Latest / Views from 6,230 / Rethinking Risk: Why Smart Asset Allocation in Emerging Markets Matters

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Rethinking Risk: Why Smart Asset Allocation in Emerging Markets Matters · Views from 6,230

• 0:01
  Welcome
• 0:02
  to
• 0:02
  the
• 0:02
  Adjusted
• 0:03
  for
• 0:03
  Risk
• 0:03
  podcast.
• 0:05
  Join
• 0:05
  myself,
• 0:06
  Brian
• 0:06
  Namath,
• 0:07
  as
• 0:07
  I
• 0:07
  talk
• 0:07
  markets,
• 0:08
  investments,
• 0:09
  economics-
• 0:10
  Let's
• 0:10
  get
• 0:10
  started
• 0:10
  and
• 0:10
  life,
• 0:10
  as
• 0:11
  I
• 0:11
  help
• 0:11
  prepare
• 0:12
  you
• 0:12
  for
• 0:12
  the
• 0:13
  upcoming
• 0:13
  week
• 0:13
  in
• 0:14
  markets.
• 0:15
  I
• 0:15
  work
• 0:16
  for
• 0:16
  Zephyr,
• 0:17
  and
• 0:17
  all
• 0:17
  opinions
• 0:17
  expressed
• 0:18
  by
• 0:18
  myself
• 0:19
  and
• 0:19
  my
• 0:20
  podcast
• 0:20
  guests
• 0:21
  are
• 0:21
  solely
• 0:21
  of
• 0:21
  their
• 0:22
  own
• 0:22
  opinions
• 0:22
  and
• 0:23
  do
• 0:23
  not
• 0:23
  reflect
• 0:23
  the
• 0:24
  opinion
• 0:24
  of
• 0:25
  Zephyr
• 0:26
  or
• 0:26
  Informa,
• 0:27
  its
• 0:27
  parent
• 0:27
  company.
• 0:29
  This
• 0:29
  podcast
• 0:30
  is
• 0:30
  for
• 0:30
  informational
• 0:31
  purposes
• 0:32
  only
• 0:32
  and
• 0:32
  should
• 0:32
  not
• 0:33
  be
• 0:33
  relied
• 0:33
  on
• 0:34
  for
• 0:34
  investment
• 0:35
  decisions.
• 0:38
  Welcome,
• 0:38
  everyone,
• 0:39
  to
• 0:39
  Zephyr's
• 0:39
  Adjusted
• 0:40
  for
• 0:40
  Risk
• 0:40
  podcast.
• 0:41
  We
• 0:41
  are
• 0:42
  on
• 0:42
  location
• 0:43
  at
• 0:43
  the
• 0:43
  Exchange
• 0:44
  at
• 0:44
  2026,
• 0:46
  uh,
• 0:46
  ETF
• 0:47
  conference.
• 0:47
  Been
• 0:47
  a
• 0:47
  fantas-
• 0:48
  It's
• 0:48
  gonna
• 0:48
  be
• 0:49
  a
• 0:49
  fantastic
• 0:49
  conference.
• 0:50
  A
• 0:50
  lot
• 0:50
  of
• 0:50
  great
• 0:51
  content
• 0:51
  lined
• 0:52
  up.
• 0:52
  Really
• 0:52
  excited
• 0:53
  for
• 0:53
  the
• 0:53
  next
• 0:53
  couple
• 0:53
  days.
• 0:55
  You
• 0:55
  know,
• 0:55
  diversification
• 0:56
  was
• 0:56
  a
• 0:56
  big
• 0:57
  winner
• 0:58
  in
• 0:58
  2025.
• 0:59
  The
• 0:59
  primary
• 0:59
  reason
• 1:00
  diversification
• 1:01
  is
• 1:01
  back
• 1:02
  is
• 1:02
  due
• 1:02
  to
• 1:02
  the
• 1:02
  strong
• 1:03
  performance
• 1:04
  of
• 1:04
  foreign
• 1:05
  investments,
• 1:05
  particularly
• 1:06
  emerging
• 1:06
  markets,
• 1:07
  which
• 1:08
  under-
• 1:08
  or
• 1:08
  which
• 1:08
  outperformed
• 1:09
  in
• 1:09
  2025.
• 1:11
  Well,
• 1:11
  I
• 1:12
  have
• 1:12
  on
• 1:12
  the
• 1:12
  perfect
• 1:13
  guest
• 1:13
  to
• 1:13
  di-
• 1:14
  discuss
• 1:15
  all
• 1:15
  things
• 1:16
  emerging
• 1:16
  markets
• 1:17
  and
• 1:17
  if
• 1:17
  they
• 1:17
  still
• 1:17
  have
• 1:18
  room
• 1:18
  to
• 1:18
  run
• 1:19
  in
• 1:19
  2025.
• 1:21
  But
• 1:21
  first,
• 1:21
  this
• 1:22
  episode
• 1:22
  is
• 1:22
  sponsored
• 1:23
  by
• 1:23
  the
• 1:23
  award-winning
• 1:24
  Zephyr,
• 1:24
  which
• 1:25
  helps
• 1:25
  investment
• 1:25
  professionals
• 1:26
  make
• 1:26
  more
• 1:27
  informed
• 1:28
  investment
• 1:28
  decisions
• 1:29
  on
• 1:29
  behalf
• 1:29
  of
• 1:29
  their
• 1:29
  clients.
• 1:30
  I'd
• 1:31
  like
• 1:31
  to
• 1:31
  give
• 1:31
  a
• 1:31
  very
• 1:32
  warm
• 1:32
  welcome
• 1:33
  to
• 1:33
  Ed
• 1:33
  Lopez.
• 1:34
  Ed
• 1:35
  is
• 1:35
  the
• 1:35
  head
• 1:36
  of
• 1:36
  product
• 1:36
  management
• 1:38
  at
• 1:38
  VanEck,
• 1:40
  and
• 1:40
  also
• 1:41
  host
• 1:41
  of
• 1:41
  Trends
• 1:42
  with
• 1:42
  Benefits
• 1:43
  podcast.
• 1:44
  Ed,
• 1:44
  first
• 1:44
  of
• 1:44
  all,
• 1:45
  thank
• 1:45
  you
• 1:45
  so
• 1:46
  much
• 1:46
  for
• 1:46
  coming
• 1:46
  on
• 1:46
  the
• 1:46
  podcast.
• 1:47
  Really,
• 1:47
  it's
• 1:48
  an
• 1:48
  honor
• 1:48
  to
• 1:48
  have
• 1:48
  you
• 1:49
  on.
• 1:49
  But
• 1:50
  I
• 1:50
  have
• 1:50
  to
• 1:50
  believe
• 1:50
  you
• 1:51
  probably
• 1:51
  have
• 1:51
  the
• 1:51
  best
• 1:52
  name
• 1:52
  for
• 1:52
  a
• 1:52
  podcast
• 1:54
  out
• 1:54
  there.
• 1:54
  I
• 1:54
  think
• 1:54
  it's
• 1:55
  fantastic.
• 1:55
  I
• 1:55
  love
• 1:56
  Trends
• 1:56
  with
• 1:56
  Benefits.
• 1:57
  I
• 1:57
  don't
• 1:57
  even
• 1:57
  know
• 1:57
  if
• 1:57
  I
• 1:57
  can
• 1:57
  out-nine
• 1:57
  you.
• 1:57
  Well,
• 1:57
  you're...
• 1:58
  Yes.
• 1:59
  The,
• 1:59
  the
• 1:59
  Trends
• 2:00
  with
• 2:00
  Benefits
• 2:00
  podcast.
• 2:01
  Yeah.
• 2:01
  That's,
• 2:02
  that's
• 2:02
  a
• 2:02
  fun
• 2:02
  one.
• 2:02
  Yeah.
• 2:03
  Who
• 2:03
  came
• 2:03
  up...
• 2:03
  You...
• 2:04
  Can
• 2:04
  I
• 2:04
  give
• 2:04
  you
• 2:04
  all
• 2:05
  the
• 2:05
  credit?
• 2:05
  Honestly,
• 2:05
  I
• 2:05
  think
• 2:06
  Jan
• 2:06
  VanEck
• 2:07
  came
• 2:07
  up
• 2:07
  with
• 2:07
  it.
• 2:07
  Oh,
• 2:07
  really?
• 2:08
  Yeah.
• 2:09
  I
• 2:09
  love
• 2:09
  it.
• 2:09
  I
• 2:09
  think
• 2:09
  that's
• 2:10
  a...
• 2:10
  I
• 2:10
  love
• 2:11
  that
• 2:11
  name.
• 2:11
  Fan-
• 2:11
  And
• 2:11
  it
• 2:11
  really
• 2:11
  plays
• 2:11
  into
• 2:12
  what
• 2:12
  we
• 2:12
  try
• 2:12
  to
• 2:12
  do
• 2:13
  and,
• 2:13
  and
• 2:13
  with
• 2:13
  our
• 2:14
  product
• 2:14
  set,
• 2:14
  and
• 2:15
  play
• 2:15
  into
• 2:15
  long-term
• 2:16
  trends
• 2:16
  that
• 2:16
  are
• 2:17
  playing
• 2:17
  out
• 2:17
  there.
• 2:17
  So
• 2:18
  it,
• 2:18
  it
• 2:18
  was
• 2:18
  perfect.
• 2:19
  Yeah,
• 2:19
  I
• 2:19
  love
• 2:20
  it.
