ETF Tank

a new ETF. Right, I've got a great idea. Yeah, I know you actually, you're you actually pitched. Here's the bloomberg innecks is so yours is legit um. And the reason I thought this was good this year is because this year is the first year ever we're closures are outnumbering new launches and ETFs um. The industry is getting harder and harder. I think the fee war the downmarket last year has created even more hesitancy to launch new products.

And I was speaking with Mike Venuto at tie To et F Services, which helps launch new ETF He said only about one per cent of e t f s pitched, you know, in the world, get greenlit and make it to market, So the bar is pretty high. And the other thing is when you look at how much it costs to launch an e t F, it's about fifty then it cost two to support it. So with all that and the difficulty of getting new assets and well we've talked about that a lot um, the pitch is important.

So we thought this would be a fun way to explore maybe how pitch has happened and to help us judge these pitches. We brought back last year's judge, David Papadopoulos, who's a senior editor with Bloomberg News. And David isn't going to play the issuer per se. He's gonna play the seed capital investor. Because Mike Venuta was also saying that if you come with prepared seed capital, you have way more likely to get greenlit than how much he's

gonna have a hundred million dollars to distribute. That's a pretty good race. Yeah, going from an editor at Bloomberg News to like seed investor, a senior Okay, all right, so he's going to basically hear a bunch of pitches from people in Bloomberg Intelligence who work with you and also within Bloomberg News, and we're gonna hear a bunch

of ideas. Everybody's got one. You've got basically one minute minute to make your pitch, and Mr Papadopolis is going to judge us all on our ideas and then pick a winner and some runners up. I was thinking he'd do fifty million to the top prize, thirty million to number two, and then twenty million to number three. Okay, So Mr Papadopoulos, what are you gonna be looking for as we make our pitches? So I'm looking for a

few things here. Um one is at some ovel course, there's gotta be a certain wow factor, right like you've got to You've got to you've got to get get my attention. This might seem slightly contradictory. At the same time, I don't want a whole lot of b s. I don't want a lot of I don't want gimmicks. They have to be you know, um, smart themes, you know,

with good fundamentals and things I can believe in. And it's also important for me that they're not overly complex or complicated I'm ultimately not sophisticated enough here to get the hocus focus. So that's that's kind of where I'm coming from, right, Okay, I'll take it. So, joining us from Bloomberg News Carolina Wilson, Sarah Ponzac, Any Massa, Ben Stepman,

Rachel Evans, and Suzanne Woolley. Eric. On the b I side, we have James Seffert, myself, Tom Sarah Fagus, and Morgan Barna, who is our newest member and she's coming into us from d C. And I'm joining also from episode did week on Trilliant et F Tank. Alright, first up, Carolina Wilson, you were the first one to walk in the door.

Let's hear your pitch, Papa Abels, let me introduce you to my taker FRAT, which is my college focus Consumer e t F. The latest string of e t F s that have actually found success and growth in today's et F market are thematic funds that can subbend for some type of sector exposure. In this case, it would be something like consumer Discretionary. FRAT is a win win for issuers and money managers trying to carouse the next

generation of money. Why not give them a theme that they're all too familiar with holding products that have governed their day to day lives. But in a measure diversified way, FRAT has four equally weighted sector bands and one shorting

component that makes up fifteen percent of the portfolio. The four sector bands will market cap weight their constituents, which include one cannabis companies to food and drink think Chipotle, Anahizer, Bush, Monster Energy, three technology entertainment thinks Spotify, Facebook, Netflix, gaming stocks and for retail, which I have dominated by none other than Amazon. And that fifteen percent shorting component I mentioned FRAT will short navy At the student loan company.

But oh, I like that. Not only are you getting a boost from marijuana focus names, but you're also neatly exposed to them. Market's favorite fang coort And my favorite part of it all, there's a ten percent that has not been accounted for, and that's because FRAT has a temper cent allocation to cash, which is saving up for when uber I p o s. So I'm long dope and this thing, and I'm sure student's interesting. Now there's some appeal to this. I I do see the value

of this, But who do you anticipate. Who are your natural buyers of this at so not likely not college students because they're broke and they have money. But people that believe in the college consumer. And the amount of stuff that these people are consuming. Why should I believe in the college consumer? Do they take a growth prospect? Bro like these are twenty two year old consumers, but

but for down the road. But they have no money now growth potential, and they do spend like money that they don't have, right, which is why I also we have this students. That is true, that's fact checked. Example, back test shows that Fred over the past five years has returned more than over what period of time five years. Of course, past performance is no guarantee of ure. Next up, Sarah. Now,

