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The Lazy Investor's Guide To Building Real Wealth · Making Cents

• 0:00
  What
• 0:00
  if
• 0:00
  the
• 0:00
  secret
• 0:01
  to
• 0:01
  building
• 0:02
  real
• 0:02
  wealth
• 0:03
  isn't
• 0:03
  working
• 0:03
  harder,
• 0:04
  thinking
• 0:05
  better,
• 0:05
  or
• 0:05
  knowing
• 0:06
  something
• 0:06
  that
• 0:06
  nobody
• 0:07
  else
• 0:07
  knows?
• 0:08
  What
• 0:08
  if
• 0:09
  it's
• 0:09
  actually
• 0:09
  doing
• 0:10
  less?
• 0:10
  I'll
• 0:11
  declare
• 0:11
  bias
• 0:11
  up
• 0:11
  front.
• 0:12
  That's
• 0:12
  exactly
• 0:13
  what
• 0:13
  I
• 0:13
  think.
• 0:14
  But
• 0:14
  I
• 0:14
  didn't
• 0:15
  think
• 0:15
  that
• 0:15
  once
• 0:16
  upon
• 0:16
  a
• 0:16
  time.
• 0:16
  Most
• 0:17
  of
• 0:17
  us
• 0:17
  don't.
• 0:18
  Most
• 0:18
  of
• 0:18
  us
• 0:19
  assume
• 0:19
  that
• 0:19
  money
• 0:20
  grows
• 0:20
  through
• 0:21
  effort.
• 0:22
  The
• 0:22
  people
• 0:23
  getting
• 0:23
  ahead
• 0:23
  financially,
• 0:24
  especially
• 0:24
  when
• 0:25
  it
• 0:25
  comes
• 0:25
  to
• 0:25
  investing,
• 0:26
  are
• 0:26
  the
• 0:26
  ones
• 0:27
  watching
• 0:27
  the
• 0:27
  markets,
• 0:28
  making
• 0:28
  the
• 0:28
  moves
• 0:29
  and
• 0:29
  staying
• 0:29
  on
• 0:29
  top
• 0:29
  of
• 0:30
  it
• 0:30
  all.
• 0:30
  And,
• 0:30
  and
• 0:30
  then
• 0:30
  it
• 0:31
  became
• 0:31
  my
• 0:31
  job
• 0:32
  to
• 0:32
  watch
• 0:32
  this
• 0:33
  stuff.
• 0:33
  And
• 0:33
  then
• 0:34
  I
• 0:34
  started
• 0:35
  doing
• 0:35
  it.
• 0:36
  And
• 0:36
  it
• 0:36
  turns
• 0:36
  out
• 0:37
  both
• 0:37
  the
• 0:37
  studies
• 0:38
  and
• 0:38
  my
• 0:38
  own
• 0:38
  life
• 0:39
  experience
• 0:40
  will
• 0:40
  tell
• 0:40
  you
• 0:40
  that
• 0:40
  lazy
• 0:41
  is
• 0:41
  better.
• 0:42
  Way
• 0:42
  better.
• 0:42
  And
• 0:43
  Sean
• 0:43
  Freer,
• 0:44
  Director
• 0:44
  of
• 0:44
  Global
• 0:44
  Exchange
• 0:45
  Indices
• 0:45
  at
• 0:45
  S
• 0:46
  and
• 0:46
  P
• 0:46
  Dow
• 0:46
  Jones
• 0:47
  Indices,
• 0:47
  is
• 0:48
  another
• 0:48
  one
• 0:48
  on
• 0:49
  Team
• 0:49
  Lazy.
• 0:49
  Passive
• 0:50
  funds
• 0:50
  tend
• 0:51
  to
• 0:51
  outperform
• 0:51
  over
• 0:51
  the
• 0:52
  long
• 0:52
  term.
• 0:52
  There's
• 0:52
  roughly
• 0:53
  6
• 0:53
  billion
• 0:54
  New
• 0:54
  Zealand
• 0:54
  dollars
• 0:55
  invested
• 0:55
  in
• 0:55
  ETFs,
• 0:56
  and
• 0:56
  the
• 0:57
  majority
• 0:57
  of
• 0:57
  that
• 0:57
  would
• 0:57
  be
• 0:58
  would
• 0:58
  be
• 0:58
  passive.
• 0:59
  Because
• 0:59
  here's
• 1:00
  what's
• 1:00
  wild.
• 1:00
  There's
• 1:01
  study
• 1:01
  after
• 1:02
  study
• 1:02
  on
• 1:02
  this,
• 1:03
  and
• 1:03
  in
• 1:03
  the
• 1:03
  latest
• 1:03
  one,
• 1:04
  they
• 1:04
  found
• 1:04
  that
• 1:04
  in
• 1:04
  the
• 1:05
  last
• 1:05
  15
• 1:05
  years,
• 1:06
  86%
• 1:08
  of
• 1:08
  professional
• 1:09
  fund
• 1:09
  managers,
• 1:10
  people
• 1:10
  whose
• 1:11
  entire
• 1:11
  job
• 1:11
  it
• 1:12
  is
• 1:12
  to
• 1:12
  beat
• 1:13
  the
• 1:13
  market,
• 1:14
  they
• 1:14
  don't.
• 1:15
  What
• 1:16
  do
• 1:16
  they
• 1:16
  get
• 1:16
  beaten
• 1:17
  by?
• 1:17
  The
• 1:17
  lazy
• 1:18
  investor's
• 1:18
  best
• 1:19
  friend,
• 1:19
  an
• 1:20
  index
• 1:20
  fund.
• 1:21
  The
• 1:21
  active
• 1:21
  managers
• 1:22
  aren't
• 1:22
  picking
• 1:23
  the
• 1:23
  winners
• 1:23
  all
• 1:24
  the
• 1:24
  time,
• 1:24
  so
• 1:25
  I
• 1:25
  don't
• 1:25
  know
• 1:25
  how
• 1:25
  retail
• 1:25
  investors
• 1:26
  can
• 1:26
  do
• 1:26
  that.
• 1:27
  Now
• 1:27
  here's
• 1:27
  the
• 1:27
  problem.
• 1:28
  We
• 1:28
  resist
• 1:29
  this
• 1:29
  because
• 1:29
  it
• 1:29
  just
• 1:30
  doesn't
• 1:31
  feel
• 1:31
  right.
• 1:32
  Doing
• 1:32
  more
• 1:33
  must
• 1:33
  get
• 1:34
  you
• 1:34
  more,
• 1:34
  surely,
• 1:35
  and
• 1:35
  this
• 1:35
  is
• 1:36
  your
• 1:36
  emotional
• 1:36
  side
• 1:37
  sabotaging
• 1:38
  you
• 1:39
  when
• 1:39
  actually
• 1:39
  you
• 1:40
  mostly
• 1:40
  need
• 1:40
  patience,
• 1:41
  low
• 1:42
  fees,
• 1:42
  and
• 1:43
  to
• 1:43
  get
• 1:43
  out
• 1:43
  of
• 1:44
  your
• 1:44
  own
• 1:44
  way.
• 1:45
  The
• 1:45
  less
• 1:46
  you
• 1:46
  tinker,
• 1:47
  the
• 1:47
  more
• 1:47
  you,
• 1:47
  the
• 1:48
  more
• 1:48
  you
• 1:48
  can
• 1:48
  make
• 1:48
  in
• 1:49
  the
• 1:49
  longer
• 1:49
  term.
• 1:49
  The
• 1:50
  ETF
• 1:50
  is
• 1:50
  becoming
• 1:51
  the
• 1:51
  vehicle
• 1:51
  of
• 1:51
  choice
• 1:52
  for
• 1:52
  retail
• 1:52
  investors.
• 1:54
  So
• 1:54
  welcome
• 1:54
  to
• 1:54
  Making
• 1:55
  Sense.
• 1:55
  It's
• 1:55
  the
• 1:55
  podcast
• 1:56
  for
• 1:56
  people
• 1:56
  who
• 1:56
  want
• 1:56
  financial
• 1:57
  freedom
• 1:57
  without
• 1:58
  giving
• 1:58
  up
• 1:58
  their
• 1:58
  coffee.
• 1:59
  I'm
• 2:00
  Frances
• 2:00
  Cook,
• 2:00
  financial
• 2:01
  journalist
• 2:01
  and
• 2:01
  fellow
• 2:02
  financial
• 2:02
  freedom
• 2:02
  seeker
• 2:03
  who
• 2:03
  makes
• 2:03
  money
• 2:04
  simple
• 2:04
  for
• 2:04
  you
• 2:05
  today.
• 2:06
  The
• 2:06
  lazy
• 2:07
  way
• 2:07
  to
• 2:07
  get
• 2:07
  rich
• 2:08
  and
• 2:08
  why
• 2:08
  it
• 2:08
  actually
• 2:09
  works.
• 2:10
  This
• 2:10
  episode
• 2:11
  of
• 2:11
  Making
• 2:11
  Sense
• 2:12
  is
• 2:12
  supported
• 2:12
  by
• 2:12
  Odoo,
• 2:13
  the
• 2:13
  affordable
• 2:14
  way
• 2:14
  to
• 2:14
  get
• 2:14
  your
• 2:15
  business
• 2:15
  working
• 2:16
  smarter.
• 2:17
  Go
• 2:17
  to
• 2:17
  odoo.com
• 2:18
  that's
• 2:18
  o
• 2:19
  d
• 2:19
  double
• 2:19
  o.com
• 2:20
  for
• 2:20
  more
• 2:21
  I
• 2:21
  want
• 2:21
  to
• 2:21
  help
• 2:21
  as
• 2:22
  many
• 2:22
  people
• 2:22
  as
• 2:23
  possible
• 2:23
  reach
• 2:23
  financial
• 2:24
  freedom
• 2:24
  by
• 2:25
  taking
• 2:25
  control
• 2:25
  of
• 2:26
  their
• 2:26
  money.
• 2:26
  You
• 2:27
  can
• 2:27
  help
• 2:27
  me
• 2:27
  in
• 2:27
  that
• 2:27
  mission.
• 2:28
  Two
• 2:29
  really
• 2:29
  easy
• 2:29
  ways.
• 2:30
  First
• 2:31
  hit
• 2:31
  subscribe
• 2:31
  wherever
• 2:32
  you
• 2:32
  like
• 2:32
  to
• 2:32
  listen
• 2:33
  YouTube,
• 2:34
  Spotify,
• 2:34
  Apple
• 2:35
  Podcasts
• 2:35
  or
• 2:35
  any
• 2:36
  other
• 2:36
  podcast
• 2:36
  player.
• 2:37
  Then
• 2:38
  send
• 2:38
  this
• 2:38
  episode
• 2:39
  to
• 2:39
  a
• 2:39
  friend
• 2:39
  so
• 2:39
  we
• 2:40
  can
• 2:40
  all
• 2:40
  level
• 2:40
  up
• 2:41
  together,
• 2:41
  then
• 2:42
  the
• 2:42
  show
• 2:42
  grows
• 2:42
  and
• 2:42
  I
• 2:43
  can
• 2:43
  keep
• 2:43
  giving
• 2:43
  you
• 2:44
  the
• 2:44
  money
• 2:44
  info
• 2:45
  that
• 2:45
  makes
• 2:45
  a
• 2:45
  difference
• 2:46
  for
• 2:46
  your
• 2:46
  life.
• 2:47
  Okay,
• 2:47
  back
• 2:48
  to
• 2:48
  it.
• 2:49
  Welcome.
• 2:49
  Sean,
• 2:49
  thank
• 2:50
  you
• 2:50
  so
• 2:50
  much
• 2:50
  for
• 2:50
  coming
• 2:51
  in.
• 2:51
  Look,
• 2:52
  passive
• 2:52
  investing
• 2:53
  and
• 2:53
  index
• 2:54
  funds,
• 2:55
  I
• 2:55
  really
• 2:55
  feel
• 2:56
  like,
• 2:56
  I
• 2:56
  mean,
• 2:56
  I've
• 2:56
  been
• 2:57
  a
• 2:57
  fan
• 2:57
  for
• 2:57
  a
• 2:57
  really
• 2:57
  long
• 2:57
  time,
• 2:58
  but
• 2:58
  I
• 2:58
  feel
• 2:58
  like
• 2:58
  they
• 2:58
  have
• 2:59
  boomed
• 3:00
  in
• 3:00
  the
• 3:00
  last
• 3:01
  few
• 3:01
  years
• 3:01
  and
• 3:01
  really
• 3:02
  got
• 3:02
  people's
• 3:03
  attention.
• 3:05
  What
• 3:05
  are
• 3:05
  you
• 3:05
  seeing
• 3:06
  in
• 3:06
  terms
• 3:06
  of
• 3:06
  the
• 3:08
  response
• 3:08
  from
• 3:08
  people
• 3:09
  globally
• 3:09
  versus
• 3:10
  New
• 3:10
  Zealand?
• 3:10
  Is
• 3:11
  New
• 3:11
  Zealand
• 3:11
  sort
• 3:11
  of
• 3:11
  jumping
• 3:12
  on
• 3:12
  the
• 3:12
  train
• 3:12
  a
• 3:13
  little
• 3:13
  later?
• 3:14
  I
• 3:14
  think
• 3:14
  so.
• 3:14
  Especially
• 3:15
  in
• 3:15
  terms
• 3:15
  of
• 3:15
  exchange
• 3:16
  traded
• 3:16
  funds.
• 3:16
  New
• 3:16
  Zealand
• 3:17
  is
• 3:17
  a
• 3:17
  little
• 3:18
  bit
• 3:18
  behind
• 3:18
  the
• 3:19
  rest
• 3:19
  of
• 3:19
  the
• 3:19
  developed
• 3:20
  world,
• 3:20
  I'll
• 3:20
  say
• 3:20
  on
• 3:20
  that
• 3:21
  front.
• 3:21
  And
• 3:21
  when
• 3:21
  I
• 3:21
  say
• 3:21
  the
• 3:21
  developed
• 3:22
  world,
• 3:22
  I
• 3:22
  mean
• 3:23
  us,
• 3:23
  Canada,
• 3:23
  Europe,
• 3:24
  Japan.
• 3:27
  I'm
• 3:27
  based
• 3:27
  in
• 3:27
  Asia.
• 3:28
  There's
• 3:28
  been
• 3:28
  a
• 3:28
  plethora
• 3:29
  of
• 3:29
  ETFs
• 3:30
  being
• 3:30
  launched
• 3:30
  in
• 3:31
  Asia
• 3:31
  and
• 3:31
  Australia
• 3:32
  as
• 3:32
  well,
• 3:33
  and
• 3:33
  all
• 3:34
  different
• 3:34
  types
• 3:34
  of
• 3:34
  flavors.
• 3:35
  So
• 3:35
  while
• 3:36
  we
• 3:36
  start
• 3:36
  off
• 3:36
  with
• 3:36
  a
• 3:36
  broad
• 3:37
  market
• 3:37
  exposure
• 3:38
  to
• 3:38
  a
• 3:38
  flagship
• 3:38
  index,
• 3:39
  you
• 3:39
  know,
• 3:39
  like
• 3:39
  s
• 3:39
  and
• 3:40
  P
• 3:40
  NDEX
• 3:40
  50
• 3:40
  in
• 3:40
  New
• 3:41
  Zealand,
• 3:41
  S&P
• 3:42
  ASX
• 3:42
  200
• 3:43
  or
• 3:43
  300
• 3:43
  in
• 3:43
  Australia,
• 3:44
  plenty
• 3:45
  of
• 3:45
  S&P
• 3:45
  500
• 3:46
  ETFs.
• 3:46
  We've
• 3:47
  seen
• 3:48
  more
• 3:48
  complex
• 3:48
  ETFs
• 3:49
  being
• 3:49
  launched
• 3:50
  in
• 3:51
  all
• 3:51
  different
• 3:51
  flavors.
• 3:52
  Under
• 3:52
  the
• 3:53
  sun,
• 3:53
  under
• 3:53
  the
• 3:54
  rainbow,
• 3:54
  if
• 3:54
  you
• 3:54
  will.
• 3:55
  It's
• 3:55
  super
• 3:56
  interesting,
• 3:56
  right,
• 3:56
  because
• 3:56
  there's
• 3:57
  all
• 3:57
  these
• 3:57
  different
• 3:57
  ones.
• 3:58
  What
• 3:58
  is
• 3:58
  it?
• 3:58
  There's
• 3:59
  thematic
• 3:59
  ones,
• 4:00
  there's
• 4:01
  industry
• 4:02
  ones,
• 4:02
  of
• 4:02
  course,
• 4:03
  as
• 4:03
  you
• 4:03
  say,
• 4:03
  there's
• 4:04
  the
• 4:04
  sort
• 4:04
  of
• 4:05
  standardized
• 4:05
  country
• 4:06
  ones
• 4:06
  like
• 4:06
  the
• 4:06
  NZX50
• 4:07
  top
• 4:07
  50
• 4:08
  companies
• 4:08
  in
• 4:08
  New
• 4:08
  Zealand.
• 4:09
  But
• 4:09
  you
• 4:09
  can
• 4:09
  actually
• 4:10
  go
• 4:11
  quite.
• 4:11
  You
• 4:11
  can
• 4:11
  thin
• 4:12
  slice
• 4:12
  a
• 4:12
  lot,
• 4:12
  can't
• 4:13
  you?
• 4:13
  What,
• 4:13
  what
• 4:13
  are
• 4:13
  you
• 4:14
  seeing
• 4:14
  in
• 4:14
  terms
• 4:14
  of
• 4:14
  the
• 4:14
  types
• 4:15
  of
• 4:15
  funds
• 4:15
  being
• 4:16
  launched
• 4:16
  these
• 4:16
  days?
• 4:17
  First
• 4:17
  of
• 4:17
  all,
• 4:18
  not
• 4:18
  all
• 4:18
  the
• 4:18
  ETFs
• 4:19
  are
• 4:19
  passive,
• 4:19
  but
• 4:19
  I
• 4:20
  would
• 4:20
  say
• 4:20
  most
• 4:20
  of
• 4:20
  them
• 4:20
  are
• 4:20
  passive.
• 4:21
  We
• 4:21
  are
• 4:21
  seeing
• 4:22
  more
• 4:22
  active
• 4:22
  ETFs
• 4:23
  being
• 4:23
  launched
• 4:23
  now.
• 4:24
  A
• 4:24
  lot
• 4:24
  of
• 4:24
  asset
• 4:24
  managers
• 4:25
  realize
• 4:25
  that
• 4:25
  the
• 4:25
  ETF
• 4:26
  is
• 4:26
  becoming
• 4:26
  the
• 4:27
  vehicle
• 4:27
  of
• 4:27
  choice
• 4:27
  for
• 4:28
  retail
• 4:28
  investors.
• 4:29
  There's
• 4:29
  a
• 4:29
  lot
• 4:30
  less
• 4:30
  friction
• 4:30
  there
• 4:30
  to
• 4:31
  trade
• 4:31
  into
• 4:31
  an
• 4:31
  ETF
• 4:32
  and
• 4:32
  out
• 4:33
  that
• 4:33
  there's
• 4:34
  potentially
• 4:35
  more
• 4:35
  liquidity.
• 4:36
  So
• 4:36
  a
• 4:36
  lot
• 4:36
  of
• 4:37
  active
• 4:37
  managers
• 4:37
  are
• 4:37
  actually
• 4:38
  also
• 4:38
  moving
• 4:38
  their
• 4:38
  active
• 4:39
  strategies
• 4:39
  into
• 4:40
  the
• 4:40
  ETF
• 4:40
  vehicle.
• 4:41
  But
• 4:41
  the
• 4:41
  vast
• 4:42
  majority
• 4:42
  of
• 4:42
  assets
• 4:43
  are
• 4:43
  passive.
• 4:44
  At
• 4:44
  the
• 4:45
  end
• 4:45
  of
• 4:45
  2025,
• 4:46
  there
• 4:46
  was
• 4:46
  just
• 4:47
  under
• 4:47
  US$20
• 4:48
  trillion
• 4:50
  in
• 4:50
  assets
• 4:51
  invested
• 4:51
  in
• 4:51
  ETFs
• 4:52
  globally.
• 4:52
  That's
• 4:53
  a
• 4:53
  lot.
• 4:54
  I
• 4:54
  calculated
• 4:54
  that
• 4:55
  in
• 4:55
  the
• 4:55
  back
• 4:55
  of
• 4:55
  my
• 4:56
  envelope
• 4:56
  to
• 4:56
  be
• 4:56
  about
• 4:56
  33
• 4:57
  trillion
• 4:57
  New
• 4:57
  Zealand
• 4:58
  dollars.
• 4:59
  Yeah,
• 4:59
  that's
• 5:00
  significantly
• 5:00
  grown
• 5:00
  a
• 5:00
  lot
• 5:01
  in
• 5:01
  the
• 5:01
  past
• 5:01
  five
• 5:02
  years.
• 5:02
  Five
• 5:02
  years
• 5:02
  or
• 5:02
  so.
• 5:03
  We've
• 5:03
  Seen
• 5:03
  very
• 5:04
  high
• 5:04
  compounded
• 5:05
  annual
• 5:05
  growth
• 5:05
  rates
• 5:06
  of
• 5:06
  these
• 5:07
  asset
• 5:08
  volumes
• 5:08
  on
• 5:08
  ETFs
• 5:10
  with
• 5:10
  market
• 5:10
  growth.
• 5:10
  So
• 5:11
  security
• 5:11
  prices
• 5:11
  have
• 5:12
  grown.
• 5:12
  That's
• 5:12
  raised
• 5:12
  the
• 5:13
  level.