• 2:20
  I,
• 2:20
  I
• 2:20
  think
• 2:20
  it's
• 2:21
  a
• 2:21
  really
• 2:21
  fun
• 2:21
  name.
• 2:21
  A
• 2:21
  lot
• 2:22
  of
• 2:22
  fun
• 2:22
  podcast
• 2:23
  names
• 2:23
  out
• 2:23
  there.
• 2:23
  Yeah.
• 2:23
  That's
• 2:23
  my
• 2:23
  favorite.
• 2:24
  So
• 2:25
  Ed,
• 2:25
  why
• 2:25
  don't
• 2:25
  you
• 2:25
  just
• 2:25
  start
• 2:26
  by
• 2:26
  telling
• 2:26
  us
• 2:27
  a
• 2:27
  little
• 2:27
  bit
• 2:27
  about
• 2:27
  yourself
• 2:28
  and
• 2:28
  VanEck?
• 2:29
  Yeah.
• 2:29
  Uh,
• 2:29
  well,
• 2:30
  um,
• 2:31
  so
• 2:31
  yeah,
• 2:31
  I
• 2:31
  head
• 2:31
  up
• 2:31
  our
• 2:31
  product
• 2:32
  team.
• 2:32
  I've
• 2:32
  been
• 2:33
  at
• 2:33
  VanEck,
• 2:33
  gosh,
• 2:34
  almost
• 2:34
  17
• 2:35
  years
• 2:35
  now.
• 2:36
  Uh,
• 2:36
  one
• 2:36
  of
• 2:36
  the
• 2:36
  lucky
• 2:37
  few
• 2:37
  to
• 2:37
  get
• 2:37
  hired
• 2:38
  in
• 2:38
  the,
• 2:38
  uh,
• 2:38
  uh,
• 2:39
  in
• 2:39
  the
• 2:39
  summer
• 2:40
  of
• 2:40
  the
• 2:40
  financial
• 2:40
  crisis
• 2:41
  in
• 2:41
  '09.
• 2:42
  In
• 2:42
  New
• 2:42
  York,
• 2:43
  you
• 2:43
  know,
• 2:43
  of
• 2:43
  all
• 2:43
  places.
• 2:44
  Um,
• 2:45
  but
• 2:45
  it's
• 2:45
  been,
• 2:45
  it's
• 2:46
  been
• 2:46
  a
• 2:46
  great
• 2:46
  run.
• 2:47
  And,
• 2:47
  uh,
• 2:48
  VanEck,
• 2:48
  if
• 2:48
  people
• 2:49
  don't
• 2:49
  know,
• 2:49
  we're
• 2:49
  a,
• 2:50
  I
• 2:50
  guess,
• 2:50
  a
• 2:50
  $200
• 2:51
  billion
• 2:51
  global
• 2:52
  asset
• 2:52
  manager,
• 2:53
  a
• 2:53
  top
• 2:53
  10
• 2:54
  ETF
• 2:54
  provider-
• 2:54
  Um,
• 2:56
  have
• 2:56
  been
• 2:56
  an
• 2:56
  ETF
• 2:56
  since
• 2:57
  2006,
• 2:58
  but
• 2:58
  the
• 2:58
  firm
• 2:58
  was
• 2:58
  actually
• 2:59
  started
• 2:59
  in
• 2:59
  1955.
• 3:01
  Uh,
• 3:01
  long
• 3:01
  legacy
• 3:02
  in,
• 3:02
  in
• 3:02
  natural
• 3:02
  resources
• 3:03
  and
• 3:03
  emerging
• 3:03
  markets.
• 3:04
  And
• 3:05
  with
• 3:05
  our
• 3:05
  ETF
• 3:05
  business,
• 3:07
  the
• 3:07
  first
• 3:07
  ETF
• 3:07
  of
• 3:07
  which
• 3:08
  was
• 3:08
  GDX.
• 3:08
  Maybe
• 3:09
  pe-
• 3:09
  many
• 3:09
  people
• 3:09
  know
• 3:09
  that
• 3:10
  ticker.
• 3:10
  They
• 3:10
  don't
• 3:11
  often
• 3:11
  realize
• 3:12
  it
• 3:12
  comes
• 3:12
  from
• 3:12
  VanEck,
• 3:13
  but
• 3:13
  GDX
• 3:13
  was
• 3:14
  our
• 3:14
  first.
• 3:14
  We've
• 3:14
  been
• 3:15
  able
• 3:15
  to
• 3:15
  build
• 3:15
  out
• 3:16
  a,
• 3:16
  a
• 3:16
  nice
• 3:17
  suite
• 3:17
  of
• 3:17
  ETFs
• 3:18
  across
• 3:19
  asset
• 3:19
  classes,
• 3:20
  uh,
• 3:20
  with,
• 3:21
  uh,
• 3:22
  a
• 3:22
  wide
• 3:22
  variety
• 3:23
  of
• 3:23
  approaches
• 3:24
  to,
• 3:24
  you
• 3:24
  know,
• 3:24
  providing
• 3:25
  the
• 3:25
  best
• 3:25
  exposure
• 3:26
  that
• 3:26
  we
• 3:26
  think-
• 3:26
  Mm-hmm
• 3:26
  possible.
• 3:27
  Yeah.
• 3:28
  That's
• 3:28
  fantastic.
• 3:28
  Yeah.
• 3:29
  VanEck
• 3:29
  has
• 3:30
  been
• 3:30
  a
• 3:30
  great,
• 3:30
  fun
• 3:31
  company
• 3:31
  for
• 3:31
  years.
• 3:32
  I
• 3:32
  love
• 3:32
  the
• 3:33
  story,
• 3:33
  and
• 3:33
  very
• 3:34
  innovative
• 3:34
  products,
• 3:35
  too.
• 3:35
  Yeah.
• 3:35
  Thank
• 3:35
  you
• 3:36
  very
• 3:36
  much.
• 3:36
  Lot
• 3:36
  of,
• 3:36
  lot
• 3:36
  of
• 3:36
  great
• 3:37
  products.
• 3:37
  So
• 3:38
  emerging
• 3:39
  markets,
• 3:39
  like
• 3:39
  I
• 3:39
  said
• 3:39
  at
• 3:40
  the
• 3:40
  open,
• 3:40
  fantastic
• 3:41
  performance,
• 3:42
  uh,
• 3:42
  in
• 3:43
  2025,
• 3:43
  outperformance.
• 3:46
  But
• 3:46
  there's
• 3:46
  a
• 3:46
  lot
• 3:47
  of
• 3:47
  macro
• 3:48
  uncertainty
• 3:48
  going
• 3:49
  on
• 3:49
  right
• 3:49
  now
• 3:49
  in
• 3:49
  the
• 3:49
  world,
• 3:50
  lot
• 3:50
  of
• 3:51
  things
• 3:51
  happening
• 3:53
  that,
• 3:53
  you
• 3:54
  know,
• 3:54
  investors
• 3:54
  are
• 3:54
  faced
• 3:55
  with
• 3:55
  in
• 3:55
  emerging
• 3:56
  markets.
• 3:56
  Do
• 3:56
  you
• 3:56
  think--
• 3:56
  How
• 3:57
  does
• 3:57
  that
• 3:57
  impact,
• 3:58
  all
• 3:58
  that
• 3:58
  uncertainty,
• 3:59
  the
• 3:59
  war
• 3:59
  with
• 4:00
  Iran,
• 4:01
  impact
• 4:01
  emerging
• 4:02
  markets,
• 4:02
  and
• 4:02
  do
• 4:02
  you
• 4:03
  think
• 4:03
  emerging
• 4:03
  markets
• 4:04
  are
• 4:04
  gonna
• 4:04
  be
• 4:04
  able
• 4:04
  to
• 4:04
  withstand
• 4:05
  it
• 4:05
  and
• 4:06
  continue?
• 4:08
  Well,
• 4:08
  I'll,
• 4:09
  I'll
• 4:09
  back
• 4:09
  up
• 4:09
  a
• 4:09
  little
• 4:09
  bit,
• 4:10
  because
• 4:10
  I
• 4:10
  think
• 4:10
  there
• 4:11
  are
• 4:11
  some
• 4:11
  short-term
• 4:13
  impacts
• 4:14
  that
• 4:14
  are,
• 4:14
  that
• 4:14
  are
• 4:14
  happening
• 4:15
  stemming,
• 4:15
  stemming
• 4:16
  from
• 4:16
  the,
• 4:16
  the,
• 4:17
  the
• 4:17
  Iran
• 4:18
  conflict
• 4:18
  or
• 4:18
  war,
• 4:19
  whatever
• 4:19
  you
• 4:19
  wanna
• 4:19
  call
• 4:19
  it
• 4:20
  and,
• 4:20
  and
• 4:20
  other
• 4:21
  things,
• 4:21
  and
• 4:21
  there's
• 4:21
  some
• 4:21
  risk-off
• 4:22
  that
• 4:22
  has
• 4:22
  happened
• 4:23
  more
• 4:23
  recently,
• 4:24
  um,
• 4:25
  since
• 4:26
  the
• 4:26
  end
• 4:26
  of
• 4:26
  February
• 4:27
  of,
• 4:27
  of
• 4:27
  this
• 4:27
  year.
