Latest / Trillions / New ETFs to Watch: A $2.5 Billion Launch, Anthropic and S&P 10,000, Anyone?

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New ETFs to Watch: A $2.5 Billion Launch, Anthropic and S&P 10,000, Anyone? · Trillions

• 0:02
  Speaker 1: Bloomberg Audio Studios, podcasts, radio, news. Buffett, when he, Berkshire
• 0:09
  Speaker 1: shareholders would ask him what to invest in. And he said, look,
• 0:12
  Speaker 1: if you're not monitoring the markets all day, the best
• 0:15
  Speaker 1: thing would be what I'm doing in my will, which
• 0:17
  Speaker 1: is I said to my wife and my trust that
• 0:20
  Speaker 1: you should put 90% in an index fund, preferably Vanguard
• 0:24
  Speaker 1: is what he said, and 10% in like short-term treasuries.
• 0:28
  Speaker 1: And so I call that the Buffett special. Welcome to Trillions.
• 0:32
  Speaker 2: I'm Joel Weber.
• 0:33
  Speaker 1: And I'm Eric Balchunas.
• 0:34
  Speaker 2: It's time for our monthly new ETFs to watch episode.
• 0:38
  Speaker 2: Our big hit is a whale that Warren Buffett is
• 0:41
  Speaker 2: going to love. Our wild card is a delightfully weird,
• 0:44
  Speaker 2: highly speculative product with a memorable ticker. And we're also
• 0:48
  Speaker 2: going to mention a noteworthy product out of Europe that
• 0:51
  Speaker 2: gets anthropic exposure in an ETF wrapper. And then there's
• 0:56
  Speaker 2: our good luck with that category. Joining us, Isabel Lee, who...
• 1:02
  Speaker 2: Has a new job at Bloomberg. Congrats, Isabel.
• 1:05
  Speaker 3: Thank you. I'm still a markets reporter, but now I'm
• 1:07
  Speaker 3: with the TV side. So still the same. Honored and humbled.
• 1:11
  Speaker 3: I'm blinded. Eric is beside me. Oh my God, I'm blinded.
• 1:14
  Speaker 3: Wearing my sunglasses. So blinded.
• 1:16
  Speaker 2: Well, congratulations and looking forward to having you on the podcast.
• 1:20
  Speaker 1: She's still the same Isabel, just way bigger head. Just
• 1:23
  Speaker 1: way bigger. Yeah. That's how I see it. We knew
• 1:25
  Speaker 1: her when.
• 1:26
  Speaker 3: Not bigger than Eric. So that's at least there.
• 1:29
  Speaker 1: She and I can't fit through a door together. Not
• 1:32
  Speaker 1: because we're overweight.
• 1:33
  Speaker 2: I don't know how we're in the studio together right now.
• 1:35
  Speaker 1: I'm just so small in the corner.
• 1:37
  Speaker 2: All right.
• 1:37
  Speaker 1: Let's talk about the big hit, Eric. What is it?
• 1:40
  Speaker 1: All right. The State Street Spider UC Investments 9010 Endowment
• 1:45
  Speaker 1: Strategy Index ETF. Is that a new record for longest title?
• 1:49
  Speaker 1: We used to track this. I don't think this has
• 1:51
  Speaker 1: got it because one of the ones that made it
• 1:53
  Speaker 1: was the whole first line of the five line DES page.
• 1:56
  Speaker 1: And this is only about 60% of it. The ticker though, UCBG.
• 2:00
  Speaker 1: What's this thing doing?
• 2:01
  Speaker 3: Yeah.
• 2:02
  Speaker 1: Yeah. So very simple. It's 90% the S & P
• 2:06
  Speaker 1: 500 and 10% short-dated bonds. This is something akin to
• 2:12
  Speaker 1: what I used to call the Buffett portfolio. Because Buffett,
• 2:15
  Speaker 1: when Berkshire shareholders would ask him what to invest in,
• 2:18
  Speaker 1: and he said, look, if you're not monitoring the markets
• 2:20
  Speaker 1: all day, the best thing would be what I'm doing
• 2:22
  Speaker 1: in my will, which is I said to my wife
• 2:25
  Speaker 1: and my trust that you should put 90% in an
• 2:28
  Speaker 1: index fund, preferably Vanguard is what he said, and 10%
• 2:32
  Speaker 1: in short-term treasuries. And so I called out the Buffett
• 2:36
  Speaker 1: Special and talked about how to do it with ETFs.
