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The Secret World of ETFs · Suze Orman's Women & Money (And Everyone Smart Enough To Listen)

0:08
Suze: May 31st, 2026. Welcome everybody to the Women and Money podcast,
0:13
Suze: and everybody smart enough to listen. And today is Suze School.
0:18
Suze: So get out your Suze notebooks. But before I start,
0:22
Suze: two things. Number one. June 1st, tomorrow, 7:30 p.m. East
0:27
Suze: Coast time, I will be on live on CNN, Erin Burnett,
0:32
Suze: please tune in. You never know what we're gonna tell you,
0:35
Suze: 'cause I never know what I'm gonna say.
0:37
Suze: Do you know it's actually been years since I've been
0:39
Suze: on live TV. Anyway, that's number one. Number two, make
0:43
Suze: sure you register for the June 4th webinar. Go to
0:48
Suze: Suze Orman.com. It starts at 6 p.m. East Coast time,
0:52
Suze: and again, it is free. If you already saw or
0:55
Suze: registered for April 23rd webinar, you don't have to register again,
1:01
Suze: but I can tell you, we now have over 100,000
1:07
Suze: registrations. Makes me happy. It's gonna be me and Keith
1:11
Suze: for the entire time, very different than the April 23rd one,
1:16
Suze: which was personal finances. This is all about what stocks
1:19
Suze: to buy, what ETFs to buy, real estate, REITs, bonds, gold, Bitcoin,
1:25
Suze: all of it, got it? Don't forget there will be
1:28
Suze: birthday pricing because the next day,
1:31
Suze: June 5th is my birthday. So if you've ever wanted
1:36
Suze: to buy the Must-Have Documents or the Ultimate Scam Protection,
1:41
Suze: that is the time to do it. You can kind
1:43
Suze: of guess at what that price will be. All right,
1:48
Suze: are we ready to begin now? It is no secret,
1:51
Suze: or maybe you still don't know, so maybe it is
1:53
Suze: a secret that Keith brought out Fitz, F I T Z.
1:59
Suze: The ETF that we have been talking about now for what,
2:03
Suze: two years, and that came out last Thursday.
2:08
Suze: And it came out to a tremendous, tremendous success. Over
2:13
Suze: 1 million shares were purchased, priced around $25. And then
2:20
Suze: again on Friday,
2:23
Suze: about 600,000 shares were purchased right around the same price,
2:28
Suze: and so that means about $40 million went into that
2:35
Suze: ETF in just two days. So when you compare it
2:39
Suze: to everything else that's out there.
2:42
Suze: This is one of the greatest successes of ETFs that
2:45
Suze: came out that are a managed ETF, not Bitcoin or
2:49
Suze: some big ETF, but really congratulations to Keith and to
2:54
Suze: all of you who participated, tremendous success. But what I
2:59
Suze: need all of you to understand is an ETF is
3:04
Suze: not like an IPO when you bring it out. An
3:08
Suze: IPO is initial public offering.
3:12
Suze: And when it goes to market, there are always enough
3:17
Suze: shares for you to buy, sell, do anything you want with,
3:21
Suze: and all the brokerage firms usually offer it. With an
3:26
Suze: exchange traded fund, it doesn't work that way on any level.
3:33
Suze: First of all, when an exchange traded fund first comes out,
3:38
Suze: what happens is each firm gets to decide when they're
3:42
Suze: going to list it at their firm.
3:44
Suze: Or if they're going to list it. And when a
3:49
Suze: new ETF comes out, especially with somebody that isn't like
3:54
Suze: a big person, not that Keith isn't, but you know
3:57
Suze: what I mean, like a BlackRock or any of those,
4:01
Suze: sometimes they don't want to take a chance on it.
4:04
Suze: Sometimes they go, oh, we'll see, we'll just see how
4:06
Suze: it's doing.
4:08
Suze: And even though Schwab and Fidelity and Vanguard and E-Trade
4:13
Suze: and T. Rowe Price and a lot of firms let
4:17
Suze: it be traded on their platforms, many like Merrill Lynch
4:21
Suze: did not, and that aggravated a lot of you. You
4:25
Suze: didn't quite understand it, and that's because an exchange traded
4:30
Suze: fund is not like an individual stock.