• 5:13
  But
• 5:13
  as
• 5:13
  well
• 5:13
  as
• 5:14
  net
• 5:14
  new
• 5:14
  inflows
• 5:15
  from
• 5:15
  investors.
• 5:15
  And
• 5:16
  yeah,
• 5:16
  some
• 5:17
  of
• 5:17
  those
• 5:17
  are
• 5:17
  net
• 5:17
  new
• 5:17
  assets
• 5:18
  from
• 5:18
  new
• 5:18
  investors,
• 5:19
  particularly
• 5:19
  around
• 5:19
  Covid
• 5:20
  as
• 5:20
  well.
• 5:20
  We
• 5:20
  saw
• 5:20
  a
• 5:20
  lot
• 5:21
  of
• 5:21
  new
• 5:21
  brokerage
• 5:21
  accounts
• 5:22
  being
• 5:22
  opened
• 5:22
  around
• 5:22
  the
• 5:23
  world,
• 5:23
  but
• 5:23
  also
• 5:24
  money
• 5:24
  that's
• 5:24
  come
• 5:24
  out
• 5:24
  of
• 5:25
  maybe
• 5:25
  mutual
• 5:25
  funds
• 5:26
  into
• 5:26
  ETFs
• 5:27
  as
• 5:27
  well.
• 5:27
  Oh
• 5:27
  yeah,
• 5:28
  that's
• 5:28
  so
• 5:28
  fun.
• 5:28
  All
• 5:28
  right,
• 5:29
  we'll
• 5:29
  dive
• 5:29
  into
• 5:29
  some
• 5:30
  things
• 5:30
  on
• 5:30
  that
• 5:30
  soon.
• 5:30
  I
• 5:31
  want
• 5:31
  to
• 5:31
  sort
• 5:31
  of
• 5:31
  set
• 5:31
  the
• 5:32
  landscape
• 5:32
  first.
• 5:33
  You
• 5:33
  said
• 5:33
  about
• 5:34
  there's
• 5:34
  so
• 5:35
  many
• 5:35
  funds
• 5:35
  being
• 5:36
  launched.
• 5:36
  I
• 5:36
  mean,
• 5:36
  do
• 5:37
  we
• 5:37
  know
• 5:38
  how
• 5:38
  many
• 5:39
  funds.
• 5:40
  I
• 5:40
  mean,
• 5:40
  great
• 5:40
  number
• 5:41
  on
• 5:41
  the
• 5:41
  trillions
• 5:41
  invested,
• 5:42
  but
• 5:42
  how
• 5:42
  many
• 5:42
  funds
• 5:42
  are
• 5:43
  available
• 5:43
  for
• 5:43
  people
• 5:43
  to
• 5:43
  choose
• 5:44
  between?
• 5:44
  I
• 5:44
  think
• 5:45
  there
• 5:45
  would
• 5:45
  be
• 5:45
  over
• 5:46
  14,000
• 5:47
  ETFs
• 5:48
  globally
• 5:49
  listed
• 5:49
  on
• 5:49
  stock
• 5:49
  exchanges
• 5:50
  the
• 5:50
  last
• 5:50
  time
• 5:50
  I
• 5:50
  checked.
• 5:52
  Maybe
• 5:52
  even
• 5:52
  a
• 5:52
  touch
• 5:53
  more
• 5:53
  than
• 5:53
  that
• 5:53
  these
• 5:53
  days.
• 5:54
  S
• 5:54
  and
• 5:54
  P.
• 5:54
  Dow
• 5:54
  Jones
• 5:55
  Indices.
• 5:55
  As
• 5:55
  an
• 5:55
  index
• 5:56
  provider,
• 5:56
  we,
• 5:56
  we
• 5:57
  work
• 5:57
  with
• 5:57
  a
• 5:57
  lot
• 5:57
  of
• 5:57
  the
• 5:58
  ETF
• 5:58
  distributors
• 5:58
  to
• 5:59
  design
• 6:00
  indices
• 6:00
  for
• 6:01
  their
• 6:01
  products
• 6:01
  that
• 6:01
  are
• 6:01
  linked
• 6:02
  to
• 6:02
  their
• 6:02
  products.
• 6:03
  Some
• 6:03
  of
• 6:03
  them
• 6:04
  can
• 6:04
  be
• 6:04
  very
• 6:05
  niche,
• 6:05
  very
• 6:05
  thematic
• 6:06
  digital
• 6:07
  assets
• 6:08
  ETFs
• 6:09
  with
• 6:09
  embedded
• 6:09
  options
• 6:10
  in
• 6:10
  them
• 6:10
  using
• 6:10
  covered
• 6:11
  calls,
• 6:12
  harvesting
• 6:12
  more
• 6:13
  dividends.
• 6:14
  There's,
• 6:14
  there's
• 6:15
  ETFs,
• 6:15
  you
• 6:15
  know,
• 6:15
  the
• 6:16
  sustainability,
• 6:16
  climate
• 6:17
  change,
• 6:18
  dividend
• 6:18
  orientated
• 6:20
  technology
• 6:21
  or
• 6:21
  AI
• 6:22
  thematically
• 6:23
  invested.
• 6:25
  Anything
• 6:25
  under
• 6:25
  the
• 6:25
  rainbow
• 6:26
  that
• 6:26
  you
• 6:26
  can
• 6:26
  think
• 6:26
  of
• 6:27
  an
• 6:27
  investment
• 6:28
  product
• 6:28
  can
• 6:28
  be
• 6:28
  built
• 6:29
  and
• 6:29
  linked
• 6:29
  to
• 6:29
  a
• 6:30
  stock
• 6:30
  market
• 6:30
  index.
• 6:31
  So
• 6:32
  that
• 6:32
  really
• 6:32
  does
• 6:32
  help
• 6:32
  investors
• 6:33
  when
• 6:33
  it
• 6:33
  comes
• 6:33
  to
• 6:34
  their
• 6:34
  asset
• 6:34
  allocation.
• 6:36
  You
• 6:36
  can
• 6:37
  very
• 6:37
  much
• 6:37
  be
• 6:38
  straight
• 6:38
  down
• 6:39
  the
• 6:39
  middle
• 6:39
  and
• 6:39
  get
• 6:39
  your
• 6:39
  broad
• 6:40
  market
• 6:40
  exposure,
• 6:42
  which
• 6:42
  could
• 6:42
  be
• 6:42
  seen
• 6:43
  as
• 6:43
  a
• 6:43
  smart
• 6:44
  way
• 6:44
  to
• 6:44
  access
• 6:45
  the
• 6:45
  ETF
• 6:45
  or
• 6:46
  a
• 6:46
  passive
• 6:46
  investment
• 6:46
  fund
• 6:47
  as
• 6:47
  a
• 6:47
  smart
• 6:47
  way
• 6:47
  to
• 6:47
  access
• 6:48
  a
• 6:49
  diversified
• 6:49
  portfolio.
• 6:50
  But
• 6:51
  for
• 6:51
  those
• 6:51
  more
• 6:51
  inclined
• 6:52
  to
• 6:52
  do
• 6:52
  so,
• 6:52
  you
• 6:53
  can
• 6:53
  trade
• 6:53
  into
• 6:53
  more
• 6:54
  niche
• 6:55
  parts
• 6:55
  of
• 6:55
  the
• 6:55
  market
• 6:55
  as
• 6:55
  well.
• 6:56
  Yeah,
• 6:57
  it's
• 6:57
  super
• 6:57
  interesting
• 6:58
  as
• 6:58
  well
• 6:58
  when
• 6:58
  we've
• 6:59
  got
• 6:59
  so
• 6:59
  many
• 6:59
  choices
• 7:00
  now.
• 7:00
  I
• 7:00
  mean,
• 7:00
  we
• 7:00
  talk
• 7:00
  about
• 7:01
  active
• 7:01
  versus
• 7:01
  passive
• 7:02
  investing,
• 7:03
  which,
• 7:03
  you
• 7:04
  know,
• 7:04
  bias
• 7:04
  on
• 7:05
  the
• 7:05
  table.
• 7:05
  I
• 7:06
  love
• 7:06
  me
• 7:06
  a
• 7:06
  good
• 7:06
  passive
• 7:07
  strategy.
• 7:07
  I
• 7:07
  just
• 7:08
  think
• 7:08
  it's
• 7:08
  smart.
• 7:08
  It
• 7:08
  works
• 7:09
  really
• 7:09
  well.
• 7:09
  The
• 7:09
  data
• 7:10
  is
• 7:10
  there
• 7:10
  for
• 7:10
  a
• 7:10
  lot
• 7:10
  of
• 7:10
  it.
• 7:12
  But
• 7:13
  for
• 7:13
  anyone
• 7:14
  who
• 7:14
  hasn't
• 7:14
  come
• 7:14
  across
• 7:14
  that
• 7:15
  before,
• 7:15
  of
• 7:15
  course,
• 7:15
  active
• 7:16
  being,
• 7:16
  you
• 7:16
  try
• 7:16
  to
• 7:17
  pick
• 7:17
  a
• 7:17
  bunch
• 7:17
  of
• 7:17
  companies,
• 7:18
  you
• 7:19
  try,
• 7:19
  you,
• 7:20
  you
• 7:20
  think
• 7:20
  about
• 7:20
  where
• 7:20
  the
• 7:20
  market
• 7:21
  is
• 7:21
  going
• 7:21
  and
• 7:21
  you,
• 7:21
  you
• 7:21
  pick
• 7:22
  your
• 7:22
  winners.
• 7:22
  Whereas
• 7:23
  passive
• 7:23
  is,
• 7:23
  you
• 7:23
  might
• 7:23
  just
• 7:23
  go
• 7:24
  really
• 7:24
  big
• 7:25
  and
• 7:25
  say,
• 7:25
  ah,
• 7:25
  chuck
• 7:26
  my
• 7:26
  money
• 7:26
  in
• 7:26
  here.
• 7:26
  And
• 7:26
  basically
• 7:27
  the
• 7:27
  economy
• 7:27
  eventually
• 7:28
  grows
• 7:28
  over
• 7:28
  time.
• 7:29
  We
• 7:29
  continue.
• 7:30
  Even
• 7:31
  when
• 7:31
  you
• 7:31
  have
• 7:31
  that
• 7:32
  passive
• 7:32
  strategy,
• 7:33
  I
• 7:33
  feel
• 7:33
  like
• 7:34
  you
• 7:35
  can
• 7:35
  be
• 7:35
  almost
• 7:35
  actively
• 7:36
  passive
• 7:36
  now
• 7:37
  with
• 7:37
  so
• 7:37
  many
• 7:37
  options
• 7:39
  where
• 7:39
  you
• 7:39
  can
• 7:39
  say
• 7:40
  things
• 7:40
  like
• 7:40
  I
• 7:40
  think
• 7:40
  AI
• 7:41
  is
• 7:41
  going
• 7:41
  to
• 7:42
  boom
• 7:43
  and
• 7:43
  gonna
• 7:43
  be
• 7:43
  really
• 7:43
  important.
• 7:44
  So.
• 7:45
  And
• 7:45
  I'm
• 7:45
  going
• 7:45
  to
• 7:45
  have
• 7:45
  some
• 7:45
  sort
• 7:46
  of
• 7:46
  auto
• 7:46
  investment
• 7:47
  that
• 7:47
  goes
• 7:47
  into
• 7:47
  that
• 7:48
  as
• 7:48
  part
• 7:48
  of
• 7:48
  it
• 7:48
  and
• 7:49
  I,
• 7:49
  I
• 7:49
  might
• 7:49
  have
• 7:49
  this
• 7:50
  global
• 7:50
  fund
• 7:50
  that's
• 7:51
  the
• 7:51
  biggest
• 7:51
  part
• 7:51
  of
• 7:52
  it.
• 7:52
  But
• 7:52
  I
• 7:52
  want
• 7:52
  to
• 7:52
  have
• 7:52
  this
• 7:52
  AI
• 7:53
  exposure.
• 7:53
  So
• 7:53
  I'm
• 7:54
  going
• 7:54
  over
• 7:54
  here
• 7:54
  to,
• 7:55
  you
• 7:55
  know,
• 7:56
  ethical
• 7:56
  investing
• 7:57
  really
• 7:57
  important
• 7:57
  to
• 7:57
  me.
• 7:58
  So
• 7:58
  I'm
• 7:58
  going
• 7:58
  global,
• 7:59
  but
• 7:59
  it's
• 7:59
  with
• 7:59
  an
• 7:59
  ethical
• 7:59
  bent
• 8:00
  and
• 8:00
  according
• 8:00
  to
• 8:00
  this
• 8:01
  one.
• 8:02
  And
• 8:02
  I
• 8:02
  find
• 8:03
  it
• 8:03
  really
• 8:04
  great
• 8:04
  that
• 8:05
  you
• 8:05
  can
• 8:05
  be
• 8:05
  sort
• 8:06
  of,
• 8:06
  yeah,
• 8:06
  like
• 8:06
  I
• 8:06
  say,
• 8:06
  almost
• 8:07
  like
• 8:07
  actively
• 8:08
  passive
• 8:09
  where
• 8:09
  you
• 8:09
  decide
• 8:10
  on
• 8:10
  here's
• 8:10
  what
• 8:10
  I
• 8:10
  believe
• 8:11
  in
• 8:11
  for
• 8:11
  the
• 8:11
  world
• 8:13
  and
• 8:13
  then
• 8:13
  you
• 8:13
  auto
• 8:14
  invest
• 8:15
  and
• 8:15
  you
• 8:15
  just
• 8:15
  keep
• 8:15
  tracking
• 8:16
  with
• 8:16
  it.
• 8:16
  Do
• 8:16
  you
• 8:17
  think
• 8:17
  that's
• 8:17
  a
• 8:17
  bit
• 8:17
  of
• 8:17
  a
• 8:17
  shift
• 8:18
  in
• 8:18
  the
• 8:18
  investing
• 8:18
  landscape
• 8:19
  to
• 8:19
  have
• 8:19
  this
• 8:19
  many
• 8:20
  options
• 8:20
  or
• 8:20
  is
• 8:20
  that
• 8:21
  just
• 8:21
  something
• 8:21
  where
• 8:22
  maybe
• 8:22
  we
• 8:22
  haven't
• 8:22
  noticed
• 8:23
  it
• 8:23
  before
• 8:23
  and
• 8:23
  we're
• 8:23
  just
• 8:23
  talking
• 8:23
  about
• 8:24
  it
• 8:24
  more?
• 8:24
  Certainly
• 8:25
  there's
• 8:25
  been
• 8:26
  a
• 8:26
  shift
• 8:26
  to
• 8:27
  a
• 8:27
  lot
• 8:27
  more
• 8:27
  niche
• 8:28
  style
• 8:29
  ETFs
• 8:30
  that
• 8:30
  have
• 8:30
  been
• 8:30
  launched
• 8:30
  and
• 8:31
  passive
• 8:31
  strategies
• 8:32
  via
• 8:32
  mutual
• 8:32
  funds.
• 8:33
  And
• 8:33
  it
• 8:33
  does
• 8:34
  allow
• 8:34
  investors
• 8:34
  to
• 8:35
  really
• 8:36
  trade
• 8:36
  their
• 8:36
  views.
• 8:37
  They
• 8:37
  don't
• 8:37
  have
• 8:37
  to
• 8:38
  take
• 8:38
  a
• 8:38
  broad
• 8:38
  market
• 8:38
  approach.
• 8:39
  They
• 8:39
  certainly
• 8:40
  can
• 8:40
  and
• 8:40
  it's
• 8:40
  very
• 8:40
  simple
• 8:41
  to
• 8:41
  set
• 8:41
  a
• 8:41
  portfolio
• 8:42
  that
• 8:42
  way
• 8:42
  and
• 8:42
  very
• 8:43
  cheap
• 8:43
  and
• 8:43
  a
• 8:44
  lot
• 8:44
  less
• 8:44
  friction
• 8:44
  now
• 8:45
  to
• 8:45
  do
• 8:45
  such
• 8:46
  a
• 8:46
  thing.
• 8:46
  But
• 8:47
  yeah,
• 8:48
  I
• 8:48
  mean,
• 8:48
  coming
• 8:48
  from
• 8:48
  an
• 8:48
  index
• 8:49
  provider,
• 8:50
  our
• 8:50
  indices
• 8:51
  are
• 8:51
  designed,
• 8:51
  you
• 8:52
  know,
• 8:52
  our
• 8:52
  broad
• 8:52
  market
• 8:52
  indices
• 8:53
  are
• 8:53
  designed
• 8:53
  to
• 8:53
  reflect
• 8:54
  the
• 8:54
  capital
• 8:55
  market
• 8:55
  depending
• 8:56
  on
• 8:56
  the
• 8:56
  objective
• 8:56
  of
• 8:56
  the
• 8:57
  index.
• 8:57
  So
• 8:57
  The
• 8:58
  S&P
• 8:58
  500,
• 8:58
  for
• 8:59
  example,
• 9:00
  is
• 9:00
  designed
• 9:00
  to
• 9:00
  reflect
• 9:01
  the
• 9:01
  capital
• 9:01
  market
• 9:02
  of
• 9:02
  the
• 9:02
  largest
• 9:02
  500
• 9:03
  companies
• 9:03
  in
• 9:03
  the
• 9:04
  US.
• 9:04
  It
• 9:04
  does
• 9:04
  have
• 9:05
  a
• 9:05
  positive
• 9:05
  earnings
• 9:05
  per
• 9:05
  share
• 9:06
  screen
• 9:07
  in
• 9:07
  the
• 9:07
  methodology
• 9:07
  as
• 9:07
  well.
• 9:09
  So
• 9:09
  in
• 9:09
  New
• 9:09
  Zealand,
• 9:09
  the
• 9:09
  s
• 9:10
  and
• 9:10
  P
• 9:10
  NZ50
• 9:10
  is
• 9:11
  reflecting
• 9:11
  the
• 9:12
  largest
• 9:12
  50
• 9:12
  companies
• 9:12
  in
• 9:13
  New
• 9:13
  Zealand's
• 9:13
  capital
• 9:13
  market
• 9:14
  based
• 9:14
  on
• 9:14
  their
• 9:15
  free
• 9:15
  float.
• 9:16
  Now,
• 9:16
  investors
• 9:16
  may
• 9:16
  think
• 9:17
  there's
• 9:17
  some
• 9:17
  distortions
• 9:18
  in
• 9:18
  the
• 9:18
  market
• 9:18
  and
• 9:19
  that
• 9:19
  can
• 9:19
  happen
• 9:19
  and
• 9:20
  they're
• 9:20
  reflected
• 9:20
  in
• 9:20
  the
• 9:20
  index
• 9:21
  if
• 9:22
  there's
• 9:22
  been
• 9:22
  more
• 9:22
  concentration.
• 9:23
  Magnificent
• 9:24
  seven,
• 9:24
  for
• 9:25
  example,
• 9:26
  they
• 9:26
  can
• 9:26
  make
• 9:26
  up
• 9:26
  around
• 9:27
  a
• 9:27
  third
• 9:27
  of
• 9:27
  the
• 9:27
  S&P
• 9:28
  500
• 9:28
  based
• 9:29
  on
• 9:29
  the
• 9:29
  valuations
• 9:29
  of
• 9:30
  those
• 9:30
  companies
• 9:30
  that
• 9:30
  the
• 9:30
  market
• 9:31
  sees
• 9:31
  them
• 9:31
  at.
• 9:31
  Now,
• 9:32
  are
• 9:32
  they
• 9:32
  overvalued?
• 9:33
  Are
• 9:33
  they
• 9:33
  not?
• 9:34
  That's
• 9:34
  not
• 9:34
  for
• 9:34
  me
• 9:34
  to
• 9:34
  say.
• 9:35
  But
• 9:35
  an
• 9:35
  investor
• 9:36
  can
• 9:36
  make
• 9:36
  a,
• 9:36
  can
• 9:37
  express
• 9:37
  a
• 9:38
  trade
• 9:38
  or
• 9:38
  a
• 9:38
  view
• 9:40
  based
• 9:40
  on
• 9:40
  their
• 9:41
  opinion.
• 9:41
  So
• 9:42
  there's
• 9:42
  an
• 9:42
  equal
• 9:42
  weight
• 9:43
  index,
• 9:43
  for
• 9:43
  example,
• 9:44
  S&P
• 9:44
  500
• 9:45
  equal
• 9:45
  weight.
• 9:45
  Or
• 9:45
  there's
• 9:46
  a
• 9:46
  capped
• 9:46
  index
• 9:46
  where
• 9:46
  you
• 9:47
  cap
• 9:47
  the
• 9:47
  constituents.
• 9:48
  Maybe
• 9:48
  they
• 9:48
  think
• 9:49
  AI
• 9:49
  is
• 9:49
  the
• 9:49
  Future
• 9:49
  and
• 9:50
  technology
• 9:51
  is
• 9:51
  the
• 9:51
  way
• 9:51
  to
• 9:51
  go.
• 9:52
  And
• 9:52
  you
• 9:52
  want
• 9:52
  more
• 9:52
  of
• 9:53
  your
• 9:53
  assets
• 9:53
  invested
• 9:54
  into
• 9:54
  that
• 9:54
  area,
• 9:55
  more
• 9:55
  investment
• 9:55
  exposure.
• 9:57
  So
• 9:57
  you
• 9:57
  can
• 9:57
  certainly,
• 9:58
  certainly
• 9:58
  trade
• 9:58
  that
• 9:58
  way.
• 9:58
  There's
• 9:59
  enough,
• 9:59
  there's
• 10:00
  every.
