23 ETFs for 2023

Runner or do you think like ack me cartoons. I'm thinking like Escape from New York or Terminator. I think Escape from New York might have been or something. They're like, we'll wait wait past that. Okay, So we've got some tickers for the year ahead. Yeah. So we did our outlook, which is sort of the more traditional thing that analysts do, especially in Blueberg Intelligence. But one of the not so traditional thing we do is a little bit maybe buzz feedish.

We make a listical which is their twenty three e t f s we're watching, And this was born out of we have all of the analysts occasionally do something called the Money Show, which is an event that is all of our different cities, and it's direct retail investors go to these hotels and just here from experts. There's no middle people, no advisors, no institutions, nothing at these shows.

These people want to hear about tickers. They don't really care about your trends or you're you know, four thousand foot view. They they're just curious about all the new gadgets and tickers that they have access to. And E t F give you access to a lot. So we do this list not to say these e t F s are going to go up or down. We can't

do that. We don't give investent advice. However, these are e t F s that we think about and have moved us or that we are watching because they sort of tap into something else going on or one of our big themes. And so these are just generally e t s on our mind that we will be checking in too regularly in the new year. So joining us for this episode James Safer and Athanasios Seraphagus with Bloomberg Intelligence as well as Scarlet Food with Bloomberg News. There's

time on Trilliance for three. James, Athanasios, Scarlett thanks for joining us on Trillians. Thank you, Yeah, thanks for having me. Glad to be back. Okay, James, why don't you kick us off? What's your top pick for next year? Yeah? So in the intra, Eric said, it's sometimes it's a ticker. Sometimes it's something that's more emblematic if something we're watching. Um, so mine is VTV, which is a very boring pick.

It's the Vanguard Value Fund. But the reason I'm picking it is because Vanguards has a patent in the way that they operate this fund. So VTV is actually a share class of the Vanguard Value Mutual Fund Index fund. That process has patents, so nobody else has been able to mimic that. Every et F has been a standalone fund.

But in May of three that patent expires. Now, if this isn't mean yeah, I mean if this was eight years ago, I'd be like, we'd be jumping from the rooftops, like this could be a huge deal, right, I mean right now, because it's a lot of people already converting e t f s are way bigger than they were when this patent was a much bigger deal, So we don't know how big of a deal it's going to be but I'd be shocked if we don't see some sort of asset managers looking at VT things like VTV

and saying, maybe we can do this rather than converting our entire fund, or at least talking about doing it now. I don't know if we'll see someone do it, Ine, that'd be very interesting to watch, um, but I think there'll be a lot of people looking at that, that actual structure and thinking about implementing it themselves. Yeah, um, this is well. Conversions are huge. There's UM sixty billion dollars worth of mutual funds that have converted into e t f s from big issuers and Fidelity just not

it is a big deal. So this is another option for them potentially that's opened up. However, I ran into the woman who was the lawyer on m Guinness Atkinson the first conversion. She downplayed it. She says this, um A, there's several patents they have that are related to it, and Vanguard could probably prolong that. So there's some legal things that could happen. Also, a lot of these issuers have moved on already. They've launched their own ETFs that

are clones. They're doing conversions. Um. The other thing is with e t F share class. It helps if you have inflows, but if you have outflows, then it can sometimes actually mean that the e t F gets capital gains from the mutual fund seeing outflows, and that that's like the opposite of what you want. So there's it's a little trickier than people think. I think it will be interesting for sure. Um, but I'm I'm a little I don't know, i uh skeptical that will see big

money use this route. I think though, I'm I'm with Derek for the most part. I think, like I said eight years ago, this would be I think this would be a huge talking point. Um. Right now, I think it's more just like is somebody going to do this? And obviously, I mean the same thing was with mutual fund conversions. We were early in saying that we thought there was gonna be a mask conversions of mutual funds ETFs. A lot of people in the industry disagree with us.

