Trillions

For years, active mutual funds sat and watched the boom in ETFs from the sidelines, unwilling to participate as it would mean showing their holdings every day. But now they can jump in thanks to a new type of structure that allow them to trade like an ETF but not have to show their holdings every day. These active non-transparent (ANT) ETFs are especially appealing to fund companies with trillions in assets.On this episode of Trillions, Eric and Joel speak with Greg Friedman, Head of ETF Management and Strategy at Fidelity, and Scott Livingston, Global Head of ETFs at T. Rowe Price. Bloomberg Intelligence analyst Morgan Barna joins to discuss how the ETFs work, how the companies plan to find investors, and what to make of mutual funds conversions. See omnystudio.com/listener for privacy information.

Thematic ETFs need to do two things to attract cash: crush the market and capture the imagination. There's no better example of this than the ETFs coming out of ROBO Global, the indie issuer responsible for the blockbuster hit ROBO and the newer upstart HTEC. The latter tracks the companies shaping the future of health care, and is currently doubling the returns of the S&P Health Care Index.On this episode of Trillions, Eric and Joel speak with Nina Deka, an ETF specialist for the company who spent 13-plus years in the health care sector. The group discusses all the ways technology is changing health care, the intricate designs of HTEC and ROBO's indices, and how investors should think about using them in a portfolio.See omnystudio.com/listener for privacy information.

Death has become a growing part of life in the ETF industry. The number closures in 2020 has already blown away the old record with the total number of gravestones already numbering more than 1,100 -- and that's with two months to go yet. One surprise: Few closures are directly related to the pandemic. So what's behind this year's shuttering? And what does it mean for investors? On this episode of Trillions, Eric and Joel seek to answer these questions and more -- including how to take kids trick-or-treating -- with the help of Claire Ballentine, a cross-asset reporter for Bloomberg News, and Todd Rosenbluth, senior director of ETF and mutual fund research for CFRA. See omnystudio.com/listener for privacy information.

One of the most interesting developments in finance this year has been the sudden popularity of the SPAC, or special-purpose acquisition company. A novel way to raise money and take companies public, SPACs are flourishing with more than 60 formed since the beginning of their big breakout year. And while they've certainly made headlines, they've actually existed for years. On this episode of Trillions, Eric and Joel discuss the phenomenon and what it all means with Julian Klymochko of Accelerate Financial Technologies, a SPAC pioneer whose Canadian-listed $ARB ETF offers some exposure to what he considers a new asset class, as well as Josef Schuster of IPOX Schuster, whose index is used for the $FPX ETF that tracks recent IPOs -- and now one SPAC. See omnystudio.com/listener for privacy information.

Few organizations in finance are as mysterious as the committee that oversees the S&P 500 — a group that recently decided to exclude Tesla despite the company seeming to check all the required boxes. On this episode of Trillions, Eric and Joel — along with Katherine Greifeld of Bloomberg News — speak with David Blitzer, who headed the S&P index committee from 1995 until his retirement in 2019. They discuss the Tesla tantrum, why the identities of committee members aren’t public, how the group makes decisions, criticisms of passive indexing, and even the hypothetical path Eric would need to take to get a seat at the table.See omnystudio.com/listener for privacy information.

In the ETF Terrordome, nothing comes easy for issuers -- even if your name is Goldman Sachs. The asset management arm of the storied Wall Street firm launched its first ETF five years ago. Investors have put about $20 billion into the funds to date, a decent start for a relative newcomer. Half those assets are in $GSLC, which was a true game-changer in the smart-beta category and may represent the future of active investing. On this episode of Trillions, Eric and Joel -- along with Katherine Greifeld of Bloomberg News -- interview Cole Feinberg, an ETF specialist with Goldman, about how the firm views the industry, where the team sees white space, what's behind GSLC's success, and how a project like $JUST comes together with Paul Tudor Jones. See omnystudio.com/listener for privacy information.