• 10:00
  You
• 10:00
  know,
• 10:01
  it's
• 10:01
  like
• 10:01
  when
• 10:01
  I
• 10:01
  used
• 10:01
  to
• 10:01
  go
• 10:01
  into
• 10:02
  ice
• 10:02
  cream
• 10:02
  shops
• 10:02
  in
• 10:02
  New
• 10:02
  Zealand
• 10:03
  back
• 10:03
  in
• 10:03
  the
• 10:03
  day.
• 10:03
  There's
• 10:03
  40
• 10:04
  flavors.
• 10:04
  There's,
• 10:04
  there's
• 10:04
  too
• 10:05
  many
• 10:05
  to
• 10:05
  choose
• 10:05
  from.
• 10:05
  Sometimes
• 10:06
  it's
• 10:06
  similar
• 10:06
  with
• 10:06
  ETFs.
• 10:07
  There's
• 10:08
  all
• 10:08
  the
• 10:08
  flavors
• 10:08
  in
• 10:09
  this
• 10:09
  under
• 10:09
  the
• 10:09
  sun
• 10:09
  and
• 10:09
  you
• 10:10
  can
• 10:10
  mix
• 10:10
  and
• 10:11
  match
• 10:11
  them
• 10:11
  and
• 10:11
  design
• 10:11
  the
• 10:12
  portfolio
• 10:12
  that
• 10:12
  you
• 10:12
  want
• 10:12
  to
• 10:13
  have
• 10:13
  with
• 10:14
  your,
• 10:14
  your
• 10:15
  views
• 10:15
  on
• 10:15
  the
• 10:15
  market.
• 10:16
  Yeah,
• 10:17
  well,
• 10:17
  actually,
• 10:17
  that's
• 10:17
  a
• 10:18
  really
• 10:18
  good
• 10:18
  point
• 10:18
  that
• 10:18
  I'd
• 10:19
  like
• 10:19
  to
• 10:19
  dive
• 10:19
  into
• 10:19
  a
• 10:20
  little
• 10:20
  bit
• 10:20
  more
• 10:20
  with
• 10:20
  you
• 10:20
  there
• 10:21
  because
• 10:22
  I
• 10:22
  have
• 10:22
  heard
• 10:22
  criticisms
• 10:23
  on
• 10:23
  this
• 10:24
  for
• 10:24
  the
• 10:24
  funds
• 10:25
  like
• 10:26
  you
• 10:26
  mentioned
• 10:26
  the
• 10:26
  s
• 10:26
  and
• 10:26
  P500.
• 10:27
  There
• 10:27
  500
• 10:27
  biggest
• 10:28
  companies
• 10:28
  in
• 10:28
  the
• 10:28
  US
• 10:29
  dominated
• 10:30
  by
• 10:31
  tech.
• 10:31
  I
• 10:31
  mean,
• 10:32
  they,
• 10:32
  because
• 10:33
  they
• 10:33
  weight
• 10:34
  the
• 10:34
  index
• 10:35
  based
• 10:35
  on
• 10:35
  the
• 10:35
  size
• 10:36
  of
• 10:36
  the
• 10:36
  companies.
• 10:37
  So
• 10:37
  you
• 10:37
  say
• 10:38
  you
• 10:38
  put
• 10:39
  10
• 10:39
  bucks
• 10:40
  or
• 10:40
  a
• 10:40
  hundred
• 10:40
  bucks
• 10:40
  or
• 10:40
  whatever
• 10:41
  into
• 10:42
  something
• 10:42
  like
• 10:42
  the
• 10:42
  s
• 10:42
  and
• 10:43
  P500.
• 10:43
  The
• 10:44
  vast
• 10:44
  majority
• 10:44
  of
• 10:45
  that
• 10:45
  money
• 10:45
  might
• 10:45
  be
• 10:45
  going
• 10:46
  to,
• 10:46
  as
• 10:46
  you
• 10:46
  say,
• 10:46
  the
• 10:47
  Magnificent
• 10:47
  Seven,
• 10:47
  the
• 10:48
  biggest
• 10:48
  companies
• 10:49
  there.
• 10:50
  And
• 10:50
  then,
• 10:51
  you
• 10:51
  know,
• 10:51
  we
• 10:52
  look
• 10:52
  a
• 10:52
  little
• 10:52
  closer
• 10:52
  to
• 10:52
  home.
• 10:53
  NZ50.
• 10:54
  Do
• 10:55
  correct
• 10:55
  me
• 10:55
  if
• 10:55
  my
• 10:55
  numbers
• 10:55
  are
• 10:56
  wrong
• 10:56
  on
• 10:56
  this
• 10:56
  because
• 10:56
  you'll
• 10:56
  be
• 10:56
  more
• 10:56
  all
• 10:57
  over
• 10:57
  it
• 10:57
  than
• 10:57
  I
• 10:57
  am.
• 10:58
  But
• 10:59
  the
• 10:59
  last
• 10:59
  time
• 10:59
  I
• 11:00
  checked,
• 11:01
  is
• 11:01
  it
• 11:01
  the
• 11:01
  top
• 11:02
  10
• 11:02
  companies
• 11:03
  on
• 11:03
  the
• 11:03
  NZ50
• 11:04
  make
• 11:04
  up
• 11:04
  about
• 11:04
  a
• 11:04
  third
• 11:05
  of
• 11:05
  the
• 11:05
  value.
• 11:07
  So
• 11:07
  that's
• 11:07
  super
• 11:07
  interesting
• 11:08
  to
• 11:08
  me.
• 11:08
  So
• 11:08
  if
• 11:08
  you're
• 11:08
  doing
• 11:09
  something
• 11:09
  like
• 11:09
  that
• 11:09
  and
• 11:10
  you're
• 11:10
  buying
• 11:10
  the
• 11:10
  NZ50,
• 11:11
  but
• 11:11
  the
• 11:11
  majority
• 11:12
  of
• 11:12
  your
• 11:12
  money
• 11:12
  is
• 11:12
  going
• 11:13
  to
• 11:13
  this
• 11:13
  top
• 11:13
  10,
• 11:14
  are
• 11:15
  we
• 11:15
  kidding
• 11:15
  ourselves
• 11:15
  that
• 11:16
  that
• 11:16
  means
• 11:16
  our
• 11:16
  money
• 11:16
  is
• 11:17
  sort
• 11:17
  of
• 11:17
  diversified
• 11:17
  and
• 11:18
  spread
• 11:18
  around?
• 11:18
  What
• 11:18
  do
• 11:19
  you
• 11:19
  think?
• 11:20
  I
• 11:20
  don't
• 11:20
  know
• 11:20
  if
• 11:20
  we're
• 11:20
  kidding
• 11:21
  ourselves,
• 11:21
  so
• 11:21
  to
• 11:21
  speak,
• 11:21
  but
• 11:22
  I
• 11:22
  mean,
• 11:22
  let's
• 11:23
  go
• 11:23
  back
• 11:23
  to
• 11:23
  the
• 11:23
  mechanics
• 11:23
  of
• 11:23
  the.
• 11:24
  You
• 11:25
  know,
• 11:25
  our
• 11:25
  broad
• 11:25
  market
• 11:25
  indices
• 11:26
  are
• 11:26
  what
• 11:27
  we
• 11:27
  call
• 11:27
  float
• 11:28
  market
• 11:28
  capitalization
• 11:29
  weighted.
• 11:29
  So
• 11:29
  they're
• 11:29
  weighted
• 11:30
  by
• 11:30
  the
• 11:30
  free
• 11:30
  float.
• 11:31
  We
• 11:31
  remove
• 11:32
  the
• 11:32
  strategic
• 11:32
  shareholders.
• 11:33
  We
• 11:33
  want
• 11:34
  the
• 11:34
  companies
• 11:34
  to
• 11:34
  be
• 11:34
  tradable
• 11:35
  and
• 11:35
  measure
• 11:36
  their
• 11:36
  free
• 11:36
  float.
• 11:36
  So
• 11:37
  the
• 11:37
  larger
• 11:37
  companies
• 11:38
  certainly
• 11:39
  do
• 11:39
  have
• 11:39
  more
• 11:40
  weight
• 11:40
  in
• 11:41
  the
• 11:41
  index.
• 11:42
  And
• 11:42
  you
• 11:42
  see
• 11:42
  that
• 11:43
  across
• 11:43
  many
• 11:43
  different
• 11:43
  countries.
• 11:44
  You
• 11:44
  know,
• 11:44
  in
• 11:44
  Korea,
• 11:45
  Samsung
• 11:45
  is
• 11:46
  a
• 11:46
  really
• 11:46
  large
• 11:46
  component.
• 11:47
  Their
• 11:47
  domestic
• 11:48
  market
• 11:48
  index
• 11:49
  in
• 11:49
  Taiwan,
• 11:50
  the
• 11:50
  Taiwan
• 11:51
  Semiconductor
• 11:51
  Manufacturing
• 11:52
  Company.
• 11:52
  In
• 11:53
  the
• 11:53
  us,
• 11:53
  you've
• 11:53
  got
• 11:53
  the
• 11:53
  Magnificent
• 11:54
  Seven.
• 11:54
  In
• 11:55
  Australia,
• 11:55
  you've
• 11:55
  got
• 11:55
  the
• 11:55
  big
• 11:56
  four
• 11:56
  banks
• 11:56
  and
• 11:57
  a
• 11:57
  couple
• 11:57
  of
• 11:57
  the
• 11:57
  miners.
• 11:57
  And
• 11:58
  in
• 11:58
  New
• 11:58
  Zealand,
• 11:58
  yeah,
• 11:59
  you've
• 11:59
  got
• 11:59
  the
• 11:59
  top
• 11:59
  10.
• 11:59
  You're
• 12:00
  bang
• 12:00
  on.
• 12:00
  It's
• 12:00
  about
• 12:00
  two
• 12:01
  thirds
• 12:01
  of
• 12:01
  the
• 12:01
  Index
• 12:02
  in
• 12:02
  the
• 12:03
  past
• 12:04
  15
• 12:04
  years
• 12:05
  it
• 12:05
  has
• 12:05
  been
• 12:05
  higher
• 12:05
  than
• 12:06
  that
• 12:06
  and
• 12:06
  it
• 12:06
  has
• 12:06
  been
• 12:06
  lower
• 12:06
  than
• 12:07
  that.
• 12:07
  It
• 12:07
  does
• 12:07
  fluctuate
• 12:08
  depending
• 12:09
  on
• 12:10
  the
• 12:10
  index
• 12:11
  is
• 12:11
  reflecting
• 12:11
  the
• 12:11
  capital
• 12:12
  market.
• 12:12
  As
• 12:12
  I
• 12:12
  said,
• 12:13
  if
• 12:13
  more
• 12:13
  people
• 12:13
  are
• 12:13
  investing
• 12:14
  in
• 12:14
  the
• 12:14
  larger
• 12:14
  cap
• 12:15
  to
• 12:15
  companies
• 12:15
  larger
• 12:16
  sized,
• 12:16
  they'll
• 12:17
  take
• 12:17
  up
• 12:17
  more
• 12:17
  weight.
• 12:18
  If
• 12:18
  there's
• 12:18
  more
• 12:18
  spread
• 12:18
  across
• 12:19
  mid
• 12:19
  and
• 12:19
  small
• 12:19
  caps,
• 12:20
  then
• 12:21
  the
• 12:22
  distribution
• 12:22
  of
• 12:22
  the
• 12:22
  weight
• 12:23
  will
• 12:23
  be
• 12:23
  a
• 12:23
  bit
• 12:23
  more
• 12:24
  even.
• 12:25
  But
• 12:25
  there
• 12:25
  are
• 12:25
  other
• 12:26
  ways
• 12:26
  to
• 12:26
  invest
• 12:26
  if
• 12:26
  you
• 12:27
  don't
• 12:27
  believe
• 12:27
  in
• 12:28
  putting
• 12:28
  your
• 12:28
  money
• 12:28
  in
• 12:29
  market
• 12:29
  capitalization
• 12:30
  weighted
• 12:30
  indices.
• 12:31
  There
• 12:31
  are
• 12:31
  price
• 12:32
  weighted
• 12:32
  indices
• 12:32
  out
• 12:32
  there
• 12:33
  like
• 12:33
  the
• 12:33
  Dow
• 12:33
  Jones
• 12:33
  Industrial
• 12:34
  Average.
• 12:34
  There's
• 12:35
  equal
• 12:35
  weighted
• 12:35
  indices
• 12:36
  as
• 12:36
  well.
• 12:36
  There's
• 12:36
  other
• 12:37
  ways
• 12:37
  to
• 12:38
  invest
• 12:38
  your
• 12:38
  money
• 12:39
  if
• 12:39
  you
• 12:40
  don't
• 12:40
  believe
• 12:41
  in
• 12:41
  or
• 12:41
  if
• 12:41
  you
• 12:42
  believe
• 12:42
  the
• 12:42
  index
• 12:42
  has
• 12:43
  too
• 12:43
  much
• 12:43
  concentration.
• 12:44
  But
• 12:45
  sometimes
• 12:45
  the
• 12:45
  concentration
• 12:46
  is
• 12:46
  there
• 12:46
  for
• 12:46
  a
• 12:46
  reason.
• 12:47
  It's
• 12:47
  reflecting
• 12:48
  what
• 12:48
  all
• 12:48
  the
• 12:49
  investors
• 12:49
  and
• 12:49
  all
• 12:49
  the
• 12:49
  market
• 12:50
  participants,
• 12:50
  all
• 12:50
  the
• 12:51
  superannuation,
• 12:51
  Kiwi
• 12:52
  savers,
• 12:52
  asset
• 12:52
  managers
• 12:53
  and
• 12:53
  individuals
• 12:54
  think
• 12:54
  that
• 12:54
  those
• 12:55
  companies
• 12:55
  are
• 12:55
  worth
• 12:55
  at
• 12:56
  that
• 12:56
  point
• 12:56
  in
• 12:56
  time.
• 12:57
  Well,
• 12:57
  I
• 12:57
  was
• 12:57
  going
• 12:57
  to
• 12:57
  say,
• 12:57
  yeah,
• 12:58
  the
• 12:58
  counterargument,
• 12:59
  just
• 12:59
  for
• 12:59
  me
• 12:59
  to
• 12:59
  be
• 12:59
  a
• 12:59
  real
• 13:00
  fence
• 13:00
  sitter
• 13:00
  here,
• 13:01
  the
• 13:01
  counter
• 13:01
  argument
• 13:02
  is
• 13:02
  why
• 13:02
  wouldn't
• 13:02
  you
• 13:02
  want
• 13:02
  to
• 13:03
  invest
• 13:03
  in
• 13:03
  success,
• 13:03
  that
• 13:04
  those
• 13:04
  big
• 13:04
  companies
• 13:05
  are
• 13:05
  big
• 13:05
  for
• 13:05
  a
• 13:06
  reason
• 13:06
  because
• 13:06
  they're
• 13:06
  doing
• 13:06
  well.
• 13:07
  And
• 13:07
  of
• 13:07
  course
• 13:07
  you'd
• 13:07
  want
• 13:07
  more
• 13:08
  of
• 13:08
  your
• 13:08
  money
• 13:08
  allocated.
• 13:08
  There's
• 13:09
  so
• 13:09
  I,
• 13:10
  yeah,
• 13:10
  I
• 13:11
  kind
• 13:11
  of
• 13:12
  run
• 13:13
  with
• 13:13
  the
• 13:13
  foxes
• 13:13
  and
• 13:13
  hunt
• 13:14
  with
• 13:14
  the
• 13:14
  hounds
• 13:14
  on
• 13:14
  this
• 13:14
  one
• 13:14
  where
• 13:15
  I
• 13:15
  really
• 13:15
  see
• 13:15
  both
• 13:15
  sides.
• 13:16
  Well,
• 13:17
  the
• 13:17
  other
• 13:17
  side
• 13:17
  of
• 13:17
  the
• 13:17
  coin
• 13:18
  is
• 13:18
  would
• 13:18
  you
• 13:18
  do
• 13:19
  better
• 13:19
  off
• 13:19
  if
• 13:19
  you
• 13:19
  were
• 13:19
  stock
• 13:20
  picking
• 13:21
  individual
• 13:22
  shares
• 13:22
  or
• 13:22
  securities
• 13:23
  and
• 13:24
  build
• 13:24
  your
• 13:24
  portfolio
• 13:24
  that
• 13:25
  way?
• 13:25
  And
• 13:26
  I
• 13:26
  mean,
• 13:26
  we've
• 13:27
  proven
• 13:27
  there's
• 13:28
  research
• 13:28
  out
• 13:28
  there
• 13:29
  that
• 13:29
  even
• 13:30
  very,
• 13:30
  very
• 13:30
  smart
• 13:31
  professional
• 13:31
  investors,
• 13:32
  otherwise
• 13:32
  known
• 13:33
  as
• 13:33
  asset
• 13:33
  managers
• 13:33
  and
• 13:33
  fund
• 13:34
  managers,
• 13:35
  they
• 13:35
  don't
• 13:36
  actually
• 13:36
  outperform
• 13:37
  indices
• 13:37
  themselves
• 13:38
  that
• 13:38
  they're
• 13:38
  benchmarked
• 13:39
  to.
• 13:39
  The
• 13:40
  New
• 13:40
  Zealand
• 13:40
  Spiva
• 13:41
  report
• 13:41
  came
• 13:42
  out
• 13:42
  just
• 13:42
  last
• 13:42
  week.
• 13:43
  So
• 13:43
  if
• 13:43
  you
• 13:44
  Google
• 13:44
  Spiva
• 13:45
  New
• 13:45
  Zealand,
• 13:45
  you
• 13:46
  can
• 13:46
  see
• 13:46
  what
• 13:47
  percentage
• 13:47
  of
• 13:48
  active
• 13:48
  managers
• 13:49
  underperformed
• 13:50
  the
• 13:50
  s
• 13:50
  and
• 13:50
  P
• 13:50
  NZX
• 13:51
  50.
• 13:52
  There's
• 13:52
  also
• 13:52
  a
• 13:52
  global
• 13:53
  and
• 13:53
  a
• 13:53
  fixed
• 13:53
  income
• 13:54
  universe
• 13:54
  as
• 13:55
  well.
• 13:55
  And
• 13:56
  over
• 13:56
  long
• 13:57
  term,
• 13:57
  10,
• 13:57
  15
• 13:57
  years,
• 13:58
  it's
• 13:58
  85%
• 13:58
  of
• 13:59
  them
• 13:59
  underperforming
• 14:00
  the
• 14:00
  index.
• 14:01
  Short
• 14:01
  term
• 14:01
  it
• 14:01
  fluctuates
• 14:03
  and
• 14:03
  that's
• 14:03
  the
• 14:03
  same.
• 14:04
  The
• 14:04
  same
• 14:04
  results
• 14:05
  appear
• 14:05
  in
• 14:06
  Australia,
• 14:06
  in
• 14:06
  the
• 14:06
  U.S.
• 14:07
  in
• 14:07
  Japan,
• 14:07
  we
• 14:08
  do
• 14:08
  Spiva
• 14:08
  for
• 14:09
  a
• 14:09
  lot
• 14:09
  of
• 14:09
  different
• 14:09
  countries
• 14:10
  and
• 14:10
  regions.
• 14:11
  The
• 14:11
  active
• 14:12
  managers
• 14:12
  aren't
• 14:12
  picking
• 14:13
  the
• 14:13
  winners
• 14:14
  all
• 14:14
  the
• 14:14
  time.
• 14:15
  So
• 14:16
  I
• 14:16
  don't
• 14:16
  know
• 14:16
  how
• 14:16
  retail
• 14:17
  investors
• 14:17
  can
• 14:17
  do
• 14:17
  that
• 14:17
  unless
• 14:18
  they're
• 14:18
  very
• 14:18
  skilled.
• 14:19
  That
• 14:19
  stat.
• 14:20
  I'm
• 14:20
  so
• 14:20
  glad
• 14:21
  you
• 14:21
  brought
• 14:21
  it
• 14:21
  up
• 14:21
  because
• 14:21
  I
• 14:22
  Looked
• 14:22
  at
• 14:22
  that
• 14:22
  stat
• 14:22
  and
• 14:22
  I
• 14:22
  was
• 14:22
  like,
• 14:23
  I've
• 14:23
  got
• 14:23
  to
• 14:23
  talk
• 14:23
  to
• 14:23
  him
• 14:23
  about
• 14:23
  that
• 14:24
  because
• 14:24
  that's
• 14:24
  incredible
• 14:25
  to
• 14:25
  have
• 14:26
  so
• 14:26
  many
• 14:26
  of
• 14:26
  the
• 14:26
  people
• 14:26
  who
• 14:27
  have
• 14:27
  gone
• 14:28
  to
• 14:28
  university
• 14:29
  trained
• 14:29
  in
• 14:29
  this,
• 14:30
  often
• 14:30
  have
• 14:30
  master's
• 14:31
  degrees,
• 14:32
  have
• 14:33
  worked
• 14:33
  in
• 14:33
  it
• 14:33
  for
• 14:34
  years,
• 14:34
  and
• 14:34
  then
• 14:36
  the
• 14:36
  vast
• 14:36
  majority
• 14:37
  of
• 14:37
  them,
• 14:38
  more
• 14:38
  than
• 14:38
  three
• 14:39
  quarters,
• 14:40
  are
• 14:41
  not
• 14:42
  managing
• 14:42
  to
• 14:43
  beat
• 14:43
  the
• 14:43
  index.