4:35
Suze: That there's only one stock listed everywhere, can go up
4:39
Suze: or down, that's it. An exchange traded fund and especially FITZ,
4:44
Suze: currently has 28 individual stocks in it.
4:50
Suze: Twenty-eight. So when you buy it, there has to be
4:55
Suze: enough shares in that exchange traded fund for you to
5:00
Suze: be able to purchase a slice of all those shares.
5:05
Suze: A run on the ETF happened, which means more money
5:11
Suze: came into the ETF than any of the market makers
5:16
Suze: were expecting. So what did they do? They had to
5:20
Suze: close it down for a few minutes and therefore put
5:24
Suze: more shares of all those stocks in there.
5:29
Suze: So that your money could buy actual shares, and that
5:33
Suze: happened three or four times on Thursday.
5:38
Suze: And that was a really good sign. Everybody. What that
5:43
Suze: said is more people wanted to buy Fitz F I
5:48
Suze: T Z than what the New York Stock Exchange and
5:53
Suze: the market makers thought were going to be bought. Just
5:58
Suze: that simple. Well, to tell you the truth, they were shocked.
6:03
Suze: They were surprised.
6:05
Suze: And they were the ones that lost out in many
6:09
Suze: ways because they didn't fund it enough, not anybody's problem.
6:15
Suze: It was their risk. It's their stock that they put
6:18
Suze: into this exchange traded fund, and guess what? They kept
6:22
Suze: having to put more and more and more in as
6:26
Suze: time goes on.
6:29
Suze: And as FITZ makes its mark, people start to know it,
6:36
Suze: every place around will go, why didn't we do that
6:40
Suze: the day it came out. The other thing I want
6:44
Suze: you to understand.
6:46
Suze: You do not have to be afraid of missing out.
6:50
Suze: It's not like an IPO, a stock that comes out
6:53
Suze: at 18, like, I'll never forget this with Facebook, comes
6:58
Suze: out at 18, goes to 48 immediately, then right back
7:01
Suze: down again to 18. Now it's Meta, of course, but
7:05
Suze: it's not like that because you have 28 individual stocks
7:11
Suze: in there.
7:13
Suze: All those stocks have to move a certain percentage or
7:16
Suze: whatever for you to get a tremendous move in the
7:21
Suze: exchange traded funds price so you don't have to worry
7:26
Suze: about missing out on anything. So it came out at
7:30
Suze: about 25.30 ($25.30). That's where I bought it at. That's
7:37
Suze: where Keith probably bought it at. I have a feeling,
7:40
Suze: not sure exactly, but.
7:42
Suze: Here's the thing.
7:44
Suze: Stop thinking you got to get in right away. If
7:47
Suze: you don't buy it today, it's gonna be too late.
7:49
Suze: It's an exchange traded fund. It is not a stock,
7:55
Suze: and you are not to treat it like a stock,
7:57
Suze: which is why you buy an exchange traded fund. Listen,
8:02
Suze: individual stocks will make bigger moves all the time by
8:08
Suze: themselves because they're individual.
8:11
Suze: They go up, they go down, they're priced just as
8:14
Suze: they are.
8:16
Suze: For an exchange traded fund, I'm going to repeat this, everybody,
8:21
Suze: 28 stocks, they all move. Some move up, some move down,
8:26
Suze: and it averages out. So therefore stop worrying you didn't
8:32
Suze: miss out on anything. It's just that simple. The reason
8:38
Suze: that you want
8:39
Suze: an exchange traded fund like FITZ for instance is if
8:44
Suze: you look at the 28 stocks that are in there
8:48
Suze: in the portfolio, every one of those stocks are a
8:53
Suze: stock that you would want to own, but a lot
8:57
Suze: of you don't have the money to buy all 28.
9:01
Suze: He can buy up to 30, by the way, that
9:04
Suze: you don't have the money to buy all 28 to
9:07
Suze: watch all 28,
9:09
Suze: to keep dollar cost averaging every single month into the 28.
