ETFs

Kathy Wood wrote on Twitter, passive funds prevent many investors from enjoying the 400 fold appreciation in Tesla. She called it a misallocation of capital. "I think she's been very clear where she does," says John MacIntosh. But if you're a high growth manager and you're literally trying to live seven, eight years in the future, I can see why you would think that", he adds.

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Episode notes

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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