Sarah has taken this really seriously. I think she may have slept in this room overnight to get ready for it, all right, and she's been like talking trash to me all week about okay, alright, well, let's let's end it all right, all right, It seems everyone is always talking about millennials nowadays, but what about Generation Z? This year? Gen Z is expected to surpass millennials as the most

populous generation. As some agents of their mid twenties. So to gouge future spending patterns, you have to get into the psyche of this new largest demographic. Gen Z cares about who is who, who is doing what. They grew up on social media platforms like Instagram and Snapchat, and the influencer culture is real. Take Kylie Jenner for instance, she promoted her makeup line on Instagram and is now

the youngest self made billionaire. Influencers are powerful. The influencer economy et F ticker who Who is a new exchange traded fund that holds companies that partner with the top twenty influencers from athletes to actors, public figures, and more. Stocks will be weighted based on their associated influencers rank.

And this is the global diversified fund. Take Christian Christiano Ronalda right now, he's the number one top influencer Electronic arts, Nike, Abbott Labs, all companies he partners with, Selena Comes, she partners with Adidas and Coca Cola, Arianna Grande, the Rock under Armor. You get the idea. So who who not the band? No? Not the band? Um alright, so give me a sense of some more of the products here We're we're some more of the companies we're talking about here,

so some other companies. Beyonce is the top six influencer right now. She partners with PepsiCo. You also have Kylie Jenner of course with makeup at Alta ut Taylor Swift Ups, Target A, T and T, Comcast, So you really get this mix of different sectors. So right now it's holding consumer discretionary companies, consumer staple companies, telecom, healthcare. So that way, when you have a downturn like we did at the end of last year, who actually fell less than the

broader market? And there are there what do we know out there in terms of e t F already that that approach gen Z? There are not any This would be the first e t F at this who my e t F would be the first one that actually acknowledges gen Z. So who is Sarah? That's who first of its kinds um all right, I mean I'm hearing a lot of more gen Z talk, including in our own newsroom, which is probably a contrarian indicator. All right.

Next up, we have Joel Weber. Okay, as you guys might know, Bloomberg Intelligence tracks more thies in industries from energy, to technology, to retail, to finance. Once a year, Bloomberg business Week, the magazine that I edit, partners with b I Bloomberg Intelligence to do something called fifty Companies to Watch. Not all of those are winners. We call it watch. Some might be up, some you might be down. Thirty

of those are US listed. So the goal of this exercise is to identify companies that will face an unusual challenge in the coming year or opposed to release blockbuster products or services. The analysts considers stuff like revenue growth, margins, market share, debt, and even other factors like economic conditions. I got reader fanmail on this one. When we did this just a couple of weeks ago, portfolio manager emailed me to say, I don't know what your crystal ball is.

Forty of those companies our way up. So here's here's my idea. We're gonna rebalance this thing quarterly. We're gonna be long, forty short ten. Here's the ticker fitty fitty Wait, how many letters f I D Y f I T Y which is currently held by a Fidelity fund. But we'll take it's it's up there, forty long ten short, um, Like, who who would be in this long list right now, and who would be sure? It's a great question, right because I think the part of this is US versus international,

So you're gonna have this. It's gonna be very global. But the stuff that you'd be long on right now would be like Fast Retailing would be one based on the research that we did. That's a company that we think has great international growth. But you'd be short something probably like Ford or uh, General Motors. I'm afford right, Geer, you should all for it. But basically you'd be rebalancing this so that you'd constantly have tin that you're short forty that you're long. Got it? No hit me? What's

the criteria again for this? Beyond you know, your big brain and the big brains of the b I folks. So I think this is a great amplifier because we're going to curate a list that we're confident just like this guy recognized we've been out performing. So we're gonna go along the ones that that we we have great confidence in out performing. And then we're going to amplify it even more by being short ones that we think are going to underperform the market. Okay, Mic drop next up?

James sever, an analyst with Bloomberg Intelligence. James go Alright, so my e t F s, I have a pair of ETFs and they're revolving around two. Where is that We hear a lot when you watch any sort of financial news risk on and risk off. So when you see risk on, there are certain e t f s, are certain stocks that you're gonna own, and when you're thinking risk off, there's certain stocks you're gonna go to

if you need to maintain equity exposure. So this combines multiple factors and sectors into two et F So the risk on factor E t F is gonna hold growth, momentum, size, and high beta e t f s, And on the sector side right now, it's gonna hold tech, consumer discretionary, and communications. On the risk off side, you're gonna hold low ball quality, dividend, growth and value. And from the sector side, on risk off, you're gonna hold consumer staples

and utilities. Now, past past returns is an indicative of future returns, but if you look at the returns over the past five to seven years, you're gonna see the risk on is outperformed by on the risk off. With spy in the middle, there and then if you look over the biggest downturn in December, it worked just as expected with the risk off being down and the risk on being down again with Spy in the middle over that twenty four day period. Um, I am fascinated by this.