We're not as bullish on this this trend taking hold, but um, we'll definitely be watching. Especially give me an e t F that we're gonna we should know about next year. What are you watching? Sure? So one thing that's on my radar for next year is Russia. Remember this story for the Russia ets this year, one in particular rs X, which was the Vanneck Russia e t F. It was the biggest one. But I think this story

has to come to a close next year. These are still halted, so a lot of investors are still stuck with this e t F. There's been some process beginning to unwind. Some of the other ones, like I Shares have said they're going to start liquidating it. There's a lot in Europe. Our van Neck hasn't said anything yet, but I think this is gonna be a big year where this starts to unwind and it impacts a lot of other ETF. A lot of emerging market BTF are

still holding Russia. This is a roach motel. You you got in and you can't get out, and people have been up there for for months essentially. Yeah, in March will be like almost a year. So and it's not just RSX. People don't realize that there is still Russia stocks splattered all over these random ETFs. So i'd like, you know, I Share has already begun the process, so it's probably gonna look similar to like a bankruptcy proceeding. They're going to try to get what they can when

they can and start to pay out investors. So I think that RSX is going to be a big story for next year. Is that how this thing gets unwound and investors at least get some of their money back. What happens if it's an emerging market et F and it has some Russia exposure? Yeah, I think they're gonna try. I think would be the same process. But what people don't realize is the emerging market ones hold way more than even RSX. Our access is just I think a

really good indication of how this might work. But yeah, so if you hold like e M or im G, there's still Russia stocks stuck in there, even the big vanguard once. So I'd be really interesting to see how this all gets uh, you know, how will they try to get some money out of it? Or if there's some resolutions of the war next year to start seeing this onlinding process. If I'm in that fund, I just say, don't do anything. Let me just wait till some resolution

or at least hope for that. This could be years, because I'd rather I'd rather wait than get nothing now. Not as well. I mean, I don't think RUSH is going to exclude itself from the global world, you know, capital markets forever. Yeah, I think at some point to be a resolution. Um, but maybe I'm wrong. But it doesn't matter. It's like a tire or win if you if you wait, you can't lose anymore. It's already nothing, Okay, okay, next, next,

unless you need the cash eric next. Yeah, So you know how it used to be like all about growth and work from homestocks and ARC and everything. Well, obviously when the Fits started hiking, everything changed and fundamentals became cool again, right, became essential essential. Yes, as Bogel says in the End, reality rules, and so ARC is taken to quoting Jack Bogel, like spend it two years living book in his world. Yeah, so cows. And obviously this is one that had a big year this year. Curious

to see if this maintains this year next year. This basically is NETF that looks at free cash flow and free cash flow rules. In this kind of environment, it matters. Now, Yeah, if you have cash, you have there's stuff you can do. Having cash gives you protection from these horrible markets. And so this is an ETF that wasn't up really, but it wasn't down, and so just to tread water, you outperform the market by a lot. This thing was in the top twenty of flows and it spawned a bunch

of little sequels. Calf bull bull is half as a small cap version of cows, right, that's right, So what's bull bull is the cash cows? But growth like a growth version of the cash cow. Interesting, so you can find growth and cash flow yep, and the cow is the emerging market cash cow. So this, this firm Pacer locked in on is hit. And every time you have an indie blockbuster, they launched the sequels just like movies A sudden, it's your franchise Rocky seven. Yeah, like this

is it. So it's interesting to see how this will keep up. But overall I am watching fundamentally driven e t F s. I think they're gonna have actor Now. By the way, is it is fundamental as a factor. You could like throw that in with momentum and value and both audmental factors are built on fundamentals. So but like momentum is not really fundamentals. Yeah, I mean, oh yeah, you're right, that's just on price movement alright, value though,

is priced to earning different ways to define it. I would say that factors are within the larger world of fundamental ETFs. Factors are a slice of that big tent, James. So I'm going to go to one that I talked about every time I'm on trillions. I feel like, but this is warranted, for there's a lot of news around GBTC, which is the Great Scale Bitcoin truss Um. So this

thing closed at a record discount. In your day, we see a trade and a fifty percent discount, which basically means the price of the shares of this trust are trading at a fifty percent discount to the underlying value of the bitcoin it holds. So yeah, So basically, if bitcoins at twenty, this thing is trading at ten. Yeah, roughly, So you basically get a gigantic hair cut off the

