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I'm Joel Webber and I'm Eric Belchernas.
Happy New Year, Happy New Year, buddy, twenty twenty six. We're here. We made it, but we're recording this in advance so that you know we can sleep in on the holiday.
Yeah, that was that was me pretending to be in the future.
Yes, good job, thank you. So as we looked at twenty twenty six, as always when we do this on Trillions, we try and enter the new year with some spotlights on some tickers.
Yeah.
This is really born out of me doing the Money Show, which is a direct to retail conference that they have like in Florida, and it's a lot of like investors who are just looking for cool investments. And I used to do my like like top down Trends PowerPoint and I could tell like they weren't that into it, but every time I brought up a ticker, they come up after what was the ticker?
You said?
So I realized they just like tickers.
So I did any show presentation called like twenty three ets for twenty twenty three.
I was like, this should be a note.
So you started writing that every year, and I got really good feedback on it. People just like tickers stroll at the end of the day, you can tell them all the cool trends. But this is like the Silicon Valley of the investing world, and so we know all the gadgets and here we are going to unearth some stuff that we find interesting and people like that.
But twenty two.
Twenty six for twenty six seem like maybe a little too much, So we're gonna pair it back just a little bit and do sixteen ish for twenty six.
Yeah, we just we just don't have enough time to do all of them. Sixteen seems like a good number. But if you want to see the full list, happy to just email me and I'll send you the report we did on it.
Also joining us Athanasio, Sarah Vegas, and James Seffert ETF analysts with Bloomberg Intelligence, this time on trillions tickers for twenty twenty six. Athanasios, James, welcome back to Trillions.
Thanks for having me, glad to be back.
Okay, who's gonna go first. We're gonna go kind of round robin. Eric, you want to kick us.
Off, I will because I have six they have five.
Okay, well, so you're gonna give one and then we'll transition to the other guys. Yep, okay.
My first one is bank the I Shares Flexible Income ETF E I n K no B I n C B I n Z yep I guess for income I n C. Here's what's interesting. So this is the fund managed by Rick Reader, who is actually one of the people in consideration to be the new FED chair. So he's a pretty big deal. He got into the ETF game. A lot of big names got in in the past couple of years. And this ETF is amazing. It's got
fifteen billion. That means it's the fastest growing active etf ever, faster than JEFPI, faster than JPST, which are the kings of each of those categories. So this is a juggernaut. It's forty BIPs and I looked at the returns. It's beating the aggregate bond index pretty easily with half the volatility. That means what I'm not it's real. That's why it's
got all the money. Honestly, that's kind of the holy grail to be able to outperform with less vol And how long has it been around since May of twenty twenty three. So I'm watching it because a it's it's the fastest growing active ETF right now. It's going to challenge JPST for the king of active bond and it may even challenge someday JEPPI. And the other thing that is interesting about this is when we look at mutual funds flows this year, the equity side want over one
trillion out flows, like nobody wants stock pickers anymore. However, on the fixed income side, active bond mutual funds have taken in money.
So I think for.
People out there when they think of their bond allocation, like the AG is a bit dull full of treasuries, people really are much more open to active So I think that's why this is really checking a lot of boxes for people. And at forty BIPs it feels like a good deal.
So look out for this thing.
This thing is you know, total juggernaut and one that I will watch the next year.
Anoxious.
Well, I think that's a good pick, and I think, like you said, it gives a lot of hope to active right to active bonds. If you can outperform do with lower vowel, you have a chance, So I guess you know that's a good pick.
Nice name drop for twenty twenty six too. Okay, that's Anosios.
In your next let's go, I'll start with L R and D. So it basically just stands for a large cap R and D spending. So this is from New York Life. You know, we talk a lot about dividends, we talk a lot about buybacks, but we don't talk about companies that are investing in R and D or in like Capex and things like that. And we've actually brought this idea up in the past about well what about companies that are investing in things? In twenty twenty five,
it's actually beating the S and P five hundred. And the reason this I picked this is it came out of some research from our quant analyst, Chris Kane, and he was saying that companies that were actually spending more in R and D were beating those that weren't. And actually, this product is really cheap. It's twenty fourteen bases points, it's pretty launch in twenty twenty two. It doesn't have a whole lot of assets, but I think it's very unique.
