Looking on trillions.
I'm Joel Webber and I'm Eric Belchunas.
Eric, we're going to try something new.
Every month, We're going to do an episode that is about three new stickers.
Yeah.
People love tickers and we're going to give them what they want. Okay, people want to know what's going on, what are the tickers to invest in? So this particular mini episode, which will be once a month, will look
at the new launches. There's four ETFs to launch a day, and in there there's going to be some really interesting launches, both ones that got our attention, ones that might be you know, kind of wild kardish, and then ones that were like scratching our head, why did that even get filed and launch?
Because it's hard out there.
So these are just for investors to know all the new stuff coming out. There's so much to look through. And when I travel around troll and I give presentations, when I go to the retail direct events, they love tickers. They really just want to know the ETFs what there is a vail to them because they're always just looking for ideas.
So this is a way to get more tickers out to the people.
Joining us on this episode is Isabelle Lee, who's a cross asset reporter from Bloomberg News. She's got one that she wanted to talk about.
So excited. Of course it's big. Should I say it now or now let's hear it MSBT Okay, that's.
The Morgan Stanley bitcoin ETF.
Seems like a little bit late to be launching an ETF that's about bitcoin.
Yes, like there's a few of these others. Why why is Marian Sane sound.
So excited because I wrote about it. Yeah, that's why there's that bias. It's interesting because they are indeed two years late, but then they came in strong with the lowest fee ever. It's fourteen basis points the gray scale meaning bitcoin ETF, it's fifteen basis points, and I bit black rocks bitcoin ETF, which comprises around sixty percent of total assets, is around twenty five basis points. So for them, yes, we may not be the first player, but we're going
to come in strong and be the cheapest. And why is that Because Morgan Stanley has such a strong financial advisor base around sixteen thousand. So Eric actually gave a great quote for him. He said, eliminate all conflict of interest We're going to be the cheapest. Do that when our advisors choose to use us, you know, you can't say anything. It's the cheapest.
So is that going to be enough to make this product a success? Yeah?
If you have sixteen thousand advisors that manage seven trillion, it's a pretty good target market. I mean it's like, yes, it's good to be the king, Joel.
I mean, Morgan stand so long?
Well, okay, I'll tell you what took These big banks like Morgan Stanley, they've tiptoed into ETFs. They haven't gone full mad Max yet, but they hired someone from Blackrock Ali Wallace, So she's kind of mixing it up internally. And I guarantee it wasn't easy getting the fourteen BIPs passed by our management because again they haven't gone to that full terrodome point like other firms have usually take
three or four years. But the fourteen BIPs is very important because what she how she probably sold management was like, look, you've just had the advisors be okay with bitcoin, Like the advisors put a memo out saying you can now invest in bitcoin one to four percent, be careful. Thanks, and they probably said okay, well, if we can do it, why don't we just keep the money instead of paying black Rock, you know, and that it's an easy selling point.
I was looking for new.
White shirts at the Nordstrum the other day and actually stumbled upon Nordstrum Brandy and they're pretty good, and I bought one and I was like, that's MSBT right there.
Yeah, it's Eric says b y OA is better than p t og.
Okay, the first one is.
Bring your own assis and the second better than pay the other guy. But Eric's right. They did release a note they advised that's.
Like next other guy physics.
I try to insert it in this story, but I'm just a humble reporter here.
Also, I kind of want to know did he buy the north From shirt like I did?
Yeah, you bought it, yeah, okay.
Along with other ones or not?
Yeah, I mixed it up.
But the north Trum was I mean it was Honestly, it was one hundred. I was looking for a very high quality shirt and it was one hundred, whereas other similar qualities were like one fifteen. I was like, this is this is exactly what Morgan Stanley advisor must feel like.
Interesting, this is what's in my brain on Saturday afternoon.
Don't you don't want any part of it?
Okay.
Also in November, the OCC allowed national banks to hold crypto assets on their balance so that was a keyte legislature.
Now that's a huge chance.
Yes, it's not as if, oh they just thought about it. They were waiting for the Wheels degree. So my question actually is why did other banks? Why have they not done it?
They Well, Goldman just filed for a Premium Bitcoin Income ETF, which would use call options to generate yield. That's pretty major too. Goldman probably saw Morgan Stanley. So there's not a whole lot of people left. Schwab is doing direct trading. I mean it reminds me of ETS. You said, the list of the top thirty asset managers and whether they had ETFs or not, and we would just cross them off the list slowly. Now it's it's even MFS was the last holdout. I feel like we're finding the same
thing with bitcoin. All these firms are like, we need to have something at least. So I would look for more action on this, especially again, if Morgan Stanley starts to see flows, they already have one hundred and thirty two million in like a week. Look out, you could see some of these other big banks for the same reason. Might as well have our own better than giving black Rock the money.
Other fun fact that Eric mentioned to me was that Vanguard now allows bitcoin ETF tickers on their platform.
What happened when that change went into effect, Eric.