• 2:38
  Speaker 1: It's interesting that this big institution is doing it.
• 2:41
  Speaker 2: But even more interesting- That institution is University of California?
• 2:44
  Speaker 1: Yeah, the investment arm of UCAL, basically. It was actually
• 2:48
  Speaker 1: just over there in Berkeley, by the way, Joel. I
• 2:51
  Speaker 1: visited my ex-girlfriend, but we were all part of a
• 2:54
  Speaker 1: huge house.
• 2:55
  Speaker 3: Very mature, Eric.
• 2:56
  Speaker 1: It was like real world, five guys, five girls.
• 2:58
  Speaker 2: Wow.
• 2:59
  Speaker 1: And it was- So many questions. This is what happened
• 3:01
  Speaker 1: in the 90s.
• 3:02
  Speaker 3: So many questions.
• 3:03
  Speaker 1: Anyway, we stayed friends and I went out to visit
• 3:05
  Speaker 1: her and Berkeley is nice, man. I was there one
• 3:09
  Speaker 1: summer in the 90s and it was a little more
• 3:10
  Speaker 1: like gutter punks and hippies. It's got a little of
• 3:13
  Speaker 1: that still, but it's way richer. Anyhow, UC Berkeley is
• 3:17
  Speaker 1: the college there. Everybody's trying to get in. It's hard
• 3:19
  Speaker 1: to get in. It's hard to get in. It's hard
• 3:20
  Speaker 1: to get in anywhere these days, by the way.
• 3:22
  Speaker 3: This is a straightforward rules-based asset allocation and it's very cheap.
• 3:26
  Speaker 3: It's like six basis points. But, I mean, it's just
• 3:30
  Speaker 3: one fund so far. I mean, so then for me, okay, congratulations. Successful.
• 3:33
  Speaker 3: Two and a half billion dollars AUM.
• 3:35
  Speaker 2: Well, that's the big, that's a lot of money.
• 3:38
  Speaker 3: I know, but so then.
• 3:41
  Speaker 2: So this is like, to have an endowment have two
• 3:44
  Speaker 2: and a half billion dollars as a seed.
• 3:45
  Speaker 1: Has there ever been that much money seeded? Close. iShares
• 3:48
  Speaker 1: and Xtrackers both had European pensions, I believe, seed ESG
• 3:55
  Speaker 1: funds with about $ 2 billion. So this is up there.
• 3:58
  Speaker 1: This might be a little bigger. And anyway, if you're
• 4:00
  Speaker 1: going to get a whale, you take it.
• 4:02
  Speaker 2: Exactly.
• 4:02
  Speaker 1: Because then there's no more pressure. If the little minnows
• 4:05
  Speaker 1: come in, fine, but I'm going to eat for a
• 4:07
  Speaker 1: while because $ 2 billion on even six bips is going
• 4:09
  Speaker 1: to make it probably profitable.
• 4:11
  Speaker 3: So I guess my question was, should they work hard
• 4:14
  Speaker 3: to get another whale? Or you're saying that, no, they
• 4:16
  Speaker 3: could just coast for a while with this one huge
• 4:18
  Speaker 3: giant whale.
• 4:19
  Speaker 1: Yeah, this is going to be tricky because... It's 90-10,
• 4:23
  Speaker 1: and I guess they could go out and say, well, look,
• 4:24
  Speaker 1: this is what the institutions do. And if they're using
• 4:27
  Speaker 1: their money in it, then you should do it too.
• 4:30
  Speaker 1: The problem is advisors tend to want to pick the
• 4:34
  Speaker 1: different pieces. And so this one tries to kind of
• 4:36
  Speaker 1: do that. And most people already own the S &
• 4:39
  Speaker 1: P 500, so they already have 90% of this covered.
• 4:42
  Speaker 1: They probably own bonds. So this is almost redundant to
• 4:45
  Speaker 1: what most people already own. That's the challenge here.
• 4:47
  Speaker 2: Who's going to buy it?
• 4:49
  Speaker 1: I don't know.
• 4:50
  Speaker 3: I don't think hedge funds will because I think they're
• 4:52
  Speaker 3: shunning the alternative heavy approach, right? And that's what hedge
• 4:56
  Speaker 3: funds typically want. So they just need to capture another
• 4:59
  Speaker 3: endowment whale.