price of bitcoin if you're investing in this. But but right now, there's no way to arbitrage that difference, right, But the benefit is if you buy this now, like you said, we'll use the twenty thousand number you used. If you go from ten to twenty, A lot of people think fifty percent discount. I'm going to get a fifty percent return, but that's a hundred percent return, ten thousand, hundred percent returns. So this is big money and we're

seeing that come out in lawsuits. So part of what's happening is Grayscale wants to convert this to an ETF. They've been died by the SEC, as we've covered here many times. They have now sued the SEC after the last denial. We're expecting oral arguments. There's written arguments going on right now. Oral arguments like actual core cases going to happen in February and March. We'll get a decision, likely before likely at some point in in the second quarter,

possibly in the third quarter. Then we can see a PELS but who knows. We're gonna be watching that very closely. The other thing is what happens when you sue the SEC. What kind of likelihood of success do you have? YEA.

So we actually have litigation analysts here in Bloomberg Intelligence who are covering this from the litigation standpoint, and you'll see if you go on Twitter or social media, you'll see people talk about this like this is a frivolous lawsuit to sue the SEC a regulator but there's a process set up for this. It's called an AP a procedural act. Basically you're supposed to treat like situations alike.

Elliot Stein is our litigation analyst, and he gives them an odds around probably closer to thirty than fifty in that. But it's not a frivolous situation. On the gp GBPC lawsuit, I mean, the option is you can. You can it would be buying GBDC in some way, right, I mean, there's this some way you can short bitcoined by GBDC, stuff like that. People have been doing that for a long time. It has not worked out in the last

four years. Um, So that not only is that lawsuit going on, now we have an investor for Tree Capital, which is an activist they run hedge funds or an activist investor special situation, and now they've sued grace Al to get more information. So there's so many different things happened lawsuit. And then we just had a letter from Michael Snison I might be pronounced his last name wrong.

I'm sorry. He's the he's the CEO of Gray Scale and he basically says, if we failed to convert this to an e t F. We're going to do a tender offering of the shares Virtue wants to owe them to open redemption program. I mean, there are so many things. We could do a whole show on this. There's a whole so it's it's gonna be a lot happening in

this product. Yeah. No, GBTC is endlessly FAST's funny. It's not even an ETF, but it's like, yeah, but it attracted money because it seemed like an e t F too many people and it was just the convenient way to get exposure. That said. What I'm also watching with crypto is how many filings are we going to see?

Did the SPF drama scare away the market? But we've seen already one filing here in the US to actually for crypto products that are going to come out, And in Hong Kong they launched their first two and they've gotten decent money. So there's been a couple rays of light that this is going to carry on after SPF and the thrill of watching him go to jail is gone. What do you got next? Deeric? One of the ones I'm watching next year is s t r V, which a lot of people don't know, but it's the Strive

five ETF. And this is part of a theme that I've been writing about, which is the cultural wars bleeding into the E t F world. Strive basically came out and said, you know, basically in a reaction to black Rock, Look, we're going to track the market like Beta, just like a regular index fune. We're gonna track all different areas of the market like black Rock does, except we're just

going to vote for companies to make profits. We're not gonna do anything that's E s G. That's what I guess the name comes from, like, we want with them to strive for excellence, not for these E s G programs. So for the anti e s G crab, it's supposed to appeal to them. They have some big backers. This thing already has a decent amount of assets. The company itself has half a billion in assets. Pretty good start.

This is also just interesting in that black Rock and Vanguard have started to look at programs where they're going to let their own their investors have a say and how their shares are voted. Be interesting to see if that sort of steal some of the thunder of this idea because if black Rock and Vanguard are going to sort of just turn over the voting, do you need to Strive. Um, I'm sure Strive would make a case

while they're still important. But that is a big thing that this is a big issue because black Rock and Vanguard owns so much of the stock market and how they vote has a powerful position, and so this decentralization of that voting is going to be interesting. Strives in here basically saying we'll do it this one way, and then E s G concerns Are they legit? Are they not?

