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ETFs to Watch From Morgan Stanley, Vanguard and ... Pzena? · Trillions

• 0:05
  Speaker 1: Looking on trillions.
• 0:06
  Speaker 2: I'm Joel Webber and I'm Eric Belchunas.
• 0:11
  Speaker 1: Eric, we're going to try something new.
• 0:13
  Speaker 3: Every month, We're going to do an episode that is
• 0:16
  Speaker 3: about three new stickers.
• 0:18
  Speaker 1: Yeah.
• 0:19
  Speaker 4: People love tickers and we're going to give them what
• 0:21
  Speaker 4: they want. Okay, people want to know what's going on,
• 0:24
  Speaker 4: what are the tickers to invest in? So this particular
• 0:27
  Speaker 4: mini episode, which will be once a month, will look
• 0:29
  Speaker 4: at the new launches. There's four ETFs to launch a day,
• 0:33
  Speaker 4: and in there there's going to be some really interesting launches,
• 0:35
  Speaker 4: both ones that got our attention, ones that might be
• 0:39
  Speaker 4: you know, kind of wild kardish, and then ones that
• 0:40
  Speaker 4: were like scratching our head, why did that even get
• 0:43
  Speaker 4: filed and launch?
• 0:44
  Speaker 2: Because it's hard out there.
• 0:45
  Speaker 4: So these are just for investors to know all the
• 0:47
  Speaker 4: new stuff coming out. There's so much to look through.
• 0:50
  Speaker 4: And when I travel around troll and I give presentations,
• 0:54
  Speaker 4: when I go to the retail direct events, they love tickers.
• 0:57
  Speaker 4: They really just want to know the ETFs what there
• 0:59
  Speaker 4: is a vail to them because they're always just looking
• 1:01
  Speaker 4: for ideas.
• 1:02
  Speaker 2: So this is a way to get more tickers out
• 1:04
  Speaker 2: to the people.
• 1:04
  Speaker 3: Joining us on this episode is Isabelle Lee, who's a
• 1:07
  Speaker 3: cross asset reporter from Bloomberg News. She's got one that
• 1:11
  Speaker 3: she wanted to talk about.
• 1:13
  Speaker 5: So excited. Of course it's big. Should I say it
• 1:15
  Speaker 5: now or now let's hear it MSBT Okay, that's.
• 1:19
  Speaker 1: The Morgan Stanley bitcoin ETF.
• 1:22
  Speaker 3: Seems like a little bit late to be launching an
• 1:24
  Speaker 3: ETF that's about bitcoin.
• 1:26
  Speaker 1: Yes, like there's a few of these others. Why why
• 1:28
  Speaker 1: is Marian Sane sound.
• 1:29
  Speaker 5: So excited because I wrote about it. Yeah, that's why
• 1:32
  Speaker 5: there's that bias. It's interesting because they are indeed two
• 1:36
  Speaker 5: years late, but then they came in strong with the
• 1:39
  Speaker 5: lowest fee ever. It's fourteen basis points the gray scale
• 1:43
  Speaker 5: meaning bitcoin ETF, it's fifteen basis points, and I bit
• 1:47
  Speaker 5: black rocks bitcoin ETF, which comprises around sixty percent of
• 1:50
  Speaker 5: total assets, is around twenty five basis points. So for them, yes,
• 1:54
  Speaker 5: we may not be the first player, but we're going
• 1:56
  Speaker 5: to come in strong and be the cheapest. And why
• 1:59
  Speaker 5: is that Because Morgan Stanley has such a strong financial
• 2:02
  Speaker 5: advisor base around sixteen thousand. So Eric actually gave a
• 2:06
  Speaker 5: great quote for him. He said, eliminate all conflict of
• 2:09
  Speaker 5: interest We're going to be the cheapest. Do that when
• 2:11
  Speaker 5: our advisors choose to use us, you know, you can't
• 2:13
  Speaker 5: say anything. It's the cheapest.
• 2:15
  Speaker 1: So is that going to be enough to make this
• 2:17
  Speaker 1: product a success? Yeah?
• 2:18
  Speaker 4: If you have sixteen thousand advisors that manage seven trillion,
• 2:23
  Speaker 4: it's a pretty good target market. I mean it's like, yes,
• 2:25
  Speaker 4: it's good to be the king, Joel.
• 2:27
  Speaker 2: I mean, Morgan stand so long?
• 2:29
  Speaker 4: Well, okay, I'll tell you what took These big banks
• 2:32
  Speaker 4: like Morgan Stanley, they've tiptoed into ETFs. They haven't gone
• 2:35
  Speaker 4: full mad Max yet, but they hired someone from Blackrock
• 2:38
  Speaker 4: Ali Wallace, So she's kind of mixing it up internally.