• 14:44
  Why
• 14:45
  do
• 14:45
  you
• 14:45
  think
• 14:45
  that
• 14:45
  is?
• 14:46
  Yeah,
• 14:46
  I
• 14:46
  mean,
• 14:47
  I
• 14:47
  worked
• 14:47
  in
• 14:47
  asset
• 14:48
  management,
• 14:49
  investment
• 14:49
  managers
• 14:50
  for
• 14:50
  most
• 14:50
  of
• 14:50
  my
• 14:50
  career.
• 14:52
  They
• 14:52
  have
• 14:52
  the
• 14:52
  CFAs,
• 14:53
  they
• 14:53
  have
• 14:53
  large
• 14:53
  investment
• 14:54
  teams
• 14:55
  and
• 14:55
  they
• 14:55
  all
• 14:55
  sound
• 14:56
  very
• 14:57
  smart,
• 14:57
  but
• 14:58
  as
• 14:58
  a
• 14:59
  retail
• 14:59
  investor.
• 15:00
  And
• 15:00
  they
• 15:00
  do
• 15:00
  outperform
• 15:01
  the
• 15:01
  benchmark,
• 15:02
  certain
• 15:02
  market
• 15:02
  conditions
• 15:03
  or
• 15:03
  environments
• 15:03
  or
• 15:04
  periods.
• 15:04
  But
• 15:04
  it's
• 15:05
  proven
• 15:05
  they
• 15:05
  don't
• 15:05
  have
• 15:05
  the
• 15:05
  persistence
• 15:06
  as
• 15:06
  well.
• 15:08
  And
• 15:08
  that's
• 15:08
  another
• 15:08
  interesting
• 15:09
  element.
• 15:09
  If
• 15:09
  some
• 15:10
  people
• 15:10
  are
• 15:10
  investing
• 15:10
  in
• 15:10
  an
• 15:11
  active
• 15:11
  fund
• 15:11
  and
• 15:11
  they
• 15:11
  look
• 15:12
  at
• 15:12
  the
• 15:12
  fact
• 15:12
  sheet
• 15:12
  and
• 15:12
  they
• 15:13
  see,
• 15:13
  oh,
• 15:13
  it's
• 15:13
  outperformed
• 15:14
  the
• 15:14
  last
• 15:14
  12
• 15:14
  months
• 15:15
  or
• 15:15
  three
• 15:15
  years.
• 15:16
  These
• 15:16
  guys
• 15:16
  must
• 15:16
  know
• 15:17
  what
• 15:17
  they're
• 15:17
  doing.
• 15:17
  They're
• 15:17
  good.
• 15:18
  Well,
• 15:18
  it's
• 15:18
  actually
• 15:18
  proven
• 15:19
  if
• 15:19
  they're
• 15:19
  already
• 15:19
  outperformed
• 15:21
  that
• 15:21
  in
• 15:21
  the
• 15:21
  next
• 15:22
  three
• 15:22
  years
• 15:22
  they're
• 15:22
  likely
• 15:23
  to
• 15:23
  underperform
• 15:24
  because
• 15:25
  the
• 15:25
  winners
• 15:25
  have
• 15:25
  already
• 15:25
  run
• 15:26
  and
• 15:26
  they
• 15:26
  have
• 15:26
  to
• 15:27
  reposition
• 15:27
  the
• 15:28
  portfolio
• 15:28
  for
• 15:28
  the
• 15:28
  next
• 15:28
  three
• 15:29
  to
• 15:29
  five
• 15:29
  years.
• 15:29
  And
• 15:29
  it
• 15:30
  doesn't
• 15:30
  always
• 15:30
  happen
• 15:31
  dynamically.
• 15:32
  There
• 15:32
  can
• 15:33
  be
• 15:33
  some
• 15:33
  painful
• 15:34
  periods
• 15:34
  where
• 15:34
  they
• 15:34
  do
• 15:35
  underperform
• 15:36
  in
• 15:36
  certain
• 15:36
  environments.
• 15:37
  And
• 15:37
  active
• 15:37
  managers
• 15:38
  have
• 15:38
  investment
• 15:39
  styles
• 15:39
  they're
• 15:40
  like
• 15:40
  telling
• 15:40
  you
• 15:40
  about
• 15:40
  their
• 15:40
  investment
• 15:41
  process.
• 15:41
  We're
• 15:42
  a
• 15:42
  garp.
• 15:42
  We're
• 15:43
  growth
• 15:43
  at
• 15:43
  a
• 15:43
  reasonable
• 15:43
  price
• 15:44
  or
• 15:44
  a
• 15:44
  value
• 15:44
  manager,
• 15:45
  or
• 15:46
  we're
• 15:46
  a
• 15:46
  quant.
• 15:47
  You
• 15:47
  know,
• 15:47
  we
• 15:47
  use
• 15:48
  mathematical
• 15:49
  systems
• 15:49
  to
• 15:49
  invest,
• 15:50
  but
• 15:50
  the
• 15:51
  research
• 15:51
  stands
• 15:51
  for
• 15:51
  itself.
• 15:53
  The
• 15:53
  passive
• 15:53
  funds
• 15:54
  tend
• 15:54
  to
• 15:54
  outperform
• 15:55
  over
• 15:55
  the
• 15:55
  long
• 15:55
  term.
• 15:56
  Yeah,
• 15:56
  I.
• 15:56
  This
• 15:57
  is
• 15:57
  the
• 15:57
  thing
• 15:57
  as
• 15:57
  well.
• 15:57
  And
• 15:57
  especially
• 15:58
  when
• 15:58
  you
• 15:58
  add
• 15:58
  in
• 15:58
  things
• 15:59
  like
• 15:59
  the
• 15:59
  fees.
• 15:59
  I
• 15:59
  always
• 16:00
  say
• 16:00
  to
• 16:00
  people,
• 16:00
  just
• 16:00
  do
• 16:00
  not
• 16:01
  ignore
• 16:01
  fees.
• 16:01
  Exactly.
• 16:02
  Fees
• 16:03
  are
• 16:03
  little
• 16:03
  bugs
• 16:03
  that
• 16:04
  eat
• 16:04
  your
• 16:04
  money
• 16:04
  in
• 16:05
  ways
• 16:05
  that
• 16:05
  just
• 16:06
  build
• 16:06
  up
• 16:06
  so
• 16:06
  much
• 16:06
  over
• 16:07
  time.
• 16:07
  So
• 16:07
  much
• 16:08
  more
• 16:08
  than
• 16:08
  people
• 16:08
  think.
• 16:10
  You
• 16:10
  mentioned
• 16:11
  before
• 16:11
  as
• 16:12
  well,
• 16:12
  about
• 16:12
  the
• 16:12
  different
• 16:12
  ways
• 16:13
  that
• 16:13
  markets
• 16:13
  can
• 16:14
  be,
• 16:15
  the
• 16:16
  different
• 16:16
  companies
• 16:16
  that
• 16:16
  can
• 16:17
  dominate.
• 16:18
  And
• 16:18
  I
• 16:18
  find
• 16:18
  this
• 16:19
  fascinating.
• 16:21
  I
• 16:21
  did
• 16:21
  a
• 16:21
  deep
• 16:22
  dive
• 16:22
  on
• 16:22
  it
• 16:22
  in
• 16:22
  a
• 16:22
  newsletter
• 16:23
  recently,
• 16:23
  but
• 16:23
  I
• 16:23
  should
• 16:24
  do
• 16:24
  more
• 16:24
  because
• 16:24
  there's.
• 16:25
  There's
• 16:25
  so
• 16:25
  much
• 16:26
  you
• 16:26
  can
• 16:26
  do
• 16:26
  on
• 16:26
  this.
• 16:27
  And
• 16:27
  like
• 16:27
  you
• 16:27
  say
• 16:28
  in
• 16:28
  Australia
• 16:28
  you've
• 16:29
  got
• 16:29
  big
• 16:29
  banks
• 16:30
  and
• 16:30
  mining
• 16:30
  dominate,
• 16:31
  and
• 16:31
  in
• 16:32
  America
• 16:32
  right
• 16:32
  now
• 16:33
  it's.
• 16:33
  It's
• 16:33
  tech.
• 16:35
  New
• 16:35
  Zealand
• 16:35
  also
• 16:36
  has
• 16:36
  its
• 16:37
  own
• 16:38
  dominating
• 16:39
  companies.
• 16:39
  Right.
• 16:40
  Its
• 16:40
  own
• 16:40
  dominating
• 16:41
  industries,
• 16:41
  its
• 16:42
  own
• 16:42
  ways
• 16:42
  that
• 16:42
  the
• 16:43
  market
• 16:43
  is
• 16:43
  different
• 16:44
  from
• 16:44
  the
• 16:44
  rest
• 16:44
  of
• 16:45
  the
• 16:45
  world.
• 16:45
  Right.
• 16:45
  What
• 16:45
  makes
• 16:46
  our
• 16:46
  market
• 16:47
  different?
• 16:48
  I
• 16:48
  mean,
• 16:48
  every
• 16:48
  market's
• 16:49
  unique
• 16:49
  and
• 16:50
  that's
• 16:50
  why
• 16:50
  it's
• 16:50
  good
• 16:50
  to
• 16:50
  be
• 16:50
  diversified.
• 16:52
  S
• 16:52
  and
• 16:52
  P
• 16:52
  came
• 16:53
  on
• 16:53
  board
• 16:53
  and
• 16:54
  partnered
• 16:54
  with
• 16:54
  the
• 16:54
  exchange
• 16:55
  in
• 16:55
  June
• 16:56
  2015,
• 16:57
  started
• 16:57
  rebranding
• 16:58
  all
• 16:58
  the
• 16:58
  indices
• 16:58
  S&P
• 16:59
  NZX
• 16:59
  and
• 16:59
  we
• 17:00
  launched
• 17:00
  a
• 17:00
  whole
• 17:00
  bunch
• 17:00
  of
• 17:00
  new
• 17:00
  indices
• 17:01
  at
• 17:01
  that
• 17:01
  time,
• 17:02
  high
• 17:02
  dividend
• 17:02
  indices,
• 17:03
  ESG
• 17:03
  indices,
• 17:05
  climate
• 17:05
  change
• 17:05
  indices,
• 17:06
  fixed
• 17:06
  income
• 17:07
  ones.
• 17:07
  But
• 17:08
  I've
• 17:08
  been
• 17:08
  looking
• 17:08
  back
• 17:08
  at
• 17:08
  the
• 17:09
  last
• 17:09
  10
• 17:09
  years
• 17:09
  and
• 17:10
  the
• 17:10
  top
• 17:10
  10
• 17:11
  companies
• 17:11
  has
• 17:12
  changed
• 17:12
  since
• 17:12
  the
• 17:13
  launch.
• 17:13
  We
• 17:14
  saw
• 17:15
  maybe
• 17:15
  four
• 17:15
  or
• 17:16
  five
• 17:16
  companies
• 17:16
  that
• 17:16
  were
• 17:16
  top
• 17:17
  10
• 17:17
  in
• 17:17
  2015
• 17:18
  have
• 17:18
  dropped
• 17:19
  out
• 17:19
  of
• 17:19
  the
• 17:19
  top
• 17:19
  10.
• 17:20
  And
• 17:21
  now
• 17:21
  your
• 17:21
  Fisher
• 17:22
  and
• 17:22
  Paykels
• 17:22
  and
• 17:22
  healthcare
• 17:23
  companies
• 17:23
  make
• 17:24
  up
• 17:24
  a
• 17:24
  large
• 17:24
  component.
• 17:25
  But
• 17:25
  the
• 17:25
  sectors
• 17:26
  have
• 17:26
  changed,
• 17:26
  the
• 17:26
  sector
• 17:26
  weights
• 17:27
  have
• 17:27
  changed.
• 17:27
  If
• 17:27
  you
• 17:27
  go
• 17:27
  back
• 17:27
  to
• 17:28
  2003,
• 17:28
  that
• 17:29
  was
• 17:29
  when
• 17:29
  the
• 17:30
  NZ
• 17:30
  SE50
• 17:31
  started,
• 17:32
  so
• 17:32
  before
• 17:32
  it
• 17:32
  was
• 17:32
  even
• 17:32
  branded
• 17:33
  s
• 17:34
  and
• 17:34
  P
• 17:34
  NZX
• 17:35
  50
• 17:35
  Spark
• 17:36
  was
• 17:36
  the
• 17:36
  largest
• 17:37
  company
• 17:37
  in
• 17:37
  the
• 17:37
  index
• 17:38
  at
• 17:38
  the
• 17:38
  time
• 17:38
  and
• 17:39
  telecommunications
• 17:40
  services
• 17:40
  sector
• 17:41
  was
• 17:42
  more
• 17:42
  than
• 17:42
  30%
• 17:43
  of
• 17:43
  the
• 17:43
  index,
• 17:44
  which
• 17:44
  has
• 17:44
  now
• 17:44
  rebranded
• 17:45
  communications
• 17:45
  services,
• 17:46
  the
• 17:46
  GIC
• 17:46
  sector,
• 17:47
  by
• 17:47
  the
• 17:47
  way.
• 17:47
  And
• 17:47
  you
• 17:48
  had
• 17:48
  a
• 17:48
  lot
• 17:48
  more
• 17:48
  consumer
• 17:48
  companies
• 17:49
  in
• 17:49
  New
• 17:49
  Zealand
• 17:49
  in
• 17:49
  the
• 17:50
  index,
• 17:50
  you
• 17:50
  know,
• 17:50
  10,
• 17:51
  20
• 17:51
  years
• 17:51
  ago,
• 17:52
  whereas
• 17:52
  now
• 17:53
  it's
• 17:53
  more
• 17:54
  healthcare
• 17:54
  and
• 17:54
  industrials.
• 17:56
  This
• 17:57
  episode
• 17:57
  of
• 17:57
  Making
• 17:58
  Sense
• 17:58
  is
• 17:58
  supported
• 17:59
  by
• 17:59
  Odoo.
• 18:00
  Be
• 18:00
  honest,
• 18:01
  how
• 18:01
  many
• 18:01
  subscriptions
• 18:02
  are
• 18:02
  you
• 18:02
  paying
• 18:02
  for
• 18:03
  right
• 18:03
  now
• 18:03
  to
• 18:04
  run
• 18:04
  your
• 18:04
  business
• 18:04
  or
• 18:04
  side
• 18:05
  hustle?
• 18:05
  Because
• 18:06
  I
• 18:06
  reckon
• 18:07
  it's
• 18:07
  more
• 18:07
  than
• 18:07
  you'd
• 18:07
  like
• 18:08
  to
• 18:08
  admit.
• 18:08
  And
• 18:09
  half
• 18:09
  of
• 18:09
  them
• 18:09
  don't
• 18:10
  even
• 18:10
  work
• 18:10
  together.
• 18:11
  That's
• 18:12
  exactly
• 18:12
  why
• 18:12
  I
• 18:13
  like
• 18:13
  Odoo.
• 18:14
  It's
• 18:14
  one
• 18:14
  platform
• 18:15
  with
• 18:15
  70
• 18:16
  apps.
• 18:16
  Accounting,
• 18:17
  invoicing,
• 18:18
  sales,
• 18:18
  inventory,
• 18:19
  HR.
• 18:20
  Your
• 18:20
  website,
• 18:21
  no
• 18:21
  extra
• 18:22
  subscriptions,
• 18:23
  no
• 18:23
  new
• 18:23
  logins.
• 18:24
  It's
• 18:24
  all
• 18:25
  already
• 18:25
  there,
• 18:26
  starting
• 18:26
  from
• 18:27
  3,440
• 18:28
  Aussie
• 18:28
  dollars
• 18:29
  per
• 18:29
  user
• 18:29
  per
• 18:30
  month.
• 18:30
  And
• 18:31
  the
• 18:31
  first
• 18:31
  app
• 18:31
  is
• 18:31
  free
• 18:32
  for
• 18:32
  life,
• 18:33
  hosting
• 18:33
  and
• 18:33
  support
• 18:33
  included.
• 18:35
  Try
• 18:35
  it
• 18:35
  for
• 18:35
  free
• 18:35
  for
• 18:36
  15
• 18:36
  days.
• 18:37
  No
• 18:37
  card
• 18:38
  details
• 18:38
  needed.
• 18:39
  Go
• 18:39
  to
• 18:39
  odoo.com
• 18:40
  that's
• 18:41
  O
• 18:41
  D
• 18:41
  double
• 18:41
  O
• 18:42
  dot
• 18:42
  com.
• 18:43
  Quick
• 18:44
  interruption
• 18:44
  to
• 18:44
  say
• 18:45
  if
• 18:45
  you're
• 18:45
  enjoying
• 18:45
  this
• 18:46
  episode,
• 18:46
  you'll
• 18:46
  love
• 18:47
  the
• 18:47
  Market
• 18:47
  Memo,
• 18:48
  my
• 18:48
  weekly
• 18:49
  newsletter
• 18:49
  where
• 18:49
  I
• 18:50
  teach
• 18:50
  you
• 18:50
  how
• 18:50
  to
• 18:50
  actually
• 18:51
  invest.
• 18:52
  No
• 18:52
  jargon,
• 18:53
  no
• 18:53
  spreadsheets,
• 18:54
  just
• 18:54
  real
• 18:54
  talk
• 18:55
  about
• 18:55
  shares
• 18:56
  and
• 18:56
  how
• 18:56
  to
• 18:56
  make
• 18:57
  your
• 18:57
  money
• 18:57
  work
• 18:57
  for
• 18:57
  you.
• 18:58
  It's
• 18:58
  the
• 18:58
  thing
• 18:58
  I
• 18:59
  wish
• 18:59
  I'd
• 18:59
  had
• 18:59
  when
• 18:59
  I
• 19:00
  was
• 19:00
  starting
• 19:00
  out.
• 19:01
  You
• 19:01
  can
• 19:01
  sign
• 19:01
  up
• 19:02
  for
• 19:02
  free
• 19:02
  at
• 19:03
  franciscook
• 19:04
  Co
• 19:04
  NZ
• 19:05
  Invest.
• 19:06
  That's
• 19:06
  Francisco
• 19:07
  Co
• 19:07
  NZ
• 19:08
  Invest.
• 19:09
  But
• 19:09
  don't
• 19:09
  worry,
• 19:10
  I'll
• 19:10
  put
• 19:10
  the
• 19:10
  link
• 19:11
  in
• 19:11
  the
• 19:11
  show
• 19:11
  notes
• 19:11
  and
• 19:12
  the
• 19:12
  description
• 19:12
  of
• 19:13
  this
• 19:13
  podcast.
• 19:14
  All
• 19:14
  right,
• 19:15
  back
• 19:15
  to
• 19:15
  it.
• 19:17
  It's
• 19:17
  super
• 19:17
  interesting
• 19:18
  as
• 19:18
  well.
• 19:18
  When
• 19:18
  you
• 19:18
  said
• 19:19
  there
• 19:19
  about,
• 19:19
  you
• 19:19
  know,
• 19:19
  you've
• 19:20
  got
• 19:20
  funds
• 19:20
  that
• 19:20
  are
• 19:20
  focused
• 19:21
  on
• 19:21
  things
• 19:21
  like
• 19:21
  dividends
• 19:22
  I
• 19:22
  imagine
• 19:22
  that's
• 19:23
  quite
• 19:23
  easy
• 19:23
  in
• 19:23
  New
• 19:23
  Zealand
• 19:24
  because
• 19:24
  we're
• 19:25
  very,
• 19:25
  we're
• 19:26
  so
• 19:26
  much
• 19:26
  of
• 19:27
  a
• 19:27
  growth
• 19:29
  market
• 19:29
  like
• 19:30
  you
• 19:30
  might
• 19:30
  see
• 19:30
  in
• 19:30
  the
• 19:30
  US
• 19:31
  with,
• 19:31
  especially
• 19:31
  with
• 19:31
  all
• 19:31
  the
• 19:32
  tech
• 19:32
  companies
• 19:32
  that
• 19:32
  are
• 19:32
  focused
• 19:33
  on
• 19:33
  grow,
• 19:33
  grow,
• 19:33
  grow,
• 19:33
  get
• 19:34
  bigger.
• 19:34
  The
• 19:35
  idea
• 19:35
  there
• 19:35
  is
• 19:35
  the
• 19:35
  company
• 19:36
  is
• 19:36
  going
• 19:36
  to
• 19:36
  be
• 19:36
  worth
• 19:36
  more.
• 19:37
  It's
• 19:37
  a
• 19:37
  growth
• 19:37
  strategy
• 19:38
  and
• 19:38
  your
• 19:38
  shares
• 19:39
  themselves
• 19:39
  become
• 19:39
  worth
• 19:40
  more.
• 19:40
  Whereas
• 19:40
  New
• 19:40
  Zealand,
• 19:42
  we're,
• 19:42
  we're
• 19:43
  a
• 19:43
  bit
• 19:44
  quieter.
• 19:45
  Right.
• 19:45
  In
• 19:45
  terms
• 19:45
  of,
• 19:45
  we
• 19:46
  have
• 19:46
  a
• 19:46
  lot
• 19:46
  of
• 19:46
  those
• 19:46
  companies
• 19:47
  that
• 19:47
  are
• 19:48
  solid
• 19:48
  and
• 19:49
  proven
• 19:49
  and
• 19:49
  so
• 19:50
  you
• 19:50
  kind
• 19:51
  of
• 19:51
  already
• 19:51
  know
• 19:51
  what
• 19:51
  you're
• 19:52
  getting.