So there's this whole area of the E t F world that sort of become a political football, and so it would be interesting to see if any big real money moves over there or if this just becomes something that we spend ten percent of our time talking about but makes up like point five percent of the assets um, which is generally what E s G is like. And also interesting to launch with Drill, the first E t F that they had, and then follow up with something

that's much more mainstream. So be curious to see where they go. Okay, James, next, Yeah, so I'm gonna go with one that a lot of people probably aren't talking about or don't even know of. It's gonna be the Matthews China Active E t F m H and they are just a hard traditional active manager. They tend to be relatively concentrated in their picks. They have a bunch of mutual funds. So m c h f X is the mutual fund that this is basically UM a clone of,

and they put in the E t F rapper. But why I'm watching it has to do with a similar thing of what we talked about vanguards UH fund structure. M c h f X pays out massive capital gains every year because they're very active. The mutual fund structure is not great because you often end up having to pay capital gains. The E t F structure is efficient

because you can wash those gains out. So this thing launched in April of last year, I believe UM, and it we're watching see one if it's gonna have any capital gains this year, which it doesn't look like it's going to. But also it's gonna have a full year the following year. So this could be literally the poster child for why you should have an E T F rapper, especially for something side by side, like, this is why you want this one and not the other one exactly.

I mean in a taxed advantage account, capital gains really don't make that much of a difference. But if you're in a taxable account, and E t F can really be a vastly more efficient vehicle than a mutual fund. Okay, Athanasios, what do you got? Yeah? So on the team, you know, we all follow basketball ericsivic basketball fans. So one theme we had for next year was just sort of back to basics, right, and you know one was you know, half court shots and Ali you sent a lot of

like fanfare. I think we're gonna go back to basics, more focused on fundamentals, focused on quality companies. So the one I'm picking is the dimensional US High Profitability Company, do you e t F? Which is d u HP. Now this is gonna sound crazy, but you know, member companies that would like make stuff and make money Like I like these companies, and this is what this focus is on, Like companies that make stuff and are highly profitable and have good cash flow. Uh, and it's a

it's been a really good performers. This is outrageous. Yeah, it sounds people would imagine being like, Okay, yeah, let's just pick companies that have money and make stuff, and so I probably put this onto like a quality factor. So it's just trying to pick out these So when you look at it at the surface, you're like, no, this is just the S and P five, But it only hast overlap with the index. It's twenty two basis points.

D f A is really specialized in this, so I think they found a really good spot where it's just different enough. But it's got a lot of names in there that I think people will recognize, but they really seem to excel in their overweights and underweights. But I think this really big theme for next year is just going to be focused, go back to fundamentals, just focus on high quality companies. Yeah, by the way, that is a companies that have money and make stuff. E t

breaking news, breaking news. So Eric, how do you follow that up? Yeah, I mean I have one that's similar to that, Athanasios, And that's the advantis E t F Really all of their E t F. So I'm watching this company. A lot of people don't know who they are, but they're an active manager and the main person used to work at d f A. So I believe they've come out and said, hey, we're like d f avorite, we're cheaper and it's definitely worked. Um people should be

looking at. So the one I really pointed out was a vu V, which is the small cap value e t F. This is an interesting product because in the small cap value category there are e t s from black Rock and Vanguard multiple but this e t F a v u V took in four times more flows than any of the other ones. That's hard to believe.

You rarely see a category with Vanguard and black Rock where someone else wins, and you look into this, their whole product line is taken in flows in like one month, one year, year to date, like just Green look like ARC maybe three years ago. And the reason these are interesting is a that they do focus on fundamentals, which is back in vogue, and be their low cost uh these are funds that are priced that the one I

just mentioned was basis points. Their U S fund is fifteen UH e M is thirty three, and they're all within that range. So this is what I would call, you know, I frequently say dirt cheap or shiny objects or where most of the flows go. This would be dirt cheap. It happens to be active, So active I think can find a home either getting very active or maybe lowering their fee and being much more moderately priced

and advantas I feel has has shown that. And this company UM again it's probably one of the fastest growing on a percentage basis. But these kind of winds in these categories like beating black Rock and Vanguard is no easy feat. So uh, this is um an E T F Small Cat Value. I also just wonder is that gonna rain for a while and you're in the two thousands Small Cat Value. You had a great run when the SMP was flat, and I wonder if Small Cat Value will have that decade long run again. I don't know,