There's no other product out there that is actually investing in companies that are spending money on R and D. So that's something that I'm looking at for next year.
So is it waited by what the spind is?
It is, so you'll get and it's also market cap weighted, so you do get some Nvidia, some Apple in there, but then you get some unique names like a lot of healthcare. You get Philip Morris. That's in there too, right, regardless of how you feel about cigarettes and vaping. But you do get some non obvious names in there, so it's pretty diversified, is pretty concentrated.
Interesting, all right, James.
I love the R and D play. I think it's great, fascinating.
Yeah, well, thedn't they tried Capex, right, that was one they did, and I think it liquidated, but maybe this won't work.
It did, but actually Capex performs really well over like buybacks and total shareholder yields, so I think it's something that kind of gets overlooked.
All right, James, take us around the around the circle. What's your first pick? All right?
My pick is VXUS, which is the Vanguard Total International Stock Index Fund, which, yeah, sounds pretty boring, but I mean in twenty twenty five it outperformed the S and P five hundred by about thirteen percent A few years ago.
I picked VXUS. Yeah, and I should have picked it last year. I was gonna say, I'm getting deja vu, Like, don't you pick this every year?
No, I didn't pick it. I haven't been.
This is like the word fetch from mean Girls. He's trying to make international happen.
It hap.
I mean it did happen, to be fair, but it happened. I mean, we're gonna find probably not gonna happen again. We're gonna find you one one year is like all you get for like ten years. We'll see.
I mean there's I mean, it's had a record inflow year. It's taken in about seventeen seventeen billion. Right. The question is are people one going to rebalance out of this thing and going back into their domestic if because it's outperformed domestic, or are they going to pile in because they think it's going to outperform going forward. I mean, valuation, If you look at valuations, international stocks look pretty appetizing. But then again, we have the best companies in the
world here in the US. So it's a hard debate to have, so, yeah, I'm just watching this and the other thing I would point out, which this is going to give you real djavu. This thing had launched in twenty eleven, it's had like four days of outflows. Like in total, it's had four days where it had an outflow. So this thing just pulls in money hand over fist and rain or shine for the most part. It'll be interesting to see if that flips a little bit after this outperformance.
Now, Eric, howo'd Jack Bogo feel about that product?
He would say, you don't need it? And he started it. That's what's so great about Bogel. He would he actually dumped on his own creations because over time as he got older, he just he didn't see the need for it. He you know, he would he was pretty savage, and he would take shots at some of these foreign countries for having no like not a lot of work ethic. France in particular. He's like, they tried to pass a law that you can only work thirty five hours.
What's the point investing there? You know?
Like, and he also thought that with the global nature of this economy, that the US would reflect a lot of the overseas markets. Anyway, and you also have all your investments in the same currency, so why take currency risk one, which is what you do with international investing,
So he had those reasons. I will say this, if you're an investor who can't stay in volatility, like if you can't stand in the US having two off years, then you might want international because that will go up sometimes when US is like struggling, and that will lower your overall if that makes you feel better, like, hey, at least this part of my portfolio is up because this one's down, you may need international. So for behaviorally,
international can help advisors calm clients down because it diversifies. However, Bogel did not need behavioral help. He was going to buy the S and P and wait fifty years, and you were going to get him out of there with
like a crowbar. If you're that committed, like a Buffet or Bogel, and you're like, I don't care if it's down three years in a row the US rules, I'm sticking to it, then you don't need international probably, So I think it depends on your own behavior that that would be my take on it.
But I'm with you.
This year International outperformed and we all have to acknowledge that.
I think, well, it took him a second to get there, but yeah, yeah, there was a yeah.
Well but ironically you picked it three years ago and it didn't and now you're picking it this year when it probably won't.
So well, I'm picking it more because it's interesting to see. Is it going to are we going to see it continue? And what are flows going to do?
Are people gonna bet on it continuing or not?