• 4:28
  Um,
• 4:29
  but
• 4:29
  last
• 4:29
  year
• 4:29
  in,
• 4:29
  in,
• 4:30
  in,
• 4:31
  in
• 4:31
  your
• 4:31
  intro,
• 4:32
  uh,
• 4:32
  you
• 4:33
  talked
• 4:33
  about
• 4:33
  diversification
• 4:34
  winning
• 4:34
  and
• 4:34
  emerging
• 4:35
  markets
• 4:35
  really
• 4:35
  kinda
• 4:35
  being
• 4:35
  part
• 4:36
  of
• 4:36
  that.
• 4:36
  Diversification
• 4:37
  won
• 4:38
  for
• 4:38
  you
• 4:39
  if
• 4:39
  you
• 4:39
  are
• 4:39
  particularly
• 4:40
  diversified.
• 4:41
  One
• 4:41
  of
• 4:41
  the
• 4:41
  problems
• 4:42
  is
• 4:42
  that
• 4:42
  many
• 4:42
  people,
• 4:43
  many
• 4:43
  US
• 4:43
  investors
• 4:44
  tend
• 4:45
  not
• 4:45
  to
• 4:45
  have
• 4:46
  much
• 4:47
  diversification
• 4:47
  in
• 4:47
  the
• 4:47
  way
• 4:48
  of,
• 4:48
  say,
• 4:48
  international
• 4:49
  or
• 4:49
  even
• 4:49
  emerging
• 4:50
  markets
• 4:50
  in
• 4:50
  particular.
• 4:52
  But
• 4:52
  yes,
• 4:52
  in,
• 4:52
  in
• 4:53
  emerging
• 4:53
  markets,
• 4:55
  uh,
• 4:55
  to
• 4:55
  put
• 4:55
  it
• 4:55
  in
• 4:55
  perspective,
• 4:56
  in
• 4:56
  2025,
• 4:57
  emerging
• 4:57
  market
• 4:57
  equities
• 4:58
  were
• 4:58
  up,
• 4:59
  I
• 4:59
  think,
• 4:59
  over
• 4:59
  30%.
• 5:00
  Um,
• 5:01
  the
• 5:02
  S&P
• 5:02
  was
• 5:02
  up,
• 5:02
  like,
• 5:02
  17
• 5:03
  or
• 5:03
  so
• 5:03
  percent.
• 5:05
  Also,
• 5:05
  emerging
• 5:05
  market
• 5:06
  debt,
• 5:06
  if
• 5:06
  you
• 5:06
  look
• 5:07
  at
• 5:07
  a
• 5:07
  blend
• 5:07
  of-
• 5:08
  Mm-hmm
• 5:08
  local
• 5:08
  currency
• 5:08
  and
• 5:08
  hard
• 5:09
  currency,
• 5:09
  were
• 5:09
  up
• 5:09
  also
• 5:10
  around
• 5:10
  17%,
• 5:11
  just
• 5:11
  shy
• 5:11
  of
• 5:11
  that.
• 5:12
  So
• 5:12
  good
• 5:12
  performance
• 5:13
  on
• 5:14
  emerging
• 5:14
  market
• 5:14
  assets
• 5:15
  in,
• 5:15
  in
• 5:15
  general
• 5:16
  last
• 5:16
  year
• 5:16
  and,
• 5:16
  and
• 5:17
  they
• 5:17
  continued
• 5:17
  pretty
• 5:17
  well
• 5:18
  up
• 5:18
  until,
• 5:19
  um,
• 5:19
  the
• 5:19
  most
• 5:20
  recent
• 5:20
  conflict
• 5:20
  in,
• 5:20
  in
• 5:21
  February,
• 5:22
  uh,
• 5:22
  where
• 5:22
  you
• 5:22
  saw
• 5:22
  some
• 5:23
  risk-off
• 5:23
  happening-
• 5:24
  Mm-hmm
• 5:24
  and,
• 5:24
  and,
• 5:24
  uh,
• 5:26
  uh,
• 5:26
  and
• 5:26
  people
• 5:26
  going
• 5:26
  back
• 5:27
  into
• 5:27
  the
• 5:27
  US
• 5:27
  dollar.
• 5:28
  But
• 5:29
  longer
• 5:29
  term,
• 5:31
  we're,
• 5:31
  we're
• 5:31
  very
• 5:31
  constructive
• 5:32
  on
• 5:32
  emerging
• 5:32
  markets.
• 5:34
  Um,
• 5:35
  we--
• 5:35
  I
• 5:35
  guess
• 5:35
  we
• 5:35
  always
• 5:35
  have
• 5:36
  been
• 5:36
  as
• 5:36
  a,
• 5:36
  as
• 5:36
  a
• 5:36
  long-term
• 5:37
  story.
• 5:38
  But
• 5:38
  right
• 5:38
  now,
• 5:39
  I
• 5:39
  think
• 5:39
  the
• 5:39
  setup
• 5:39
  is
• 5:39
  particularly,
• 5:41
  uh,
• 5:41
  good,
• 5:42
  and
• 5:43
  there
• 5:43
  was
• 5:43
  a,
• 5:43
  a
• 5:43
  few
• 5:44
  things
• 5:44
  happening
• 5:44
  there,
• 5:44
  which
• 5:44
  was
• 5:45
  geopolitical
• 5:47
  machinations
• 5:48
  or
• 5:48
  whatever.
• 5:48
  You
• 5:48
  know,
• 5:48
  ever
• 5:49
  since
• 5:50
  Russia
• 5:50
  in-invaded
• 5:51
  Ukraine,
• 5:52
  um-
• 5:53
  Different
• 5:54
  governments
• 5:54
  around
• 5:54
  the
• 5:54
  world
• 5:55
  woke
• 5:55
  up
• 5:55
  to
• 5:55
  this
• 5:55
  idea
• 5:56
  that
• 5:57
  the
• 5:57
  US
• 5:58
  dominates
• 5:58
  too
• 5:58
  much
• 5:59
  of
• 5:59
  their
• 6:00
  one
• 6:00
  of
• 6:00
  their
• 6:00
  reserves
• 6:01
  and,
• 6:01
  and,
• 6:02
  uh,
• 6:02
  and,
• 6:02
  and
• 6:03
  capital.
• 6:03
  So
• 6:03
  there's
• 6:03
  been
• 6:04
  a,
• 6:04
  um,
• 6:05
  amongst
• 6:06
  central
• 6:06
  banks
• 6:06
  around
• 6:07
  the
• 6:07
  world
• 6:07
  and
• 6:07
  governments
• 6:07
  around
• 6:08
  the
• 6:08
  world,
• 6:08
  diversification
• 6:09
  away
• 6:09
  from
• 6:09
  the
• 6:09
  US
• 6:09
  dollar,
• 6:10
  and
• 6:10
  that
• 6:10
  plays
• 6:11
  into,
• 6:11
  uh,
• 6:12
  international
• 6:12
  currencies
• 6:13
  or
• 6:13
  emerging
• 6:13
  market
• 6:13
  currency
• 6:14
  strength
• 6:14
  as
• 6:14
  well.
• 6:15
  Um,
• 6:18
  and
• 6:18
  you
• 6:18
  also
• 6:19
  have
• 6:19
  better
• 6:20
  fiscal
• 6:21
  financial
• 6:21
  positions
• 6:22
  of,
• 6:22
  of
• 6:22
  a
• 6:22
  lot
• 6:23
  of
• 6:23
  these
• 6:23
  countries
• 6:23
  and
• 6:23
  central
• 6:24
  banks.
• 6:25
  Uh,
• 6:25
  one
• 6:25
  of
• 6:25
  our
• 6:25
  EM
• 6:26
  debt
• 6:26
  managers,
• 6:26
  Eric
• 6:27
  Fine,
• 6:27
  uh,
• 6:28
  talks
• 6:28
  about
• 6:28
  this
• 6:28
  idea
• 6:29
  of
• 6:29
  fiscal
• 6:30
  dominance,
• 6:31
  where
• 6:31
  emerging
• 6:32
  markets
• 6:33
  have
• 6:33
  a
• 6:33
  lack
• 6:33
  of
• 6:33
  fiscal
• 6:34
  dominance.
• 6:34
  Now,
• 6:34
  I
• 6:34
  know
• 6:34
  dominant
• 6:35
  sounds
• 6:35
  like
• 6:35
  a,
• 6:36
  a
• 6:36
  strong,
• 6:36
  good
• 6:37
  word,
• 6:37
  but
• 6:37
  it's
• 6:38
  actually
• 6:38
  bad
• 6:38
  in
• 6:38
  this
• 6:38
  context,
• 6:39
  where
• 6:39
  developed
• 6:40
  markets
• 6:41
  have
• 6:41
  a
• 6:41
  lot
• 6:41
  of
• 6:41
  fiscal
• 6:42
  dominance
• 6:42
  where
• 6:42
  their
• 6:43
  debts
• 6:43
  and
• 6:44
  deficits
• 6:45
  dominate
• 6:46
  to
• 6:46
  the
• 6:46
  extent
• 6:47
  where
• 6:48
  monetary
• 6:48
  policy
• 6:49
  is,
• 6:49
  is
• 6:49
  toothless
• 6:50
  to,
• 6:50
  to
• 6:51
  really
• 6:51
  control
• 6:51
  inflation
• 6:52
  and
• 6:52
  what
• 6:52
  have
• 6:52
  you.
• 6:52
  Uh,
• 6:53
  emerging
• 6:54
  markets
• 6:54
  are
• 6:54
  in
• 6:54
  a
• 6:54
  much
• 6:54
  better
• 6:55
  shape.