I think this is pretty cool. At the same time as I said it to be getting I'm not smart enough to understand all the ins and out. So again, so explain to me. So I simultaneously am owning two ets. Is that right where you've broken? Yeah, So you would own if you if you believe there's risk on in the market, or you think that there's gonna be a bull market going forward for the next couple of years, you're going to own the risk on factor e t F. And if you're not, you're going to own the risk off.

So if if you're predicting a future downturn, you need to maintain equity exposure. Theoretically people will go to utilities or some lower volatility stocks, and this is just going to group all those low volatility factors or risk off factors together. Well, I think Sarah Pons wants to wants to chime in here. Do I have a question you said in risk on Right now, it's holding momentum. But haven't you yourself done a lot of research lately that

momentum is actually risk off right now. Momentum momentum is more highly correlated. Right now. It is a good point, and I was thinking about it. But over the longer periods, this is just an instance that and what's going on with specific rebalance that happened to a certain et F. It's not all. It's not all momentum ETFs. But right now that's just a stint in. What's going over over the long term, momentum is gonna outperform Noble markets. What's the ticker r O n N for risk on and

r o f F for risk of roth. But this is like the Yang last year a little bit. Yeah, but I need to decide which of these two I'm moving in and out of. Theoretically, yes, or you could listen to the or you could listen to the talking heads, but you could listen to the talking heads on on Bloomer TV to know which one to put in. But typically when you launch these dual type of partnerships, dual ETFs are more than one et F, they split them evenly and then let the allocators go and they benefit

when something is going good in that area. So if much of people a phone, money there. So next up we have from our DC studio is Morgan Barnet, who is a new associate for Bloomberg Intelligence Fund and ETF Research. U Mo're gonna take it away, Okay, I am pitching a largely US based equity theme fund. So the Supreme Court reversed a sports betting ban that I think is going to really open the door for UM companies that do gaming and uh sort of gambling to really capture

what was formerly sort of offline betting. So more states are going to fall the first seven and this is about a hundred and fifty billion in off market sports wagering annually. UM. Along with that, there's so much UM content on demand for entertainment, and so I kind of think the stirs a counter current for more live entertainment experiences.

So is this a theme fund UM? Well? Equal weight company is UM here that have direct exposure companies like Live Nation, Trip Advisor, Event Bright Madison, Square Garden, And then there's some new listings of pure play E sports companies. I know we've talked about UM gaming, but sports you got to wrap it up. E Sports Companies, Allied Sports, super League Gaming, and Modern Times are all coming online. Got it well? As a lifelong gambler, Yeah, I mean she just like it. I can see his heart trains

up when she said gambling. You know, I was just like, whoa, you got me so? All right? So you're both tapping into like the Live Nations and the trip Advisors, right, that could ride this way a bit. But tell me again, the names are the more the companies that are actually more directly involved in the game. Because I also maybe I need to set up some accounts that MGM, Eldorado, and BOYD have all made um decent partnerships and acquisitions in the space god and what's the ticker E L

I V Entertainment Live L Live. I think he likes the gambling part more more than the entertainment party. You don't get out much, do you know. I'm too busy gambler. Thank you Morgan? All right, I think Eric, I think it's your turn. Okay, what's the one thing we all hate? Okay, don't answer that, but I know one thing we all hate, um, and that is Monday's And guess who else hates Monday's the market. If you look at the days of the week, Monday is the only day since where the market is

down on average. Every other day it's positive. So this is a very simple idea. It's called x mon the calendar shares S and P five x Monday's e t F. All it does is hold I V V right, it's gonna buy it at Friday close because between the clothes and the open you can pick up a few basis points too. That's a good time to hold it, and then it will um. So it'll sell it on Friday and buy it on Tuesday. Monday the clothes and so

essentially you're going to get the market return minus Monday. Now, there's a lot of theories on why Mondays are bad. Companies report bad news on Friday's a lot of times people get paranoid over the weekend. Right, the idle hands are the devil's playthings. So people come in and selling and guess what you would avoid catastrophe? What are the worst market crashes known as Black Monday and Black Monday too, which is August. You would have avoided those two. So

I'm selling Friday and I'm buying it Monday. What about trading costs, comes a voice from the crowd. Yeah, sure, so i VV trades at a point oh one percent spread, so you would incur those but you're hoping to pick up more than those trading costs over the long term. So i VV I picked on purpose because it has a real low expense ratio, but it's more liquid than VOO, So to me, it's the perfect et F to use for the strategy. All Right, I'm a little I'm just

a little surprised if I can chime in. Like all the e t f s that Eric could come up with with, this one feels a little lazy, lazy. Well, my other idea was a little I don't know uma of the time, we don't have more ideas well know the reason ever, though it's hey, hold on a second, I um, I think it's kind of cool. I got two questions. So are we sure that it's not gimmicky? Though? Right? Like, this isn't just some odd statistic laboration. This is like legit.