• 5:01
  Speaker 1: Yeah, I guess so. They could probably just, yeah, shop
• 5:03
  Speaker 1: this around to endowments who... The one thing endowments like
• 5:06
  Speaker 1: about ETFs, they can get this strategy on a separate account,
• 5:10
  Speaker 1: sort of like getting a tailored suit. But six bips
• 5:13
  Speaker 1: is about as cheap as they'd get, especially mid to
• 5:15
  Speaker 1: small ones. So I could see maybe a mid or
• 5:17
  Speaker 1: small institution wanting to use this for their sort of
• 5:19
  Speaker 1: beta exposure and State Street's reputable and that they like
• 5:23
  Speaker 1: the liquidity where you can get in and out of
• 5:25
  Speaker 1: it very quickly. I don't have to call anybody. There's
• 5:27
  Speaker 1: no contracts. But still, even with all that, I just
• 5:31
  Speaker 1: think it's probably going to be an uphill battle. The
• 5:33
  Speaker 1: ESG funds that were seeded, they had the same problem.
• 5:36
  Speaker 1: I'm yet to see a huge institution seed an ETF
• 5:39
  Speaker 1: and it kicks off some frenzy. Usually they're very specific
• 5:43
  Speaker 1: to the institution and they just don't catch on with
• 5:45
  Speaker 1: the rest of the world for various reasons. One quick
• 5:48
  Speaker 1: thing on this though, this is modeled after apparently the
• 5:51
  Speaker 1: blue and gold endowment pool for UC. So my guess
• 5:56
  Speaker 1: is they might want to have something that people who
• 6:00
  Speaker 1: are in the fund can get in and out of easily.
• 6:03
  Speaker 1: Usually when an institution does something like this, it's not
• 6:05
  Speaker 1: because they need exposure. Again, they can get cheap exposure.
• 6:08
  Speaker 1: It's because they want to create something for other people,
• 6:11
  Speaker 1: maybe members or other investors who are part of the
• 6:13
  Speaker 1: institution who can go in and out of it easily.
• 6:17
  Speaker 1: That's the main reason they use an ETF is access, liquidity,
• 6:20
  Speaker 1: and ease of use. Because all their other stuff is
• 6:23
  Speaker 1: going to be in private investments, alternatives, the Yale model
• 6:26
  Speaker 1: type stuff. And if they went into a S &
• 6:28
  Speaker 1: P 500, they could probably get it for like two
• 6:30
  Speaker 1: basis points from State Street themselves. So I just think
• 6:34
  Speaker 1: this is for easy access and liquidity. Use Fisher did
• 6:36
  Speaker 1: the same thing with those seeded ones. So that's why
• 6:39
  Speaker 1: it's the biggest. But one investor, I guess you could
• 6:43
  Speaker 1: say it's not organically the biggest, but it was the
• 6:45
  Speaker 1: biggest in assets of the new crop.
• 6:47
  Speaker 3: What is the origin of this? Did UC have this
• 6:51
  Speaker 3: idea and State Street was like, okay, let's seize the
• 6:54
  Speaker 3: moment and launch this ETF? Or did they launch an
• 6:56
  Speaker 3: ETF and UC was like, that is perfect?
• 6:58
  Speaker 1: It's a great question. State Street has been on a
• 7:01
  Speaker 1: roll getting these institutions. They got Bridgewater. They got Apollo.
• 7:06
  Speaker 1: They must have a team of people who just go
• 7:08
  Speaker 1: and talk to institutions. Yeah. And the reason you take
• 7:10
  Speaker 1: State Street's call to institutions, they have all the big
• 7:12
  Speaker 1: liquid ETFs. Even though these institutions have anything they want,
• 7:16
  Speaker 1: the world is their oyster for almost no fee. They
• 7:20
  Speaker 1: can't get liquidity from other things. So State Street has
• 7:22
  Speaker 1: a bunch of liquid ETFs. So they probably know State
• 7:25
  Speaker 1: Street just from using some of their liquid ETFs for
• 7:27
  Speaker 1: cash requisition. While they're talking, maybe State Street just offers
• 7:30
  Speaker 1: this or maybe they bring it up and they're like,
• 7:32
  Speaker 1: oh yeah, you want that? We can do that. Let's
• 7:34
  Speaker 1: do it. And then all of a sudden it's a deal.
• 7:36
  Speaker 1: So I'm yet to see these kind of deals with
• 7:38
  Speaker 1: anybody other than like BlackRock and State Street, though. This
• 7:40
  Speaker 1: is like a big fish type situation.