we'll see. That's another reason I pick that specific. One of the event is lineup. Okay, interesting, Athanasia, what do you got for us? Okay? One word? Bonds? So the year of the bond, right, so this is a rough year, kidding, bonds are great. Um This is where I think most you know, it's it's fun to talk about a lot of the other products have been coming up, but I think where there's a lot of room for innovation isn't bond ETFs. I think they've already they proved themselves that

last year, what year is this? Now? What year? This like three years running? Like hear me out bonds? So you ten is the ticker. It's got a pretty generic name, just the US Treasury Tenure nod TF. But well, I this one, this one's a single bond ETF. So I think we saw the single stock ETFs come out this year where I think this makes more senses with single bonds, so it's it's basically like you're holding a ten year bond.

So what I like about this this issue where and the products they come out with they're very precise, and they're focusing on the most liquid parts of the of the bond market. So this is just treasuries that tend to be liquid anyways. But I think this is gonna open the door for a lot of innovation next year on target on slicing up the bond market, having more precision, more efficientially, more liquidity. Uh So that's something that I'm

definitely keeping an eye on for next year. We'll see if you try and sneak this one past this next year again too, making making a note to self here, what I actually wanted to use another one from this same company, FM Acceleration, You too, um so at Eighthan claimed it for his twenty three one of the ts, so I couldn't use it, But I'm also fascinated to

watch these. They're launching a whole suite of these things that only invest in on the run treasury securities, so it's going to be interesting to see how many how advisors take to this. And they're they're basically trading vehicles for for treasury e t s, which sounds like it's not needed, but it really is niche because of the way that on the run treasuries trade more than um the basket of treasuries that aren't necessarily just the on the run versions, Eric, what else you go for us? Yeah,

I have one from fixed income. I can do a little bonds. UM. The one I am looking at is the bond blocks triple C rated high yield corporate bond e TF, which interesting x C c c UM for triple C obviously, um, this is interesting because uh, you know, junk bond ETFs first of all had always been like the canary in the coal mine for like liquidity mismatch concerns, and so here comes one that goes really far in

terms of uh poorly rated junk. Right, So triple C would be like bad, right, And this has almost allocated to it. For context, the next E t F with the most triple C is thirty, so it's triple the biggest one to the point, and H, Y, G and J and K only have about nine two triple C. So this really is interesting in a couple of ways. A, this thing is gonna yield a lot, and so will people be attracted to that yield? At some point you're going to get people looking at that indicated yield. It's

going to be pretty high, easily double digits, I'm guessing. Then. The other question is junk bond ETFs have survived many tests for sure, and I've been a defender of them. They work fine, they see some discounts, but they trade on and largely it's because the bonds themselves haven't been updated to the N A V s a little stale. But we haven't seen defaults. Like if we have a

wave of defaults, this thing could could have some issues. Right, If some of these junk companies here with these junk bonds have default problems, this could have some structural issues. I hope it doesn't, but it's one to watch Goodwood if they're okay, okay, James. Next, Yeah, So I'm gonna go with T s l Q, which is one of it. We just talked about single single bond ETFs. Now I'm gonna talk about single single stock and it's happen with Yeah. I mean, this thing is. I mean it has sixty

five million dollars an assis. It trades more than that perfect year for this two So you know though, Yeah, T s l Q is. It's an inverse tesla et F It's the it was. It was one of the first ones launched that too. It's an e t F. It's kind of an oxy moron to call on et F and invest in a single equity. Some are like one point to five levered long summer one to two leverage short. There's about twenty five of them on the on the exchange right now. Um, there's been like eighty

to nine file. There's a couple now that are filing that are basically uh leverage versions of e t f s. But I'm focused on the single security ones we were I was very bullish on this personally when we were talking if we talked about in Q one of twenty two Q two of twenty two. But basically the SEC we thought these were going to come out, but the SEC has vastly limited the amount of leverage that you