Real question won't be if he's back next year. Okay, let's go to round two. Eric.
Okay, I'm actually sticking international, believe it or not.
But it's not exactly. It's not this like.
What is this it's time for international thing?
It's not that.
Okay, It's not like that columnist telling me, oh, you have to sell America thing. Okay, this is an ETF that you guys will not know.
Watch this.
These guys like live and eat and breathe this stuff. Have you guys even heard of OTGL?
No? No, no, what is it?
Okay, it's the OTG.
I haven't heard of that either, Latin America ETF And the reason that I even found it, I didn't even know it existed. But there's been a couple elections in South America that have gone far right, which usually means pro business, which usually means big returns. You start with Argentina, obviously that thing's up like two hundred percent, and then Chile just went to the right, and that was anticipating that,
and that's up like sixty percent on that anticipation. Now Brazil they might have somebody elected who's on the right side in next year, and that's already got that thing starting to move. So here's a continent that's going from like socialism to capitalism pretty quickly. And so if you wanted to try to play that or at least own it, you don't own a lot in your international Latin America is pretty tiny waiting.
So it's in it.
The reason I found it is because I was looking for ETFs that had both Argentina and Chile. There's not many. Argentina is tough, it's not in a lot of equitytfs. This one has two percent to Argentina, eleven percent to Chile,
and forty three percent in Brazil. So it really does a good job of getting you all of Latin America, whereas the I Shares one doesn't have a lot of that, especially it does no Argentina really, So anyway, this is one that captures I think the best of this sort of shift to more pro business leaders in that continent. And it's for that reason that I'm watching it, because I'm telling you, traders like nothing more, especially emerging markets, than to see an election shift that way. I've seen
it my whole career. So it looks like it's spreading across the continent, and if it does, I would stand I would think this would benefit from that. That said, this isn't the one I'm gonna watch for like volume and flows. The other ones will probably see more of the single ticker ones, but this one captures the all those countries the best.
But this is why we do ETFs.
There is always an ETF out there that gets you the closest to something, and sometimes it's not the one you think, mister.
International over here.
I mean, I still hate International, but if I had to pick, I think South America. I like these countries that are going through massive shifts versus like Europe, so I probably would be more inclined to buy like not America over something like Europe.
And this is not like saying sell America and like rotate to international like this guy. It's basically saying it's a little hot sauce. This is like, oh, maybe sell your AI E t F and put this one on. This is like a hot sauce bucket.
Play okay, Ethan your what's your second? Okay?
I got a question. Have you heard of this company? You pexy? Don't know what they do?
Run twos where you trying and stump each other?
Yeah, because I don't know either. But there's a two x ETF on this company and it's only got one hundred and thirty six million dollar market cap.
What the letters in the ticker.
So the ticker is p XIU, which is tx TX you PIXI. I think this is the year something blows up. I think we got a little crazy with these two X levered products. We've gone really far down the market cap. Like I mentioned this one, he got one hundred and thirty six million dollar market cap. Especially like a small slash microcap company, we have a two x leveraged version
of it. I don't know if this might be the one that actually like liquidates in a single day, but I think we're going to have an event this year on one of these single stock ones. So I'm just throwing this ticker out to keep an eye on its more like category. Yeah, exactly, it is fine. Hey, stuff blows up. You know, we had XIV a couple of years ago. I think we're due for one.
Maybe just don't want to be there when it happens.
Yeah. Yeah, it might not have any assets in it, but I think it just might be symbolic of just how far we've pushed it into some of these products.
I mean, the vall is two hundred and fifteen percent, which is a lot. That's like, what is that like fifteen times the SMP. There's some a little more volatile, but the stock would only need to move obviously what fifty percent, But that vall indicates that fifty percent isn't that outrageous? What you need is if one of these little quantum stocks like has A goes bust, then the two X will obviously terminate because it will go down more than fifty percent.
In a day.
I mean the other part is like the sec stop those three X and five X number one, I think, yeah, but full endorse. I think we're going to see some sort of liquidation of that this year.