9:14
Suze: You don't have maybe the time and the knowledge of
9:16
Suze: how do you rebalance the 28 stocks that are in there,
9:20
Suze: and those are all things that Keith will be doing
9:24
Suze: for you. You just have to do one thing, and
9:28
Suze: that one thing is this you buy FITZ, the exchange
9:34
Suze: traded fund.
9:35
Suze: And that's it. And you own a little bit of
9:39
Suze: all the stocks that I know you want to own.
9:43
Suze: Now the question becomes, well, what's in it? Some of
9:49
Suze: you are just so funny. Well, what's the top 10 holdings?
9:54
Suze: What are they, Suze? I can't find them. They're all
9:56
Suze: listed if you look, but here are the 28 stocks
10:02
Suze: that make up the FITZ ETF:
10:07
Suze: Nvidia, Tesla, Apple, JPMorgan Chase, Palantir, IONQ, Advanced Micro Devices, Broadcom,
10:17
Suze: Lockheed Martin, Walmart, RTX, Chevron, Eli Lilly, CrowdStrike, Rocket,
10:24
Suze: LabCorp, ABV, Care Trust REIT, Gilead Sciences, Microsoft, GE Vernova,
10:32
Suze: Waste Management, Exxon, Costco, Amazon, Alphabet, Kinder Morgan, Meta Platform,
10:40
Suze: and Proctor and Gamble.
10:43
Suze: You have incredible variety there. Do you see that? If
10:47
Suze: all of your artificial intelligence stocks now, IONQ, Palantir, if
10:52
Suze: they are all skyrocketing, OK, they're skyrocketing in this portfolio
10:58
Suze: as well. But if the other stocks are not, you're
11:01
Suze: not going to have the movement in price as you
11:04
Suze: would in the individual stocks. But I got news for you.
11:09
Suze: When those stocks, do you remember Palantir going from 210
11:14
Suze: all the way down to 125, IONQ going down to 25,
11:20
Suze: from I think 85.
11:22
Suze: Even if they do that within this portfolio, the other
11:28
Suze: stocks that are in there will balance it out.
11:31
Suze: And if you ask me, that is what the majority
11:35
Suze: of you need right now. You need balance. That doesn't
11:40
Suze: mean that if you have the ETF fits, that you
11:44
Suze: don't own shares maybe of Palantir, IONQ, AMD, all of
11:50
Suze: those that we've talked about in the past.
11:53
Suze: That are doing incredible Tesla, all of them, you can
11:57
Suze: have both.
11:58
Suze: This is not an all or nothing investment strategy. So,
12:03
Suze: that's what Fitz's ETF is about. This ETF was created
12:10
Suze: for a long-term hold.
12:13
Suze: He's calling it the must-have portfolio because everything in there
12:19
Suze: happens to manufacture or is involved with things that most
12:23
Suze: of you must have every day that you use, items
12:27
Suze: that you need, you use, and you want.
12:31
Suze: And so what that does is it creates a long
12:35
Suze: term investment horizon, slow and steady, and the goal of
12:42
Suze: this is that over a longer period of time, maybe
12:46
Suze: a few years or whatever, that it should outperform the
12:50
Suze: Standard and Poor's 500 index because really what's making the
12:57
Suze: S&P go up are just a few of the stocks.
13:01
Suze: That are in this portfolio, by the way, but your
13:05
Suze: money is invested in 500 stocks, 1,000 stocks, 2,000 stocks
13:11
Suze: that really that money isn't doing anything in those other stocks.
13:17
Suze: Keith has created, in my opinion, an ETF where your
13:21
Suze: money will be doing well in all the stocks that
13:25
Suze: are in there, especially depending on what's happening in the economy.
13:31
Suze: The political situations and in life in general. So how
13:37
Suze: do you invest in FITZ? You invest on a dollar
13:41
Suze: cost averaging basis. You do not put all your money
13:46
Suze: in at one time. Now I bought it on Thursday. However,
13:51
Suze: I put a substantial sum in, but not as much
13:54
Suze: as I intend to put in over time.
13:59
Suze: Because you have to dollar cost average in markets like this.
14:05
Suze: You cannot just say, oh, the markets are down, here's
14:07
Suze: all my money.