Selling an ETF has become less about about sales and more about adviser education, which has sparked many firms to create roles for ETF specialists. These are people who know everything about the products as well as the market forces driving their returns. On this episode of Trillions, Eric and Joel speak with Paul Baiocchi, an ETF specialist with Alps, a mid-sized issuer with about a dozen ETFs. They discuss how he talks to advisers about the firm's products such as their hit MLP ETF, their rising-star clean energy fund, as well as their series of `dog' ETFs. They also discuss Paul's days at Index Universe (now ETF.com) as an analyst back when ETFs had yet to go mainstream. See omnystudio.com/listener for privacy information.

Most passive investors take for granted that their fund “tracks an index.” Well, that’s actually something of a feat because there’s so much more going on than meets the eye. And it’s all to effectively end up tied with the index. This job isn't automated, either. Rather, a team of people must work together, playing defense against hedge funds and corporate actions and also offense through securities lending and trading desk acumen. On this episode of Trillions, Eric and Joel — along with Annie Massa, a reporter with Bloomberg News — interview Vanguard’s Gerry O'Reilly. A portfolio manager overseeing many of Vanguard's biggest funds, including the $940 billion Vanguard Total Stock Market Fund, O’Reilly helped rebate more than $200 million to investors through this unsung art of passive portfolio management. See omnystudio.com/listener for privacy information.

BlackRock is the undisputed king of the ETF hill; it’s also the world's biggest asset manager, with more than $7 trillion assets under management. And because 2020 has been one of the stranger years ever, there’s no time like the present to engage with such a financial powerhouse — especially BlackRock, which has had a front row seat through all of the chaos.On this episode of Trillions, Eric and Joel — along with Bloomberg News reporter Annie Massa — interview Armando Senra, head of iShares Americas at BlackRock. They discuss the March sell off, working with the Federal Reserve, the Robinhood phenomenon, competing against Vanguard, the realities of ESG, active non-transparent ETFs, concerns over ownership concentration, indie issuers, and why so many BlackRock employees are musically inclined (Armando aside).See omnystudio.com/listener for privacy information.

The gaming industry is a juggernaut, and the pandemic has been especially good for business. The thematic gaming ETFs, tickers $ESPO, $HERO, $GAMR and $NERD, are all up more than 35% so far this year. Living rooms, phones, Teslas, E-sports stadiums — gaming is everywhere now. And the most popular titles are more than just games anymore; they’re platforms. Matthew Kanterman, a research analyst with Bloomberg Intelligence, and Will Hershey, the co-founder and CEO of Roundhill Investments, whose ETF NERD launched in June 2019, join Eric and Joel to discuss the economics of gaming, the evolving business models, the biggest international players, the latest chapter of the console wars, the push into cloud gaming, and more — including just how many hours one must devote to this demanding craft.See omnystudio.com/listener for privacy information.

The killers of Berta Caceres had every reason to believe they’d get away with murder. More than 100 other environmental activists in Honduras had been killed in the previous five years, yet almost no one had been punished for the crimes. Bloomberg’s Blood River follows a four-year quest to find her killers – a twisting trail that leads into the country’s circles of power.Blood River premieres on July 27.See omnystudio.com/listener for privacy information.

This year, millions of new young people -- many of whom are bored at home during the pandemic -- have started trading stocks, ETFs and options for the first time. They've become such a force that these retail investors are even credited with moving markets. Some critics see this as an accident waiting to happen; others see it as a great opportunity and learning experience for young people. Either way, we keep hearing about these young traders, but we rarely here from them. On this episode of Trillions, Eric and Joel speak with two young day traders about their nascent investing experiences.See omnystudio.com/listener for privacy information.