Yeah, but one or two a year, no big deal. If you had three x, you'd have them every other week. So yeah, we can handle one once in a while, exactly.
All right, James, you got it one that's gonna stump.
Them, Yes, actually, but it's it's more a category one. It's I think it has the lowest assets.
Of anything that anyone's gonna pick here today TXBC ever hear of it?
No, all right, so twenty one shares foot see crypto ten x, BTC etshot.
Oh he's discussed looking them over there. Ethen's the anti crypto gus the team. But it's good. We need that.
Yeah, because just in case, like everything goes to hell, Athen will have been quarantined from all this.
We definitely have the cryptovirus.
So this is more just I think that these crypto index type products are really going to take off. I think there's gonna be a lot of band We have one from bitwise that has over a billion gray scalees one hashtecks coin shares, they all have them. There's a lot of been filed. I like this one because it's it gives you the crypto market cap without Bitcoin. A lot of people are ready probably have exposure to bitcoin.
If you want to add more diversified exposure to crypto, this does it without doubling up on your bitcoin because in those other market cap oided ones, bitcoin seventy five eighty percent, So.
It's crypto x bitcoin correct.
And then and then I think longer term we're going to see like fundamental weighted stuff. Kai Wu friend of the show who park Line, he has SMAs where he does fundamental trading and waiting of these ald coin ETFs. I think a year from now we're going to see a lot of that. But I just think this whole category is going to be huge.
Yeah, I'm with him.
I think an index will be because who can pay attention all this stuff?
You know?
The question is if you already own bitcoin, do you use a big an index with bitcoin in it? That has to be worked out. But yeah, long term, I see some value here. Okay, Round three, Okay, I'm going to go with one that I might have picked this last year.
I can't remember, but I was watching it all year. XOVR.
This is uh the Public Privates Crossover ETF, which was a nobody ETF that did I think value stocks like nobody cared. It was an oblivion probably about to die, and it switched this category to add some private equity. You can add up to fifteen per cent of liquid investments in added SpaceX. Once it added SpaceX, it like immediately got three hundred million flows.
Like it was like build it and they will come.
And this was happening the same time the private credit ETFs launch, which really underwhelmed, and to me, it showed me that there was a huge unmet demand to get private equity in an ETF, not private credit. And then when SpaceX got root in the rumor to go IPO, it took in another three hundred million over the past couple weeks, and this again tells me that there is a huge demand out there.
Now.
I don't know why the ETF industry has filed so many private credit and heartland really no private equity. There's been a couple to try to do synthetic private equity with using public stocks, but not that. I just think they should really try to push the envelope with putting literal private equity in here, maybe not one hundred percent, but like the way priv did with putting more than fifty percent private credit. XOVR at seven hundred million again total ind I think it's a one man show. That's
an enormous sign right there. So I think we're going to see a lot with this next year. And this ETF to me is like the guinea pig.
If you're looking at IPOs for next year, SpaceX atop that list. Is this your preferred way to get exposure to that or is it more.
Like ARC.
Right now?
Yes, because it owns it like it will definitely feel some of that. That said, there's also the IPO ETF, which would own SpaceX a couple of days after the IPO, so you have to like ask yourself, like when do you want it? But this gets it before, which is
really cool, So I'd assume this would be the better play. Still, though it's only five to ten percent, I think right now that's not a ton, but that's enough to move the needle if SpaceX were to go, If if you were to get, like I don't know, an eighty percent return, that would definitely lift the returns of xovr.
Athanasius, I love this ticker. This ETF is pending, but it's grift GRFT. It's from Tuttle. It's the Tuttle Capital Government Grift etf. So it does two things. Want it kind of I know, I know, but you know, you have to admire the opportunistic nature of the industry right sometimes to a fault. But they think this one could be really interesting. Obviously you've seen the government buying stake in companies right and promoting these companies. So it does
two things. One it actually kind of follows insider not insider but trading of what politicians are doing. But it also is investing in companies that have political ties. So something like Intel is a perfect example. So would pick up these companies. The thing is they're gonna be really interesting companies to watch. I think if there's money being pumped into a lot of these companies, follow them. I
think it could be an interesting strategy. You know, even Nance, the the kind of Nancy Pelosi one has done really well performance wise. It's got a couple hundred million in assets. It's actually like a pretty decent size. I think this one can probably have some similar success. I don't know if the expense ratio is because it's pending, but I think this is definitely one I want to watch for next year.