I mean, there's really something there. There are fundamental factors for Monday always sucking. Yeah, Like I said, there's the human behavioral people come in Monday they're cranky A lot of times. If something bad happens on a Friday, it gets worse on Monday because people have all weekend and they don't think, oh, I'll be okay. Their brains go to the negative there, like I better sell out? Are you a shrink? Uh No, but I'm to psychology class.

You know you're psychoanalyzing the market. Well, behavior is a big deal. That's why factors work. To me, this is somewhat of a factor kind of play. My last question for you is, like wise, guys like you who come in and say, oh, I'm gonna short Monday, I mean, is it possible that as you bring attention to this, your e t F takes off that you're gonna wind up are being out? You know the down mondays. If this et F gets that big, you and I will

both be filthy rich by the time. So but yeah, ultimately, if if everybody starts buying this, then yeah, there could be an our super duper last question for you. So, like, give me a rough sense of like what a typical Monday return looks like these over the over a certain period of time versus Tuesday, Wednesday, Thursday, Friday on average, Mondays are down eight basis points on average since on Tuesday.

It's up five BIPs, Wednesday eight pips. Wednesday's actually the best performing day for whatever reason, and Thursday four BIPs for day five. So it's really like a seven almost a ten basis point swing between Monday and any other day. Okay, and you had ten basis points up, you know, over weeks after weeks, after weeks, that's going to add up to some alpha. Next up, Ben Steve Berman, who's on the Wealth team at Bloomberg News, been the reigning champion

from last year. What was your idea with with last year's March Madness winner. I was going for empty, which is the retail et fright, and how was that done? After I I have not checked. Give me four seconds here. I did warn you that it wasn't gonna do well, uh negative two. But we're waiting. We're still waiting for the big home run, right, the big grand for me.

On the personal finance guy, I think long term, not like the no this is I think in decades, not days, and I won't be but alright, so as I said, I'm I'm a personal finance guy. I think long term. I was thinking about long term trends. How do how do we invest in some of the big global long term trends climate change? Okay, you can do that. There's ways to do that. UM urbanization. You look at rural areas all around the world, including the United States. They're shrinking,

populations going down. The economy of rural areas is shrinking. Cities are booming, especially in Africa and especially in Asia, but also the United States. UM, big cities are doing really well, and outside metro prolitan areas, it's hard to get a job. So it's thinking about UM. A urban basically an urban ETF. So it's a it's it invests in a whole range of sectors. So it could be finance, reets, uh, industrial, cranes, elevators, retail.

It goes after retail stores and retail companies that really go after that urban consumer. The ticker is well, okay, this the ticker could be city that's available, could be well, I have a better one. You tell me why you p p yuppy, Why we are gentrifying et F investing. We're gentrifying EFF investing. As if et F investing needed gentrifying. UM, give me some name, all right, so you said finance, you said reach, you said cranes, Like, so what am I? The man to walk would be the crane idea lift

I p O s. You would want that. So you want some transportation in there. But the key is you want something that's really focused on urban consumers all around the world, not um not rural consumers. So like Amazon, I think you would want to leave that out because it's more of a broader play. It's got to be really locked in on city super long, city super short essentially, or just everything else is out, not shut, but everything else is out, and you are changing this the makeup

of this fun Oh that's the other thing. We're like, Hi, we gotta get a good team of like millennials sort of taking artisanal approach to the index constructuring of this. This really is pretty yuppy artisanal shares. Took me a long time to come up with this guy approach. Just stock selection, Okay, alright, yuppy yuppy with our tiginal rebalancing is exactly okay, thank you bad, very good. Alright. Next up Rachel Evans of Bloombrick News, a frequent guest on

Trillions No Pressure. Three do one make way for the future trading under the ticket s h t K. The stick of this fund is to invest in the megacaps of the future. The fund or track and index of the five most recently listed US companies, which it will equate, rebalancing quarterly to limit trading costs. This thematic fund will charge forty basis points, undercutting the average thematic a t