• 7:42
  Speaker 2: All right. Next up, we're going to talk wildcard, and
• 7:45
  Speaker 2: it's not going to be about Eric's housing situation.
• 7:48
  Speaker 1: When he was in the 90s.
• 7:51
  Speaker 3: Or ex-girlfriend, anyway.
• 7:53
  Speaker 2: This ticker, though, is maybe the best ticker I think
• 7:57
  Speaker 2: we've ever had on the show. XX.
• 8:00
  Speaker 1: I didn't know that that was even an option.
• 8:02
  Speaker 2: The Roundhill Target 10,020.
• 8:05
  Speaker 1: Maybe that does relate to my situation. I don't want
• 8:08
  Speaker 1: to know. I don't want to know. Okay, so what
• 8:11
  Speaker 1: is going on at Roundhill? It doesn't currently.
• 8:13
  Speaker 3: We can talk about it after the show anyway.
• 8:16
  Speaker 1: Okay. The ticker is kind of cool. XX, right? The
• 8:19
  Speaker 1: Roundhill S & P 500 Target 10,020 ETF. Another mouthful.
• 8:24
  Speaker 1: These names and ideas are getting really more elaborate every month,
• 8:28
  Speaker 1: aren't they? Anyway.
• 8:29
  Speaker 3: Every day.
• 8:30
  Speaker 1: This is an ETF designed to solve a problem with
• 8:34
  Speaker 1: leveraged ETFs. You know how when you buy them, they
• 8:36
  Speaker 1: reset every day and you get the corrosion? That daily
• 8:40
  Speaker 1: resetting corrodes your returns. You can't hold it long term.
• 8:43
  Speaker 3: Yes. Typically. The volatility drag.
• 8:45
  Speaker 1: This is saying let's not use daily resetting and swaps.
• 8:48
  Speaker 1: Let's just buy a long, long, long, long call dated option.
• 8:52
  Speaker 3: 2030 long.
• 8:53
  Speaker 1: It's literally in 2030. That's a long time away. So
• 8:56
  Speaker 1: we're going to buy its options, but they're all very
• 8:59
  Speaker 1: long dated. They buy the option and you just wait.
• 9:03
  Speaker 1: And the idea here is if the S & P
• 9:05
  Speaker 1: hits $ 10, 000, you're in the money. From there, you get
• 9:08
  Speaker 1: grow and grow and grow your investment. And the ETF
• 9:12
  Speaker 1: can be traded because the outlook of whether the S &
• 9:14
  Speaker 1: P will hit $ 10, 000 will change. So the ETF itself
• 9:17
  Speaker 1: might move based on the expectation. But it's an interesting
• 9:21
  Speaker 1: way to add some leverage without having the corrosion of
• 9:25
  Speaker 1: volatility drag. However, and I am not an expert on theta,
• 9:29
  Speaker 1: which is this sort of time decay of options, but
• 9:32
  Speaker 1: there is probably some theta in there, which is there
• 9:34
  Speaker 1: is some decay, but not as bad as a leverage ETF.
• 9:38
  Speaker 1: I put this on Twitter and it got real viral.
• 9:41
  Speaker 1: And normally I tweet these new ETFs.
• 9:42
  Speaker 3: What were the comments?
• 9:44
  Speaker 1: Half the people were like, oh my God, this is
• 9:46
  Speaker 1: such a great idea. Like I've wanted something like this.
• 9:48
  Speaker 1: And then half the people were like, oh, look at
• 9:49
  Speaker 1: this bullshit. Like this is just a dumb idea for
• 9:52
  Speaker 1: retail investors. Like can't people calm down?
• 9:54
  Speaker 2: It does sound like a prediction market. Let's see if
• 9:58
  Speaker 2: it hits 10,000.
• 9:59
  Speaker 1: Exactly.
• 9:59
  Speaker 2: Yes or no.
• 10:00
  Speaker 3: I don't know how to feel about the all or
• 10:01
  Speaker 3: nothing structure of the index.
• 10:03
  Speaker 2: Yeah. So what happens to my money if it doesn't hit?
• 10:05
  Speaker 3: Yeah. Eric, tell us.
• 10:06
  Speaker 1: Yeah. So let's go over the scenarios here. If the
• 10:09
  Speaker 1: S & P is at 10,000 or above, the options
• 10:12
  Speaker 1: deliver a substantial leverage payout. I think I did the math.