can use. You can get way more leverage in these single security e t s in Europe than you can here in the States, and I think traders just aren't going to be that attractive. What the what do they happen to that? So it depends, it depends on the volatility of the underlying stock that you're investing in. So if you ever really volatile stock, you're not gonna go beyond one x inverse. Same so t SLQ you can

only get one one x inverse. There's also another one that has some decent assets is the the the Apple inverse from direction A A p D, So that is twenty million assets, but it doesn't trade as nearly as much, and everything else like really doesn't trade much at all, has very minimal assets. We think they could be used maybe around earnings time, but we just they're just not gaining a lot of traction, partially because they don't have

that extra leverage. And also I mean I think I think a lot of people thought these were gonna be very successful, like I said, Like I said, so did I UM, and it's just not turning out to be. So I'll be watching this whole space to see how many of them close or how many of them try to launch and then ultimately closed within a short time period. I will say, test test loa Q is unbelievable. I mean it's trading now regularly over a hundred million dollars

a day. That's like big boy level, and it's got it's up eighty eight percent in the past three months. I mean that's gonna You're gonna find some buyers with that kind of performance, perfect perfect, perfect timing. Yeah, yeah, this is um. This is a legit hit and this will keep people coming and trying as long as you

have one or two of these. But to James's point, I think they're gonna limit it to really high profile, controversial stocks and not just blanket every stock with a inverse and leverage version because who really needs to change like one point five x fisor I mean, who do we really need that? What do you got for us? Okay, K pop, which is the well this is I got bad news for you. Because I think this is gonna

close and well, it's not K pop per se. I think this is indicative of how crazy and niche some of the launches have gotten over the last couple of years. Right. It was the byproduct of this really strong bull market. Launches were coming rapid place. Yeah, and they were getting

really niche. It's not against K pop. I think it's just gonna be indicative of a theme that we are tracking for next year, and that's a lot more closures, and I think that these ones are going to be at higher risk, not a lot of the other ones for closures, because they're going to be they're smaller, they're more niche and focused. They're not gonna be able to appeal to like a bigger investor base. So, you know, any type of thematic or niche play like this, it's

just been tough. A lot of them have been underwater. And then, like Eric had mentioned, one of our themes just you know, focus on fundamentals. Next year, I think there's gonna be a purging of some of these strategies. So K pop is just one I'm watching to unfortunately be added to the graveyard for next year. He wanted to do this headline, k pop is gonna k flop, That's why. Just but it was Catchy's New York post stuff. You know, we could do a TikTok off of that.

We had the K pop guy on, and these are real people with you know, thoughts, hopes and dreams, and so I don't want to totally like crap on people's ideas. But this is pretty out there and it's seventy basis points and it's launched into a really rough market. I agree with Tom. It's just, you know, timing might have helped this thing, but the timing was not there. Announcers, you got another one I do. And it's maybe even like the whole reason we're here, right, And the ETF

has always been there, but we never realized that. And it's just, well, how do we track the growth of the E t F industry? Right? There's podcasts and shows and now there's flows are still really strong, there's product that's coming, there's conversions. Yeah, you're you're you're totally trying to blow our mind for next year. So who you know? And it's this et F We sort of talk about it all. We know who who the big players are,

all the issuers, the asset managers. But there's a whole ecosystem behind that, right, there's market makers, index providers, exchanges administrators. They're all benefiting from it. You're killing me, You're you're killing me. What are you talking about? So the ticker is k C, which is the spider SMP Capital Markets e t F. Now, there used to be an e t F that tracked It was called the ETF Industry e t F by Torosso, but they closed it unfortunately. I remember I was looking in the past and it's

not well, it's not marketed like that. It's almost identical to the performance of the Tarrosto product. So this is sort of a backdoorway into play the growth of the industry, and you're getting exposure. It's a lot of the other firms that maybe you don't necessarily think about when everyone is moving over and converting into E t S. Thet F industry is like the media industry. They love talking about themselves. Oh yeah, Eric and Jack Bogel, I guess so, I mean, well, this is an e t F podcast.