F by more than ten basis points. Uh. And we'll look to beat the i PO focused funds that are out there, which are currently charging about sixty basis points twenty basis points more than this fund. M H. I think I don't even need the time. Yeah, I was going to say it. I was like making the first one that's coming under. Yeah again, points for that, I feel. Yeah, I see that. So you are every newly issued stack you guys buy that's issued in the US, it is

issued in the United States of America. Now I see the appeal to it. But I guess I just wonder, so we're really nearly scooping it all up, and how often do we then do we rotate these out so once a quarter so, because you want to limit the trading cost of kind of trading too frequently and quarterly rebalancings relatively common. So that's when you kind of like turn over the portfolio. I reckon, you've probably replaced the stocks maybe every two years, would kind of like the

time you'd get a whole new portfolio. You can't see this. Brolina is nodding her head and approval behind you. Yes, yes she is. She seems to like flavor over there. She likes your pitch better than her own, it seems like. But I would say as well that like looking at kind of like funds that focus on I PO some of which are less sophisticated, I would say they've done very well, they're up this year, okay, But you're just I guess the only thing they considerably, you're just right

blindly blanket buying them all. They tend to do well initially, of course, but like, how much risk do I have? Am I going to be? Are we gonna be stumbling into some total blow ups? So that is the why you have an a t F in the first place. Rather than buying these stocks out right, you know, you could buy left and then hey, maybe a lift gets brought out by another company or goes to hell in a handcar. Who knows. But the point of an et

f A is you have diversified exposure. Yes, it is buying everything that lists, but that's how you get diversified exposure. You get all of those companies are going to be this future five hundred the future. Last question for you before I let you go is that, UM, I understand that you're buying companies of the future. But as Bloomberg News as reporter recently maybe it was parts of yourself, has said that companies that are ip owing are typically I p owing at a much later age than they

used to. So am I really getting companies of the future or this is still your first chance to buy into them as an investor in the public market, So better to get in sort of five years into their lifespan. Will wait another ten or fifteen, You're still in kind of that early arc of growth for these companies. That was a good question. I had to come up with one. I have a question, which is you're British. Um sadly hell in a handcart we say Helena handbag. I've never

heard Helena. Oh my god, it's an Oregon thing. Okay, sorry, Tom Sera, Vegas analysts with Bloomberg Intelligence Tommy, you got about one minute, go for it. Okay. So this one is the anti factory TF So let me sort of set the stage for you. So there has just been this big focus on everyone chasing factory t s. When I say factor, I mean things like low volatility, momentum, value. There is a lot of money sort of chasing these factors. This one is basically looking for the island of misfit toys.

So what this does is actually it looks through the really popular factory ts like the value one, the momentum one that actually looks at the stocks that are not owned by any of them. Right, So it's really a contring indicator. And the reason I want to pick this one because I think that investors have this sort of love affair with contring indicators, are really looking or anything to give them any insight into anything cracking in the market or sort or any type of insight. So um

uh f wise, it's only basis points. I think it's super competitive for a product like this, and you're probably asking yourself like, who are the anti factor names, because you're probably thinking these are like garbage stocks and no one wants to touch. All Right, I'm wrapping up Greek. Let me throw out some names, Facebook, Horizon, Intel, Right, so there's nothing wrong with these companies just because they don't meet the definition of a factor. Um, they've sort

of been shunned. So there's obviously very stable companies that have disregarding the wrap up and uh um, so I'm really looking for a need you have to pick up on miss pricings that just because these stocks don't meet the traditional factor difference as the ticker is great, I think it's reject. I r j KT, reject, reject. Spell it again for me. Are j KT alright? And how often am I moving in and out of these anti

factor stocks? How often? Yeah? Good question, You're moving quarterly because that coincides with how the other factory tests are rebound typically the rebounce recorder. Um. So this one will also rebounce a recorder as those ones. A rebound it looks for all the names that are not in it, and it will pick up the same name. The will rebound in the same frequence Greek. Before I let you go, I am a contrarian guy by nature, so this does appeal to me at some level. But I guess, like,

how will right? I mean? These things are are our anti factor for a reason right there? Out of favor. How long do we need to sit on these things for before they start you know, paying paying off for us? Yeah, good question. And why I think this product has the potential be a disruptor. So because let's look at value for example, value has been underperforming for ten years. So if you actually look at a value index, if you take the worst value names, you would have outperformed the

best value names over the last five years. So why I think this is disruptors because if anti factor starts to do well, it's sort of underpins everything else. So sort of saying, hey, factors aren't working and there's so much money chasing these factors. The potential for this to

be a disruptor I think is huge. So you're essentially trying to use their hype against them and exactly, and I think as factory investing gets more popular, there's gonna be more and more money chasing the same stocks based on the same factor. Definitely. For what it's worth about Tunis is sort of nodding his head about. Tunis is into this one. He wants he doesn't he doesn't have the cash I have right now, but he might he mighty.

