities in their portfolios than non-retired investors do?
Dave Nadig
2:17
So, I think that the decision about whether to use ESG in your investment screening is a deeply personal one, so it's hard to be prescriptive about it.
But if you're (as an example) investing with a bent towards clean energy and away from carbon intensity, I don't see any reason why that would be particularly different at 50 than at 70.
Your overall asset allocation, of course, should probably be quite different!
Less risk/more bonds/etc...
2:18
but the skew you've chosen from an ESG perspective, I think could be precisely the same.
Ultimately, ESG (my opinion) is either about risk reduction (lots of evidence there) or it's about your personal, not-necessarily-economic decisions.
Chris Braithwaite
2:19
Why is December the strongest stock market trading month of the year? Are investors trying to avoid tax issues, or secure gains?
Dave Nadig
2:19
Well, a lot to wade into here.
2:20
I'm generally VERY skeptical of people who claim to have "cracked" seasonality in markets.
There are of course very real end of year issues people have to contend with.
2:21
You have fund managers doing window dressing, which often ends up with run-extension: laggards get sold, winners get bought.
You also get tax lost harvesting, which can have the same effect: people sell their losers to book the losses, but may not sell their winners.  They may hang on them until next year to not book the gain.
2:22
But of course, the old "January Effect" argument (largely debunked) said the opposite, that January was always the rally month of bad Decembers.
So in short: I'd really, REALLY ignore this kind of rule-of-thumb investing
2:23
The actual state of the economy, or corporate earnings, of valuations -- they all matter SO much more than the calendar.
Mari D.
2:23
Hello Dave: Why lately has trading in ETF options been swelling in volume? Is this some niche of ETFs that’s only recently been getting some limelight?
Dave Nadig
2:23
So, as people get nervous, we see increases in Vol (not much, i admit) and we also see people looking to get clever with shaping their returns.
2:24
Options are great for that, whether it's raw speculation (buying way out of the money calls or whatnot) or whether its pure risk control (Covered calls, protective puts, etc).
I think its fascinating to watch, but i wouldn't read TOO much into the tea leaves.
FWIW, there's a great rundown on ETF options here:
It's the only Barchart page I have bookmarked, because it just presents the data so cleanly.
2:26
As you can see, the VAST majority of volume is in options on ETFs that have become proxies for whole investment areas: SPY, GDX, EEM, FXI
they're great shorthand vehicles for expressing opinions either with leverage, or in a hurry.
So I don't think it's Niche funds at all driving it -- its all the big names.
Tactical vs Defined Outcome
2:26
Hi Dave - I listened to to Defined Outcome webinar yesterday.  Curious, in a hypothetical portfolio...would you prefer to have an ETF of a top tactical manager, who can possibly get you out near the top and back in near the bottom, or would you have a Defined Outcome ETF where you know exactly your risk/reward profile is before investing, which would give up some upside and could fall below the buffer.
Dave Nadig
2:26
So, the challenge is of course knowing who that tactical manager is AHEAD OF TIME.
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