• 2:41
  Speaker 4: And I guarantee it wasn't easy getting the fourteen BIPs
• 2:43
  Speaker 4: passed by our management because again they haven't gone to
• 2:46
  Speaker 4: that full terrodome point like other firms have usually take
• 2:49
  Speaker 4: three or four years. But the fourteen BIPs is very
• 2:51
  Speaker 4: important because what she how she probably sold management was like, look,
• 2:55
  Speaker 4: you've just had the advisors be okay with bitcoin, Like
• 2:58
  Speaker 4: the advisors put a memo out saying you can now
• 3:00
  Speaker 4: invest in bitcoin one to four percent, be careful. Thanks,
• 3:03
  Speaker 4: and they probably said okay, well, if we can do it,
• 3:05
  Speaker 4: why don't we just keep the money instead of paying
• 3:06
  Speaker 4: black Rock, you know, and that it's an easy selling point.
• 3:10
  Speaker 2: I was looking for new.
• 3:11
  Speaker 4: White shirts at the Nordstrum the other day and actually
• 3:15
  Speaker 4: stumbled upon Nordstrum Brandy and they're pretty good, and I
• 3:18
  Speaker 4: bought one and I was like, that's MSBT right there.
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  Speaker 5: Yeah, it's Eric says b y OA is better than
• 3:26
  Speaker 5: p t og.
• 3:27
  Speaker 1: Okay, the first one is.
• 3:29
  Speaker 5: Bring your own assis and the second better than pay
• 3:31
  Speaker 5: the other guy. But Eric's right. They did release a
• 3:34
  Speaker 5: note they advised that's.
• 3:37
  Speaker 2: Like next other guy physics.
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  Speaker 5: I try to insert it in this story, but I'm
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  Speaker 5: just a humble reporter here.
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  Speaker 1: Also, I kind of want to know did he buy
• 3:45
  Speaker 1: the north From shirt like I did?
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  Speaker 5: Yeah, you bought it, yeah, okay.
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  Speaker 1: Along with other ones or not?
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  Speaker 2: Yeah, I mixed it up.
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  Speaker 4: But the north Trum was I mean it was Honestly,
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  Speaker 4: it was one hundred. I was looking for a very
• 3:55
  Speaker 4: high quality shirt and it was one hundred, whereas other
• 3:58
  Speaker 4: similar qualities were like one fifteen. I was like, this
• 4:00
  Speaker 4: is this is exactly what Morgan Stanley advisor must feel like.
• 4:04
  Speaker 3: Interesting, this is what's in my brain on Saturday afternoon.
• 4:09
  Speaker 2: Don't you don't want any part of it?
• 4:10
  Speaker 1: Okay.
• 4:11
  Speaker 5: Also in November, the OCC allowed national banks to hold
• 4:15
  Speaker 5: crypto assets on their balance so that was a keyte legislature.
• 4:18
  Speaker 1: Now that's a huge chance.
• 4:19
  Speaker 5: Yes, it's not as if, oh they just thought about it.
• 4:21
  Speaker 5: They were waiting for the Wheels degree. So my question
• 4:24
  Speaker 5: actually is why did other banks? Why have they not
• 4:27
  Speaker 5: done it?
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  Speaker 4: They Well, Goldman just filed for a Premium Bitcoin Income ETF,
• 4:32
  Speaker 4: which would use call options to generate yield. That's pretty
• 4:36
  Speaker 4: major too. Goldman probably saw Morgan Stanley. So there's not
• 4:40
  Speaker 4: a whole lot of people left. Schwab is doing direct trading.
• 4:43
  Speaker 4: I mean it reminds me of ETS. You said, the
• 4:45
  Speaker 4: list of the top thirty asset managers and whether they
• 4:47
  Speaker 4: had ETFs or not, and we would just cross them
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  Speaker 4: off the list slowly. Now it's it's even MFS was
• 4:52
  Speaker 4: the last holdout. I feel like we're finding the same
• 4:54
  Speaker 4: thing with bitcoin. All these firms are like, we need
• 4:56
  Speaker 4: to have something at least. So I would look for
• 4:58
  Speaker 4: more action on this, especially again, if Morgan Stanley starts
• 5:02
  Speaker 4: to see flows, they already have one hundred and thirty
• 5:03
  Speaker 4: two million in like a week. Look out, you could
• 5:06
  Speaker 4: see some of these other big banks for the same reason.
• 5:07
  Speaker 4: Might as well have our own better than giving black
• 5:10
  Speaker 4: Rock the money.
• 5:11
  Speaker 3: Other fun fact that Eric mentioned to me was that
• 5:13
  Speaker 3: Vanguard now allows bitcoin ETF tickers on their platform.