It appeals. I'm a contrarian too, so it appeals to me on that level, and I'm actually shocked this one isn't a product. Well done, Thank you, great, thanks good all right. Next up Annie massa reporter with bloom Brick News. Annie,

three to one. Okay, allow me to propose to you the wedding e t F turning under the ticker I d O this E t F track to be spoken decks of companies uniquely positioned to profit off of the seventy two billion dollar US wedding industry now that includes jewelers Tiffany and co Ca Jewelers, Registry, go to like bed Bath and Beyond, formal wear retailers like Nordstrom, beverage companies Anhezzard Bush, and tech companies like Amazon, stunt i, po Pinterest a popular one with brides and even um

drone part makers because drones are the future of wedding photography got to capture those aerial shots. Couples spent an average of forty four thousand dollars a year that's up more than sixty um a year over year on their weddings in the US, and this a t F gives you an exposure to a wide array of industries, um, giving it a real, I think, special flavor. As anyone who knows sound okay, just last last note, as anybody who's ever been in a long term relationship knows past

results are non indicative. Future excellent. All Right, it's a pretty good it's a pretty good ticker, and I like it's I like how approachable it is. But let me ask you a couple of questions. Here. Seventy billion dollar industry. Uh, and these folks spend forty four thousand on average in their weddings up six But is this really a growth industry though? Like am I I mean absolutely? I mean I thought I thought I thought marriage was kind of

I mean, you could short this whole thing. You can, Yeah, you can also go short if you're better. But but the other piece of it is millennials are increasingly getting their parents to pay for their weddings, meaning that the cost of weddings, wedding spending is actually going on. In a minute, yeah, I'm gonna be paying for my sorry to tell you, okay, So I all right, so this is growth. This is I'm gonna be buy growth, And it's I'm not sure I buy that. I mean Tiffany, Yeah,

Tiffany for a wedding registrates there for the right. So this is my other question, So is it you're kind of all You're slightly all over the place in terms of what you're wedging in here. I mean like Amazon for weddings, but in that sense like Amazon could be for I get it, but he could be at that point Amazon, you then could almost apply to anything. Um, I do like there are elements here already using the ticker,

I feel like catching on. The next is up six from when from the year before from Okay, this is according to Bride's magazine. One of the odds right now, one are the odds that spending on weddings went up six one year. I think the odds of that are something like zero. Right, But Brides, it isn't a second, There isn't the father's footing. The bill is a good market because that you could look at it as a hedge on your wedding, that you're paying for it kind of,

it's a way to hedge out the costs. That's that's a clever, that's smart. Next up, Susanne Woolle. Susanne had a premature exit from the tournament last year with she picked a great one move but kind of got bounced. My colleague Ben Steverman just knocked me out of the park. It was sad. Yeah, he was pretty brutal. I gotta admit but it marked. But now is your chance at redemption? Yeah? Alright, so so you're ready for shark tank. I am. Okay, here we go. Make your pitch. This ETF is nothing

about redemption. My chip pitch is for Evil ticker symbol e v I L. Unsurprisingly, the ticker symbol is available. Evil will invest in anything that plays to people's baser instincts or as harmful to society in some way. That means a good invest Companies that profit from selling unhealthy snack foods, that are big polluters, that promote vaping, anything that definitely is not good. Lots of people you know indirectly benefit from, you know, vir publicly traded companies from

things that aren't very good and don't realize it. And this just allows them to invest in more honest, targeted way. It will also be a sort of like a litmus test. If it fails, it doesn't attract assets, it doesn't do well then like great, that says good things society. What about my money? If it does well, it says like we're all going to hell in a handbasket. But again catching up on the bright side, it will be a really a mark of dishonor to be part of this

et f so that may sort of incurage good behavior. Um, that is the sound of us exiting. Can I just mention that it's Um, it's expense ratio is going to be point six six six. I'm not going to help it with. I don't think it will make more money, but it's very meta, you know. Um. Anyway, you can also use two to three times leverage to make it really wicked. Um, you could short a companion ticker called like good. If we think evil is just too bad a ticker, we could call it well hell is available.

But we could also call it UNPC And then we appeal to sort of jerk x E s g um, well, it's obviously very clever, but he says, but you yourself sort of seemed to be hoping it fails. No, Um, well, yeah, I appreciate the like I appreciate like sort of the undiluted evil of it. Just an abstract repeal to people's face. I mean, this is not going away bad behavior. You know, it's it's a very solid base to build a product on, especially you know this, say shy, I get it, all right,

thank you evil, no problem. All right, that was all the pitches. Those were good. So yeah, you want to remember. I go walk the hall. Okay, all right, let me go step out for a minute. Okay, take a take a little breathe. Alright, take a little breathe and take a little breather. I'll be back in the meantime. No fighting amongst you, Sarah, I think a ship. Okay, so we're back. You took a little walk around the block, collected your thoughts. You did some scoring like in figure skating. Okay,

let's hear it. So here we go, one by one, first come, first served. Carlina Wilson came up first with frat clever name. Uh, there's some positives to it, but here's my issue. I gave it a six out of ten. And because as nice as solid as the name is, I think these kids are broke. I don't think I think you could also be call this broke. This Uh, this is I just don't ultimately know that it's enough of a growth business for me to tap into Sara Pons, who I gave a seven too. Uh. It just it

just feels right, the whole gen Z trade. I mean, I'm I'm just sort of feeling it's a touch ethereal to me, but I I'm going with a seven. Joe Weber fitty five. Here's about thing again, this one was definitely shorting costs. Well, you're essentially telling me this one to trust you. That's I kind of felt there's a little bit too much of what I'm telling you to trust Bloomberg Intelligence, but you know, don't shift it on me. And it was it was also a touch too ethereal.