• 19:52
  You
• 19:52
  might
• 19:52
  not
• 19:52
  be
• 19:52
  getting
• 19:52
  the
• 19:53
  growth,
• 19:54
  but
• 19:54
  the
• 19:54
  dividends
• 19:55
  in
• 19:55
  terms
• 19:55
  of
• 19:55
  their
• 19:56
  solid
• 19:56
  companies,
• 19:56
  they
• 19:57
  have
• 19:57
  profits,
• 19:57
  they
• 19:57
  share
• 19:58
  them
• 19:58
  around.
• 19:59
  That's
• 19:59
  more
• 19:59
  kind
• 20:00
  of
• 20:00
  our
• 20:00
  style,
• 20:00
  right?
• 20:01
  Yeah,
• 20:02
  well,
• 20:02
  we
• 20:02
  have
• 20:03
  total
• 20:03
  return
• 20:04
  indices
• 20:06
  and
• 20:07
  price
• 20:07
  return
• 20:08
  indices
• 20:08
  and
• 20:08
  if
• 20:09
  you
• 20:10
  compare
• 20:10
  the
• 20:10
  difference
• 20:11
  in
• 20:11
  them,
• 20:11
  one
• 20:12
  includes
• 20:12
  all
• 20:12
  the
• 20:12
  dividend
• 20:12
  payouts
• 20:13
  and
• 20:13
  one
• 20:14
  only
• 20:14
  includes
• 20:14
  the
• 20:15
  security
• 20:15
  price
• 20:15
  changes.
• 20:16
  And
• 20:16
  actually
• 20:17
  the
• 20:17
  dividend
• 20:17
  component
• 20:18
  is
• 20:18
  a
• 20:18
  large
• 20:18
  part
• 20:19
  of
• 20:19
  a
• 20:19
  company's
• 20:20
  company's
• 20:20
  growth
• 20:20
  profile.
• 20:21
  And
• 20:22
  yeah,
• 20:22
  I
• 20:23
  think
• 20:23
  the
• 20:23
  dividend
• 20:24
  payout
• 20:25
  ratio
• 20:26
  in
• 20:26
  US
• 20:26
  companies
• 20:27
  is
• 20:27
  below
• 20:28
  New
• 20:28
  Zealand
• 20:28
  and
• 20:29
  Australia,
• 20:29
  I'd
• 20:29
  say
• 20:29
  that.
• 20:31
  But
• 20:31
  yeah,
• 20:31
  in
• 20:31
  some
• 20:31
  countries,
• 20:32
  like
• 20:32
  I
• 20:33
  think
• 20:33
  Taiwan,
• 20:33
  companies
• 20:34
  have
• 20:34
  very
• 20:34
  high
• 20:34
  payout
• 20:35
  ratio.
• 20:35
  So
• 20:37
  dividends
• 20:37
  are
• 20:37
  certainly
• 20:38
  an
• 20:38
  element
• 20:39
  to
• 20:39
  consider
• 20:39
  in
• 20:39
  your
• 20:40
  investment
• 20:40
  strategy.
• 20:41
  And
• 20:42
  some
• 20:42
  people
• 20:42
  love
• 20:43
  having
• 20:43
  a
• 20:43
  dividend
• 20:43
  oriented.
• 20:44
  So
• 20:45
  we
• 20:45
  have
• 20:45
  a
• 20:45
  dividend
• 20:45
  oriented
• 20:46
  index.
• 20:46
  There's
• 20:46
  s
• 20:46
  and
• 20:47
  P
• 20:47
  NZX
• 20:47
  50
• 20:48
  high
• 20:48
  dividend.
• 20:49
  You'd
• 20:49
  have
• 20:49
  to
• 20:50
  invest
• 20:50
  in
• 20:50
  a
• 20:50
  product
• 20:50
  linked
• 20:51
  to
• 20:51
  that
• 20:51
  index,
• 20:52
  but
• 20:52
  then
• 20:52
  you'd
• 20:53
  get
• 20:53
  a
• 20:53
  higher
• 20:54
  dividend
• 20:54
  yield
• 20:54
  compared
• 20:55
  to
• 20:55
  the
• 20:55
  s
• 20:55
  and
• 20:55
  P
• 20:56
  NZX50
• 20:56
  dividend
• 20:57
  yield.
• 20:57
  So
• 20:58
  that
• 20:58
  index
• 20:58
  has
• 20:58
  been
• 20:59
  weighted
• 20:59
  by
• 20:59
  dividend
• 21:00
  payout
• 21:00
  ratios
• 21:01
  and
• 21:01
  consistent
• 21:02
  dividends
• 21:03
  from
• 21:03
  companies.
• 21:04
  We
• 21:04
  even
• 21:05
  have
• 21:05
  franchises
• 21:05
  globally.
• 21:06
  Dividend
• 21:06
  Aristocrats
• 21:07
  is
• 21:07
  an
• 21:07
  S
• 21:07
  and
• 21:08
  P
• 21:08
  franchise.
• 21:09
  And
• 21:09
  to
• 21:09
  be
• 21:09
  in
• 21:10
  that
• 21:10
  index
• 21:10
  you
• 21:10
  have
• 21:10
  to
• 21:11
  have
• 21:11
  maintained
• 21:12
  dividends
• 21:12
  for
• 21:12
  25
• 21:13
  years.
• 21:14
  So
• 21:14
  that's
• 21:14
  a
• 21:14
  US
• 21:15
  or
• 21:15
  global
• 21:15
  index.
• 21:16
  If
• 21:16
  we
• 21:16
  tried
• 21:16
  to
• 21:17
  use
• 21:17
  that
• 21:18
  methodology
• 21:18
  in
• 21:18
  single
• 21:19
  countries,
• 21:19
  you
• 21:19
  might
• 21:19
  not
• 21:20
  get
• 21:20
  that
• 21:20
  many
• 21:20
  constituents.
• 21:21
  So
• 21:21
  certainly
• 21:21
  that's
• 21:22
  one
• 21:22
  way
• 21:22
  to
• 21:22
  invest.
• 21:22
  There's
• 21:22
  different
• 21:23
  tax
• 21:23
  treatments
• 21:23
  of
• 21:23
  dividends
• 21:24
  in
• 21:24
  different
• 21:24
  countries
• 21:25
  and
• 21:25
  I
• 21:25
  think
• 21:26
  that's.
• 21:27
  That
• 21:27
  might
• 21:27
  have
• 21:27
  held
• 21:28
  back
• 21:28
  ETFs
• 21:28
  in
• 21:28
  New
• 21:28
  Zealand
• 21:29
  is
• 21:29
  the
• 21:29
  tax
• 21:29
  treatment
• 21:31
  on
• 21:32
  dividends.
• 21:32
  But
• 21:34
  yeah,
• 21:34
  that's
• 21:35
  certainly
• 21:35
  one
• 21:36
  interesting
• 21:36
  way
• 21:36
  to
• 21:37
  invest
• 21:37
  and
• 21:38
  we
• 21:38
  can
• 21:38
  cater
• 21:38
  for
• 21:38
  that
• 21:39
  with
• 21:39
  our
• 21:39
  index
• 21:39
  design
• 21:40
  is
• 21:40
  to
• 21:40
  be
• 21:40
  dividend
• 21:41
  orientated.
• 21:42
  Super
• 21:42
  interesting
• 21:43
  your
• 21:43
  little
• 21:44
  side
• 21:44
  mention
• 21:44
  there
• 21:44
  of
• 21:44
  Taiwan.
• 21:45
  I
• 21:45
  don't
• 21:45
  know
• 21:46
  heaps
• 21:46
  about
• 21:46
  the
• 21:46
  Taiwan
• 21:47
  market,
• 21:47
  but
• 21:47
  cards
• 21:48
  on
• 21:48
  the
• 21:48
  table.
• 21:49
  Do
• 21:49
  you
• 21:49
  know
• 21:49
  why
• 21:49
  they
• 21:50
  tend
• 21:50
  to
• 21:50
  be
• 21:50
  more
• 21:50
  dividend
• 21:51
  oriented?
• 21:51
  Is
• 21:51
  that
• 21:52
  a
• 21:52
  Business
• 21:52
  culture
• 21:53
  thing,
• 21:54
  I.
• 21:54
  Don't
• 21:54
  know,
• 21:54
  but
• 21:54
  I
• 21:55
  was
• 21:55
  involved
• 21:55
  in
• 21:55
  an
• 21:55
  index
• 21:56
  launch
• 21:56
  with
• 21:57
  an
• 21:57
  asset
• 21:57
  manager
• 21:58
  there
• 21:58
  for
• 21:58
  an
• 21:58
  etf,
• 21:59
  and
• 22:00
  they
• 22:01
  really
• 22:01
  wanted
• 22:01
  a
• 22:01
  higher
• 22:01
  dividend
• 22:02
  yield.
• 22:03
  We
• 22:03
  back
• 22:03
  test
• 22:04
  indices
• 22:04
  before
• 22:04
  we
• 22:05
  launched
• 22:05
  them
• 22:05
  and
• 22:05
  we
• 22:06
  try
• 22:06
  out
• 22:06
  different
• 22:06
  scenarios.
• 22:07
  And
• 22:09
  I
• 22:09
  was
• 22:09
  quite
• 22:09
  surprised
• 22:10
  because
• 22:11
  there's
• 22:11
  pros
• 22:11
  and
• 22:11
  cons.
• 22:12
  If
• 22:12
  a
• 22:12
  company's
• 22:12
  paying
• 22:12
  out
• 22:13
  too
• 22:13
  much
• 22:13
  dividends,
• 22:13
  they're
• 22:13
  not
• 22:14
  reinvesting
• 22:14
  that
• 22:14
  in
• 22:15
  the
• 22:15
  business.
• 22:16
  So
• 22:16
  every
• 22:17
  company
• 22:17
  is
• 22:17
  on
• 22:17
  a
• 22:17
  different
• 22:17
  life
• 22:18
  cycle,
• 22:18
  different
• 22:18
  journey
• 22:20
  about
• 22:20
  how
• 22:20
  much
• 22:20
  they
• 22:21
  want
• 22:21
  to
• 22:21
  reward
• 22:22
  shareholders
• 22:22
  for
• 22:23
  holding
• 22:23
  their
• 22:23
  shares
• 22:23
  or
• 22:23
  how
• 22:23
  much
• 22:24
  they
• 22:24
  want
• 22:24
  to
• 22:24
  put
• 22:24
  that
• 22:24
  money
• 22:25
  back
• 22:25
  into
• 22:25
  their
• 22:25
  company
• 22:25
  and
• 22:26
  reinvest
• 22:26
  it
• 22:26
  for
• 22:26
  future
• 22:27
  growth.
• 22:28
  And
• 22:28
  I'm
• 22:29
  not
• 22:29
  a
• 22:30
  corporate
• 22:30
  finance
• 22:31
  executive
• 22:31
  that
• 22:31
  makes
• 22:31
  those
• 22:32
  decisions.
• 22:32
  But
• 22:33
  like
• 22:33
  any
• 22:33
  other
• 22:34
  investor
• 22:34
  out
• 22:34
  there,
• 22:34
  I
• 22:34
  do
• 22:35
  love
• 22:35
  a
• 22:35
  dividend.
• 22:35
  Yeah,
• 22:36
  exactly.
• 22:37
  I
• 22:37
  know,
• 22:37
  it's
• 22:37
  really
• 22:38
  interesting,
• 22:38
  isn't
• 22:38
  it,
• 22:39
  the
• 22:39
  different
• 22:39
  approaches
• 22:40
  people
• 22:40
  can
• 22:40
  have
• 22:41
  on
• 22:41
  that
• 22:41
  because,
• 22:41
  yeah,
• 22:41
  some
• 22:42
  people
• 22:42
  love,
• 22:42
  they
• 22:43
  can
• 22:43
  almost
• 22:44
  be
• 22:44
  looking
• 22:44
  to
• 22:44
  treat
• 22:44
  dividends
• 22:45
  as
• 22:45
  like
• 22:45
  a
• 22:45
  fixed
• 22:46
  income
• 22:46
  sort
• 22:46
  of
• 22:46
  idea.
• 22:47
  Like,
• 22:47
  okay,
• 22:48
  I
• 22:48
  won't
• 22:48
  have
• 22:48
  to
• 22:48
  sell
• 22:48
  any
• 22:49
  shares
• 22:49
  and
• 22:50
  I
• 22:50
  can
• 22:50
  just
• 22:50
  get
• 22:50
  money
• 22:50
  coming
• 22:50
  through
• 22:51
  by
• 22:51
  dividends.
• 22:51
  And
• 22:52
  then
• 22:52
  you
• 22:52
  see
• 22:52
  particularly
• 22:53
  the,
• 22:54
  the
• 22:54
  U.S.
• 22:55
  culture
• 22:56
  by
• 22:56
  investors
• 22:57
  is
• 22:57
  they
• 22:57
  almost
• 22:58
  sometimes
• 22:58
  disapprove
• 23:00
  of
• 23:00
  dividends.
• 23:01
  Like,
• 23:01
  why
• 23:01
  are
• 23:01
  you
• 23:01
  not
• 23:02
  reinvesting
• 23:02
  that
• 23:02
  money
• 23:03
  back
• 23:03
  into
• 23:03
  the
• 23:03
  company
• 23:03
  to
• 23:04
  grow,
• 23:04
  grow,
• 23:04
  grow?
• 23:05
  So
• 23:05
  I
• 23:05
  find
• 23:05
  it
• 23:06
  super
• 23:06
  interesting,
• 23:07
  the
• 23:07
  different
• 23:07
  investing
• 23:08
  cultures
• 23:09
  by
• 23:09
  country.
• 23:11
  And
• 23:11
  coming
• 23:11
  back
• 23:12
  to
• 23:12
  the
• 23:12
  idea
• 23:12
  of,
• 23:13
  of
• 23:13
  New
• 23:13
  Zealand
• 23:14
  and,
• 23:14
  and
• 23:14
  how
• 23:15
  we
• 23:15
  invest.
• 23:16
  I
• 23:16
  mean,
• 23:16
  do
• 23:17
  you
• 23:17
  think
• 23:17
  there's
• 23:17
  been
• 23:18
  a
• 23:18
  change
• 23:18
  in
• 23:21
  the
• 23:21
  uptake
• 23:22
  on
• 23:22
  index
• 23:22
  funds
• 23:23
  and
• 23:24
  the
• 23:24
  passive
• 23:24
  investing
• 23:25
  strategy
• 23:25
  from
• 23:25
  New
• 23:26
  Zealanders
• 23:26
  in
• 23:26
  the
• 23:26
  last
• 23:26
  few
• 23:27
  years?
• 23:27
  Do
• 23:27
  we
• 23:27
  have
• 23:27
  any
• 23:27
  numbers
• 23:28
  on
• 23:28
  that?
• 23:29
  Yeah,
• 23:29
  I
• 23:29
  don't
• 23:29
  have
• 23:30
  the
• 23:30
  numbers
• 23:30
  exactly.
• 23:31
  On
• 23:31
  the
• 23:31
  split
• 23:32
  between
• 23:32
  passive
• 23:32
  and
• 23:32
  active
• 23:33
  investing
• 23:33
  in
• 23:33
  New
• 23:33
  Zealand,
• 23:35
  certainly
• 23:35
  on
• 23:35
  the
• 23:35
  ETF
• 23:36
  front,
• 23:36
  it's
• 23:36
  easy
• 23:36
  to
• 23:37
  measure.
• 23:37
  There's
• 23:37
  roughly
• 23:38
  6
• 23:38
  billion
• 23:38
  New
• 23:39
  Zealand
• 23:39
  dollars
• 23:39
  invested
• 23:40
  in
• 23:40
  ETFs.
• 23:41
  And
• 23:41
  the
• 23:41
  majority
• 23:42
  of
• 23:42
  that
• 23:42
  would
• 23:42
  be,.
• 23:43
  Would
• 23:43
  be
• 23:43
  passive
• 23:44
  because
• 23:44
  there's
• 23:44
  that
• 23:44
  famous
• 23:45
  finding,
• 23:45
  isn't
• 23:46
  there,
• 23:47
  that
• 23:47
  people
• 23:47
  who
• 23:47
  forget
• 23:48
  about
• 23:49
  their
• 23:50
  investments
• 23:50
  often
• 23:51
  do
• 23:51
  better.
• 23:52
  And
• 23:52
  it
• 23:53
  really
• 23:53
  does
• 23:53
  seem
• 23:54
  like
• 23:54
  every
• 23:54
  time
• 23:54
  I
• 23:54
  read
• 23:54
  a
• 23:55
  new
• 23:55
  study
• 23:55
  that
• 23:55
  comes
• 23:55
  out,
• 23:56
  it
• 23:56
  really
• 23:56
  seems
• 23:56
  like
• 23:57
  so
• 23:57
  much
• 23:57
  of
• 23:57
  good
• 23:58
  investing
• 23:59
  is
• 23:59
  deciding
• 24:00
  on
• 24:00
  what
• 24:00
  you
• 24:00
  want
• 24:00
  from
• 24:00
  your
• 24:01
  money.
• 24:02
  Set
• 24:02
  it,
• 24:02
  forget
• 24:03
  it,
• 24:03
  leave
• 24:03
  it
• 24:03
  alone.
• 24:05
  Is
• 24:05
  there
• 24:06
  any
• 24:06
  data
• 24:06
  on
• 24:07
  that?
• 24:07
  Have
• 24:08
  we
• 24:08
  had
• 24:08
  any
• 24:08
  recent
• 24:09
  stuff
• 24:09
  on
• 24:09
  people
• 24:09
  who've
• 24:10
  forgotten
• 24:10
  about
• 24:10
  their
• 24:11
  investments?
• 24:11
  You
• 24:12
  know,
• 24:12
  I've
• 24:12
  heard
• 24:12
  of
• 24:13
  set
• 24:13
  and
• 24:13
  forget
• 24:14
  portfolios.
• 24:14
  I've
• 24:15
  heard
• 24:15
  of
• 24:15
  couch
• 24:15
  potato
• 24:16
  portfolios.
• 24:17
  I
• 24:17
  haven't
• 24:17
  come
• 24:17
  across
• 24:17
  that
• 24:18
  term
• 24:18
  for
• 24:18
  it
• 24:18
  before.
• 24:18
  I
• 24:18
  quite
• 24:19
  like
• 24:19
  that.
• 24:19
  There's
• 24:20
  been
• 24:20
  studies
• 24:20
  out
• 24:20
  there.
• 24:21
  The
• 24:22
  less
• 24:22
  you
• 24:22
  tinker,
• 24:24
  the
• 24:24
  more
• 24:24
  you
• 24:24
  can
• 24:24
  make
• 24:25
  in
• 24:25
  the
• 24:25
  longer
• 24:25
  term.
• 24:26
  If
• 24:26
  you
• 24:26
  set
• 24:26
  your
• 24:27
  investment
• 24:28
  allocations
• 24:28
  according
• 24:29
  to
• 24:29
  your
• 24:29
  goals
• 24:30
  and
• 24:30
  stick
• 24:30
  to
• 24:31
  that
• 24:31
  over
• 24:31
  the
• 24:31
  longer
• 24:31
  term,
• 24:32
  there's
• 24:33
  a
• 24:33
  high
• 24:33
  probability
• 24:33
  that
• 24:33
  you'll
• 24:34
  be
• 24:34
  successful.
• 24:34
  And
• 24:34
  if
• 24:35
  you
• 24:35
  keep
• 24:35
  trading,
• 24:36
  handing
• 24:37
  over
• 24:37
  fees
• 24:37
  to,
• 24:38
  to
• 24:38
  brokerages
• 24:39
  to,
• 24:39
  you
• 24:40
  know,
• 24:40
  other
• 24:41
  counterparties
• 24:41
  in
• 24:41
  the
• 24:41
  mix,
• 24:42
  so.
• 24:43
  Yeah,
• 24:43
  well,
• 24:43
  exactly.
• 24:44
  I
• 24:44
  feel
• 24:44
  like
• 24:44
  every
• 24:44
  time
• 24:45
  we
• 24:45
  trade,
• 24:45
  I
• 24:45
  mean,
• 24:45
  the
• 24:46
  big
• 24:46
  things
• 24:46
  that
• 24:46
  keep
• 24:46
  coming
• 24:47
  through
• 24:47
  is
• 24:47
  your
• 24:48
  emotions
• 24:48
  will
• 24:48
  get
• 24:48
  in
• 24:48
  the
• 24:48
  way
• 24:49
  as
• 24:49
  much
• 24:49
  as
• 24:49
  you
• 24:49
  think
• 24:50
  they
• 24:50
  won't.
• 24:51
  Often
• 24:51
  when
• 24:51
  we
• 24:52
  want
• 24:52
  to
• 24:52
  make
• 24:52
  a
• 24:52
  change,
• 24:52
  it
• 24:52
  can
• 24:53
  be
• 24:53
  driven
• 24:53
  by
• 24:53
  emotion
• 24:54
  and
• 24:54
  emotions
• 24:55
  and
• 24:55
  money
• 24:55
  just
• 24:56
  never
• 24:56
  mix.
• 24:56
  But
• 24:57
  also
• 24:57
  the
• 24:57
  problem
• 24:57
  is,
• 24:57
  is
• 24:58
  the,
• 24:58
  again,
• 24:58
  the
• 24:59
  fees,
• 24:59
  right,
• 25:00
  Every
• 25:00
  time
• 25:00
  you're
• 25:01
  buying
• 25:01
  and
• 25:01
  selling,
• 25:02
  that
• 25:02
  usually
• 25:02
  has
• 25:03
  a
• 25:03
  cost
• 25:03
  attached
• 25:03
  to
• 25:03
  it
• 25:05
  and
• 25:05
  it
• 25:05
  can
• 25:05
  depend
• 25:05
  a
• 25:06
  lot
• 25:06
  depending
• 25:07
  on
• 25:07
  what
• 25:07
  platform
• 25:08
  you're
• 25:08
  using.