• 5:18
  Speaker 1: What happened when that change went into effect, Eric.
• 5:21
  Speaker 4: The bitcoin price a bitcoin went up like six thousand
• 5:23
  Speaker 4: dollars that day. There was clearly some pent up demand.
• 5:27
  Speaker 4: I don't know how much more there would be. I
• 5:29
  Speaker 4: can't have the numbers from Vanguard, but I'd imagine there's
• 5:32
  Speaker 4: a sliver of Vanguard investors who have a little degen
• 5:34
  Speaker 4: in them and or one crypto long term. I mean,
• 5:37
  Speaker 4: I think some of the investors that use Vanguard, they're
• 5:39
  Speaker 4: not all like boy scouts, you know.
• 5:41
  Speaker 2: I mean there's some who want.
• 5:42
  Speaker 4: To have speculative assets, and so I think those probably
• 5:45
  Speaker 4: got served early because they were just waiting and waiting. Well,
• 5:48
  Speaker 4: I don't I wouldnt Seevanguard platform being a huge demand driver,
• 5:51
  Speaker 4: but it was pent up for a minute there.
• 5:53
  Speaker 1: Speaking of Vanguard, we have a wild card ETF pick.
• 5:57
  Speaker 2: Yeah, this is it is.
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  Speaker 4: Yeah, it's a Vanguard ETF and it's not what Vanguard
• 6:01
  Speaker 4: being wildcard is unusual, but it's the Vanguard Developed Market's
• 6:04
  Speaker 4: x US Growth Index.
• 6:06
  Speaker 1: What's that ticker, it's VDG.
• 6:09
  Speaker 2: This is interesting for a couple reasons.
• 6:10
  Speaker 4: A there has been this cell America or let me
• 6:14
  Speaker 4: diversify out of America trade.
• 6:16
  Speaker 2: This gives you everything but the US.
• 6:18
  Speaker 4: This is different than a lot of stuff on the
• 6:19
  Speaker 4: market which actually might be just developed which includes the US,
• 6:23
  Speaker 4: or global which includes the US.
• 6:24
  Speaker 2: This is like strictly everything but the US.
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  Speaker 1: And only developed.
• 6:27
  Speaker 4: Yes, only developed, So Vanguard investors probably prefer developed over em.
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  Speaker 2: The fee is eight pips. That's really good.
• 6:36
  Speaker 4: Already has fifteen million dollars, so it's not necessarily a wildcard,
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  Speaker 4: but it is Vanguard kind of really going deeper and
• 6:43
  Speaker 4: deeper into these places that they think they can make
• 6:47
  Speaker 4: impact in. And this will obviously be a hit. How
• 6:50
  Speaker 4: big we'll see, but it was just I just thought
• 6:52
  Speaker 4: it was interesting, notable launch, and they do not put
• 6:55
  Speaker 4: out that many ets, so if they do, it matters
• 6:58
  Speaker 4: and it's interesting.
• 6:59
  Speaker 5: It doesn't seem though that it will be a core
• 7:01
  Speaker 5: holding by itself. I guess if you want to actively
• 7:04
  Speaker 5: controlled growth and your value exposure internationally, it will be good,
• 7:07
  Speaker 5: but yeah, so cheap point zero eight okay.
• 7:11
  Speaker 4: Last category, Eric, Yeah, we're gonna affectionately call this, and
• 7:14
  Speaker 4: we mean this with all due respect.
• 7:16
  Speaker 1: Good luck with that.
• 7:17
  Speaker 4: There's sometimes we'll see filings and we'll throw it in
• 7:20
  Speaker 4: the chat group and everybody's like, oh man, good luck
• 7:22
  Speaker 4: with that. And look, no, sometimes we say that and the.
• 7:26
  Speaker 5: ETF does well and it proves is wrong and we
• 7:28
  Speaker 5: have to eat our.
• 7:28
  Speaker 1: Words, which we will do here.
• 7:30
  Speaker 2: If we will do, we promise.
• 7:32
  Speaker 4: But here's an ETF that came out. Pizenna US Large
• 7:36
  Speaker 4: Cap Value pz l V is the ticker. It's okay, fine,
• 7:40
  Speaker 4: large cat value. It's probably the one hundred and eightieth
• 7:43
  Speaker 4: large cap value ETF. The fee is sixty basis points.
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  Speaker 4: The manager will go try to identify undervalued stocks, blah
• 7:51
  Speaker 4: blah blah, and like fine, it's it's just it's very
• 7:55
  Speaker 4: like nineteen ninety five feeling, you know, and it's tough
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  Speaker 4: to make an impact in such a crowded space if
• 8:01
  Speaker 4: you're not dirt, cheap or shiny, and so again, like,
• 8:05
  Speaker 4: how will this get money? I don't know.