Should we talk about you know, eighties metal bands, I'm fine with it, Oh yeah, and nineties basketball, which I know you're also fine with Yeah, let's talk. Let's talk, Michael Jordan, come on, um, good good. Also, you basically

made Eric fall silent. The other thing is ETFs are going to trade about fifty trillion dollars with the shares this year, and this has a lot of the firms that do the market making and exchanges and so ETFs may not make as much money as mutual funds and expense ratio, but they trade a ton and that's a revenue generator for You're gonna need to change the name of the podcast to tens of trillions, not just trillions. The beauty of trillions is that the accounts for tens

of trillions. Yeah, and yeah, and you you were good. Yeah, well, no cruise control. Rebecca sin And who does our Asian research, we're trying to she's gonna start a podcast and we were thinking of what's the name, and I was like, you should probably go to the next step with gazillions. Eric, you got another. Yeah, this one is really This one is a very small ETF and I'm not sure to even last, but the top gun ETF. Wait, what's the ticker first t g n Okay, when did it launch?

Like two months ago. It's called the A X S. Brendan Woods Top Gun Index CTF. And look, besides the whole top gun reference, which is you know, ets like to have fun for sure, what I what's interesting is it's only twenty seven stocks are I'll give you some example. MasterCard is in it, Bate and Switch, United Health, and a lot of stuff I don't recognize. There's somefing top gun be well, best in category exactly. This is a

big thing I think. I think you're going to see a future where active managers come in with their best ideas. They're not going to launch, you know, three hundred stocks and moves a lot like okay, so they're playing off Tom Scarrett saying that you're the best of the best. Yeah, the best of the best exactly of you know, according

to this manager. Think about it. If you have a cheap beta core like you use Vanguard and black Rock for like your vast majority of your core portfolio, and he'd spend three basis points on it, you know, you want something very convicted. Again, this is a little bit of the cathy would affect highly concentrated, but that's what people want because people now have of their portfolio available for hot sauce. How much is this fund? How much

the expense ratio? Let me look, because it's active, right basis points that is a little price, even Cathy would The point of this is, I think we're going to see more of this. We're going to see even bigger managers come out with more concentrated active portfolios. And the reason for that again is because it can compliment jee Beta and not competing with it. Is there a mutual fund based on this or is this an offshoot of

a mutual fund or not? It's a totally brand new totally what is the sequel called Maverick going to invest in? Maverick is going to hold the children, the children? Yeah, I don't know. It's gonna help the children, and the children will save him and everybody will have their art and there's gonna be a portion there that'll that will be enough fund you. But you got you gotta wait years. Yeah, in the middle of a pandemic again, right, Yeah, I like that. You were your aviators for that. He's got

his leather bomber jackets. That's right. I am dangerous. No, no, but I agree on the concentration. Um, I think it's you know, top gun. But you probably see top ideas yep, yes, coming out next year. So I like it. That's that's a great pick. Who comes up with the ticker up? Who proposes tickers? Is that the marketing side or is it the fun manager? But it could be anybody, could be anybody. Um, we were just talking about that a

little bit like t g N a little underwhelming. I think you could have done better with this ticker gun No mav ice are there four letter yes r r K. Yeah. This guy might might not have wanted to be so, I mean old than why would he name a top gun? But I don't know anyway, Um he chose it, but like approximately what his vintage is? We know how old he is? Last one? Yeah, so the last one I'm going to tell about his v x U S, which is kind of boring. It's just the global stock market

without the us UM. Yeah, yeah, it isn't believe it, I believe it or not. Some people might want to invest not in the us UM. So this thing, it's a it's a massive fundage from Vanguard. But why it draws so much interest from me is because this thing has seen three days of outflows in its history since it launched in three days of outflows. That's it, No nothing else. Part of the reason is because, as most people likely know, the US market has trounced the international

market over the last decade um. But if that starts to change, we might see some outflows here. So I'm gonna be watching for that because essentially, if you have like a set allocation, you want to have a certain percentage to to your domestic stocks. If you're in the US, you want have a certain percentage international. As US continually outperforms the international, you're gonna sell the US and buy international.