• 25:08
  But
• 25:09
  those
• 25:09
  fees
• 25:09
  can
• 25:10
  add
• 25:10
  up
• 25:10
  in
• 25:10
  all
• 25:10
  sorts
• 25:10
  of
• 25:11
  ways.
• 25:11
  The
• 25:11
  buy
• 25:11
  and
• 25:11
  the
• 25:12
  sell,
• 25:12
  the
• 25:12
  foreign
• 25:12
  exchange
• 25:13
  fees,
• 25:13
  all
• 25:13
  of
• 25:14
  those
• 25:14
  various
• 25:14
  things
• 25:15
  can
• 25:15
  really
• 25:15
  start
• 25:15
  to
• 25:15
  get
• 25:15
  expensive
• 25:16
  when
• 25:16
  you're
• 25:16
  messing
• 25:17
  around
• 25:17
  with
• 25:17
  it.
• 25:17
  And
• 25:18
  there's
• 25:18
  the
• 25:18
  opportunity
• 25:18
  cost
• 25:20
  as
• 25:20
  well
• 25:20
  as
• 25:20
  the
• 25:21
  fees.
• 25:21
  I
• 25:21
  mean,
• 25:22
  I
• 25:22
  lived
• 25:22
  through
• 25:23
  the
• 25:23
  2008
• 25:23
  financial
• 25:24
  crisis
• 25:25
  and
• 25:26
  I
• 25:26
  actually
• 25:27
  got
• 25:27
  made
• 25:27
  redundant
• 25:27
  that
• 25:28
  year
• 25:28
  and
• 25:28
  lost
• 25:28
  my
• 25:28
  job.
• 25:29
  Love
• 25:29
  that.
• 25:29
  And
• 25:30
  luckily
• 25:30
  I
• 25:30
  didn't
• 25:31
  really
• 25:31
  have
• 25:31
  many
• 25:31
  liabilities,
• 25:32
  but
• 25:32
  I
• 25:32
  had
• 25:32
  a
• 25:32
  lot
• 25:32
  of
• 25:33
  fun
• 25:33
  with
• 25:33
  my
• 25:33
  redundancy
• 25:33
  money.
• 25:34
  I
• 25:34
  went
• 25:34
  traveling.
• 25:35
  I
• 25:35
  went
• 25:36
  to
• 25:36
  the
• 25:36
  World
• 25:36
  cup
• 25:36
  in
• 25:36
  South
• 25:36
  Africa
• 25:37
  the
• 25:37
  next
• 25:37
  year,
• 25:37
  and
• 25:38
  the
• 25:38
  market
• 25:38
  in
• 25:38
  2009
• 25:41
  went
• 25:41
  up
• 25:41
  quite
• 25:41
  a
• 25:41
  lot.
• 25:42
  And
• 25:42
  I
• 25:42
  could
• 25:42
  have
• 25:42
  invested
• 25:43
  that
• 25:43
  money
• 25:43
  at
• 25:43
  the
• 25:43
  bottom
• 25:44
  with
• 25:44
  my
• 25:44
  redundancy
• 25:45
  money.
• 25:45
  So
• 25:45
  I
• 25:45
  think
• 25:45
  that's
• 25:45
  a
• 25:46
  good
• 25:46
  buy
• 25:47
  signal
• 25:47
  is
• 25:47
  when
• 25:47
  you
• 25:47
  get
• 25:48
  made
• 25:48
  redundant
• 25:48
  to
• 25:49
  put
• 25:49
  that
• 25:49
  into
• 25:49
  the
• 25:49
  market.
• 25:50
  But
• 25:50
  personal
• 25:51
  stories
• 25:52
  aside,
• 25:52
  I
• 25:52
  mean,
• 25:53
  in
• 25:53
  2020
• 25:53
  we
• 25:54
  saw
• 25:54
  a
• 25:55
  massive
• 25:56
  drawdown
• 25:57
  globally
• 25:58
  with
• 25:58
  the
• 25:58
  pandemic.
• 25:59
  The
• 25:59
  New
• 26:00
  Zealand
• 26:00
  market
• 26:00
  had
• 26:00
  a
• 26:00
  big
• 26:01
  drawdown.
• 26:01
  And
• 26:02
  I
• 26:02
  was
• 26:02
  just
• 26:02
  looking
• 26:02
  at
• 26:02
  the
• 26:02
  data
• 26:02
  earlier
• 26:03
  today,
• 26:03
  the
• 26:04
  New
• 26:04
  Zealand
• 26:04
  market
• 26:04
  returned
• 26:05
  13.9%.
• 26:07
  When
• 26:07
  I
• 26:07
  say
• 26:07
  the
• 26:07
  New
• 26:07
  Zealand
• 26:08
  market,
• 26:08
  I
• 26:08
  mean
• 26:08
  the
• 26:08
  s
• 26:08
  and
• 26:08
  P
• 26:08
  NZ50
• 26:09
  in
• 26:10
  2020.
• 26:10
  Now,
• 26:11
  if
• 26:11
  you
• 26:11
  had
• 26:11
  have
• 26:11
  sold
• 26:11
  in
• 26:12
  March,
• 26:12
  April
• 26:12
  or
• 26:12
  May,
• 26:13
  you
• 26:13
  would
• 26:14
  have
• 26:14
  ended
• 26:14
  in
• 26:14
  the
• 26:14
  red.
• 26:15
  I
• 26:15
  don't
• 26:15
  know
• 26:15
  when
• 26:16
  that
• 26:16
  market
• 26:16
  turned
• 26:16
  specifically
• 26:17
  in
• 26:17
  New
• 26:17
  Zealand,
• 26:17
  but
• 26:18
  you
• 26:18
  would
• 26:18
  have
• 26:18
  ended
• 26:18
  in
• 26:18
  the
• 26:19
  red
• 26:19
  by
• 26:19
  thinking,
• 26:20
  oh
• 26:20
  my
• 26:20
  God,
• 26:20
  my
• 26:20
  portfolio
• 26:21
  is
• 26:21
  down,
• 26:22
  I
• 26:22
  need
• 26:22
  to
• 26:22
  sell.
• 26:23
  So
• 26:23
  you're
• 26:23
  missing
• 26:23
  out
• 26:24
  on
• 26:24
  the
• 26:24
  upside
• 26:25
  if
• 26:25
  you
• 26:25
  sell
• 26:25
  in
• 26:26
  despair
• 26:26
  or
• 26:26
  when
• 26:26
  there's
• 26:27
  a
• 26:27
  bit
• 26:27
  more
• 26:27
  volatility.
• 26:28
  You
• 26:28
  know,
• 26:28
  we've
• 26:28
  seen
• 26:29
  the
• 26:29
  war
• 26:29
  in
• 26:29
  Iran
• 26:30
  come
• 26:30
  up.
• 26:30
  This
• 26:30
  year
• 26:31
  the
• 26:31
  New
• 26:32
  Zealand
• 26:32
  market
• 26:32
  was
• 26:32
  down
• 26:33
  1
• 26:34
  7.7%
• 26:35
  year
• 26:35
  to
• 26:35
  date.
• 26:36
  Now,
• 26:36
  if
• 26:36
  investors
• 26:36
  want
• 26:36
  to
• 26:37
  jump
• 26:37
  out,
• 26:37
  then
• 26:38
  they
• 26:38
  might
• 26:38
  Miss
• 26:38
  any
• 26:38
  upside.
• 26:39
  And
• 26:40
  we've
• 26:40
  already
• 26:40
  seen
• 26:41
  The
• 26:41
  S&P
• 26:41
  500
• 26:42
  actually
• 26:42
  reach
• 26:42
  new
• 26:42
  records
• 26:43
  since
• 26:43
  the
• 26:43
  war
• 26:44
  in
• 26:44
  Iran,
• 26:44
  it's
• 26:44
  crossed
• 26:45
  over
• 26:45
  7,000
• 26:46
  points,
• 26:46
  the
• 26:46
  index
• 26:47
  level.
• 26:48
  So
• 26:49
  plenty
• 26:49
  of
• 26:49
  investors
• 26:49
  are
• 26:50
  still
• 26:50
  bullish
• 26:50
  about
• 26:50
  the
• 26:50
  future
• 26:51
  of
• 26:51
  those
• 26:52
  tech
• 26:52
  types
• 26:52
  of
• 26:53
  companies
• 26:53
  and
• 26:53
  US
• 26:54
  companies,
• 26:55
  even
• 26:55
  amid
• 26:56
  concerning
• 26:57
  geopolitical
• 26:58
  tensions.
• 26:59
  So
• 26:59
  if
• 27:00
  you
• 27:00
  sell
• 27:00
  during
• 27:00
  an
• 27:00
  all
• 27:01
  time
• 27:01
  high,
• 27:01
  is
• 27:01
  that
• 27:01
  a
• 27:02
  good
• 27:02
  time
• 27:02
  to
• 27:02
  sell?
• 27:03
  I'm
• 27:03
  not
• 27:03
  here
• 27:03
  to
• 27:03
  say,
• 27:04
  but
• 27:04
  if
• 27:04
  you
• 27:04
  sell
• 27:04
  during
• 27:04
  an
• 27:05
  all
• 27:05
  time
• 27:05
  high,
• 27:05
  it's
• 27:05
  proven
• 27:06
  there's
• 27:07
  more
• 27:07
  than
• 27:07
  50%
• 27:07
  chance
• 27:08
  the
• 27:08
  next
• 27:08
  day
• 27:08
  will
• 27:08
  be
• 27:08
  higher.
• 27:09
  55%
• 27:10
  chance
• 27:10
  I
• 27:10
  think
• 27:10
  on
• 27:10
  the
• 27:10
  S&P
• 27:11
  500.
• 27:12
  And
• 27:12
  what
• 27:12
  if
• 27:12
  you
• 27:12
  sell
• 27:13
  in
• 27:13
  the
• 27:13
  next
• 27:13
  month
• 27:14
  or
• 27:14
  the
• 27:14
  next
• 27:14
  three
• 27:14
  months
• 27:15
  after
• 27:15
  an
• 27:15
  all
• 27:15
  time
• 27:15
  high?
• 27:16
  Well,
• 27:16
  the
• 27:16
  probability
• 27:16
  of
• 27:17
  an
• 27:17
  all
• 27:17
  time
• 27:17
  high
• 27:17
  is
• 27:18
  even
• 27:18
  higher.
• 27:18
  And
• 27:19
  then
• 27:19
  next
• 27:19
  12
• 27:19
  months
• 27:20
  later
• 27:20
  there's
• 27:20
  99%
• 27:21
  chance
• 27:22
  of
• 27:22
  another
• 27:22
  all
• 27:22
  time
• 27:23
  high
• 27:23
  within
• 27:24
  12
• 27:24
  months
• 27:24
  of
• 27:24
  an
• 27:24
  existing
• 27:25
  all
• 27:25
  time
• 27:25
  high.
• 27:26
  Thinking
• 27:26
  that
• 27:26
  you
• 27:27
  can
• 27:27
  tactically
• 27:28
  allocate
• 27:28
  and
• 27:28
  sell
• 27:28
  during
• 27:29
  a
• 27:29
  bit
• 27:29
  of
• 27:29
  an
• 27:30
  up
• 27:30
  market,
• 27:30
  you're
• 27:31
  potentially
• 27:31
  missing
• 27:31
  out
• 27:31
  on
• 27:32
  better
• 27:32
  returns.
• 27:34
  Well,
• 27:34
  exactly.
• 27:35
  I
• 27:35
  should
• 27:35
  be
• 27:35
  able
• 27:35
  to
• 27:35
  quote
• 27:36
  this
• 27:36
  off
• 27:36
  the
• 27:36
  top
• 27:36
  of
• 27:36
  my
• 27:37
  head
• 27:37
  because
• 27:38
  this
• 27:38
  gets
• 27:38
  cited
• 27:39
  all
• 27:39
  the
• 27:39
  time,
• 27:39
  but
• 27:40
  I
• 27:40
  think
• 27:41
  that
• 27:41
  it's
• 27:42
  the
• 27:42
  vast
• 27:43
  majority
• 27:43
  of
• 27:44
  the
• 27:45
  market
• 27:46
  peaks
• 27:46
  and
• 27:47
  like
• 27:47
  you
• 27:47
  say,
• 27:47
  those
• 27:48
  all
• 27:48
  time
• 27:48
  highs
• 27:49
  come
• 27:49
  within
• 27:50
  10
• 27:50
  days
• 27:51
  of
• 27:51
  the
• 27:51
  biggest
• 27:52
  market
• 27:52
  lows.
• 27:53
  So
• 27:53
  if
• 27:53
  you
• 27:54
  see
• 27:54
  the
• 27:54
  market
• 27:55
  go
• 27:55
  down
• 27:55
  and
• 27:55
  you
• 27:55
  panic
• 27:56
  and
• 27:56
  you
• 27:56
  think,
• 27:56
  oh
• 27:56
  gosh,
• 27:57
  like
• 27:57
  not
• 27:57
  a
• 27:57
  good
• 27:58
  time
• 27:58
  to
• 27:58
  be
• 27:58
  here,
• 27:58
  quick,
• 27:58
  sell
• 27:59
  everything.
• 28:00
  You
• 28:01
  almost
• 28:01
  guarantee
• 28:02
  as
• 28:02
  much
• 28:02
  as
• 28:03
  anything
• 28:03
  can
• 28:03
  be
• 28:03
  guaranteed
• 28:03
  in
• 28:03
  finance,
• 28:04
  which
• 28:04
  you
• 28:04
  can't.
• 28:05
  But
• 28:05
  you
• 28:05
  almost
• 28:05
  guarantee
• 28:06
  that
• 28:06
  you
• 28:06
  will
• 28:06
  miss
• 28:07
  that
• 28:07
  upswing
• 28:08
  which
• 28:08
  tends
• 28:08
  to
• 28:08
  come
• 28:09
  hot
• 28:09
  on
• 28:09
  the
• 28:09
  heels
• 28:10
  of
• 28:10
  that
• 28:11
  downswing.
• 28:12
  And
• 28:12
  that's
• 28:12
  why
• 28:12
  it's
• 28:13
  that
• 28:13
  that
• 28:13
  idea
• 28:14
  of
• 28:14
  letting
• 28:15
  emotions
• 28:15
  influence
• 28:15
  your
• 28:16
  money
• 28:16
  is
• 28:16
  always
• 28:17
  horrendous.
• 28:18
  I
• 28:18
  often
• 28:19
  come
• 28:19
  back
• 28:19
  to
• 28:20
  the
• 28:20
  buying,
• 28:21
  the
• 28:21
  selling.
• 28:22
  You
• 28:22
  almost
• 28:22
  need
• 28:22
  to
• 28:23
  ignore
• 28:23
  what's
• 28:23
  happening.
• 28:24
  It's
• 28:24
  almost
• 28:25
  more
• 28:25
  about
• 28:26
  what's
• 28:26
  happening
• 28:26
  in
• 28:26
  your
• 28:26
  personal
• 28:27
  life.
• 28:27
  Do
• 28:28
  you
• 28:28
  need
• 28:28
  to
• 28:29
  sell
• 28:29
  for
• 28:29
  your
• 28:29
  goals?
• 28:30
  You
• 28:30
  know,
• 28:30
  have
• 28:30
  you
• 28:31
  hit
• 28:31
  a
• 28:31
  particular
• 28:31
  goal
• 28:32
  and
• 28:32
  now
• 28:32
  you're
• 28:32
  going
• 28:32
  to
• 28:32
  move
• 28:32
  the
• 28:33
  money
• 28:33
  elsewhere
• 28:33
  or
• 28:33
  you
• 28:34
  know,
• 28:34
  hit
• 28:34
  the
• 28:34
  retirement
• 28:35
  phase
• 28:35
  of
• 28:35
  life
• 28:35
  so
• 28:35
  you're
• 28:35
  in
• 28:35
  the
• 28:36
  spending
• 28:36
  phase
• 28:36
  of
• 28:36
  life.
• 28:37
  Like
• 28:37
  that's
• 28:37
  all
• 28:38
  far
• 28:38
  more
• 28:38
  relevant
• 28:38
  to
• 28:39
  me
• 28:39
  than
• 28:40
  what
• 28:40
  the
• 28:40
  market
• 28:40
  is
• 28:40
  doing
• 28:41
  that
• 28:41
  particular
• 28:41
  day.
• 28:41
  I
• 28:42
  kind
• 28:42
  of
• 28:42
  feel
• 28:42
  like
• 28:42
  if
• 28:42
  you,
• 28:43
  I
• 28:43
  find
• 28:43
  that
• 28:44
  stuff
• 28:44
  interesting,
• 28:44
  but
• 28:44
  I
• 28:45
  shot
• 28:45
  it
• 28:45
  out
• 28:45
  for
• 28:45
  my
• 28:45
  own
• 28:46
  investing
• 28:46
  strategy.
• 28:47
  A
• 28:47
  good
• 28:48
  portfolio
• 28:48
  for
• 28:49
  an
• 28:49
  investor
• 28:49
  to
• 28:49
  have
• 28:50
  with
• 28:50
  their
• 28:50
  goals
• 28:51
  and
• 28:51
  with
• 28:51
  their
• 28:51
  age
• 28:52
  would
• 28:53
  be
• 28:53
  well
• 28:53
  diversified
• 28:54
  across
• 28:55
  more
• 28:55
  of
• 28:55
  the
• 28:56
  broad
• 28:56
  market
• 28:56
  indices.
• 28:57
  And
• 28:57
  then
• 28:58
  you
• 28:58
  don't
• 28:58
  really
• 28:59
  need
• 28:59
  to
• 28:59
  concern
• 28:59
  yourselves
• 29:00
  with
• 29:00
  the
• 29:00
  daily
• 29:00
  moves
• 29:01
  and
• 29:01
  the
• 29:01
  geopolitical
• 29:02
  conflicts
• 29:03
  and
• 29:04
  all
• 29:05
  that
• 29:05
  sort
• 29:05
  of
• 29:05
  thing,
• 29:05
  if
• 29:05
  you
• 29:06
  stick
• 29:06
  to
• 29:06
  your
• 29:06
  plan,
• 29:07
  you
• 29:08
  possibly
• 29:08
  end
• 29:08
  up
• 29:09
  coming
• 29:09
  out
• 29:09
  better.
• 29:09
  Whereas
• 29:10
  if
• 29:10
  you
• 29:10
  do
• 29:10
  get
• 29:10
  involved
• 29:10
  in
• 29:11
  some
• 29:11
  of
• 29:11
  those,
• 29:11
  and
• 29:12
  I
• 29:12
  mentioned,
• 29:12
  there's
• 29:12
  plenty
• 29:13
  of
• 29:13
  possibilities
• 29:13
  out
• 29:13
  there.
• 29:14
  We've
• 29:14
  got
• 29:14
  all
• 29:14
  the
• 29:14
  flavors
• 29:15
  under
• 29:15
  the
• 29:16
  rainbow
• 29:16
  of
• 29:16
  different
• 29:17
  ETFs
• 29:17
  and
• 29:17
  different
• 29:18
  investment
• 29:18
  strategies
• 29:19
  and
• 29:19
  very
• 29:19
  niche
• 29:19
  thematic.
• 29:21
  You
• 29:21
  need
• 29:21
  to
• 29:21
  watch
• 29:21
  the
• 29:21
  market
• 29:22
  a
• 29:22
  lot
• 29:22
  closer
• 29:22
  then
• 29:24
  and
• 29:25
  be
• 29:25
  strategic
• 29:26
  with
• 29:26
  your
• 29:26
  investing.
• 29:26
  But
• 29:26
  then
• 29:27
  there's
• 29:27
  the
• 29:27
  behavioral
• 29:27
  finance
• 29:28
  element
• 29:28
  that
• 29:28
  comes
• 29:28
  into
• 29:29
  play
• 29:29
  as
• 29:29
  well.
• 29:29
  And
• 29:30
  I
• 29:30
  can
• 29:30
  speak
• 29:31
  from
• 29:31
  my
• 29:31
  own
• 29:31
  personal
• 29:31
  experience.
• 29:33
  Long
• 29:33
  before
• 29:33
  I
• 29:33
  worked
• 29:33
  for
• 29:34
  an
• 29:34
  index
• 29:34
  shop,
• 29:35
  I
• 29:36
  don't
• 29:36
  know
• 29:36
  why,
• 29:36
  but
• 29:36
  I
• 29:36
  used
• 29:36
  to
• 29:37
  sell
• 29:37
  winners
• 29:37
  and
• 29:37
  hold
• 29:38
  onto
• 29:38
  my
• 29:38
  losers
• 29:38
  and
• 29:39
  that's
• 29:39
  the
• 29:39
  worst
• 29:39
  thing
• 29:39
  you
• 29:40
  can
• 29:40
  do.
• 29:40
  I
• 29:41
  thought
• 29:41
  if
• 29:41
  I've
• 29:41
  made
• 29:41
  10,
• 29:41
  15%,
• 29:42
  that's
• 29:42
  great,
• 29:42
  I
• 29:42
  should
• 29:43
  take,
• 29:43
  take
• 29:43
  profit.