• 6:55
  So
• 6:56
  financially,
• 6:56
  much
• 6:56
  better
• 6:57
  shape,
• 6:57
  more,
• 6:58
  um,
• 7:00
  y-
• 7:00
  better
• 7:01
  run
• 7:01
  central,
• 7:01
  uh,
• 7:02
  central
• 7:02
  banks.
• 7:03
  Um,
• 7:04
  and
• 7:04
  you're
• 7:05
  f-
• 7:05
  and,
• 7:05
  and
• 7:05
  then
• 7:06
  also
• 7:06
  just
• 7:06
  the
• 7:06
  assets,
• 7:07
  a
• 7:07
  better
• 7:08
  valuation
• 7:08
  relative-
• 7:09
  Mm-hmm
• 7:09
  to
• 7:09
  developed
• 7:10
  markets.
• 7:10
  So
• 7:10
  I
• 7:10
  think
• 7:10
  there's,
• 7:12
  there
• 7:12
  are
• 7:12
  things
• 7:12
  in
• 7:13
  place
• 7:13
  to--
• 7:14
  that
• 7:14
  point
• 7:15
  to
• 7:15
  a
• 7:15
  good
• 7:15
  long-term
• 7:16
  be
• 7:16
  that
• 7:16
  opportunity
• 7:16
  for
• 7:17
  people
• 7:17
  to,
• 7:17
  okay,
• 7:18
  reassess.
• 7:19
  Yeah.
• 7:19
  And
• 7:20
  that's
• 7:20
  a
• 7:20
  very
• 7:20
  good
• 7:21
  point,
• 7:21
  and
• 7:21
  I'm
• 7:21
  really
• 7:21
  glad
• 7:22
  you
• 7:22
  added
• 7:23
  that
• 7:23
  point
• 7:23
  about
• 7:23
  diversification.
• 7:24
  You
• 7:24
  only
• 7:24
  get
• 7:25
  the
• 7:25
  benefits
• 7:25
  of
• 7:25
  diversification
• 7:26
  if
• 7:26
  you're
• 7:26
  diversified-
• 7:27
  Right
• 7:27
  within
• 7:27
  your
• 7:28
  portfolio.
• 7:29
  Do
• 7:29
  you
• 7:29
  think,
• 7:30
  and
• 7:30
  you
• 7:30
  brought
• 7:30
  it
• 7:30
  up,
• 7:32
  there's
• 7:32
  probably
• 7:33
  w-
• 7:34
  people,
• 7:34
  investors
• 7:35
  are
• 7:35
  too
• 7:35
  underweight
• 7:36
  emerging
• 7:36
  markets,
• 7:36
  whether
• 7:37
  it's
• 7:37
  equities
• 7:38
  or
• 7:38
  fixed
• 7:39
  income
• 7:40
  debt.
• 7:41
  Why
• 7:41
  do
• 7:41
  you
• 7:41
  think
• 7:41
  that
• 7:41
  is?
• 7:42
  Do
• 7:42
  you
• 7:42
  just
• 7:42
  think
• 7:43
  it's
• 7:43
  because
• 7:43
  the
• 7:44
  US
• 7:44
  has
• 7:44
  outperformed
• 7:45
  for
• 7:45
  so
• 7:45
  many
• 7:46
  years,
• 7:46
  it's
• 7:46
  like,
• 7:46
  why
• 7:47
  do
• 7:47
  emerging
• 7:47
  markets,
• 7:49
  they
• 7:49
  just
• 7:49
  are
• 7:49
  afraid
• 7:50
  to
• 7:50
  invest
• 7:51
  in
• 7:51
  China?
• 7:52
  Or
• 7:52
  w-what,
• 7:53
  why
• 7:53
  do
• 7:53
  you
• 7:53
  think
• 7:53
  that
• 7:54
  is
• 7:54
  that
• 7:54
  there's
• 7:54
  under,
• 7:55
  uh,
• 7:55
  weight
• 7:56
  there?
• 7:57
  Well,
• 7:57
  as,
• 7:58
  as...
• 7:58
  Well,
• 7:58
  US
• 7:59
  investors
• 7:59
  are
• 7:59
  very
• 7:59
  lucky.
• 8:00
  We
• 8:00
  have
• 8:00
  a
• 8:00
  fantastic
• 8:01
  market,
• 8:01
  you
• 8:01
  know?
• 8:02
  Mm-hmm.
• 8:02
  Very
• 8:02
  resilient
• 8:03
  capital
• 8:03
  markets.
• 8:04
  Well,
• 8:04
  emerging
• 8:04
  markets,
• 8:06
  just
• 8:06
  based
• 8:06
  on
• 8:06
  GDP,
• 8:07
  account
• 8:07
  for
• 8:07
  greater
• 8:08
  than
• 8:08
  fifty
• 8:08
  percent
• 8:08
  of
• 8:09
  global
• 8:09
  GDP,
• 8:10
  yet
• 8:10
  in
• 8:10
  many
• 8:11
  investor
• 8:11
  portfolios,
• 8:12
  maybe
• 8:12
  emerging
• 8:13
  markets
• 8:13
  are,
• 8:13
  you
• 8:14
  know,
• 8:14
  one
• 8:14
  to
• 8:14
  five
• 8:14
  percent,
• 8:15
  just
• 8:15
  a
• 8:15
  small
• 8:15
  sliver.
• 8:16
  Mm-hmm.
• 8:16
  Um,
• 8:18
  I
• 8:18
  think
• 8:18
  there
• 8:18
  is
• 8:19
  historically
• 8:20
  been
• 8:20
  a
• 8:20
  home
• 8:21
  bias
• 8:22
  towards
• 8:22
  investing,
• 8:23
  so,
• 8:23
  you
• 8:23
  know,
• 8:23
  we
• 8:24
  have
• 8:24
  these
• 8:24
  very
• 8:24
  developed
• 8:25
  markets
• 8:25
  for
• 8:26
  equities
• 8:26
  and
• 8:26
  fixed
• 8:27
  income,
• 8:27
  so
• 8:27
  there's
• 8:27
  that
• 8:27
  home
• 8:27
  bias.
• 8:29
  Um,
• 8:30
  headline
• 8:30
  risk,
• 8:30
  of
• 8:31
  course,
• 8:31
  and
• 8:32
  past
• 8:32
  crises
• 8:33
  that
• 8:33
  have
• 8:33
  come
• 8:33
  out
• 8:33
  of
• 8:33
  different,
• 8:34
  uh,
• 8:34
  regions
• 8:34
  around
• 8:35
  the
• 8:35
  world
• 8:35
  don't,
• 8:36
  don't
• 8:36
  help
• 8:36
  that.
• 8:37
  Um,
• 8:38
  but
• 8:38
  a-
• 8:38
  as
• 8:39
  we've
• 8:39
  been
• 8:39
  saying
• 8:40
  for
• 8:40
  the
• 8:40
  last,
• 8:41
  I
• 8:41
  guess
• 8:41
  now,
• 8:41
  couple
• 8:41
  decades,
• 8:43
  many
• 8:43
  emerging
• 8:43
  market
• 8:44
  countries
• 8:44
  have
• 8:46
  really
• 8:46
  found
• 8:46
  their
• 8:47
  way
• 8:47
  into
• 8:48
  a
• 8:48
  more
• 8:48
  professionally
• 8:49
  Organized
• 8:50
  and,
• 8:50
  and
• 8:50
  run
• 8:51
  central
• 8:51
  banks
• 8:52
  and,
• 8:52
  and,
• 8:52
  uh,
• 8:53
  financial
• 8:54
  shape
• 8:54
  than
• 8:54
  a
• 8:54
  lot
• 8:54
  of
• 8:54
  the
• 8:55
  developed
• 8:55
  markets
• 8:55
  from
• 8:55
  a
• 8:56
  fiscal
• 8:56
  standpoint.
• 8:57
  Um,
• 8:58
  so
• 8:58
  I
• 8:58
  think
• 8:58
  there's
• 8:58
  opportunity
• 8:59
  for
• 8:59
  investors
• 8:59
  there.
• 9:00
  Um...
• 9:02
  Yeah.
• 9:02
  No,
• 9:02
  that
• 9:02
  makes
• 9:03
  a
• 9:03
  lot
• 9:03
  of
• 9:03
  sense.
• 9:04
  And
• 9:05
  talked
• 9:05
  about
• 9:05
  the
• 9:06
  opportunities.
• 9:07
  To,
• 9:07
  to
• 9:07
  kind
• 9:07
  of
• 9:08
  go
• 9:08
  along
• 9:08
  with
• 9:08
  that,
• 9:09
  we
• 9:09
  often
• 9:09
  know
• 9:10
  emerging
• 9:10
  markets,
• 9:11
  it,
• 9:11
  it
• 9:11
  helps
• 9:11
  with
• 9:11
  diversification,
• 9:13
  right?
• 9:13
  Diversification
• 9:14
  benefits
• 9:14
  there.
• 9:14
  But
• 9:15
  are
• 9:15
  there
• 9:15
  any
• 9:15
  other
• 9:15
  reasons
• 9:16
  maybe
• 9:17
  that
• 9:18
  investors
• 9:18
  should
• 9:18
  include,
• 9:19
  you
• 9:20
  know,
• 9:20
  more
• 9:20
  emerging
• 9:21
  markets
• 9:21
  in
• 9:21
  their
• 9:21
  portfolio
• 9:22
  instead
• 9:22
  of
• 9:22
  just
• 9:23
  1%,
• 9:23
  maybe
• 9:23
  it's
• 9:24
  5%,
• 9:24
  or
• 9:24
  just
• 9:25
  include
• 9:25
  it
• 9:26
  altogether
• 9:26
  outside
• 9:27
  of
• 9:27
  just
• 9:27
  diversification?