I think that the cynicism alone is funny. And interest thing.
Is it being ironic or is it actually like, well.
There's been there a couple attempts to do like here and invest in these stocks that are democrat leaning or republic leaning. Those never took off. This is just like let's make money on the corruption, which I think is
a more honest way to try to play this. There's also one that's coming out called the Roundhill USA Government Portfolio ETF, which was supposed to be called I think the White House Sovereign Wealth Fund, and it's it's basically trying to it's going to own all the stuff that the White House likes and buys, basically, so semiconductors, Bitcoin, stuff like that. So we're going to see some ETFs trying to ride the sort of you know, government connection with business and capitalism.
James, all right, this is a ticker that both these guys know pretty well. I think this might have been selected in years past. But I'm picking box b O x X from Alpha Architect. It's the Alpha Architect one to three month box ETF. Basically, what it does is we we talk about a lot of those products that offer tons of yield. Right, they do things cover derivatives to offer tons of yield. This is almost like the inverse. It's taking the return stream of like your treasury bills
and not actually distributing any income. So you get the same return stream as though you're getting income, but you don't have to pay it out. So if you hold it for longer than a year, all of a sudden, you're in the long term capital gains rate, which if your income is taxed at thirty five, thirty seven percent, even higher than that, and you can get it down to the fifteen percent range, whatever it may be, that's a huge tax savings. So there's two reasons I picked
at one. It's fascinating because the FED, we don't know what's going to happen with the FEDNIXTU, we're gonna get new FED share, what are they can do the rates? Are people going to leave if the yields are down in treasuries? The other part of it is like this is kind of like it's like changing the way the tax structure is set up, and there's some people that have concerns around whether or not this should be allowed and is this something they're going to look into doing
so I just think it's fascinating. This thing is taken in money hand or a fist. Every month, it takes in a couple hundred million dollars and it's almost a ten billion dollar product from an arguably in the issuer. So I think it's just a true success story.
Highly creative.
You know, you can be creative on all different ways in ETF LAN So there's a bunch of ETF's work and looking to innovate on taxes.
Interesting though, what you said.
The price return of this is fifteen percent, and so is the total return for SHV, which actually holds short term debt that doesn't have any price return. I mean it's basically zero. Fifteen percent is a total return, but that's all from income, so that is a huge swing. It's not like even a little And I can see why people like this. I mean, it's fairly, really creative, and really I think it almost kicked off a whole category.
Yeah, I think it did kick off a whole category. We're gonna see more of this stuff.
Okay, run four, Okay, I'm gonna go with buff b buh buff B.
I love that ticker. By the way, there's also one buff.
Buff but buff B is a laddered buffer, so a couple of weeks ago, my mom, who like rarely comes to me with ETF questions, He's like, I'm thinking of buying one of these buffery, but I want the ladder ones off to worry about it. So it's like, okay, if she's getting wind of this, you know, it's like you's got to be in Time magazine at this point or something like.
That USA today.
Like it's like, how popular are buffers that she even knows about it, right, and she's thinking, I don't want to worry about it. I'm like, then I looked. The ladder buffer from First Trust is the most popular buffer ETF. I get it. It's a little more costly, but it just does all the work of like having to go to the new ladder.
So there's the new five picks and one pick from your mom.
Yeah.
Basically, well, because this is another reason I picked it is so a it's Innovator's ladder buffer that challenges BUFR, which is First Trust number one buffer ETF on the planet.
But this one doesn't have nearly as much assets. This one.