• 29:44
  And
• 29:44
  then
• 29:44
  when
• 29:45
  I
• 29:46
  used
• 29:46
  to
• 29:46
  have
• 29:46
  some
• 29:46
  individual
• 29:46
  stocks
• 29:47
  that
• 29:47
  were
• 29:47
  down
• 29:47
  30
• 29:47
  or
• 29:48
  40%
• 29:48
  and
• 29:49
  I
• 29:49
  was
• 29:49
  thinking,
• 29:49
  well
• 29:49
  they're
• 29:49
  cheap
• 29:50
  now
• 29:50
  I
• 29:50
  should
• 29:50
  buy
• 29:51
  more
• 29:51
  and
• 29:52
  they
• 29:52
  might
• 29:53
  keep
• 29:53
  going
• 29:53
  down
• 29:53
  and
• 29:54
  sometimes
• 29:54
  they're
• 29:54
  cheap
• 29:54
  for
• 29:54
  a
• 29:54
  reason.
• 29:55
  I
• 29:55
  mean
• 29:55
  there's
• 29:56
  plenty
• 29:56
  of
• 29:56
  self
• 29:56
  directed
• 29:56
  retail
• 29:57
  investors
• 29:57
  now
• 29:57
  that
• 29:58
  can
• 29:58
  build
• 29:58
  their
• 29:58
  own
• 29:59
  portfolio
• 30:00
  and
• 30:01
  get
• 30:01
  a
• 30:01
  nice,
• 30:01
  you
• 30:01
  know,
• 30:02
  asset
• 30:02
  allocation
• 30:02
  and
• 30:02
  set
• 30:03
  and
• 30:03
  forget.
• 30:03
  And
• 30:03
  other
• 30:03
  people
• 30:04
  might
• 30:04
  do
• 30:04
  that
• 30:04
  through
• 30:04
  advice.
• 30:05
  But
• 30:06
  either
• 30:06
  way,
• 30:07
  less
• 30:08
  hands
• 30:08
  on
• 30:08
  is
• 30:08
  probably
• 30:08
  the
• 30:09
  better
• 30:09
  approach.
• 30:10
  I
• 30:10
  know,
• 30:10
  I
• 30:10
  just,
• 30:12
  especially
• 30:12
  since
• 30:13
  I've
• 30:13
  had
• 30:13
  kids,
• 30:13
  I
• 30:13
  was
• 30:14
  talking
• 30:14
  about
• 30:14
  this
• 30:14
  earlier,
• 30:15
  I
• 30:15
  was
• 30:15
  just
• 30:15
  like,
• 30:16
  I
• 30:16
  just
• 30:16
  chuck
• 30:16
  it
• 30:16
  in
• 30:17
  a
• 30:17
  global
• 30:17
  fund
• 30:17
  and
• 30:18
  move
• 30:18
  on
• 30:18
  with
• 30:18
  my
• 30:18
  day
• 30:19
  because
• 30:19
  I
• 30:19
  cannot
• 30:19
  pay
• 30:20
  attention
• 30:20
  to
• 30:20
  any
• 30:20
  of
• 30:20
  that
• 30:21
  stuff.
• 30:21
  And
• 30:21
  here
• 30:21
  I
• 30:21
  am,
• 30:21
  someone
• 30:22
  that
• 30:22
  talks
• 30:22
  about
• 30:22
  money
• 30:22
  for
• 30:23
  a
• 30:23
  living,
• 30:23
  but
• 30:23
  it's
• 30:23
  just
• 30:24
  easier
• 30:25
  and
• 30:25
  I
• 30:25
  just
• 30:25
  like
• 30:25
  the
• 30:26
  easy
• 30:26
  ways
• 30:26
  to
• 30:26
  stay
• 30:27
  investing
• 30:27
  and
• 30:27
  it's,
• 30:28
  it's,
• 30:28
  it's
• 30:28
  just
• 30:28
  so
• 30:29
  much
• 30:29
  better
• 30:29
  for
• 30:29
  me.
• 30:29
  There's
• 30:30
  one
• 30:30
  of
• 30:30
  the
• 30:30
  things
• 30:30
  that
• 30:31
  I
• 30:31
  see
• 30:31
  discussion
• 30:32
  and
• 30:32
  debate
• 30:33
  about
• 30:33
  as
• 30:33
  more
• 30:33
  people
• 30:34
  get
• 30:34
  into
• 30:34
  the
• 30:35
  index
• 30:35
  investing
• 30:36
  and
• 30:38
  the,
• 30:38
  the
• 30:39
  really
• 30:39
  big
• 30:39
  funds,
• 30:40
  which
• 30:40
  again,
• 30:41
  cards
• 30:41
  on
• 30:42
  the
• 30:42
  table.
• 30:42
  I
• 30:42
  just
• 30:43
  think
• 30:43
  it's
• 30:43
  vast
• 30:43
  majority
• 30:44
  of
• 30:44
  the
• 30:44
  time
• 30:44
  a
• 30:45
  really
• 30:45
  good
• 30:45
  strategy,
• 30:46
  but
• 30:46
  that
• 30:47
  it
• 30:48
  can
• 30:48
  maybe
• 30:48
  create
• 30:49
  sort
• 30:49
  of
• 30:50
  market
• 30:50
  distortions
• 30:51
  where
• 30:51
  people
• 30:52
  just
• 30:52
  keep
• 30:52
  putting
• 30:52
  money
• 30:52
  in
• 30:53
  and
• 30:53
  they
• 30:53
  maybe
• 30:54
  miss
• 30:54
  some
• 30:54
  of
• 30:54
  the
• 30:55
  nuance
• 30:55
  of
• 30:55
  the
• 30:55
  market.
• 30:56
  I
• 30:56
  think
• 30:56
  that's
• 30:56
  the
• 30:56
  criticism,
• 30:57
  especially
• 30:57
  from
• 30:57
  those
• 30:57
  who
• 30:58
  favor
• 30:58
  a
• 30:58
  more
• 30:58
  active
• 30:59
  strategy.
• 30:59
  What
• 30:59
  do
• 31:00
  you
• 31:00
  make
• 31:00
  of
• 31:00
  that
• 31:01
  argument?
• 31:02
  The
• 31:02
  indices
• 31:02
  that
• 31:03
  my
• 31:03
  company
• 31:05
  develop,
• 31:06
  manage,
• 31:06
  produce,
• 31:07
  calculate,
• 31:08
  they're
• 31:08
  designed
• 31:09
  to
• 31:09
  have
• 31:09
  different
• 31:09
  objectives.
• 31:10
  And
• 31:10
  a
• 31:11
  broad
• 31:11
  market
• 31:11
  index
• 31:12
  is
• 31:12
  designed
• 31:13
  to
• 31:13
  reflect
• 31:13
  the
• 31:13
  capital
• 31:13
  market.
• 31:14
  But
• 31:15
  there
• 31:15
  could
• 31:15
  be
• 31:15
  distortions
• 31:16
  there
• 31:16
  if
• 31:17
  investors
• 31:17
  are
• 31:17
  piling
• 31:18
  into
• 31:18
  certain
• 31:18
  segments
• 31:18
  or
• 31:19
  sectors
• 31:20
  based
• 31:20
  on
• 31:21
  geopolitical
• 31:22
  situations.
• 31:23
  Part
• 31:23
  of
• 31:23
  the
• 31:23
  economic
• 31:24
  Cycle
• 31:25
  more
• 31:26
  money
• 31:26
  moving
• 31:26
  into
• 31:26
  passive.
• 31:27
  You
• 31:27
  do
• 31:27
  get
• 31:28
  more
• 31:28
  money
• 31:28
  coming
• 31:28
  into
• 31:29
  the
• 31:29
  larger
• 31:29
  market
• 31:30
  cap
• 31:30
  companies.
• 31:32
  But
• 31:32
  then
• 31:33
  those
• 31:33
  distortions
• 31:34
  can
• 31:35
  arbitrate
• 31:36
  themselves
• 31:36
  out.
• 31:36
  Or
• 31:38
  we
• 31:38
  did
• 31:38
  see
• 31:38
  a
• 31:39
  big
• 31:39
  distortion
• 31:40
  in
• 31:40
  2001
• 31:41
  with
• 31:41
  the
• 31:41
  dot
• 31:42
  com
• 31:42
  bubble.
• 31:43
  There
• 31:43
  was
• 31:43
  a
• 31:43
  lot
• 31:43
  of
• 31:43
  Internet
• 31:44
  type
• 31:44
  companies
• 31:46
  that
• 31:46
  were
• 31:46
  extremely
• 31:48
  highly
• 31:48
  priced
• 31:49
  or
• 31:49
  overvalued
• 31:50
  depending
• 31:50
  on
• 31:50
  your
• 31:50
  opinion.
• 31:51
  And
• 31:51
  then
• 31:52
  there
• 31:52
  was
• 31:52
  the
• 31:52
  bust
• 31:52
  around
• 31:53
  2001,
• 31:53
  was
• 31:54
  it?
• 31:54
  And
• 31:54
  a
• 31:55
  lot
• 31:55
  of
• 31:55
  asset
• 31:56
  managers
• 31:56
  in
• 31:56
  those
• 31:56
  days,
• 31:57
  the
• 31:58
  value
• 31:58
  managers
• 31:58
  didn't
• 31:58
  hold
• 31:59
  all
• 31:59
  those
• 31:59
  expensive
• 32:00
  companies
• 32:00
  and
• 32:00
  they
• 32:01
  did
• 32:01
  better,
• 32:02
  the
• 32:02
  growth
• 32:02
  funds
• 32:03
  did
• 32:03
  because
• 32:03
  they
• 32:03
  were
• 32:03
  growth
• 32:04
  companies.
• 32:04
  And
• 32:04
  maybe
• 32:05
  we're
• 32:05
  experiencing
• 32:05
  something
• 32:06
  like
• 32:06
  that
• 32:06
  now
• 32:06
  with
• 32:07
  the
• 32:07
  tech
• 32:07
  companies
• 32:08
  and
• 32:08
  AI.
• 32:08
  It's
• 32:09
  not
• 32:09
  for
• 32:09
  me
• 32:09
  to
• 32:09
  say
• 32:10
  are
• 32:11
  these
• 32:11
  segments
• 32:11
  overvalued
• 32:12
  or
• 32:12
  not.
• 32:13
  But
• 32:13
  certainly
• 32:14
  you
• 32:14
  can
• 32:14
  trade
• 32:14
  your
• 32:15
  view
• 32:16
  based
• 32:16
  on
• 32:16
  all
• 32:17
  the
• 32:17
  different
• 32:17
  options
• 32:17
  out
• 32:18
  there
• 32:18
  now,
• 32:18
  whether
• 32:18
  you
• 32:19
  can
• 32:19
  go
• 32:19
  equal
• 32:19
  weighted,
• 32:20
  whether
• 32:20
  you
• 32:21
  can,
• 32:21
  you
• 32:21
  can
• 32:21
  short
• 32:21
  sell
• 32:22
  indices
• 32:23
  through
• 32:23
  future
• 32:24
  and
• 32:24
  options
• 32:24
  contracts.
• 32:25
  You
• 32:26
  can
• 32:26
  even
• 32:27
  invest
• 32:28
  in
• 32:28
  specific
• 32:28
  sectors
• 32:29
  or
• 32:29
  segments
• 32:29
  or
• 32:29
  themes.
• 32:31
  You
• 32:32
  can
• 32:32
  get
• 32:32
  a
• 32:32
  global
• 32:32
  equity
• 32:33
  portfolio
• 32:33
  ex
• 32:34
  US
• 32:34
  if
• 32:34
  you
• 32:34
  think
• 32:34
  the
• 32:35
  US
• 32:35
  market's
• 32:35
  overvalued
• 32:36
  itself.
• 32:37
  So
• 32:37
  there's
• 32:38
  certainly
• 32:38
  a
• 32:39
  lot
• 32:39
  of
• 32:39
  choice
• 32:39
  for
• 32:39
  investors
• 32:40
  to
• 32:40
  implement
• 32:40
  their
• 32:40
  viewers.
• 32:41
  Yeah,
• 32:42
  yeah.
• 32:42
  I
• 32:43
  just
• 32:43
  find
• 32:43
  the
• 32:44
  boom
• 32:44
  in
• 32:44
  it
• 32:45
  fascinating.
• 32:46
  And
• 32:46
  I
• 32:47
  think
• 32:47
  the
• 32:47
  biggest
• 32:47
  takeaway
• 32:48
  for
• 32:48
  me
• 32:48
  is
• 32:49
  I'm
• 32:49
  just
• 32:49
  excited
• 32:50
  that
• 32:50
  the
• 32:50
  average
• 32:50
  person
• 32:52
  is
• 32:53
  more
• 32:54
  involved
• 32:54
  in
• 32:55
  the
• 32:55
  idea
• 32:55
  of
• 32:55
  growing
• 32:55
  their
• 32:55
  money,
• 32:56
  getting
• 32:56
  a
• 32:56
  piece
• 32:56
  of
• 32:57
  that
• 32:57
  pie.
• 32:59
  Because
• 33:00
  the
• 33:00
  more
• 33:01
  complicated
• 33:01
  investing
• 33:02
  seems,
• 33:03
  the
• 33:03
  more
• 33:03
  people
• 33:03
  will
• 33:03
  say
• 33:04
  I'll
• 33:04
  do
• 33:04
  it
• 33:05
  soon.
• 33:05
  But
• 33:07
  soon
• 33:08
  can
• 33:08
  take
• 33:09
  a
• 33:09
  really
• 33:09
  long
• 33:09
  time.
• 33:10
  I
• 33:10
  can
• 33:10
  tell
• 33:10
  you
• 33:11
  that
• 33:11
  myself
• 33:12
  where
• 33:12
  I,
• 33:12
  you
• 33:13
  know,
• 33:13
  way
• 33:13
  back
• 33:13
  when
• 33:14
  I
• 33:14
  was
• 33:14
  in
• 33:14
  my
• 33:14
  early
• 33:14
  20s
• 33:15
  and
• 33:15
  we
• 33:15
  don't
• 33:15
  need
• 33:15
  to
• 33:15
  talk
• 33:16
  about
• 33:16
  how
• 33:16
  long
• 33:16
  ago
• 33:16
  that
• 33:16
  was.
• 33:17
  And
• 33:17
  I
• 33:17
  knew
• 33:17
  that
• 33:18
  things
• 33:18
  like
• 33:18
  changing
• 33:18
  my
• 33:18
  kiwi
• 33:19
  saver
• 33:19
  or
• 33:19
  starting
• 33:19
  investing
• 33:20
  was
• 33:20
  important,
• 33:21
  but
• 33:21
  it
• 33:21
  was
• 33:21
  just
• 33:21
  too
• 33:22
  hard
• 33:22
  basket.
• 33:22
  And
• 33:23
  I
• 33:23
  just
• 33:23
  love
• 33:23
  that
• 33:23
  we've
• 33:23
  got
• 33:24
  these
• 33:24
  funds
• 33:24
  now
• 33:24
  that
• 33:24
  you
• 33:25
  can
• 33:25
  just
• 33:25
  go,
• 33:25
  oh,
• 33:26
  whatever.
• 33:26
  I
• 33:26
  know
• 33:27
  that
• 33:27
  I
• 33:27
  need
• 33:27
  to
• 33:27
  have
• 33:27
  a
• 33:27
  bunch
• 33:28
  of
• 33:28
  different
• 33:28
  companies
• 33:28
  and
• 33:28
  I
• 33:28
  can
• 33:29
  do
• 33:29
  that.
• 33:30
  Have
• 33:31
  we
• 33:31
  seen
• 33:31
  much
• 33:32
  sort
• 33:32
  of
• 33:32
  growth
• 33:33
  in
• 33:33
  terms
• 33:33
  of
• 33:33
  New
• 33:34
  Zealand?
• 33:34
  What
• 33:34
  is
• 33:34
  it?
• 33:34
  So
• 33:35
  you've
• 33:35
  been
• 33:35
  involved
• 33:35
  in
• 33:35
  New
• 33:36
  Zealand
• 33:36
  very
• 33:36
  directly
• 33:36
  since
• 33:37
  2015.
• 33:38
  Have
• 33:38
  you
• 33:38
  seen
• 33:38
  much
• 33:39
  change
• 33:39
  in
• 33:39
  terms
• 33:39
  of
• 33:40
  the
• 33:41
  uptake
• 33:41
  and
• 33:41
  also
• 33:42
  what
• 33:42
  we're
• 33:42
  interested
• 33:42
  in?
• 33:43
  Yeah,
• 33:43
  certainly
• 33:44
  it's
• 33:44
  been
• 33:44
  an
• 33:45
  uptick
• 33:45
  in
• 33:45
  individuals
• 33:46
  with
• 33:46
  brokerage
• 33:47
  accounts.
• 33:47
  Especially
• 33:48
  during
• 33:48
  COVID
• 33:49
  a
• 33:49
  lot
• 33:49
  of
• 33:50
  people
• 33:51
  started
• 33:51
  investing.
• 33:51
  A
• 33:52
  lot
• 33:52
  of
• 33:52
  younger
• 33:52
  people
• 33:53
  are
• 33:53
  also
• 33:53
  investing
• 33:54
  as
• 33:54
  a
• 33:54
  hobby,
• 33:56
  which
• 33:56
  is
• 33:56
  great
• 33:56
  to
• 33:56
  see.
• 33:57
  Even
• 33:57
  if
• 33:57
  they
• 33:57
  are
• 33:57
  investing
• 33:58
  in
• 33:58
  single
• 33:58
  stock
• 33:58
  securities,
• 33:59
  they
• 34:00
  might
• 34:00
  find
• 34:00
  that
• 34:00
  fun.
• 34:00
  They
• 34:01
  may
• 34:01
  find
• 34:01
  that
• 34:01
  fun,
• 34:01
  you
• 34:02
  know,
• 34:02
  looking
• 34:02
  at
• 34:03
  different
• 34:03
  companies
• 34:04
  and
• 34:04
  different
• 34:04
  sectors
• 34:05
  and
• 34:05
  industries
• 34:05
  and
• 34:06
  thinking
• 34:06
  that
• 34:06
  that
• 34:06
  could
• 34:07
  be
• 34:07
  a
• 34:07
  potential,
• 34:07
  you
• 34:08
  know,
• 34:08
  have
• 34:08
  potential
• 34:09
  growth
• 34:09
  in
• 34:09
  the
• 34:09
  future.
• 34:09
  And
• 34:10
  sometimes
• 34:10
  you
• 34:10
  can
• 34:10
  find
• 34:10
  out
• 34:11
  hard
• 34:11
  lessons
• 34:12
  when
• 34:12
  you're
• 34:12
  young
• 34:12
  with
• 34:13
  money
• 34:14
  doing
• 34:14
  that,
• 34:14
  but
• 34:15
  other
• 34:15
  times
• 34:15
  you
• 34:16
  learn
• 34:16
  from
• 34:16
  those
• 34:16
  things
• 34:16
  and
• 34:17
  you
• 34:17
  evolve
• 34:17
  and
• 34:19
  maybe
• 34:19
  you
• 34:19
  realize
• 34:19
  that
• 34:20
  the
• 34:20
  diversified
• 34:21
  passive
• 34:21
  approach
• 34:22
  is
• 34:22
  best,
• 34:22
  maybe
• 34:23
  you
• 34:23
  don't.
• 34:23
  The
• 34:24
  ETF
• 34:24
  has
• 34:25
  democratize
• 34:25
  investing
• 34:26
  in
• 34:26
  a
• 34:26
  way
• 34:26
  it's
• 34:26
  much
• 34:27
  more
• 34:27
  accessible
• 34:27
  for
• 34:28
  people
• 34:28
  to
• 34:29
  invest.
• 34:29
  We've
• 34:29
  all
• 34:30
  got
• 34:30
  phones
• 34:30
  on
• 34:30
  our
• 34:30
  hands
• 34:31
  now
• 34:31
  with
• 34:31
  apps
• 34:32
  with
• 34:32
  brokerage
• 34:33
  accounts
• 34:34
  that
• 34:34
  we
• 34:34
  can
• 34:34
  easily
• 34:35
  trade
• 34:35
  sitting
• 34:36
  on
• 34:36
  the
• 34:36
  bus
• 34:37
  or
• 34:37
  during
• 34:37
  our
• 34:37
  commute
• 34:38
  if
• 34:38
  we
• 34:38
  really
• 34:38
  want
• 34:38
  to.
• 34:39
  So
• 34:39
  the
• 34:39
  access
• 34:40
  is
• 34:40
  there.
• 34:40
  How
• 34:41
  you
• 34:41
  go
• 34:41
  about
• 34:41
  it.
• 34:41
  Are
• 34:42
  you
• 34:42
  looking
• 34:42
  at
• 34:43
  building
• 34:43
  capital
• 34:44
  to
• 34:44
  potentially
• 34:45
  use
• 34:45
  a
• 34:45
  deposit
• 34:46
  for
• 34:46
  a
• 34:46
  house?
• 34:46
  Are
• 34:47
  you
• 34:47
  looking
• 34:47
  at
• 34:48
  something
• 34:48
  risky
• 34:49
  or.
• 34:49
  I
• 34:49
  mentioned
• 34:49
  couch
• 34:50
  potato
• 34:50
  before.
• 34:50
  The
• 34:51
  other
• 34:51
  side
• 34:51
  of
• 34:51
  the
• 34:51
  coin
• 34:51
  is
• 34:51
  the
• 34:52
  white
• 34:52
  knuckle.
• 34:54
  Some
• 34:54
  younger
• 34:54
  people
• 34:54
  are
• 34:54
  getting
• 34:54
  into
• 34:55
  the
• 34:55
  cryptocurrencies
• 34:56
  or
• 34:56
  the
• 34:56
  very
• 34:57
  volatile
• 34:57
  penny
• 34:58
  stocks
• 34:59
  and
• 34:59
  they
• 34:59
  might
• 35:00
  want
• 35:00
  to
• 35:00
  go
• 35:00
  down
• 35:00
  that
• 35:00
  route.
