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Trillions

The Lazarus List

Oct 25, 2023
This podcast explores the resurrection of failed ETFs and the determination behind making them work. They discuss a list of resurrected ETFs, including target date and luxury goods sector ETFs. They evaluate the investment potential of luxury brands, focusing on Louis Vuitton. They explore the success of the JETS ETF during COVID-19 and the missed gains due to the delayed launch of a boat ETF. A cautionary note is given about investing in VIX-related products.
20:22

Podcast summary created with Snipd AI

Quick takeaways

  • Failed ETFs are being resurrected and reintroduced, taking advantage of the current ETF market climate and increased comfort with ETFs.
  • The success or failure of an ETF can be influenced by market timing and maturity, and there are missed opportunities for niche sectors or themes that have the potential to attract investors.

Deep dives

Resurrecting Failed ETFs: The Lazarus List

Some ETFs that were previously deemed failures are being resurrected and reintroduced to the market. One example is the iShares Target Date ETFs, which failed in 2014 but have been brought back with potential success. These ETFs aim to provide a complete portfolio solution by allocating assets across various equity and fixed income holdings, adjusting the allocation as investors approach retirement. While they struggled to gain popularity in the past, the current ETF market climate and increased comfort with ETFs may work in their favor this time. Another example is the Luxury Goods ETF, which has recently resurfaced. This niche sector ETF capitalizes on the strong performance of luxury brands, which have shown resilience even during economic downturns. Though it may have limited appeal, the strong performance of luxury goods may draw investors to consider this overlooked ETF. Additionally, the podcast highlights the Jet ETF, which successfully made a comeback during the COVID-19 pandemic. After previous attempts failed, this airline-focused ETF experienced rapid growth as the travel industry rebounded. Lastly, the discussion touches on the inverse VIX ETF, which collapsed in 2018 but has been reintroduced with slight modifications. This ETF took advantage of volatility in the market, offering a way for investors to profit from short-term futures. Despite its previous demise, the resurgence of interest in volatility-related strategies may present a renewed opportunity for this ETF.

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