14:09
Suze: And then all of a sudden it goes down more,
14:11
Suze: and you can't take advantage of buying more shares when
14:16
Suze: something goes from 210 to 180 to 150 to 125,
14:21
Suze: and now it's back up again, all right?
14:24
Suze: So, it's essential that's how you invest. So, if you
14:28
Suze: are going to invest in FITZ, you have to have
14:34
Suze: a very long term time horizon. Be patient with it.
14:41
Suze: And understand you're gonna be doing a dollar cost averaging
14:44
Suze: technique every single month. I don't care if it's $25
14:50
Suze: a month, $50 a month, $5000 a month, you are
14:54
Suze: not gonna put all your money in there at once.
14:57
Suze: Does that mean that I want you to sell and
15:00
Suze: get out of your VTI or your VO or all
15:03
Suze: the other funds that I told you about? No.
15:08
Suze: But there's a place for everything, and there is a
15:11
Suze: place for FITZ in every single one of your portfolios
15:17
Suze: in most cases. So, just something for you to think about,
15:22
Suze: but don't expect it to skyrocket like SMH is doing now.
15:27
Suze: Right, which was my favorite semiconductor ETF. It's all semiconductors,
15:33
Suze: but watch if it turns around, watch it plummet. So, again,
15:39
Suze: there's a time and place for everything, but it does
15:43
Suze: dawn on me that maybe you should really understand what
15:48
Suze: does it actually take for an ETF to come to market.
15:55
Suze: So, here's what I want to tell you. Here's how
15:57
Suze: it works. Ready?
16:00
Suze: Every ETF starts with an idea, just that simple. Maybe
16:05
Suze: it's a new way to invest in dividend paying stocks.
16:09
Suze: Maybe it's a technology theme.
16:12
Suze: Maybe it's a different approach to managing risk or maybe
16:16
Suze: in Keith's case it's the belief that a carefully selected
16:21
Suze: portfolio of exceptional companies can help you, the investor, build
16:27
Suze: wealth over the long term. Can you underline long term?
16:33
Suze: This is not something that you are going to trade.
16:35
Suze: You do not buy this to sell it. You buy
16:38
Suze: this to keep it because hopefully it will make you
16:42
Suze: money forever until you really need that money. You need
16:47
Suze: it maybe to buy a house. I don't know what
16:49
Suze: for years from now, but just remember I said that.
16:54
Suze: But you know, an idea is only the beginning of it.
16:58
Suze: So once that idea was born, Keith had to build
17:04
Suze: the exchange traded fund. What does that mean? It means
17:08
Suze: he had to get tons of lawyers involved. Next, regulatory
17:13
Suze: filings are made. He had to make them with the
17:17
Suze: Securities and Exchange Commission.
17:20
Suze: And he had to detail all kinds of things and
17:23
Suze: disclose everything in writing. Then he had to determine exactly
17:30
Suze: what the ETF will own.
17:33
Suze: After that, market makers and authorized participants prepare the systems
17:40
Suze: that allow shares to be created and traded. Do you
17:44
Suze: even know what a market maker is and an authorized participant?
17:50
Suze: I bet you don't, but to put it very simply,
17:54
Suze: a market maker essentially owns one of the stocks that
17:59
Suze: maybe is in this ETF.
18:02
Suze: And when this ETF comes out, what do they do?
18:06
Suze: They put the shares that they own into the ETF
18:10
Suze: and maybe there's a whole lot of different market makers
18:13
Suze: depending on which stocks are in there, and that's kind
18:16
Suze: of what happened when this first came out. They didn't
18:19
Suze: put enough shares in there because nobody had a clue
18:23
Suze: that as many shares were gonna be wanted as there
18:27
Suze: were the first day. Everybody was testing the water.
18:32
Suze: Which is why it kind of came out secretly, believe
18:34
Suze: it or not, and all of you thought it was
18:37
Suze: really gonna be announced on June 4th. We wanted to
18:40
Suze: make sure that everything was working perfectly with Keith's ETF
18:46
Suze: before over 100,000 of you are introduced to it, and
18:50
Suze: then later on, a whole lot more really because of
18:54
Suze: other things that are planned besides the market makers.