• 35:01
  A
• 35:01
  few
• 35:01
  might
• 35:01
  become
• 35:02
  successful
• 35:02
  doing
• 35:03
  that.
• 35:03
  Majority,
• 35:04
  probably
• 35:04
  not.
• 35:06
  Some
• 35:06
  people
• 35:06
  tend
• 35:06
  to
• 35:06
  be
• 35:07
  quite
• 35:07
  loud
• 35:07
  about
• 35:08
  their
• 35:08
  wins
• 35:08
  and
• 35:09
  keep
• 35:09
  very
• 35:09
  quiet
• 35:09
  about
• 35:09
  their
• 35:09
  losses.
• 35:10
  So
• 35:10
  there's
• 35:11
  also
• 35:11
  the
• 35:11
  behavioral
• 35:12
  finance
• 35:12
  element
• 35:12
  there.
• 35:12
  But
• 35:13
  I
• 35:14
  think
• 35:14
  it's
• 35:14
  a
• 35:14
  good
• 35:14
  thing
• 35:14
  if
• 35:15
  younger
• 35:16
  investors
• 35:16
  are
• 35:16
  playing
• 35:17
  with
• 35:17
  a
• 35:17
  little
• 35:17
  bit
• 35:17
  of
• 35:17
  money,
• 35:18
  not
• 35:18
  a
• 35:18
  lot,
• 35:18
  and
• 35:19
  they're
• 35:19
  learning
• 35:19
  their
• 35:19
  lessons
• 35:20
  at
• 35:20
  that
• 35:20
  time
• 35:20
  and
• 35:21
  then
• 35:21
  when
• 35:21
  they
• 35:21
  earn
• 35:22
  more
• 35:22
  money
• 35:22
  later
• 35:22
  on
• 35:22
  in
• 35:23
  their
• 35:23
  career
• 35:23
  or
• 35:23
  their
• 35:23
  lives
• 35:23
  or
• 35:24
  they
• 35:24
  have
• 35:24
  more
• 35:24
  wealth,
• 35:24
  that
• 35:24
  they
• 35:25
  make
• 35:25
  the
• 35:25
  better
• 35:25
  decisions
• 35:25
  then,
• 35:26
  whether
• 35:26
  it's
• 35:27
  through
• 35:27
  advice
• 35:27
  or
• 35:27
  through
• 35:28
  self
• 35:28
  directed.
• 35:28
  Yeah,
• 35:29
  well,
• 35:29
  I
• 35:29
  mean,
• 35:29
  learning
• 35:30
  by
• 35:30
  doing,
• 35:30
  right,
• 35:30
  Incredibly
• 35:31
  powerful.
• 35:32
  That's
• 35:32
  one
• 35:32
  way
• 35:32
  to
• 35:32
  give
• 35:32
  yourself
• 35:33
  a
• 35:33
  bit
• 35:33
  of
• 35:33
  a
• 35:34
  finance
• 35:34
  education.
• 35:36
  It's
• 35:36
  quite
• 35:36
  interesting
• 35:37
  as
• 35:37
  well
• 35:37
  because
• 35:37
  companies
• 35:38
  actually
• 35:38
  lobby
• 35:39
  to
• 35:40
  be
• 35:40
  included
• 35:40
  in
• 35:40
  the
• 35:41
  indices,
• 35:41
  right?
• 35:41
  I
• 35:42
  mean,
• 35:42
  what
• 35:42
  do
• 35:42
  you
• 35:42
  think
• 35:42
  that
• 35:43
  tells
• 35:43
  us
• 35:43
  about
• 35:43
  the
• 35:44
  power
• 35:44
  of
• 35:44
  the
• 35:45
  index?
• 35:45
  They
• 35:45
  can
• 35:45
  lobby
• 35:46
  all
• 35:46
  they
• 35:46
  like,
• 35:46
  but
• 35:47
  we
• 35:48
  have
• 35:48
  clear
• 35:48
  rules
• 35:49
  and
• 35:49
  methodologies
• 35:49
  that
• 35:50
  are
• 35:50
  transparent
• 35:50
  and
• 35:50
  online
• 35:51
  about
• 35:51
  how
• 35:52
  an
• 35:52
  index
• 35:52
  is
• 35:52
  calculated,
• 35:53
  what
• 35:53
  the
• 35:53
  eligibility
• 35:54
  criteria
• 35:55
  is
• 35:55
  of
• 35:55
  that
• 35:55
  index,
• 35:56
  what
• 35:56
  the
• 35:56
  objective
• 35:57
  of
• 35:57
  that
• 35:57
  index
• 35:57
  is.
• 35:58
  I
• 35:58
  mean
• 35:59
  on
• 35:59
  the
• 35:59
  s
• 35:59
  and
• 35:59
  P500,
• 36:00
  if
• 36:00
  a
• 36:00
  company
• 36:00
  tries
• 36:01
  to
• 36:01
  lobby
• 36:01
  us
• 36:01
  to
• 36:01
  get
• 36:02
  into
• 36:02
  that
• 36:02
  index,
• 36:03
  we'll
• 36:03
  just
• 36:04
  say
• 36:04
  thank
• 36:04
  you
• 36:04
  for
• 36:04
  your
• 36:04
  email.
• 36:06
  Brutal.
• 36:08
  We
• 36:08
  don't
• 36:08
  even
• 36:09
  entertain
• 36:09
  them.
• 36:09
  I
• 36:10
  mean,
• 36:10
  we're
• 36:10
  an
• 36:10
  independent
• 36:10
  index
• 36:11
  provider
• 36:12
  in
• 36:12
  Australia
• 36:12
  and
• 36:12
  New
• 36:12
  Zealand.
• 36:13
  We
• 36:13
  do
• 36:14
  have
• 36:14
  S
• 36:14
  and
• 36:14
  P
• 36:14
  Dowager's
• 36:15
  indices,
• 36:15
  partners
• 36:16
  with
• 36:16
  the
• 36:16
  exchanges
• 36:17
  here,
• 36:17
  the
• 36:18
  NZX
• 36:18
  and
• 36:18
  the
• 36:18
  asx.
• 36:19
  So
• 36:19
  we
• 36:19
  have
• 36:20
  a
• 36:20
  little
• 36:20
  bit
• 36:20
  of
• 36:20
  skin
• 36:20
  in
• 36:20
  the
• 36:20
  game
• 36:20
  in
• 36:20
  the
• 36:21
  capital
• 36:21
  market
• 36:21
  here
• 36:21
  and
• 36:21
  we
• 36:22
  do
• 36:22
  want
• 36:22
  a
• 36:22
  robust
• 36:23
  tradable
• 36:23
  liquid
• 36:24
  capital
• 36:24
  market.
• 36:25
  And
• 36:26
  companies
• 36:26
  can
• 36:26
  ask
• 36:27
  us
• 36:27
  how
• 36:27
  do
• 36:27
  we
• 36:27
  get
• 36:28
  in
• 36:28
  the
• 36:28
  index
• 36:29
  and
• 36:29
  I'll
• 36:30
  take
• 36:30
  the
• 36:30
  call
• 36:30
  and
• 36:30
  talk
• 36:30
  to
• 36:31
  them
• 36:31
  about
• 36:31
  it.
• 36:31
  But
• 36:31
  they
• 36:32
  can't
• 36:32
  lobby
• 36:32
  their
• 36:32
  way
• 36:33
  in.
• 36:33
  I
• 36:34
  mean,
• 36:34
  even
• 36:34
  just
• 36:34
  earlier
• 36:34
  today
• 36:35
  I
• 36:35
  was
• 36:35
  presenting
• 36:35
  to
• 36:36
  listed
• 36:37
  companies
• 36:37
  on
• 36:38
  the
• 36:38
  NZX
• 36:38
  or
• 36:38
  companies
• 36:38
  who
• 36:39
  are
• 36:39
  about
• 36:39
  to
• 36:39
  list
• 36:39
  on
• 36:40
  the
• 36:40
  NZX
• 36:41
  about
• 36:41
  the
• 36:41
  index,
• 36:41
  about
• 36:42
  the
• 36:42
  methodology,
• 36:43
  about
• 36:43
  the
• 36:43
  ranking
• 36:44
  system.
• 36:44
  There
• 36:44
  are
• 36:45
  buffers
• 36:45
  too.
• 36:46
  It's
• 36:46
  not
• 36:46
  Simply
• 36:47
  the
• 36:47
  top
• 36:47
  50
• 36:48
  that
• 36:48
  are
• 36:48
  in.
• 36:48
  You
• 36:48
  need
• 36:48
  to
• 36:49
  be
• 36:49
  ranked
• 36:50
  top
• 36:50
  44th
• 36:51
  or
• 36:51
  above
• 36:51
  to
• 36:51
  be
• 36:51
  added
• 36:52
  to
• 36:52
  the
• 36:52
  index.
• 36:52
  So
• 36:53
  we
• 36:53
  limit
• 36:53
  that
• 36:53
  kind
• 36:54
  of
• 36:54
  turnover
• 36:54
  and
• 36:54
  churn.
• 36:55
  And
• 36:55
  if
• 36:56
  a
• 36:56
  company
• 36:56
  drops
• 36:57
  out,
• 36:57
  it
• 36:57
  has
• 36:57
  to
• 36:57
  drop
• 36:57
  below
• 36:57
  the
• 36:58
  56th
• 36:58
  ranking
• 36:58
  for
• 36:58
  the
• 36:59
  S&P
• 36:59
  NZX50
• 37:00
  as
• 37:00
  well.
• 37:00
  So
• 37:00
  by
• 37:01
  accessing
• 37:01
  the
• 37:01
  50,
• 37:02
  the
• 37:02
  S&P
• 37:03
  NZ50,
• 37:03
  you
• 37:04
  are
• 37:04
  accessing
• 37:04
  more
• 37:05
  invested
• 37:06
  capital.
• 37:07
  You
• 37:07
  are
• 37:07
  on
• 37:07
  the
• 37:07
  radar
• 37:07
  of
• 37:07
  kiwisavers
• 37:08
  and
• 37:08
  fund
• 37:09
  managers.
• 37:09
  Even
• 37:10
  active
• 37:10
  fund
• 37:10
  managers
• 37:11
  have
• 37:11
  to
• 37:11
  make
• 37:11
  a
• 37:11
  decision
• 37:12
  about
• 37:12
  you,
• 37:12
  should
• 37:13
  we
• 37:13
  buy
• 37:13
  this
• 37:13
  company
• 37:13
  or
• 37:14
  not?
• 37:14
  Even
• 37:14
  if
• 37:14
  they
• 37:15
  don't
• 37:15
  buy
• 37:15
  that
• 37:15
  company,
• 37:15
  they're
• 37:16
  taking
• 37:16
  an
• 37:16
  active
• 37:16
  position
• 37:17
  by
• 37:17
  not
• 37:17
  holding
• 37:18
  you
• 37:18
  in
• 37:18
  terms
• 37:18
  of
• 37:19
  their
• 37:20
  portfolio
• 37:20
  risk
• 37:21
  metrics
• 37:21
  and
• 37:22
  tracking
• 37:22
  error
• 37:22
  versus
• 37:23
  the
• 37:23
  index,
• 37:23
  et
• 37:23
  cetera.
• 37:26
  But
• 37:26
  that
• 37:26
  doesn't
• 37:27
  guarantee
• 37:27
  you,
• 37:27
  when
• 37:28
  you're
• 37:28
  a
• 37:28
  company
• 37:28
  you
• 37:28
  added
• 37:29
  to
• 37:29
  the
• 37:29
  s
• 37:29
  and
• 37:29
  P
• 37:29
  NZ50
• 37:30
  that
• 37:30
  you're
• 37:30
  always
• 37:30
  going
• 37:31
  to
• 37:31
  stay
• 37:31
  there.
• 37:31
  You
• 37:31
  need
• 37:31
  to
• 37:31
  run
• 37:32
  a
• 37:32
  good
• 37:32
  business,
• 37:33
  grow
• 37:33
  your
• 37:33
  earnings,
• 37:34
  pay
• 37:34
  out
• 37:34
  the
• 37:34
  dividends.
• 37:35
  If
• 37:35
  you
• 37:35
  don't
• 37:36
  meet
• 37:36
  your
• 37:36
  earnings
• 37:36
  targets
• 37:37
  or
• 37:39
  your
• 37:40
  sector
• 37:40
  has
• 37:41
  a
• 37:41
  bit
• 37:41
  of
• 37:41
  a
• 37:41
  downturn
• 37:42
  or
• 37:43
  whatever
• 37:43
  the
• 37:43
  business
• 37:44
  model
• 37:44
  is,
• 37:44
  you'll
• 37:45
  drop
• 37:45
  out
• 37:45
  and
• 37:45
  another
• 37:45
  company
• 37:46
  will
• 37:46
  replace
• 37:47
  you
• 37:47
  in
• 37:47
  that
• 37:48
  index.
• 37:49
  Fascinating
• 37:50
  stuff.
• 37:50
  We've
• 37:51
  covered
• 37:51
  so
• 37:51
  much
• 37:51
  ground
• 37:52
  in
• 37:52
  this
• 37:52
  interview.
• 37:54
  I'm
• 37:54
  loving
• 37:54
  picking
• 37:55
  your
• 37:55
  brains.
• 37:55
  If
• 37:56
  people
• 37:56
  were
• 37:56
  listening
• 37:56
  to
• 37:57
  this
• 37:57
  and
• 37:57
  they
• 37:57
  only
• 37:57
  took
• 37:58
  one
• 37:59
  thing
• 37:59
  from
• 38:00
  it,
• 38:00
  what
• 38:00
  do
• 38:00
  you
• 38:00
  hope
• 38:01
  is
• 38:01
  the
• 38:01
  thing
• 38:01
  that
• 38:01
  sticks
• 38:02
  with
• 38:02
  people
• 38:02
  from
• 38:02
  today?
• 38:03
  You
• 38:03
  know,
• 38:04
  if
• 38:04
  you
• 38:04
  are
• 38:04
  investing
• 38:04
  passively,
• 38:06
  be
• 38:06
  aware
• 38:07
  of
• 38:07
  what,
• 38:07
  what,
• 38:08
  what
• 38:08
  that
• 38:08
  means.
• 38:09
  So
• 38:09
  you're
• 38:09
  investing
• 38:09
  passively
• 38:10
  to
• 38:10
  a
• 38:10
  stock
• 38:10
  market
• 38:11
  index.
• 38:11
  What
• 38:12
  is
• 38:12
  that
• 38:12
  index?
• 38:12
  Go
• 38:13
  online,
• 38:13
  look
• 38:14
  it
• 38:14
  up,
• 38:14
  you
• 38:15
  can
• 38:15
  see
• 38:15
  the
• 38:15
  methodology,
• 38:16
  the
• 38:16
  objective
• 38:18
  and
• 38:18
  just
• 38:18
  confirm
• 38:18
  that's
• 38:19
  the,
• 38:19
  that's
• 38:19
  the
• 38:19
  exposure
• 38:20
  that
• 38:20
  you
• 38:20
  want
• 38:20
  to
• 38:20
  have
• 38:20
  with
• 38:20
  your
• 38:20
  investing.
• 38:21
  I'd
• 38:22
  also
• 38:22
  suggest
• 38:22
  that,
• 38:23
  yeah,
• 38:23
  when
• 38:23
  you
• 38:23
  are
• 38:24
  considering
• 38:24
  different
• 38:24
  strategies,
• 38:25
  whether
• 38:25
  it's
• 38:25
  active
• 38:25
  or
• 38:26
  passive,
• 38:26
  it
• 38:26
  has
• 38:26
  been
• 38:26
  proven
• 38:27
  that
• 38:27
  the
• 38:28
  passive
• 38:28
  investment
• 38:29
  strategies
• 38:29
  do
• 38:30
  outperform
• 38:30
  over
• 38:30
  the
• 38:30
  longer
• 38:31
  term.
• 38:31
  So
• 38:31
  that's
• 38:31
  probably
• 38:32
  another
• 38:32
  key
• 38:32
  takeaway
• 38:33
  I'd
• 38:33
  leave
• 38:33
  your
• 38:34
  listeners
• 38:34
  and
• 38:35
  viewers
• 38:35
  with.
• 38:35
  You
• 38:36
  got
• 38:36
  the
• 38:36
  stats
• 38:36
  on
• 38:36
  it?
• 38:36
  Yep.
• 38:37
  We
• 38:38
  love
• 38:38
  all
• 38:38
  the
• 38:38
  stats
• 38:38
  and
• 38:38
  reports
• 38:39
  that
• 38:39
  you
• 38:39
  guys
• 38:39
  put
• 38:39
  out.
• 38:40
  Actually,
• 38:40
  before
• 38:40
  I
• 38:41
  let
• 38:41
  you
• 38:41
  go,
• 38:41
  if
• 38:41
  people
• 38:41
  do
• 38:42
  want
• 38:42
  to
• 38:42
  look
• 38:42
  at
• 38:42
  all
• 38:42
  the
• 38:42
  wonderful
• 38:43
  research
• 38:43
  that
• 38:44
  your
• 38:44
  company
• 38:45
  produces,
• 38:46
  hit
• 38:46
  us
• 38:46
  with
• 38:46
  the
• 38:47
  website
• 38:47
  so
• 38:47
  people
• 38:47
  can
• 38:47
  go
• 38:48
  and
• 38:48
  have
• 38:48
  a
• 38:48
  look
• 38:48
  at
• 38:48
  that
• 38:48
  if
• 38:48
  they
• 38:49
  want.
• 38:49
  Yeah,
• 38:49
  if
• 38:49
  you
• 38:50
  just
• 38:50
  Google
• 38:50
  S
• 38:50
  and
• 38:50
  P
• 38:50
  Dow
• 38:51
  Jones
• 38:51
  Indices,
• 38:51
  we
• 38:51
  have
• 38:52
  a
• 38:52
  website
• 38:52
  and
• 38:52
  then
• 38:52
  you
• 38:52
  can
• 38:53
  find
• 38:53
  your
• 38:53
  way
• 38:53
  to
• 38:54
  whatever
• 38:54
  index
• 38:55
  you
• 38:55
  like.
• 38:56
  Spiva
• 38:57
  New
• 38:57
  Zealand
• 38:58
  Spiva
• 38:59
  New
• 38:59
  Zealand.
• 38:59
  If
• 38:59
  you
• 38:59
  look
• 39:00
  up
• 39:00
  that,
• 39:00
  you'll
• 39:00
  find
• 39:00
  the
• 39:01
  report
• 39:01
  that
• 39:02
  we
• 39:02
  launched
• 39:02
  last
• 39:02
  week.
• 39:02
  We
• 39:02
  updated
• 39:03
  every
• 39:03
  six
• 39:03
  months
• 39:04
  to
• 39:04
  June
• 39:04
  30
• 39:05
  and
• 39:05
  December
• 39:05
  31
• 39:06
  and
• 39:06
  we
• 39:06
  measure
• 39:06
  the
• 39:07
  performance
• 39:07
  of
• 39:08
  active
• 39:08
  managers
• 39:09
  versus
• 39:10
  key
• 39:10
  benchmarks
• 39:11
  in
• 39:11
  New
• 39:11
  Zealand
• 39:11
  including
• 39:12
  the
• 39:12
  s
• 39:12
  and
• 39:12
  P
• 39:12
  NZX50.
• 39:13
  Love
• 39:14
  it.
• 39:14
  Thank
• 39:14
  you
• 39:14
  so
• 39:15
  much
• 39:15
  for
• 39:15
  your
• 39:15
  time.
• 39:15
  Sean
• 39:16
  Freer
• 39:16
  S
• 39:16
  and
• 39:17
  P
• 39:17
  Dow
• 39:17
  Jones
• 39:17
  Indices
• 39:18
  I
• 39:18
  love
• 39:19
  the
• 39:19
  work
• 39:19
  that
• 39:19
  you
• 39:19
  guys
• 39:19
  put
• 39:20
  out.
• 39:20
  Now
• 39:20
  if
• 39:20
  this
• 39:21
  episode
• 39:21
  was
• 39:21
  helpful
• 39:22
  to
• 39:22
  you,
• 39:22
  then
• 39:23
  send
• 39:23
  it
• 39:23
  to
• 39:23
  a
• 39:23
  friend.
• 39:24
  We
• 39:24
  can
• 39:24
  all
• 39:24
  level
• 39:24
  up
• 39:24
  our
• 39:24
  money
• 39:25
  together.
• 39:25
  Until
• 39:25
  next
• 39:26
  time,
• 39:26
  have
• 39:26
  a
• 39:26
  great
• 39:26
  day.
• 39:28
  This
• 39:29
  podcast
• 39:29
  can
• 39:29
  only
• 39:30
  give
• 39:30
  you
• 39:30
  general
• 39:30
  information
• 39:31
  about
• 39:31
  how
• 39:31
  things
• 39:32
  work
• 39:32
  in
• 39:33
  most
• 39:33
  situations.
• 39:34
  It's
• 39:34
  not
• 39:34
  individual
• 39:35
  financial
• 39:35
  advice.
• 39:36
  If
• 39:36
  you're
• 39:37
  after
• 39:37
  that,
• 39:37
  a
• 39:37
  financial
• 39:38
  advisor
• 39:38
  is
• 39:39
  always
• 39:39
  the
• 39:39
  best
• 39:40
  bet.