But but all right, but fifty gets a five, so we're thematically linked up there. Ron and Rof James I gave a six to. I very much find appeal in Ron and Roff, But again I found it a touch too convoluted. Uh, And I thought there were too many moving parts, especially in a Yeah, you've got something to say.

What's convoluted about risk on and risk off? What's what's convoluted about um is that there are you know, within each sector of the risk on risk off, Right, there were there were different, you know, elements to it that you were telling me that I had to write U figure out how to break down the investment and and and invested, depending you know, in different times. I just sort of felt like in a sixty second pitch there

was a fair amount to get my head around. But that's the opposite of yoursue with Jewels, which was there they're telling you what to own, and this is like allowing you to own your own research. That's against you. I think if anything actually is going to revise ron Off from a six to a three, we now know what's gonna last. Alright, very good, But if you want to keep and go for it, alright, Morgan Live gets a seven. I believe this is the second seven we

now have. Um is a gambler. I believe in this industry. I don't know. I think there's a little bit too much hype in terms of how much this is gonna grow UM, but I believe in it is enough to to sort of feel like we we might want to think about putting some money there. I'm not totally feeling the ticker Elive is a little it's a little it's a little flat to me. Next up, is Mr Belcrinus with x mon And as much as this pains me, I gave him a big number. I gave him a nine.

Whoa Joel called it lazy, but again in what is Joel? What? What was Joel's rating? So? I mean, I think what it's apt. Remember it is the sixty second elevator pitch. You gotta get my attention quickly. There's a storyline with this that I could very easily get my head around. Uh. And there's a believability factor to it. I think you know, you went back like eighty years of data that shows this is not just some gimmicky, you know sort of thing. Um,

and I found these things attractive. It's right now nine you are, you are in first in the clubhouse. Um Ben Steveerman City right, reigning champion. Well City was one option, but yup, yu alright. I gave this an eight. I just think actually that the whole urbanization thing is huge. I think it's it's here to stay, it's global, it's it's real, it's part frankly why the world. In some ways it's so screwed up right to divide, political divide

and all that. And you know between rural and urban, but you know, unwealthy and and poor rurals got growth. You've got a ton of growth. I mean it may not necessarily make the world of great places and ways, but I think it's it's just destined to keep growing. And whether it's city or whether it's yuppy, those are good takers. I gave it an eight. He consistently brings the power. So you're saying it was three better than okay, and and five better than it was five better than

Ron Row. Yeah, um, Rachel Evans stick, I give a six. Two. Where's Rachel? She's angry. So because she's so angry, I'm gonna have Bluetoon's explain why I got a six? No, uh no, I I liked it. I in the end, And I know you're telling me that, right, the genius of buying all five of the most recent is that's gonna get me all this wustions. I don't know. I don't know. There's something about blanket buying all the craft that's that's that's and the great stuff that's put out there.

I just didn't want it. Especially I'm a little bit thrown by the by this trend of older and older companies I p oing, but a six is a good number to beat beat old by one, and it beat run Rock. I guess he's saying he didn't like your hand. The Greek with reject um I give it is he is the Greek on Hey, how you doing? I gave you a seven, which as of right now puts you in a tie for third. I believe that, you know, if I'm gonna be doling out a hundred million, there's

got to be some contrarian play in here. This is, this is I thought this was the best contrarian play. Although evils also were evils also a good contrarian play. I also think that there's indeed, you just get so much hype around the fact or stuff and all that that. Um, if you write, we're gonna be holding onto this stuff for a decent period of time, right to cash in, um, I think it makes sense. Uh so seven for reject Annie, I do, where are you? I'll give you a six? Wow,

I'm shocked by that. That's okay, Why are you shocked? I don't know. I thought it came off. It just came off. You can't explain it, is it? Because it was such a polished pitch of so many good ideas. It was very good. There's there was no issue with the pitch. The pitch was killer. The name is killer, who the idea killer who truly believes in the institution of marriage is a crazy growth industry. Raise your hands, people, you can and I'm not stopping you from pitching this elsewhere.