Basically, like BUFR is nine percent buffered, right, so that's how much the market would go down that it would protect you from. So anyway, these two products, the first trust is huge, this one not so huge. But guess who just bought innovator goal now Brian Lake runs Goldman. You saw what he did with JEPY and JPST, So if he's listening, I am almost challenging him. This thing probably should have ten times the assets given it does the same thing as BUFR pretty much and has a
minuscule amount of the assets. An innovator put buffers on the map. So this is a product that I could see if it got you know, the Goldman firepower behind it, it could really take off, especially if you have people like my mom who want buffers but don't want to have to like put the new buffer in every year.
Ethan run foth.
Can I pick one that what you shouldn't do?
Yeah?
Okay, yeah, this one annoyed me from the second at launch.
Just think about these to watch it's.
Well, I mean, honestly, would you say more ETFs annoy you than don't?
Probably?
Yeah, yeah, he's the old man, the only clouds on the teams like, but it's good.
This one's a peak clean, it's a PCL and it's the pictet cleaner plane at ETF And it's nothing against them, it's just about reading the room of the industry. And you've seen the tickers that we've mentioned. It's intense. This is a really competitive industry. You need to come either with some sort of really differentiated strategy or we look at most successful launches this year, a lot of them had their a lot of b YOB sorry b YOA
just bring your own assets. This one is just a firm that I think is not really reading the TF industry. But it's not just about them. It's about if you're going to enter the industry, you need to have a plan. You know, this is seventy basis points, it's an ESG product, So not only is it expensive, it's a strategy that no one is really looking for. So this year is going to be interesting with share class potential. You're gonna have a lot of issue, a lot of asset managers
trying to come into the industry. It's about, you know, you got to be aggressive, you got to be all in, and I think this is an example of not being all in. Honestly, I want to be surprised if this closes in a couple of years, but just sort of you know, Yeah, there's stuff that we're watching, but also there's kind of stuff that you should, you know, maybe not necessarily do.
Also, they are coming from the European mutual fund world, and they are big in themes there. But European mutual funds is pretty cush. It's a cush lifestyle. This is the Deterredeme. It's interesting they skipped the ETF market in Europe and went right to the US, which is like, I mean, that's like a real crazy swing going from europe mutual funds to US ETFs seventy BIPs.
The whole cleaner planet thing.
Like remember like Gabelli tried that it's out of vogue, it'll be tough. You're right, this one is. I'd be surprised if it if it gets organic. I think it needs to get some BYO or something to get going. Not to say they won't have no successes, but this one in particular, I don't know.
I don't see it, but James run for Yeah. I mean, one quick note I would say is like I don't understand. I'm with them, one hundred percent with them.
I don't know.
It just it's not they need an institution to come in and back them up. It doesn't make any sense. All right, I'm gonna pick one that I think you guys know it. You guys definitely do know it, Joe, you might not. So this is actually the fourth largest flow getter in twenty twenty five, and the ticker is SPY.
M don't know it.
It's basically SPI's Mini shares. It used to be. I think they had a different SPLG.
I think SPLG.
Yes ticker it's State Street Spider Portfolio S and P five hundred ETF. This thing has one hundred and one billion dollars. That is a massive product. It's done exceptionally well. The reason it's done exceptionally well is it charges two basis points to get exposure to the S and P five hundred, So it's cheaper than IVV. It's cheaper than VUU, the number one flow getter this this past year. So yeah, it's taken in thirty five billion. So I'm interested to
see one. How are they going to do going forward? It seems to be ciphering assets off of SPY the legacy asset, the legacy product. And will Vanguard or I Shares decide maybe we should compete with this because these things are doing well.
I guess Vanguard doesn't have to.
They're the flow leader, but it'll be interesting to see how the shakes out.
Is it actually showing up on a day to day basis in a way. That's like Spy is no longer the preferred trading vehicle, So Spy I don't think.
I don't know if Spy will ever get dethroned as the preferred trading vehicle. This is like you want S and P five hundred, you want the cheapest exposure. Ironically, there were some products that offered free exposure to the S and P five hundred or a large cap. Specifically, it wasn't the SMP. Yeah, but people one want the S and P and two. I think there's people skeptical of free. So if you could get as close to free without actually getting there, you can probably get a lot of assets.
And that's what I'm seeing here as far as I'm concerned.
Yeah, no, it's true that one.