• 9:29
  Well,
• 9:29
  yeah.
• 9:29
  You
• 9:29
  know,
• 9:29
  diversification's
• 9:30
  a
• 9:30
  big,
• 9:30
  um,
• 9:31
  big
• 9:31
  component
• 9:32
  of
• 9:32
  that
• 9:32
  if
• 9:32
  you're
• 9:32
  an
• 9:32
  asset
• 9:32
  allocator.
• 9:33
  Um,
• 9:34
  if
• 9:34
  you're
• 9:34
  greedy,
• 9:35
  maybe
• 9:35
  it's
• 9:35
  more
• 9:36
  about-
• 9:36
  uh,
• 9:37
  more
• 9:37
  potential
• 9:37
  opportunity
• 9:38
  and
• 9:38
  return.
• 9:39
  You
• 9:39
  know,
• 9:39
  you
• 9:39
  have,
• 9:39
  um,
• 9:40
  a
• 9:40
  growing
• 9:41
  middle
• 9:41
  class.
• 9:42
  Uh,
• 9:42
  you
• 9:42
  have
• 9:42
  young
• 9:43
  populations,
• 9:43
  particular
• 9:44
  in,
• 9:44
  in,
• 9:44
  uh,
• 9:45
  in
• 9:45
  India,
• 9:46
  for
• 9:46
  instance.
• 9:46
  That's
• 9:46
  a,
• 9:46
  a
• 9:47
  big
• 9:47
  area-
• 9:47
  Mm-hmm
• 9:47
  that
• 9:47
  we're
• 9:47
  particularly,
• 9:48
  uh,
• 9:48
  keen
• 9:49
  on.
• 9:49
  Um,
• 9:50
  and,
• 9:51
  and
• 9:51
  you're
• 9:51
  having
• 9:52
  an
• 9:52
  adoption
• 9:52
  of
• 9:53
  technology
• 9:54
  that's
• 9:54
  happening
• 9:54
  at
• 9:54
  a,
• 9:55
  at
• 9:55
  a,
• 9:55
  at
• 9:55
  a
• 9:55
  rapid
• 9:56
  rate.
• 9:56
  So
• 9:57
  growth
• 9:57
  is
• 9:57
  happening.
• 9:58
  Uh,
• 9:58
  markets
• 9:58
  are
• 9:59
  building
• 9:59
  out.
• 10:00
  It's
• 10:00
  a,
• 10:00
  it's
• 10:00
  an
• 10:00
  opportunity
• 10:01
  set
• 10:01
  as
• 10:01
  well
• 10:02
  as
• 10:02
  being,
• 10:02
  uh,
• 10:03
  a
• 10:03
  pure
• 10:03
  diversification
• 10:04
  play.
• 10:05
  Mm-hmm.
• 10:05
  Yeah,
• 10:05
  no,
• 10:06
  that,
• 10:06
  uh,
• 10:06
  makes
• 10:07
  a
• 10:07
  lot
• 10:07
  of
• 10:07
  sense,
• 10:08
  and
• 10:08
  2025
• 10:09
  showed
• 10:09
  it-
• 10:09
  Yeah.
• 10:10
  Yeah,
• 10:10
  yeah
• 10:10
  too,
• 10:10
  right?
• 10:11
  Um,
• 10:12
  even
• 10:12
  though
• 10:12
  there's
• 10:12
  been
• 10:13
  years
• 10:13
  of
• 10:13
  underperformance,
• 10:14
  it's
• 10:14
  hard
• 10:14
  to,
• 10:15
  to
• 10:15
  ignore
• 10:16
  the
• 10:16
  asset
• 10:17
  class.
• 10:17
  Let's
• 10:18
  talk...
• 10:18
  We
• 10:19
  brought
• 10:19
  up
• 10:19
  briefly
• 10:19
  China.
• 10:20
  Yeah.
• 10:21
  Kind
• 10:21
  of
• 10:21
  the
• 10:21
  elephant
• 10:22
  in
• 10:22
  the
• 10:22
  room.
• 10:23
  It,
• 10:24
  it's
• 10:24
  like
• 10:25
  I
• 10:25
  often
• 10:25
  say,
• 10:25
  emerging
• 10:26
  markets,
• 10:26
  you
• 10:26
  don't
• 10:27
  wanna
• 10:27
  just
• 10:27
  go
• 10:27
  passive
• 10:28
  in
• 10:29
  it,
• 10:29
  right?
• 10:30
  Um,
• 10:30
  b-
• 10:30
  that
• 10:30
  would
• 10:31
  be
• 10:31
  a
• 10:31
  huge
• 10:32
  allocation
• 10:32
  that
• 10:32
  China
• 10:33
  makes
• 10:34
  up
• 10:34
  a
• 10:34
  big
• 10:34
  percentage
• 10:35
  of
• 10:35
  the
• 10:35
  EM
• 10:36
  index.
• 10:36
  Right.
• 10:37
  But
• 10:37
  what
• 10:38
  do
• 10:38
  you
• 10:38
  tell,
• 10:38
  like,
• 10:39
  to
• 10:39
  the
• 10:39
  financial
• 10:39
  advisors
• 10:40
  who
• 10:40
  say
• 10:40
  they
• 10:40
  don't
• 10:41
  wanna
• 10:41
  invest
• 10:41
  in
• 10:41
  China,
• 10:42
  or,
• 10:43
  you
• 10:43
  know,
• 10:44
  they
• 10:44
  don't
• 10:44
  wanna
• 10:44
  invest
• 10:44
  in
• 10:45
  emerging
• 10:45
  markets
• 10:45
  because
• 10:46
  China's
• 10:46
  just
• 10:46
  too
• 10:47
  big
• 10:47
  of
• 10:47
  an
• 10:47
  allocation
• 10:48
  there.
• 10:48
  What
• 10:48
  do
• 10:48
  you
• 10:48
  tell
• 10:48
  them
• 10:49
  about
• 10:49
  emerging
• 10:50
  mar-
• 10:50
  you
• 10:50
  know,
• 10:50
  there's
• 10:50
  other
• 10:50
  countries.
• 10:51
  Yeah.
• 10:51
  It's
• 10:52
  not,
• 10:52
  they're
• 10:52
  not
• 10:52
  created
• 10:53
  equally.
• 10:54
  Well,
• 10:54
  right,
• 10:54
  that's
• 10:54
  the
• 10:54
  biggest
• 10:54
  thing.
• 10:55
  I
• 10:55
  think
• 10:55
  one
• 10:55
  of
• 10:55
  the
• 10:55
  biggest
• 10:55
  misperceptions
• 10:56
  about
• 10:57
  emerging
• 10:57
  markets
• 10:57
  is
• 10:58
  that
• 10:58
  it's
• 10:58
  a
• 10:58
  monolith,
• 10:59
  right?
• 10:59
  It's
• 11:00
  like
• 11:00
  they
• 11:00
  all,
• 11:01
  it's
• 11:01
  all
• 11:01
  the
• 11:01
  same
• 11:01
  thing.
• 11:01
  It's
• 11:02
  not.
• 11:02
  E-
• 11:02
  each
• 11:02
  of
• 11:02
  these
• 11:02
  countries
• 11:03
  have
• 11:03
  different
• 11:03
  characteristics,
• 11:04
  good
• 11:05
  and
• 11:05
  bad.
• 11:06
  Uh,
• 11:06
  and
• 11:07
  our
• 11:07
  active
• 11:07
  managers
• 11:08
  would
• 11:08
  tell
• 11:08
  you,
• 11:09
  you
• 11:09
  have
• 11:09
  to
• 11:09
  be
• 11:09
  selective.
• 11:10
  You
• 11:10
  have
• 11:10
  to
• 11:10
  be
• 11:10
  active.
• 11:10
  And,
• 11:11
  and
• 11:11
  fortunately,
• 11:13
  um,
• 11:13
  if
• 11:13
  you
• 11:14
  haven't
• 11:14
  gone
• 11:14
  over
• 11:14
  to
• 11:14
  ETFs,
• 11:15
  get
• 11:15
  to
• 11:15
  ETFs,
• 11:15
  because
• 11:16
  there's
• 11:16
  tons
• 11:16
  of
• 11:17
  different
• 11:17
  ETFs.
• 11:18
  Um,
• 11:18
  smart
• 11:19
  beta
• 11:19
  ETFs,
• 11:19
  you
• 11:19
  may
• 11:19
  know
• 11:20
  that
• 11:20
  term.
• 11:21
  Uh,
• 11:21
  we
• 11:21
  have
• 11:21
  some
• 11:21
  of
• 11:21
  those
• 11:22
  that,
• 11:22
  that,
• 11:23
  uh,
• 11:23
  that
• 11:23
  do
• 11:24
  something
• 11:25
  different
• 11:25
  and
• 11:25
  select
• 11:26
  by
• 11:26
  quality
• 11:26
  and,
• 11:26
  and,
• 11:27
  and
• 11:27
  other
• 11:28
  factors
• 11:28
  to,
• 11:29
  even
• 11:29
  on
• 11:30
  an
• 11:30
  index
• 11:30
  basis,
• 11:31
  uh,
• 11:31
  select
• 11:32
  securities.