You want to keep pitching. Know the pitch was killer. Everybody's a little upset here in this phase. It was good. But the last thing, the last little issue I had was just a little it's too dispersed, like I don't really like I don't. I'm strongly get my head around having Amazon as a as a bet on the wedding industry. Moving on, knife through my heart and it was robbed, robbed. Alright, well you got you guys, give her some money to your own then now accepting other people's money. Evil was

super close. In the end, I gave it a six. It was super closer. Here's the thing. It is a lot of fun. It's awesome. Five. You know what, I'll take half six points. I'll take zero point six from Joel. We've got a six six. Joel will get to go down to a four. Four, right, okay? Four four right, it sounds better five four point four six or so. I think it's super fun. It's in the end um it's uh. I don't think people are going to put money into it, but it's it's because it's evil. So

that's it. That's a wrap. Eric, there's a certain wind t can you can you even say it? Joel? Say it again? You know I called it lazy. I called it lazy? Ye man, yeah, nowns who gets the last laugh? I guess you do? Uh dollars. So, so fifty millions is a good hold. I was bounced early from the other one, so I nice, Yeah, how does it feel? What are you going to do with fifty million dollars

in your ETF? Honestly I picked this because I was kind of surprised there wasn't a product like this, because, like you said, you can get it in a minute, and if it starts to get some of that out performance performance plus easy to understand equals flows, I would suspect that's right. I actually think, well, let's launch this thing. You serious, you get the hundred millions, that's all hundred million, okay? And so reigning out rounding out number two last year's winner,

Benn steps again. This guy's like, yeah, becomes ready to play, but he also it almost like seems like he knows, you know, investing wise, some of the things that appealed to me. I believe in Empty. I believe in empty, and even though empty hasn't paid off yet, it will And no yuppy yuppi yuppy slash shitty whatever. Fine, we need to finalize the name before I give you the money. Obviously, Um,

that's that's a winner. I had three people tied at seven, right, but in that tiebreaker I went to I went to Ponzi, so she gets story much. I will ultimately just and I'm gonna probably rue the day that I believe in Already, all year headlines you're going to see that are no longer millennial gen z. Everyone's gonna hate in the best way, Mr Papa was what did you learn in this whole process that, um, absorbing pitches in sixty seconds is tricky?

And I don't know, I mean, Eric, you tell me how realistically how quickly do people make decisions on what E T F s to buy? But I do feel like a storyline and a clear product that are easy to get your head around. There. There feels to me like there's a lot of value to that. I mean, certainly in this kind of compressed format that was the case. Well, I don't go to those pitch meetings, but generally I would think so because that's what works flow wise for

these products that aren't just sort of cheap data. So you give me some examples. Okay, example robotics. Um, everybody understands robotics. They see the video of the robot jumping over the car and they're like, oh yeah, big industry, and then robot starts going up. Boom, there goes the flows. There are other e t s that outperformed that don't get the flows because I do think they're tougher for

people to understand. Um. So I do think the easy to understand the thirty second pitch is a good idea because if you can get the seed investor and to understand and it or somebody in thirty seconds when it has a good breakout performance, if people don't understand it, I don't know if the performance is enough. So I do think that's likely what people are looking for. I asked Mike Venuto. He said, obviously seed capital is a big one. If you have C capital will probably green

light you. And then the other one was he did look for like if you could develop a family around it, if it was easy to understand and simple, and if there was obviously nothing really like it on the market. How many, because like Any's pitch was great, But again, personally,

I just don't see how that's a growth industry. How many e t F s are launched, like sort of thematics are lace that are not that in a do well that are not People are not selling growth like you know, they're like I'm saying, here's an et F with a great stable industry. Does that appeal to people in the theme front? Not much? I think with the theme ETF that's why they equal weight them. You gotta juice those suckers up with them, like like all legal p e d s, which is like equal waiting some

fang stocks. You juice them up and then they outperform. A lot of people don't understand it's because they have more risk, but they're outperforming nonetheless, and they go, oh, and then the theme kind of kicks in. They're like, oh, of course robotics or cybersecurity juice Like if I do start out performing, I think people go, Yeah, of course everybody spends a bundle on weddings. I did too, I get it. I'll buy it all right. Thanks to David

Popadapo's for judging well. Thanks to our contestants for all those great ideas. Maybe mine wasn't so great after all, but you know that was a fun one, except for coming in basically like a second to last. Thanks for listening to New Trillions until next time. You can find us on Bloomberg Terminal, Bloomberg dot com, Apple Podcast, Spotify, and where else you like to listen. We'd love to hear from you. We're on Twitter, I'm at Joel Webber Show,

He's at Eric Falcina's. Trillions is produced by Magnus Hendrickson. Princessca Levy is the head of Bloomberg podcast The Totter