You know, I had a section in my first book called the Power of one Dot dot dot basis point and because IVYV and VU went from like five to four, four to three, and it actually moved the needle. That's how cost obsessed people are, so yeah, that's a good one. It's already the twentieth biggest ETF and climbing I called the fourth Amigo because he used to call the other three the three Amigos. I don't know who the fourth amigo would be in that movie, but El Guapo.
Anyway, it's sym Yeah, Okay.
Round five, Okay, so I'm picking one. I like to pick one of a theme or sector that's just totally shot to hell, because you remember pick uranium that one year and I nailed that. This is the Advisor Shares pure Us Cannabis CTFMSOS. This thing is a billion dollars, but it's the most US centric of all of them, and it holds mss's, which are state operators. Anyway, anytime
there's any like legislative win, this thing goes up. So there was recently where there was a rumor that they were going to reclassify it marijuana and Trump was going to sign this thing, and it went up fifty percent in a day. It's still down like over eighty percent. Even with that bump. That tells you that like this thing could run if it gets the right environment. And I talked to Ken shay Over in BI who covers this area, and basically there's like all these baby steps. It gets reclassified.
That means the taxes are way better for these state operators. That's one win.
But then it's like, Okay, well maybe it should be inside the banking system because if it's reclassified, then it's like, well, why aren't we even making this legal? He just thinks these this is like the road to federal legalization, which is the ultimate holy grail. And so there's a lot of potential here given that this stuff usually happens in a chain reaction. I'm not saying it will happen, but with how much it's beat up, its certainly any little
news should move it. And MSOs I think is the one that captures the US market the best.
So that's one I'll be watching interesting.
Ethan.
Yeah, that's a good pick, and I'm gonna go deep in the pull up a classic here from two thousand and six Housing ITV, which is the I Shares Home Construction ETF. Obviously, Housing comes up a lot. You know, it's been a big political platform everywhere. It didn't have a great year. It was pretty much flat this year versus s seventeen percent for the SMP. But I think
it's a really interesting sentiment barometer. Obviously, we might have rates coming down next year, you have some regulatory support of a home builders. I think it's something that you know, and usually what happens with home builders it either has a really bad year or a really good year, and it's coming off of, like not of a great year.
So I think it's just something to watch, obviously just being just because it's how much affordability is such a something that's talked about a lot recently, A political.
Word that, by the way, that is a I like this because I believe that the new FED share one of their goals is to get rates lower so people start buying more houses, because that's been a problem for years. I mean, honestly, low rates are really good for housing. It seems like a no brainer, honestly.
Yeah, And I think they want to help some of the home builders.
Famous I don't see am I don't see a bair case.
We don't make a T shirt that says that, because sometimes we're like we get all hot about something. We're like, I don't see a bare case, and it's like that's when you know you got to like be worried.
Not not that, James, your final pick, all right, my final pick.
At our annual conference a few weeks back, erica A presentation is this as good as it gets. And I think that's something that people should be worried about. And a lot of times what we see with these alternative ETFs is people pile in like after they should have already been in them. So the one I'm picking is the IMDBI Managed Future Strategy ETF DBMF, and it's basically managed future strategy.
What they do is it's more tactical.
It's kind of like CTA Trading, not exactly so what they had a stellar year in twenty twenty two. There it's now a two billion dollar product. But honestly, if you want to have this as a diversifier in your portfolio, you should have it before you know, you know what hits the fan. So if you're looking at this will
be interesting to see how this product does. And I also like I'm gonna throw out another tick or a bonus ticker RSST, which is a return stacked version which will basically, instead of having to sell your S and P five hundred product, you can add this on and will give you kind of leverage exposure to this managed future strategy alongside the S and P five hundred.
I just think some sort of all exposure.
If you're trying to have a diversified portfolio and you don't want just sm P five hundred, like Eric or Jack Bogel, this might be a good idea to have so much to unpack.
There that we're, uh, we're gonna let it ride. What is dB MF home.
So it goes across futures products, So it could be rates, it could be equities, it could be commodities, and basically it should have an uncorrelated exposure to the S and B five hundred or the broad equity markets.