• 10:16
  Speaker 1: 10,000 is like 7% a year from here. Okay. Don't
• 10:19
  Speaker 1: quote me on that. Something like that. That's not that extreme,
• 10:22
  Speaker 1: but we've been up a lot. So if we go
• 10:25
  Speaker 1: down a lot, that percent goes up a lot. But
• 10:29
  Speaker 1: the way the market's going, it just seems so easy
• 10:30
  Speaker 1: to achieve right now, but we're in a bull market. Now,
• 10:33
  Speaker 1: if it underachieves that, the options expire completely worthless, meaning
• 10:39
  Speaker 1: the fund risks losing its entire value. And what happens
• 10:44
  Speaker 1: to your money?
• 10:45
  Speaker 3: It's gone too. Gone. G-O-N-E.
• 10:48
  Speaker 1: Yeah, well, a call option is to buy something back
• 10:53
  Speaker 1: at a current price. And if it doesn't hit that price,
• 10:55
  Speaker 1: then the option expires worthless. Now, I don't know if
• 10:57
  Speaker 1: they put some other stuff in there to maybe give
• 10:58
  Speaker 1: you some, like, maybe they add a little something so
• 11:01
  Speaker 1: you're not home with, like, zero. I got to look
• 11:03
  Speaker 1: into it more. But this is, Roundhill, you got to
• 11:06
  Speaker 1: give it up. They're pretty innovative. They had the biggest
• 11:10
  Speaker 1: breakout hit of the year with DRAM.
• 11:11
  Speaker 3: DRAM.
• 11:12
  Speaker 1: They've launched a bunch of other stuff. They hired the
• 11:14
  Speaker 1: ex-strategist from Citi, Drew Pettit, who was on ETF IQ
• 11:18
  Speaker 1: talking about this. And so look, the way it polarized
• 11:21
  Speaker 1: people and had people reacting, I just thought it was
• 11:23
  Speaker 1: a good wild card this week, but it doesn't have
• 11:26
  Speaker 1: a ton of money so far. So even though it
• 11:28
  Speaker 1: started trading, like DRAM was a hitter off the bat.
• 11:30
  Speaker 1: This one hasn't seen much action. Maybe it will. Other
• 11:33
  Speaker 1: people have tried monthly and even quarterly resetting leverage ETFs
• 11:36
  Speaker 1: and nobody cares. So this might be in that bucket
• 11:38
  Speaker 1: of like, it just has to be daily resetting and
• 11:41
  Speaker 1: give me that juice every day or I don't care.
• 11:42
  Speaker 3: Defiance is trying for an hourly.
• 11:45
  Speaker 1: Yeah, that's even like, that's to go another way and saying, oh,
• 11:47
  Speaker 1: you want juice?
• 11:48
  Speaker 3: Here's a lot of juice.
• 11:49
  Speaker 1: Here's a waterfall. That probably will work. I think just
• 11:53
  Speaker 1: generally speaking, if you increase the purity of the juice,
• 11:59
  Speaker 1: you will get bites.
• 12:00
  Speaker 3: It's orange concentrate.
• 12:01
  Speaker 1: It's concentration, yeah. I could totally see this, though.
• 12:05
  Speaker 2: There are so many other versions of this of like,
• 12:07
  Speaker 2: what's the Bitcoin version of this, right?
• 12:10
  Speaker 1: Yeah.
• 12:11
  Speaker 2: There's going to be, if this takes off.
• 12:12
  Speaker 1: If this is a hit, of course, they'll make a
• 12:15
  Speaker 1: ton of sequels like Marvel comic movies.
• 12:17
  Speaker 2: There's a thing that you do, which is we try
• 12:19
  Speaker 2: and limit this to three ETFs and then you always
• 12:22
  Speaker 2: have like four or five.
• 12:23
  Speaker 1: Wait, I'm sorry. And I know you told me not
• 12:25
  Speaker 1: to do this, but I just have to just crowbar
• 12:27
  Speaker 1: this in. I want to just quickly talk about another
• 12:29
  Speaker 1: wild card that happened in Europe. I don't tend to
• 12:32
  Speaker 1: get it. My attention doesn't divert to Europe all that often.
• 12:35
  Speaker 1: There's not a ton going on. 21 shares, anthropic synthetic
• 12:39
  Speaker 1: ETP launched.
• 12:40
  Speaker 3: What's the ticker?