• 8:08
  Speaker 1: How's that going? So far?
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  Speaker 4: To be fair, it has fifty eight million, which is
• 8:12
  Speaker 4: pretty good now my guess is some of these good
• 8:15
  Speaker 4: luck with that ETFs are people who have money somewhere
• 8:18
  Speaker 4: else SMAs or vitual funds, and their investors are telling them,
• 8:21
  Speaker 4: we want the ETF format better for taxes, YadA, YadA,
• 8:24
  Speaker 4: So some of that money could be coming over. In
• 8:27
  Speaker 4: that case, it's a smart launch because hey, better to
• 8:29
  Speaker 4: save that investor than lose them. But in the organic
• 8:32
  Speaker 4: open market, it's just tough to see something that is
• 8:36
  Speaker 4: so kind of just facing the crowd at this point,
• 8:40
  Speaker 4: and you know, well again it's called the terodome.
• 8:43
  Speaker 2: We call it for a reason. It's hard market.
• 8:45
  Speaker 4: But if this thing gets over a billion, I again,
• 8:47
  Speaker 4: I will come on and eat my words.
• 8:49
  Speaker 5: It's pretty expensive. The expense ratio is sixty bases points.
• 8:52
  Speaker 5: So for a large cap active.
• 8:56
  Speaker 4: You can get I mean like alf Architect I believe
• 8:59
  Speaker 4: had high high concentrated active for way less than this
• 9:03
  Speaker 4: Vanguard value is like three basis points or four. That's
• 9:07
  Speaker 4: like the index attracts value stocks. So again sixty isn't
• 9:11
  Speaker 4: like crazy expensive. But these days, typically like dfa capital group,
• 9:16
  Speaker 4: they can they'll serve up value for under forty, under
• 9:18
  Speaker 4: thirty in some cases of under twenty and again, So
• 9:22
  Speaker 4: it's not just like it's competing against passive.
• 9:23
  Speaker 2: It's all these big active.
• 9:25
  Speaker 4: Managers come in with large cap value for like half
• 9:27
  Speaker 4: or a third of the cost. So again, like sometimes
• 9:31
  Speaker 4: I wonder like did this person fall asleep in a
• 9:34
  Speaker 4: cave like Britt van Winkle and then walk out and
• 9:36
  Speaker 4: be like, Wow, what year is it?
• 9:39
  Speaker 5: What are the top holdings as of today? I think
• 9:41
  Speaker 5: it's not what you would expect when we were looking
• 9:43
  Speaker 5: just ten minutes ago.
• 9:45
  Speaker 4: The good news is I don't recognize a ton of
• 9:47
  Speaker 4: these firms Baxter well CVS. I know they keep closing
• 9:51
  Speaker 4: them in Philly.
• 9:52
  Speaker 2: It's a shame.
• 9:53
  Speaker 4: Capital One City Group, Dollar, General, Wells, Fargo.
• 9:56
  Speaker 5: Okay, it's a.
• 9:57
  Speaker 4: Basket of value stocks. The one thing it's only forty
• 9:59
  Speaker 4: one stocks. That means it has a chance to actually
• 10:02
  Speaker 4: succeed over the benchmarket's pretty concentrated.
• 10:05
  Speaker 2: Because it's pretty concentrated.
• 10:06
  Speaker 4: I mean it's only been out for a minute, but
• 10:08
  Speaker 4: it is up seven point seven percent. Wow, that is
• 10:12
  Speaker 4: pretty good in a couple of weeks changing already.
• 10:18
  Speaker 1: Good luck truly, good luck with that.
• 10:20
  Speaker 5: Good luck with that.
• 10:21
  Speaker 1: Eric.
• 10:21
  Speaker 5: I think also it's active, and that's maybe the selling
• 10:25
  Speaker 5: proposition but it's active.
• 10:27
  Speaker 2: But there's you can get high.
• 10:29
  Speaker 4: You can get Capitol Group is the highest brand t
• 10:32
  Speaker 4: row DFA, JP Morgan. You can get top shelf brand
• 10:36
  Speaker 4: name active value for a half of this cost.
• 10:39
  Speaker 5: Maybe they know something we don't.
• 10:40
  Speaker 2: That's right, maybe they do.
• 10:41
  Speaker 5: Good luck with that, Eric, good luck with that?
• 10:44
  Speaker 1: Okay? Is Itelle? Thanks for joining us?
• 10:46
  Speaker 3: Thank you, Thanks for listening to Trillions until next time.
• 10:58
  Speaker 3: You can find us on the Bloomberg terminal, Burg dot com,
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• 11:08
  Speaker 3: Trillions is produced by Magnus Hendrickson and Kishav Pandia Bye