18:59
Suze: You have authorized participants, typically, everybody, large banks or market
19:05
Suze: making firms, and they can create or redeem ETF shares
19:09
Suze: in large blocks, usually 50,000 shares at a time. And
19:14
Suze: when they do that, by the way, that's called a
19:16
Suze: creation unit.
19:18
Suze: So, that's just a little bit of what starts to
19:20
Suze: go on, all right? So, you have market makers and
19:24
Suze: authorized participants that prepared the systems that allow shares to
19:28
Suze: be created and traded, all right?
19:31
Suze: How long does that take? It takes months.
19:35
Suze: Sometimes it takes longer, and once everything is ready, the
19:39
Suze: ETF begins trading on an exchange. Now, here's what most
19:46
Suze: people don't realize and what I talked about at the
19:49
Suze: beginning of this podcast. Just because an ETF begins trading
19:55
Suze: does not mean every brokerage firm in America immediately makes
20:01
Suze: it available to their clients.
20:04
Suze: Each brokerage firm has its own review process. Do you
20:09
Suze: get that, everybody? It has its own compliance department, its
20:13
Suze: own technology systems, its own timetables. Now, some firms, and
20:20
Suze: many did on Thursday.
20:21
Suze: Can make a new ETF available quickly. Others like Merrill
20:27
Suze: and a few others take days. Some take weeks, and
20:32
Suze: some even take longer, which is exactly what was happening
20:36
Suze: on Thursday. Yet some of you were so upset, and
20:42
Suze: you were upset because your brokerage firm would not allow
20:46
Suze: you to purchase shares immediately.
20:50
Suze: And even on the Women and Money Community app, one
20:53
Suze: person said, Don't you think you should have waited
20:57
Suze: until you were ready and everybody was going to carry it? Now,
21:01
Suze: I understand that reaction, but here's the truth. If Keith
21:06
Suze: had waited until every single brokerage platform was ready, he
21:10
Suze: might still be waiting months from now.
21:14
Suze: So at some point, every ETF has to make a decision.
21:20
Suze: You launch and you let the market decide and then
21:24
Suze: you continue working with the brokerage firms as they complete
21:29
Suze: their onboarding processes and that is how the ETF industry
21:34
Suze: works now I just want to make sure that you
21:38
Suze: understand something.
21:40
Suze: What happened with FITZ wasn't because nobody cared.
21:46
Suze: It existed because so many people wanted to buy it immediately.
21:51
Suze: Think about that. The issue wasn't lack of interest. The
21:56
Suze: issue was demand. People were calling their firms, checking their accounts,
22:01
Suze: looking for the ticker, trying to place orders. That's not
22:05
Suze: evidence of failure. That's evidence of excitement.
22:10
Suze: And while I know Keith is grateful for that enthusiasm,
22:15
Suze: I want to be very clear about something.
22:18
Suze: This launch is not the achievement. This launch is simply
22:23
Suze: the beginning. Anyone can launch an ETF. The real challenge
22:28
Suze: is earning trust day after day, month after month, year
22:33
Suze: after year, not through marketing, not through hype, not through promises,
22:38
Suze: but through discipline, through transparency, and through consistency and through
22:43
Suze: making decisions that put you first for years.
22:48
Suze: Keith and I talked about creating something. I wanted him
22:52
Suze: to create something that reflected our beliefs about investing, something
22:58
Suze: that wasn't built around the latest fad, something that I
23:01
Suze: just wanted designed for people like you who want to
23:05
Suze: own exceptional businesses and stay focused on the long term.
23:11
Suze: And guess what? Keith did that.
23:15
Suze: So, until tomorrow night when you're all going to tune
23:18
Suze: in to Erin Burnett on CNN, right? 7:30.
23:23
Suze: June 4th for the webinar with Keith and myself. Don't
23:29
Suze: miss that. And of course the birthday pricing on items
23:34
Suze: that you absolutely need and you should want. So until then,
23:39
Suze: there's only one thing that I want you to remember
23:41
Suze: when it comes to your money, and it is this
23:44
Suze: people first, then money, then things. Now you stay safe.
23:49
Suze: Bye bye.