So we that's my theory on why this thing consistently sees inflows day in and day out and doesn't see a single day of outflow. Um. So I'm gonna be watching basically to see, uh if if we can see international stocks keep up. They've actually if you look in two they kept pace roughly with with domestic stocks. So if we see a outperformance of international stocks, I'll be

watching to see if this things these outflows. Okay, there are a couple of Bloomberg intelligence analysts who couldn't join our recording, Henry Jim and Europe and Rebecca's in in Asia, But we do want to go through some of their picks. Athanasius, you wanna kick us off with with some of Henry's Uh, sure, so I wanna. Eric doesn't like acronyms, so just no, all of them has you sits in the name already,

so I won't repeat it every time. I'm just trying to keep the audience and falling asleep European regulatory acronyms. I mean, if you're listening right now, do you want him to just like sort of spellt s about those off? Okay, go ahead for another good but sure, it's a lot of the similar themes that we've seen in the US, so like dividends, you know, people want income. It's actually

probably a bigger focus in Europe. So one of his picks was the smp US David and E t F U D v D, which is one of the tickers. And then inflation. You know, the U S isn't the only place in inflation, it's it's you know that's going up in Europe too. There's some interesting etf that are tracking European inflation expectations. This one's by Licks or the Licks or your year two tenure inflation Expectations et f I NFL is a ticker there and uh, Henry is

pretty bullish on active ets. They haven't really penetrated that market, uh as much as they have here. So he's looking at some by JP Morgan, who I think now is the largest active shop in the US. They've got a pretty big or they're trying to increase that of fall hold in Europe. So he's got one j R e U, which is a JP Morgan US Research Enhanced Index Equity e s G. Oh my god, e t F. That is a long name. Uh, did I get you a niner in there? And James, you got one more for

us from from Henry. Yeah, it's just r M a U. It's a gold et F. It's listed on the London Stock Exchange. Henry is interested in looking at precious metals ets and specifically gold because he's watching there was a lot of bitcoin and crypto et f s that launched in Europe and people have been burned pretty badly. There was actually an f t T or FTX token e t F in Europe. There's a few of them that have closed. There's been a few things that have been

hit really hard. So he thinks people are going to go back to the tangible tangible. Yeah, exactly. Uh and and Eric, you've got some from Rebecca uh and from Asia. Yeah. Um, she's really watching the tech, the tech scene over in Hong Kong and China. I mean some of these are like the c SAW three oh three three. The tickers in Asia are like so they're just numbers basically, but generally speaking, she's looking at tech because you know, China has been beat up in the tech sector in particular.

So she's watching some tech ETFs over there. So looking at the crypto et FUM. She was covering the Hong Kong cover the first ether and bitcoin ETFs, so she's following them. They already have I believe somewhere in the neighborhood eighty million right off the bat. It's really good. Eighty million over there is like that would be like if it was a billion dollars in the US in terms of how big that et F market is versus ours.

She also like semi conductor. She's looking at a semi conductor et F. The Samsung Bloomberg Global Semiconductor three one three two h K is the ticker UM. This track twenty companies. Her point is that semi is obviously used in industrial shows, but also electric vehicles, so they can be an e V play as well. And then our final one, she's looking at Indonesia and Thailand, so if you look at Southeast Asia, she likes those two countries,

or at least thinks good things may happen there. And so she's looking at the premier Dow Jones Emerging a can Titans one Dred which cut two tracks the top one hundred companies in Indonesia, Malaysia, it's in Vietnam. Interest. Yeah, so that's like, um, you know again, sort of like a cont and traded Southeast Asia et F. Given that there's again a lot of Asia is really just like can we please rebound because they've been beat up even

worse than us. And that's sort of I think the thread through a lot of her her t s James Athanasios Scarlett, thanks for joining us on Trillions. Thanks for having me back. I was happy to be here, was a lot of fun. Happy New Year, Happy New Year. Thanks for listening to Trillions. Until next time. You can find us on the Bloomberg Terminal, Bloomberg dot com, Apple Podcast, Spotify, and wherever else you like to listen. We'd love to hear from you. We're on Twitter. I'm at Joel Weaper Show.

He's at Eric Faltinas. This episode of Trillions was produced by Magnus Hindrances but