I think people just forget that active is driving the car. So if active likes energy stocks, energy is going to go up and that's going to make the market cap of energy stocks go up relative to tech. And so tech will start to decrease the weight and the S&P and energy will go up. The other thing that we are always watching is ESG. We're sort of bearish ESG ETFs that look to take over your core. It's just tough to dislodge a three basis point index fund. On the flip, we are bullish on ESG that is volatile. Like tan is just solar stocks. We think maybe ESG has a future as a compliment
IN THIS EPISODE, YOU’LL LEARN:
08:42 - How index funds affect the underlying companies’ stock prices.
21:31 - What single-stock ETFs are, what investors should know about these products.
24:11 - Are inverse ETFs a good way to bet against the market?
24:11 - The risks of using leveraged ETFs and why they may not perform as you expect.
29:17 - Why passive indexing is sometimes viewed as “weak hands” or “dumb money”.
36:34 - Are we in a passive indexing bubble?
48:53 - Eric’s thoughts on Cathie Wood’s criticisms of ETFs calling them a “misallocation of capital”.
50:54 - Is now the worst time to be a passive index investor?
And much, much more!
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
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