For the most part, when everything's awful, this thing will do really well. In twenty twenty two, this thing had a billion dollars because it generally goes up.
It has short positions, so.
DBMF it won't go up a ton, but relative to everything else in the crapper, it'll be up pop probably, and so that's when alts will finally get their day in the sun.
But it's rare.
The equities are so good that these tickers just like they have a year now and then.
But I see what you mean.
This is if you if you're like one of these, like something's gonna go wrong, that one would be a good one to look at.
All, right, Eric, your final one.
This is going to close. This is a good finale. I thought about how to close this.
If it's crypto, I'm just gonna it's not.
But it's equally annoying to you because if this ETF is a hit, I think he will retire from the industry. He's always says that he's like, because always is it, mister Beest follows from ETF, I'm retiring.
This is close to that.
Okay, ufod this is the tuttle Capital UFO disclosure AI powered ETF. Okay, what does this do? Okay, I'm gonna read straight from the perspectus here. That hasn't launched yet, but it will probably twenty twenty six or Q one. It has a basket of companies that the advisor believes have potential exposure to advanced or reverse engineered alien technology, spurred by government disclosures about UFOs and alleged advanced technology.
So basically, if you look at polymarket, there's all these odds going up that the Trump Administration's gonna release information on UFOs very soon, and this is going to take that information that they got from aliens and it's gonna say, we're gonna buy the companies that take that tech and like build stuff here with the alien tech. So it's an alien tech tech etf okay, and it uses AI
to pick the stocks. So it's like, I mean, honestly, if this thing is over a billion dollars this time next year, I think I think that this will be curtains for Ethan oh Man.
But this is such an Eric pick.
I just think this is like that, this is this is I always say, the tent keeps expanding. This is like pushing this head far out on one wing of the tent.
I don't know even how to respond to that.
I mean, there is a lot of rumbling about Congress. They're doing a bunch of stuff, like trying to figure out what's going on. But these you know, aircraft of unknown origins, sof.
So you can invest in anything. So what has to happen for this to launch?
I mean, it's only equity. So really, Matt just has to Matt Tuttle has to explain the prospectives.
Here's why I picked them.
So it could launch even if there isn't any disclosure, like it can just say, you know, it can figure it out. So I think that it will launch regardless. But if if polymarket is onto something, the odds spike because I thought someone in the Trump administration was actually buying the about whether Trump will release something in twenty twenty five. We'll see if that worked out. But basically it's the information coming out that the tech companies will
then use. Now I'm going to tell you right now, I actually.
Don't think there's anything such thing as aliens like I don't.
I just don't think it exists. That doesn't mean the ETF shouldn't exist. I'm a very free market capitalist, but I just think it's interesting that the thematic area in particular, you know, this is really pushing the envelope. I remember when people mocked. I remember tweeting out the filing for the video game ETF, and I remember everyone was like dumping on it, like oh, this is the top and
they were just crapping on it. That's pretty normal sounding now, like so we would say today's sattire is tomorrow's ETF, and this is an example.
Welcome to twenty six.
Now one real quick thing. This is a fun this is a really interesting notjel.
Matt Tuttle may not actually launch this. He may actually be on his own island somewhere because he has the ticker SPCX for this back etf he launched, he may sell that to Elon for SpaceX, the way Matt will Hershey sold Meta to Mark Zuckerberg for an unders allegedly allegedly, And so if Matt Tuttle quits the business randomly, he might quit before this even launches if he gets enough pyday from Elon.
You heard it here first.
All plenty to watch in twenty twenty six. Athanasios James, thanks so much for joining us on Trillions. Thanks for having me Yeah, thanks for having me on. Thanks for listening to Trillions. Until next time. You can find us on the Bloomberg terminal, Bloomberg dot com, Apple Podcasts, Spotify, or wherever else you like to listen. We'd love to hear from you. Hit us up on social. Trillions is produced by Magnus Hendrickson and Ryan Kessler. Amy Keane is
our executive producer. Sage Bomman is ahead of Bloomberg Podcast Bye,