• 12:42
  Speaker 1: C-L-A-U.
• 12:44
  Speaker 3: Oh, nice.
• 12:45
  Speaker 1: Here's why this is interesting. This uses swaps that link
• 12:48
  Speaker 1: to perpetual futures that link to reference prices for anthropic
• 12:52
  Speaker 1: private shares. So in a way, they are, again, ipso
• 12:56
  Speaker 1: facto through a bunch of means getting you anthropic exposure
• 13:00
  Speaker 1: on a public market. This is the first ETF to
• 13:03
  Speaker 1: give you 100% of a private exposure, and it's doing
• 13:06
  Speaker 1: it for one company.
• 13:07
  Speaker 3: Expensive, though. 100 basis points.
• 13:09
  Speaker 1: Yeah, so that would be a lot. But for the
• 13:12
  Speaker 1: degen trading crowd, that's not a big deal. Also, for
• 13:15
  Speaker 1: something so novel.
• 13:16
  Speaker 2: Yeah.
• 13:17
  Speaker 1: And Anthropic, I think we looked at the, we actually
• 13:20
  Speaker 1: can price where Anthropic is from mutual fund holdings. And
• 13:23
  Speaker 1: I believe it was up something like 150% in the
• 13:26
  Speaker 1: past like 15 months. So you don't care about 1%
• 13:30
  Speaker 1: if something is going up like that. Yeah, I guess so.
• 13:32
  Speaker 1: So it's interesting to see this. Now, this is the
• 13:35
  Speaker 1: wrong market. Europe, I just– they're so sleepy. They don't
• 13:39
  Speaker 1: really take to hot sauce. But there's an ETF filed
• 13:43
  Speaker 1: here by Defiance that's going to do the same thing.
• 13:45
  Speaker 1: Swaps to perps to the ETF. And that would be
• 13:49
  Speaker 1: the way to give you privates. Anyway, just something to
• 13:51
  Speaker 1: be aware of.
• 13:51
  Speaker 2: Does any of this matter before– it matters before an IPO?
• 13:55
  Speaker 1: Does it matter after? That's a good question. Maybe they'll
• 13:57
  Speaker 1: convert it to a 2X version of Anthropic. or you'll
• 14:02
  Speaker 1: just keep your shares if you don't want to, like,
• 14:03
  Speaker 1: realize capital gains.
• 14:04
  Speaker 3: It reminds me of all the ETFs that said they
• 14:09
  Speaker 3: tracked SpaceX before SpaceX went public, and that was their
• 14:11
  Speaker 3: whole selling point. And when SpaceX went public, you know,
• 14:14
  Speaker 3: and then the NASDAQ had SpaceX.
• 14:16
  Speaker 1: Yeah.
• 14:17
  Speaker 3: Yeah, you know what? We should check up on what
• 14:18
  Speaker 3: happened to those. Anyway.
• 14:20
  Speaker 1: I'm always, if you, a lot of times these ETFs launch,
• 14:22
  Speaker 1: and if you get, like, say, $ 100 million, and then
• 14:26
  Speaker 1: the thing that was so hot goes away, only half
• 14:28
  Speaker 1: the people leave anyway. So, like, People just forget they
• 14:31
  Speaker 1: buy stuff, I think. Or they don't want to take
• 14:33
  Speaker 1: the taxes. Half the people always stay. I'm not that person.
• 14:37
  Speaker 2: Yeah.
• 14:38
  Speaker 1: Where's my money again?
• 14:39
  Speaker 2: All right.
• 14:41
  Speaker 1: Good luck with that category.
• 14:42
  Speaker 3: Good luck with that. What is it, Eric?
• 14:44
  Speaker 2: What's our winner this episode?
• 14:47
  Speaker 1: Okay. This one is Direction US 500 Plus ETF.
• 14:52
  Speaker 2: Ticker SPXP.
• 14:55
  Speaker 1: Yeah. This is kind of an- It's a baby.
• 14:59
  Speaker 3: It launched just like- Less than two weeks ago.
• 15:01
  Speaker 1: Yeah. It looks like it's the S & P 500
• 15:04
  Speaker 1: plus some commodities. And commodities are pretty popular for debasement,
• 15:08
  Speaker 1: and people like commodities. Advisors are always looking to how
• 15:11
  Speaker 1: they get commodities. The reason I say good luck with
• 15:13
  Speaker 1: that is, A, this is expensive, 92 basis points for
• 15:17
  Speaker 1: largely serving up things that are cheaper otherwise. The other
• 15:20
  Speaker 1: thing is commodities tend to be bought on their own. Again,
• 15:26
  Speaker 1: back to this idea that for most ETF advisors... who
• 15:30
  Speaker 1: arrange portfolios, they want to pick the pieces. To quote
• 15:34
  Speaker 1: the movie W, with Josh Brolin playing George W.