• 11:33
  Uh,
• 11:33
  there
• 11:33
  are
• 11:33
  country
• 11:34
  funds,
• 11:34
  individual
• 11:34
  country
• 11:35
  funds.
• 11:35
  We
• 11:35
  have
• 11:35
  a,
• 11:35
  a
• 11:35
  number
• 11:36
  of
• 11:36
  those
• 11:36
  as
• 11:36
  well.
• 11:36
  So
• 11:37
  if
• 11:37
  you
• 11:37
  don't
• 11:37
  like
• 11:37
  China,
• 11:37
  fine,
• 11:38
  go,
• 11:38
  go,
• 11:39
  go
• 11:39
  somewhere
• 11:39
  else.
• 11:39
  Mm.
• 11:40
  If
• 11:40
  you
• 11:40
  want
• 11:40
  a
• 11:40
  broad-based
• 11:41
  product,
• 11:41
  there's,
• 11:41
  there...
• 11:42
  We
• 11:42
  don't
• 11:42
  have
• 11:42
  one
• 11:42
  yet,
• 11:43
  but
• 11:43
  there's,
• 11:43
  uh,
• 11:43
  plenty
• 11:44
  of,
• 11:44
  uh,
• 11:44
  emerging
• 11:45
  market
• 11:45
  ex
• 11:45
  China
• 11:46
  Uh,
• 11:47
  so
• 11:47
  yes,
• 11:47
  China's
• 11:48
  a,
• 11:48
  a
• 11:48
  big
• 11:48
  consideration
• 11:49
  given
• 11:49
  its
• 11:49
  weight
• 11:50
  in
• 11:50
  emerging
• 11:50
  market
• 11:50
  indices,
• 11:51
  but
• 11:51
  there's,
• 11:51
  there's
• 11:52
  ways
• 11:52
  around
• 11:52
  that.
• 11:53
  And
• 11:54
  an
• 11:54
  alternative
• 11:54
  to
• 11:54
  China,
• 11:55
  and
• 11:55
  I
• 11:55
  mentioned
• 11:55
  this,
• 11:55
  uh,
• 11:56
  briefly
• 11:56
  earlier,
• 11:57
  is,
• 11:57
  is
• 11:57
  India,
• 11:58
  that
• 11:58
  we're
• 11:59
  very
• 11:59
  keen
• 11:59
  on
• 11:59
  right
• 12:00
  now.
• 12:00
  We
• 12:00
  have
• 12:01
  three
• 12:01
  products
• 12:01
  on
• 12:02
  that
• 12:02
  right
• 12:02
  now.
• 12:02
  We
• 12:02
  have
• 12:02
  a
• 12:02
  digital
• 12:03
  India
• 12:03
  product,
• 12:04
  which
• 12:04
  is
• 12:04
  really
• 12:04
  focused
• 12:05
  on
• 12:05
  local
• 12:05
  market
• 12:06
  developments
• 12:06
  in
• 12:06
  the
• 12:06
  digital-
• 12:07
  Mm-hmm
• 12:07
  space
• 12:07
  and,
• 12:07
  and
• 12:08
  how
• 12:08
  that
• 12:08
  economy's
• 12:09
  evolving.
• 12:10
  Um,
• 12:10
  we
• 12:10
  have
• 12:10
  our,
• 12:11
  um,
• 12:11
  growth
• 12:12
  leaders
• 12:12
  India
• 12:12
  product,
• 12:13
  that's
• 12:13
  kind
• 12:13
  of
• 12:13
  that
• 12:13
  smart
• 12:14
  beta
• 12:14
  approach.
• 12:15
  Mm-hmm.
• 12:15
  And
• 12:15
  we
• 12:15
  recently
• 12:16
  launched,
• 12:16
  uh,
• 12:17
  INDZ,
• 12:18
  uh,
• 12:18
  which
• 12:19
  is
• 12:19
  our
• 12:19
  India,
• 12:20
  uh,
• 12:20
  select
• 12:21
  product.
• 12:21
  So
• 12:21
  this
• 12:21
  one's
• 12:21
  an
• 12:22
  actively
• 12:22
  managed
• 12:23
  by
• 12:23
  a,
• 12:24
  a
• 12:24
  portfolio
• 12:24
  manager
• 12:25
  who's,
• 12:26
  who's
• 12:26
  deep
• 12:27
  into
• 12:27
  India,
• 12:27
  he
• 12:27
  loves
• 12:28
  the
• 12:28
  space,
• 12:28
  and
• 12:28
  he's
• 12:29
  a-
• 12:29
  actually
• 12:29
  gave
• 12:29
  me
• 12:29
  the
• 12:30
  idea
• 12:30
  for
• 12:30
  DGEN-
• 12:30
  Yeah
• 12:31
  which
• 12:31
  is
• 12:31
  our
• 12:31
  digital
• 12:31
  India-
• 12:32
  Yeah
• 12:33
  uh,
• 12:33
  ETF.
• 12:33
  Um,
• 12:34
  so
• 12:34
  I,
• 12:34
  I
• 12:35
  think
• 12:35
  that
• 12:35
  one's
• 12:35
  a
• 12:35
  really
• 12:36
  exciting
• 12:36
  one
• 12:36
  too
• 12:36
  if
• 12:36
  you
• 12:36
  want
• 12:36
  active
• 12:37
  management
• 12:37
  in
• 12:37
  that
• 12:37
  space.
• 12:38
  But
• 12:38
  anyway-
• 12:38
  Yeah
• 12:38
  enough
• 12:39
  product
• 12:39
  pitch.
• 12:40
  No,
• 12:40
  I
• 12:40
  think
• 12:41
  that's
• 12:41
  fanta-
• 12:41
  And
• 12:41
  it
• 12:42
  goes
• 12:42
  to
• 12:42
  the
• 12:42
  point
• 12:43
  of
• 12:44
  when
• 12:44
  I
• 12:44
  started
• 12:44
  in
• 12:44
  the
• 12:44
  industry,
• 12:45
  it
• 12:45
  wasn't
• 12:45
  that
• 12:45
  long...
• 12:46
  Well,
• 12:46
  I
• 12:46
  started
• 12:47
  in
• 12:47
  the
• 12:47
  industry
• 12:47
  a
• 12:47
  long
• 12:47
  time
• 12:48
  ago,
• 12:48
  but
• 12:48
  it
• 12:48
  wasn't
• 12:49
  that
• 12:49
  long
• 12:49
  ago
• 12:49
  when,
• 12:50
  you
• 12:50
  know,
• 12:50
  ETFs,
• 12:51
  they
• 12:51
  were
• 12:51
  just
• 12:51
  passive
• 12:52
  track
• 12:52
  a
• 12:52
  benchmark.
• 12:53
  Yeah.
• 12:53
  Now
• 12:54
  with
• 12:54
  active
• 12:55
  ETFs,
• 12:55
  it
• 12:55
  makes
• 12:55
  it
• 12:55
  so
• 12:56
  much
• 12:56
  easier.
• 12:56
  Back
• 12:57
  then,
• 12:58
  yeah,
• 12:58
  you
• 12:59
  get
• 12:59
  whatever
• 13:00
  is
• 13:00
  in
• 13:00
  the
• 13:00
  emerging
• 13:01
  market
• 13:01
  index.
• 13:02
  Yeah.
• 13:02
  Now
• 13:02
  with
• 13:02
  active
• 13:03
  ETFs,
• 13:04
  you
• 13:04
  can
• 13:04
  be
• 13:04
  more
• 13:05
  selective.
• 13:05
  You
• 13:05
  can
• 13:06
  pick
• 13:06
  products
• 13:07
  that
• 13:07
  aren't,
• 13:08
  you
• 13:08
  know,
• 13:09
  don't
• 13:09
  have
• 13:09
  a
• 13:09
  50%
• 13:10
  weight
• 13:10
  to
• 13:10
  China-
• 13:11
  Right.
• 13:11
  Yeah
• 13:11
  if
• 13:11
  you
• 13:11
  don't
• 13:11
  want
• 13:11
  it.
• 13:12
  So.
• 13:12
  You
• 13:12
  know,
• 13:13
  the,
• 13:13
  uh,
• 13:13
  uh,
• 13:14
  active
• 13:14
  ETFs
• 13:14
  are
• 13:14
  a
• 13:15
  relatively
• 13:15
  new
• 13:16
  thing
• 13:17
  in
• 13:17
  ETFs,
• 13:18
  which,
• 13:18
  and,
• 13:18
  and
• 13:18
  it's
• 13:18
  great
• 13:19
  that
• 13:19
  they're
• 13:19
  coming
• 13:19
  and
• 13:19
  they're
• 13:20
  coming
• 13:20
  in,
• 13:20
  in
• 13:20
  a
• 13:20
  big
• 13:20
  way,
• 13:21
  especially
• 13:21
  over
• 13:21
  the
• 13:21
  last
• 13:21
  couple
• 13:21
  years.
• 13:22
  Um,
• 13:23
  but
• 13:23
  before
• 13:24
  that
• 13:24
  we
• 13:24
  had,
• 13:25
  uh,
• 13:26
  you
• 13:26
  know,
• 13:26
  it's
• 13:26
  funny,
• 13:26
  I
• 13:27
  used
• 13:27
  to
• 13:27
  hate
• 13:27
  this
• 13:27
  term,
• 13:27
  but
• 13:27
  smart
• 13:28
  beta,
• 13:28
  but
• 13:28
  people
• 13:28
  get
• 13:28
  it,
• 13:29
  right?
• 13:29
  You
• 13:29
  know?