Adam Neumann had a vision: to make his startup WeWork a wildly successful company that would change the world. He convinced thousands of other people -- customers, employees, investors -- that he could make that dream a reality. And for a while, he did. He was one of the most successful startup founders in the world. But then, in the span of just a few months, everything changed.Foundering is a new serialized podcast from the journalists at Bloomberg Technology. This season, we’ll tell you the story of WeWork, a company that captured the startup boom of the 2010s and also may be remembered as a spectacular bust that marked the end of an era.Catch the first two episodes of Foundering, now available on Apple Podcasts, Spotify, or wherever you listen.See omnystudio.com/listener for privacy information.

The first six months of 2020 has felt more like five years, at least in ETF terms. So much has happened: the lockdown, the selloff, the rebound, the Fed, not to mention oil, airlines, ANTs, ESG, and day-trading on Robinhood. On this episode of Trillions, Eric and Joel invite the Bloomberg Intelligence team of analysts, including Athanasisos Psarofagis, James Seyffart and Morgan Barna, to discuss and debate all the big ETF topics from the first half, as well as themes to watch in the second half. See omnystudio.com/listener for privacy information.

One of the biggest rising trends in the ETF world is the rise of model portfolios, which are almost like pre-packaged meals. On this episode of Trillions, Eric and Joel -- along with Morgan Barna, an ETF research associate with Bloomberg Intelligence -- speak with Tim Clift, chief investment strategist at Envestnet, one of these proverbial "supermarkets" where advisers go shopping on behalf of their clients. They discuss how ETFs get on the platform as well as who makes and uses the models.See omnystudio.com/listener for privacy information.

Exchange-traded funds have upended investing, so how does the Securities and Exchange Commission feel about them? Eric and Joel, along with Nathan Dean of Bloomberg Intelligence, interview SEC Commissioner Hester Peirce about the recent environment, passive investing, ownership trends, the ETF Rule, exotic products, ESG, Bitcoin, and more. They also discuss what she hopes to accomplish before her term ends and the contribution ETFs have made to investing.See omnystudio.com/listener for privacy information.

The US Global Jets ETF (JETS) has seen over half a billion dollars worth of inflows over 50 straight days - unheard numbers for a thematic ETF - despite the fund's 60% year-to-date decline and selling from Warren Buffett. But the depressed airline industry is attracting retail value investors in droves who see huge upside potential as well as looking for a proxy for the re-opening and rebound of the global economy. On this episode of Trillions we interview the founder of JETS, Frank Holmes, about his surprising success after five years of almost no interest in the fund. He also gives his outlook on the airline industry as well as the more-than-meets-the-eye design of the index it tracks. See omnystudio.com/listener for privacy information.

The lockdown has roiled oil markets and with it the world's largest oil ETF, USO, which has changed its exposure almost daily, gone through a reverse split and halted creations after seeing a huge influx of investors looking to call a bottom in oil. On this episode of Trillions, Joel and Eric are joined by Peter Tchir, Head of Macro Strategy for Academy Securities, to break down the USO story and discuss whether an ETF like this should exist and what alternative exist for investors hellbent on trying to time an oil rebound. Peter also gives his take on bond ETFs and brings his sector ETF picks.See omnystudio.com/listener for privacy information.

When you are an ETF issuer, you typically have some products doing well — and other ones doing less well. No better example of that than VanEck Vectors, an eclectic brand of ETFs that reflect the many phases of this year's wild ride. On this episode Trillions, Joel and Eric chat with the firm's CEO, Jan Van Eck, about the Fed's ETF plans, fallen-angel bonds, high-yield munis, video games, and the juxtaposition of offering both green and coal ETFs.See omnystudio.com/listener for privacy information.

March started in one place (high) and ended in another (low). Amid the carnage, traders and investors leaned on ETFs, which saw record volumes. On this episode of Trillions, Eric and Joel speak with Bloomberg Intelligence ETF analyst Athanasios Psarofagis about who the winners and losers in the selloff were, who benefits most from the Fed's rescue plan and how the stage is set for smart-beta to have its next "immaculate rebalance." See omnystudio.com/listener for privacy information.