• 15:37
  Speaker 2: Bush.
• 15:37
  Speaker 3: I don't know what that is.
• 15:38
  Speaker 1: He said, he goes, Dick, I'm the decider. That was
• 15:42
  Speaker 1: his quote.
• 15:43
  Speaker 3: You should know that Eric was using his pointer finger
• 15:46
  Speaker 3: acting while saying that. It's also currencies and fixed income, though.
• 15:49
  Speaker 3: And I think it's systematic trend following or something like that.
• 15:53
  Speaker 3: So is it still good luck with that?
• 15:55
  Speaker 1: Yes, absolutely. Yeah. And I understand this. It's a little
• 15:58
  Speaker 1: bit like... you know, stacking, return stacking, and a hedge
• 16:02
  Speaker 1: fund with your S & P. And that has been
• 16:04
  Speaker 1: somewhat a hit, but direction is not known for this.
• 16:07
  Speaker 1: The other thing is, generally, you know, these advisors want
• 16:09
  Speaker 1: to be the choosers. They arrange a portfolio and they
• 16:12
  Speaker 1: want to know what's in it. But who knows? You know,
• 16:14
  Speaker 1: I could be wrong. This is one where I just
• 16:16
  Speaker 1: think that... If you're wrong, we'll have them on and
• 16:19
  Speaker 1: you can eat crow. If this gets assets, you know,
• 16:23
  Speaker 1: I will eat crow, at least on X. If not,
• 16:25
  Speaker 1: come back on the show. We'll talk about it.
• 16:28
  Speaker 2: Again.
• 16:29
  Speaker 1: If this were a company known for managed futures already,
• 16:34
  Speaker 1: like Corey Hofstein or WisdomTree, I think I would give
• 16:38
  Speaker 1: them maybe a little more. But it's hard to come
• 16:41
  Speaker 1: in as a company that's known for themes and for
• 16:43
  Speaker 1: leverage and be like, oh yeah, we're doing this complicated
• 16:46
  Speaker 1: sort of like hedge fund-ish kind of strategy. I don't know.
• 16:50
  Speaker 1: I looked at it and I just thought, and plus
• 16:53
  Speaker 1: at that fee point, it just looks like a lot
• 16:55
  Speaker 1: of beta. and only a little bit of hedge fund,
• 16:58
  Speaker 1: and I just don't see it selling. Hard sell. Yeah,
• 17:01
  Speaker 1: I would definitely take the under on this. All right.
• 17:03
  Speaker 3: I guess you have to try.
• 17:04
  Speaker 1: I mean, if you're them. By the way, good luck
• 17:07
  Speaker 1: with that.
• 17:08
  Speaker 3: Good luck with that.
• 17:08
  Speaker 1: I don't blame anybody for trying. I mean, you have
• 17:11
  Speaker 1: to be in it to win it.
• 17:12
  Speaker 3: That's true. I think the tone says a lot. It's
• 17:15
  Speaker 3: either good luck with that or good luck with that.
• 17:18
  Speaker 3: Good luck with that. Why don't you give it a try, Eric?
• 17:21
  Speaker 1: Well, when we say it on the team, we mean
• 17:23
  Speaker 1: it like good luck with that. Like, yo, dude, good
• 17:27
  Speaker 1: luck with that. Yeah.
• 17:34
  Speaker 2: Thanks for listening to Trillions. Until next time, you can
• 17:36
  Speaker 2: find us on the Bloomberg Terminal, Bloomberg.com, Apple Podcasts, Spotify,
• 17:41
  Speaker 2: or wherever else you like to listen. We'd love to
• 17:43
  Speaker 2: hear from you.
• 17:44
  Speaker 1: Hit us up.
• 17:45
  Speaker 2: Trillions is produced by Magnus Henriksen and Keshav Pandya. Amy
• 17:50
  Speaker 2: Keene is our executive producer. Cheryl Brumley is the head
• 17:53
  Speaker 2: of Bloomberg Podcasts.
• 17:55
  Speaker 1: Bye.