Active or Smart Beta?

The core of the portfolio is now cheap index funds for most people, we'll call that beta. People mess around with like 15%. And what they want there is volatile. That's why Kathy Wood fits so perfect into today's market,. Even though she's down so much, not really seeing a run of the funds. They're going to lose that battle in the hot lane and you can compete in the big tent.

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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.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Check out Eric’s book, The Bogle Effect.
Check out Bloomberg’s podcast, Trillions.
Bloomberg’s show, Bloomberg ETF IQ.
Related Episode: The Bogle Effect w/ Eric Balchunas - MI167.

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