• 13:30
  Um,
• 13:31
  kind
• 13:31
  of
• 13:31
  fundamentally
• 13:31
  weighted
• 13:32
  types
• 13:32
  of
• 13:32
  strategies,
• 13:33
  which
• 13:33
  was
• 13:33
  another
• 13:34
  way
• 13:34
  around
• 13:34
  that.
• 13:35
  If
• 13:35
  you
• 13:35
  want
• 13:35
  more
• 13:35
  consistency
• 13:36
  in
• 13:36
  terms
• 13:37
  of
• 13:37
  you
• 13:37
  know
• 13:37
  what
• 13:37
  you're
• 13:38
  gonna
• 13:38
  get,
• 13:38
  you
• 13:38
  know
• 13:39
  why
• 13:39
  it
• 13:39
  happens
• 13:40
  because
• 13:40
  of
• 13:40
  the
• 13:40
  rules
• 13:41
  and
• 13:41
  what
• 13:41
  have
• 13:41
  you.
• 13:42
  Uh,
• 13:42
  an
• 13:42
  active
• 13:42
  manager
• 13:43
  still
• 13:43
  has
• 13:43
  to
• 13:43
  perform,
• 13:44
  right?
• 13:44
  Mm-hmm.
• 13:44
  So
• 13:44
  you
• 13:44
  have
• 13:45
  a
• 13:45
  lot
• 13:45
  of
• 13:45
  active
• 13:45
  managers
• 13:46
  looking
• 13:46
  to
• 13:46
  come
• 13:46
  in,
• 13:46
  they
• 13:46
  still
• 13:47
  have
• 13:47
  to
• 13:47
  perform
• 13:48
  and,
• 13:48
  and,
• 13:48
  you
• 13:49
  know,
• 13:49
  earn
• 13:49
  their
• 13:50
  keep.
• 13:50
  Yeah.
• 13:51
  No,
• 13:51
  you're
• 13:51
  exactly...
• 13:52
  You're...
• 13:53
  Performance
• 13:53
  still
• 13:54
  matters.
• 13:54
  Yeah.
• 13:56
  You
• 13:56
  know?
• 13:56
  Even
• 13:56
  though
• 13:56
  people
• 13:57
  say,
• 13:57
  "Well,
• 13:57
  there's
• 13:58
  other
• 13:58
  things
• 13:58
  than
• 13:58
  performance,"
• 13:59
  but-
• 13:59
  Yeah
• 14:00
  it,
• 14:00
  it
• 14:00
  does
• 14:00
  matter.
• 14:01
  What,
• 14:01
  um,
• 14:03
  you
• 14:03
  know,
• 14:03
  we-
• 14:04
  you
• 14:04
  mentioned
• 14:04
  a
• 14:04
  little
• 14:05
  bit,
• 14:05
  what
• 14:05
  are
• 14:05
  some
• 14:06
  other
• 14:06
  misconceptions
• 14:07
  of
• 14:07
  investing
• 14:07
  in
• 14:08
  emerging
• 14:08
  markets?
• 14:10
  I
• 14:10
  think
• 14:10
  that,
• 14:11
  um,
• 14:14
  volatility,
• 14:15
  I
• 14:15
  don't
• 14:15
  know
• 14:15
  if
• 14:15
  that's
• 14:15
  a
• 14:15
  misconception.
• 14:16
  There
• 14:16
  is
• 14:16
  volatility
• 14:17
  that
• 14:17
  comes
• 14:17
  with,
• 14:18
  um,
• 14:18
  the,
• 14:19
  the,
• 14:19
  the
• 14:19
  currency.
• 14:19
  You
• 14:20
  know,
• 14:20
  uh,
• 14:20
  you're
• 14:20
  going
• 14:21
  to
• 14:21
  local
• 14:21
  currencies
• 14:21
  versus
• 14:22
  US
• 14:22
  dollars.
• 14:23
  Um,
• 14:24
  that
• 14:24
  they're
• 14:24
  all
• 14:25
  the
• 14:25
  same,
• 14:25
  I
• 14:25
  talked
• 14:26
  about
• 14:26
  that.
• 14:26
  There's
• 14:26
  a,
• 14:26
  that
• 14:27
  they're
• 14:27
  a
• 14:27
  monolith.
• 14:28
  Um,
• 14:29
  that
• 14:29
  they're
• 14:30
  all
• 14:30
  commodity
• 14:30
  based.
• 14:31
  Yes,
• 14:32
  they
• 14:32
  ha-
• 14:32
  many
• 14:32
  emerging
• 14:33
  markets,
• 14:33
  and
• 14:33
  here
• 14:34
  I'm
• 14:34
  talking
• 14:34
  about
• 14:34
  them
• 14:34
  generally,
• 14:35
  um,
• 14:35
  many
• 14:36
  em-
• 14:36
  emerging
• 14:36
  markets
• 14:36
  have
• 14:38
  historically
• 14:38
  had
• 14:39
  strong,
• 14:39
  uh,
• 14:40
  relationship
• 14:40
  to
• 14:40
  com-
• 14:41
  commodities
• 14:41
  markets.
• 14:42
  But
• 14:42
  countries
• 14:42
  are,
• 14:43
  are
• 14:43
  growing
• 14:44
  and
• 14:44
  they're
• 14:44
  developing-
• 14:45
  Um,
• 14:46
  the
• 14:46
  capital
• 14:46
  markets
• 14:46
  are
• 14:46
  developing.
• 14:47
  So
• 14:47
  you're
• 14:47
  seeing
• 14:47
  more
• 14:47
  capital
• 14:48
  market
• 14:48
  development,
• 14:49
  more
• 14:49
  funds
• 14:50
  being
• 14:50
  invested
• 14:51
  and,
• 14:51
  and
• 14:51
  created
• 14:52
  o-
• 14:52
  on
• 14:52
  a
• 14:52
  local
• 14:53
  sense.
• 14:53
  And,
• 14:53
  and
• 14:54
  that
• 14:54
  has
• 14:54
  helped
• 14:54
  driving
• 14:54
  assets
• 14:55
  to
• 14:56
  different
• 14:56
  industries
• 14:56
  and
• 14:57
  growth
• 14:57
  in
• 14:57
  tech
• 14:58
  and
• 14:58
  software
• 14:58
  and,
• 14:58
  and,
• 14:58
  uh,
• 14:59
  other
• 15:00
  areas.
• 15:00
  So
• 15:01
  they
• 15:01
  are
• 15:02
  developing
• 15:03
  Yeah
• 15:04
  uh,
• 15:04
  uh,
• 15:04
  their,
• 15:05
  their
• 15:05
  markets,
• 15:05
  uh,
• 15:06
  more
• 15:06
  broadly.
• 15:06
  So
• 15:07
  I
• 15:07
  think
• 15:07
  you'll
• 15:07
  find
• 15:08
  greater
• 15:08
  diversification
• 15:09
  of
• 15:09
  economic
• 15:10
  contribution
• 15:11
  from
• 15:11
  within
• 15:12
  the,
• 15:12
  the
• 15:12
  local
• 15:12
  markets-
• 15:13
  Mm
• 15:13
  in,
• 15:13
  in
• 15:13
  many
• 15:13
  of
• 15:14
  these,
• 15:14
  uh,
• 15:14
  countries.
• 15:16
  Ed,
• 15:16
  I
• 15:16
  think
• 15:16
  that's
• 15:16
  fantastic,
• 15:17
  too.
• 15:18
  And,
• 15:18
  you
• 15:18
  know,
• 15:18
  like,
• 15:18
  it,
• 15:19
  it's
• 15:19
  evolved
• 15:20
  greatly
• 15:21
  in
• 15:22
  five
• 15:22
  years-
• 15:22
  Yeah
• 15:22
  10
• 15:22
  years,
• 15:23
  right?
• 15:23
  So
• 15:24
  it's
• 15:24
  one
• 15:24
  of
• 15:25
  those
• 15:25
  asset
• 15:25
  classes
• 15:26
  I
• 15:26
  think
• 15:26
  needs
• 15:26
  to
• 15:26
  have
• 15:27
  a,
• 15:27
  you
• 15:27
  know,
• 15:27
  a
• 15:27
  closer
• 15:28
  look
• 15:28
  or
• 15:28
  another
• 15:29
  look,
• 15:29
  um,
• 15:30
  when
• 15:30
  building
• 15:31
  that
• 15:31
  portfolio.
• 15:32
  Lastly,
• 15:33
  how
• 15:34
  can...
• 15:34
  You
• 15:34
  touched
• 15:35
  on
• 15:35
  it
• 15:35
  with
• 15:35
  ETFs.
• 15:36
  How
• 15:36
  do
• 15:36
  you...
• 15:36
  What's
• 15:37
  the
• 15:37
  best
• 15:37
  way
• 15:37
  for
• 15:37
  financial
• 15:38
  advisors
• 15:38
  to
• 15:39
  gain
• 15:39
  exposure
• 15:40
  to
• 15:40
  emerging
• 15:40
  markets
• 15:41
  for
• 15:41
  their
• 15:41
  clients?
• 15:42
  Yeah.
• 15:43
  Um,
• 15:44
  well,
• 15:44
  I,
• 15:44
  I
• 15:44
  guess
• 15:44
  I
• 15:44
  should
• 15:44
  pitch
• 15:45
  VanEck.
• 15:45
  Go-
• 15:45
  go
• 15:45
  to
• 15:45
  vaneck.com.