The bitcoin price a bitcoin went up like six thousand dollars that day. There was clearly some pent up demand. I don't know how much more there would be. I can't have the numbers from Vanguard, but I'd imagine there's a sliver of Vanguard investors who have a little degen in them and or one crypto long term. I mean, I think some of the investors that use Vanguard, they're not all like boy scouts, you know.
I mean there's some who want.
To have speculative assets, and so I think those probably got served early because they were just waiting and waiting. Well, I don't I wouldnt Seevanguard platform being a huge demand driver, but it was pent up for a minute there.
Speaking of Vanguard, we have a wild card ETF pick.
Yeah, this is it is.
Yeah, it's a Vanguard ETF and it's not what Vanguard being wildcard is unusual, but it's the Vanguard Developed Market's x US Growth Index.
What's that ticker, it's VDG.
This is interesting for a couple reasons.
A there has been this cell America or let me diversify out of America trade.
This gives you everything but the US.
This is different than a lot of stuff on the market which actually might be just developed which includes the US, or global which includes the US.
This is like strictly everything but the US.
And only developed.
Yes, only developed, So Vanguard investors probably prefer developed over em.
The fee is eight pips. That's really good.
Already has fifteen million dollars, so it's not necessarily a wildcard, but it is Vanguard kind of really going deeper and deeper into these places that they think they can make impact in. And this will obviously be a hit. How big we'll see, but it was just I just thought it was interesting, notable launch, and they do not put out that many ets, so if they do, it matters and it's interesting.
It doesn't seem though that it will be a core holding by itself. I guess if you want to actively controlled growth and your value exposure internationally, it will be good, but yeah, so cheap point zero eight okay.
Last category, Eric, Yeah, we're gonna affectionately call this, and we mean this with all due respect.
Good luck with that.
There's sometimes we'll see filings and we'll throw it in the chat group and everybody's like, oh man, good luck with that. And look, no, sometimes we say that and the.
ETF does well and it proves is wrong and we have to eat our.
Words, which we will do here.
If we will do, we promise.
But here's an ETF that came out. Pizenna US Large Cap Value pz l V is the ticker. It's okay, fine, large cat value. It's probably the one hundred and eightieth large cap value ETF. The fee is sixty basis points. The manager will go try to identify undervalued stocks, blah blah blah, and like fine, it's it's just it's very like nineteen ninety five feeling, you know, and it's tough to make an impact in such a crowded space if you're not dirt, cheap or shiny, and so again, like,
how will this get money? I don't know.
How's that going? So far?
To be fair, it has fifty eight million, which is pretty good now my guess is some of these good luck with that ETFs are people who have money somewhere else SMAs or vitual funds, and their investors are telling them, we want the ETF format better for taxes, YadA, YadA, So some of that money could be coming over. In that case, it's a smart launch because hey, better to
save that investor than lose them. But in the organic open market, it's just tough to see something that is so kind of just facing the crowd at this point, and you know, well again it's called the terodome.
We call it for a reason. It's hard market.
But if this thing gets over a billion, I again, I will come on and eat my words.
It's pretty expensive. The expense ratio is sixty bases points. So for a large cap active.
You can get I mean like alf Architect I believe had high high concentrated active for way less than this Vanguard value is like three basis points or four. That's like the index attracts value stocks. So again sixty isn't like crazy expensive. But these days, typically like dfa capital group, they can they'll serve up value for under forty, under thirty in some cases of under twenty and again, So it's not just like it's competing against passive.
It's all these big active.
Managers come in with large cap value for like half or a third of the cost. So again, like sometimes I wonder like did this person fall asleep in a cave like Britt van Winkle and then walk out and be like, Wow, what year is it?
What are the top holdings as of today? I think it's not what you would expect when we were looking just ten minutes ago.
The good news is I don't recognize a ton of these firms Baxter well CVS. I know they keep closing them in Philly.
It's a shame.
Capital One City Group, Dollar, General, Wells, Fargo.
Okay, it's a.
Basket of value stocks. The one thing it's only forty one stocks. That means it has a chance to actually succeed over the benchmarket's pretty concentrated.
Because it's pretty concentrated.
I mean it's only been out for a minute, but it is up seven point seven percent. Wow, that is pretty good in a couple of weeks changing already.
Good luck truly, good luck with that.
Good luck with that.
Eric.
I think also it's active, and that's maybe the selling proposition but it's active.
But there's you can get high.
You can get Capitol Group is the highest brand t row DFA, JP Morgan. You can get top shelf brand name active value for a half of this cost.
Maybe they know something we don't.
That's right, maybe they do.
Good luck with that, Eric, good luck with that?
Okay? Is Itelle? Thanks for joining us?
Thank you, Thanks for listening to Trillions until next time. You can find us on the Bloomberg terminal, Burg dot com, Apple Podcasts, Spotify, or wherever else do you like to listen. We'd love to hear from this Get us Up on Social. Trillions is produced by Magnus Hendrickson and Kishav Pandia Bye