• 15:47
  But,
• 15:47
  um,
• 15:48
  ETFs,
• 15:48
  I
• 15:48
  think
• 15:48
  ETFs
• 15:49
  are
• 15:49
  a
• 15:49
  great
• 15:49
  way
• 15:49
  to
• 15:49
  do
• 15:49
  it.
• 15:50
  Um,
• 15:51
  it,
• 15:51
  it
• 15:51
  really
• 15:51
  kind
• 15:51
  of
• 15:51
  depends
• 15:52
  on
• 15:52
  what
• 15:52
  you're
• 15:52
  trying
• 15:52
  to
• 15:52
  do
• 15:52
  with
• 15:52
  that
• 15:52
  asset
• 15:53
  allocation,
• 15:53
  but,
• 15:54
  uh,
• 15:55
  ETFs
• 15:55
  are
• 15:55
  a
• 15:55
  great
• 15:56
  way
• 15:56
  to
• 15:56
  manage
• 15:56
  that,
• 15:57
  whether
• 15:57
  you
• 15:57
  want
• 15:57
  a
• 15:57
  broad-based
• 15:57
  ETF-
• 15:58
  Mm-hmm
• 15:59
  one
• 15:59
  that
• 16:00
  X's
• 16:01
  out
• 16:01
  China
• 16:01
  or,
• 16:02
  you
• 16:02
  know,
• 16:02
  individual
• 16:02
  countries.
• 16:03
  Um,
• 16:04
  and
• 16:04
  then
• 16:04
  find
• 16:05
  if
• 16:05
  you
• 16:05
  want
• 16:05
  an
• 16:05
  actively
• 16:06
  managed
• 16:06
  approach,
• 16:07
  that's,
• 16:07
  you
• 16:07
  know,
• 16:07
  we'd
• 16:08
  be
• 16:08
  happy
• 16:08
  with
• 16:08
  that,
• 16:09
  too.
• 16:09
  I
• 16:09
  think
• 16:09
  that
• 16:09
  makes-
• 16:09
  Mm-hmm
• 16:09
  a
• 16:09
  lot
• 16:10
  of
• 16:10
  sense.
• 16:10
  So
• 16:11
  hopefully
• 16:11
  you
• 16:11
  look
• 16:11
  us
• 16:12
  up
• 16:12
  and,
• 16:12
  and,
• 16:12
  and
• 16:13
  you
• 16:13
  like
• 16:13
  what
• 16:13
  you
• 16:13
  see.
• 16:14
  Yeah.
• 16:14
  I
• 16:14
  com-
• 16:15
  There's
• 16:15
  some
• 16:15
  asset
• 16:16
  classes
• 16:16
  where
• 16:16
  you
• 16:17
  can,
• 16:17
  you
• 16:17
  know,
• 16:17
  passive
• 16:18
  makes
• 16:19
  sense.
• 16:19
  Maybe
• 16:19
  a
• 16:19
  large
• 16:20
  blend,
• 16:20
  US
• 16:21
  large
• 16:21
  blend.
• 16:22
  Yeah.
• 16:22
  But
• 16:23
  there's
• 16:23
  also
• 16:23
  asset
• 16:24
  classes
• 16:24
  where
• 16:25
  I'm
• 16:25
  a
• 16:25
  firm
• 16:25
  believer
• 16:25
  that
• 16:26
  you
• 16:26
  gotta
• 16:26
  go
• 16:26
  active-
• 16:27
  Yeah
• 16:27
  and
• 16:27
  emerging
• 16:28
  markets
• 16:28
  is,
• 16:29
  is
• 16:29
  one
• 16:29
  of
• 16:29
  them,
• 16:29
  for
• 16:29
  sure.
• 16:29
  I
• 16:29
  think
• 16:30
  you
• 16:30
  can
• 16:30
  find
• 16:30
  more
• 16:30
  opportunity
• 16:31
  in
• 16:31
  certain
• 16:31
  asset
• 16:31
  classes,
• 16:32
  like,
• 16:32
  you
• 16:32
  know,
• 16:32
  small
• 16:32
  caps
• 16:33
  or
• 16:33
  emerging
• 16:33
  markets
• 16:34
  relative
• 16:34
  to
• 16:34
  large
• 16:34
  cap,
• 16:34
  but-
• 16:34
  Yeah.
• 16:35
  Yep
• 16:35
  you
• 16:35
  know.
• 16:36
  You're
• 16:36
  exactly
• 16:36
  right.
• 16:36
  Ed,
• 16:37
  fantastic
• 16:38
  conversation.
• 16:39
  Thank
• 16:39
  you
• 16:39
  so
• 16:39
  much
• 16:39
  for
• 16:40
  coming
• 16:40
  on.
• 16:40
  You
• 16:40
  already
• 16:40
  mentioned
• 16:41
  the
• 16:41
  website,
• 16:41
  but
• 16:41
  why
• 16:42
  don't
• 16:42
  you
• 16:42
  tell
• 16:42
  our
• 16:42
  audience
• 16:43
  again,
• 16:43
  where
• 16:43
  can
• 16:43
  they
• 16:43
  get
• 16:44
  more
• 16:44
  information-
• 16:45
  Yeah
• 16:45
  about
• 16:45
  VanEck?
• 16:46
  Check
• 16:46
  out
• 16:46
  vaneck.com.
• 16:47
  Uh,
• 16:47
  we
• 16:47
  do
• 16:47
  content
• 16:48
  almost
• 16:48
  every
• 16:48
  day,
• 16:49
  webinars
• 16:50
  and,
• 16:50
  and
• 16:51
  blogs
• 16:51
  and
• 16:51
  videos.
• 16:52
  Mm-hmm.
• 16:53
  And
• 16:53
  then
• 16:53
  also,
• 16:53
  if
• 16:53
  you're
• 16:53
  interested,
• 16:54
  check
• 16:54
  out
• 16:54
  my
• 16:54
  podcast.
• 16:55
  It's,
• 16:55
  uh,
• 16:55
  Trends
• 16:56
  with
• 16:56
  Benefits.
• 16:56
  Um,
• 16:57
  there's
• 16:57
  a
• 16:57
  link
• 16:57
  on
• 16:57
  our
• 16:57
  website
• 16:58
  there
• 16:58
  as
• 16:58
  well,
• 16:59
  and
• 16:59
  we
• 16:59
  talk
• 17:00
  with,
• 17:00
  uh,
• 17:00
  different
• 17:01
  guests,
• 17:01
  portfolio
• 17:01
  managers,
• 17:02
  analysts,
• 17:02
  um,
• 17:03
  people
• 17:03
  around
• 17:03
  the
• 17:03
  industry,
• 17:04
  just
• 17:04
  about
• 17:04
  trends
• 17:05
  that
• 17:05
  are
• 17:05
  happening
• 17:05
  and
• 17:06
  different
• 17:06
  asset
• 17:06
  classes-
• 17:06
  Yeah
• 17:07
  as
• 17:07
  well.
• 17:07
  Yeah.
• 17:07
  It,
• 17:08
  uh,
• 17:09
  some
• 17:10
  may
• 17:10
  not
• 17:10
  agree
• 17:10
  with
• 17:10
  it
• 17:11
  or
• 17:11
  disagree
• 17:12
  with
• 17:12
  me,
• 17:12
  but
• 17:12
  I
• 17:12
  do
• 17:13
  do
• 17:13
  some
• 17:13
  research
• 17:14
  before
• 17:14
  having
• 17:15
  these
• 17:15
  conversations.
• 17:16
  VanEck,
• 17:16
  your
• 17:16
  website's
• 17:17
  great
• 17:17
  with
• 17:17
  the
• 17:17
  content.
• 17:18
  I
• 17:18
  love
• 17:18
  your
• 17:18
  podcast.
• 17:19
  A
• 17:19
  lot
• 17:20
  of
• 17:20
  fun.
• 17:20
  A
• 17:20
  lot
• 17:20
  of
• 17:20
  fun.
• 17:21
  So
• 17:22
  thank
• 17:22
  you
• 17:22
  so
• 17:22
  much,
• 17:23
  Ed,
• 17:23
  and
• 17:23
  thank
• 17:23
  you
• 17:24
  everyone
• 17:24
  for
• 17:24
  listening
• 17:25
  to
• 17:25
  this
• 17:25
  episode
• 17:26
  of
• 17:26
  Zephyr's
• 17:26
  Adjusted
• 17:27
  for
• 17:27
  Risk
• 17:27
  podcast.
• 17:28
  You
• 17:28
  can
• 17:28
  catch
• 17:28
  all
• 17:29
  of
• 17:29
  our
• 17:29
  other
• 17:29
  podcasts
• 17:30
  on
• 17:30
  the
• 17:30
  Zephyr
• 17:30
  YouTube
• 17:31
  channel,
• 17:31
  Spotify.
• 17:33
  Please
• 17:33
  be
• 17:33
  sure
• 17:33
  to
• 17:33
  like,
• 17:34
  subscribe,
• 17:34
  and
• 17:34
  give
• 17:35
  us
• 17:35
  a
• 17:35
  follow
• 17:35
  on
• 17:36
  LinkedIn.
• 17:36
  Thank
• 17:36
  you
• 17:37
  very
• 17:37
  much,
• 17:37
  and
• 17:37
  have
• 17:37
  a
• 17:37
  great
• 17:38
  rest
• 17:38
  of
• 17:38
  your
• 17:38
  week.
• 17:46
  Let's
• 17:46
  get
• 17:47
  started.