1 00:00:00,000 --> 00:00:02,880 Hey everyone, welcome back for another deep dive. 2 00:00:02,880 --> 00:00:05,400 Today we're tackling ETFs. 3 00:00:05,400 --> 00:00:08,920 Specifically, how technology has taken them from, 4 00:00:08,920 --> 00:00:13,600 well, pretty basic to seriously game changing. 5 00:00:13,600 --> 00:00:14,520 Think of it like this. 6 00:00:14,520 --> 00:00:16,980 Ooh, an analogy, I like where this is going. 7 00:00:16,980 --> 00:00:19,680 You know how everyone has that first car story? 8 00:00:19,680 --> 00:00:21,800 The one that got you from point A to point B, 9 00:00:21,800 --> 00:00:23,840 but it wasn't exactly turning heads. 10 00:00:23,840 --> 00:00:25,520 Yeah, I definitely had one of those. 11 00:00:25,520 --> 00:00:27,200 Early ETFs were kind of like that. 12 00:00:27,200 --> 00:00:28,880 They worked, got the job done, 13 00:00:28,880 --> 00:00:30,720 but weren't super exciting. 14 00:00:30,720 --> 00:00:32,440 But then technology happened. 15 00:00:32,440 --> 00:00:35,640 And now we're talking high performance, sleek, powerful, 16 00:00:35,640 --> 00:00:37,920 like trading that clunker for a sports car. 17 00:00:37,920 --> 00:00:39,080 Exactly. 18 00:00:39,080 --> 00:00:42,420 So a reliable ETF got a serious upgrade. 19 00:00:42,420 --> 00:00:44,640 But how did we go from basic to supercharged? 20 00:00:44,640 --> 00:00:47,600 Was it just everything getting faster, trades, data, 21 00:00:47,600 --> 00:00:48,520 the whole shebang? 22 00:00:48,520 --> 00:00:50,000 Speed definitely played a huge role. 23 00:00:50,000 --> 00:00:52,160 I mean, the financial world was a completely different beast 24 00:00:52,160 --> 00:00:54,480 back in the 90s when ETFs first hit the scene. 25 00:00:54,480 --> 00:00:56,680 Right, back when things moved at a glacial pace. 26 00:00:56,680 --> 00:00:58,160 Exactly, things were much slower. 27 00:00:58,160 --> 00:01:00,400 But today, with a constant flow of data 28 00:01:00,400 --> 00:01:03,480 and the way we trade now, it's a whole new ball game. 29 00:01:03,480 --> 00:01:05,600 Okay, so speed is key, 30 00:01:05,600 --> 00:01:07,440 but what about high frequency trading? 31 00:01:07,440 --> 00:01:09,800 That's gonna be part of this shift, right? 32 00:01:09,800 --> 00:01:10,640 Absolutely. 33 00:01:10,640 --> 00:01:13,680 High frequency trading, or HFT for short, 34 00:01:13,680 --> 00:01:15,840 is a perfect example of this change. 35 00:01:15,840 --> 00:01:19,720 It's gone from sending a letter to firing off a text, 36 00:01:19,720 --> 00:01:20,560 instantaneous. 37 00:01:20,560 --> 00:01:24,400 And with HFT, its algorithm is making lightning fast trades. 38 00:01:24,400 --> 00:01:26,620 Okay, so HFT brought the speed, 39 00:01:26,620 --> 00:01:28,880 but what about artificial intelligence? 40 00:01:28,880 --> 00:01:31,520 Everyone's buzzing about AI taking over everything. 41 00:01:31,520 --> 00:01:33,920 How is it impacting ETFs? 42 00:01:33,920 --> 00:01:37,780 Well, think of AI as a super smart robo-advisor for your ETFs. 43 00:01:37,780 --> 00:01:41,400 So it's more than just some program randomly picking stocks. 44 00:01:41,400 --> 00:01:43,120 It's way more sophisticated than that. 45 00:01:43,120 --> 00:01:44,680 We're talking about AI analyzing 46 00:01:44,680 --> 00:01:46,800 massive amounts of data in real time. 47 00:01:46,800 --> 00:01:48,000 Okay, but what kind of data? 48 00:01:48,000 --> 00:01:50,000 And how does it actually help with ETFs? 49 00:01:50,000 --> 00:01:51,480 It's looking for market patterns 50 00:01:51,480 --> 00:01:53,840 that humans could never spot quickly enough. 51 00:01:53,840 --> 00:01:55,280 You know, things like company earnings, 52 00:01:55,280 --> 00:01:58,200 breaking news, even social media sentiment. 53 00:01:58,200 --> 00:02:00,600 Wow, social media, I never would have thought of that. 54 00:02:00,600 --> 00:02:03,160 It can even take things like weather patterns into account, 55 00:02:03,160 --> 00:02:05,600 especially those that could affect specific industries. 56 00:02:05,600 --> 00:02:07,280 So it's building a whole picture. 57 00:02:07,280 --> 00:02:08,640 A complex one. 58 00:02:08,640 --> 00:02:11,280 And then it uses all that information 59 00:02:11,280 --> 00:02:14,880 to constantly adjust ETF portfolios for better performance. 60 00:02:14,880 --> 00:02:16,400 So it's like having this invisible 61 00:02:16,400 --> 00:02:19,080 financial expert working 24-7. 62 00:02:19,080 --> 00:02:22,800 Okay, so AI's got the speed and the data crunching down, 63 00:02:22,800 --> 00:02:24,160 but what about blockchain? 64 00:02:24,160 --> 00:02:25,440 Ah, blockchain. 65 00:02:25,440 --> 00:02:27,760 A lot of people immediately think crypto and Bitcoin. 66 00:02:27,760 --> 00:02:30,280 Yeah, I definitely did when I first heard about it. 67 00:02:30,280 --> 00:02:32,520 It's understandable, but blockchain is so much bigger 68 00:02:32,520 --> 00:02:33,960 than just cryptocurrency. 69 00:02:33,960 --> 00:02:37,160 It's really a secure digital ledger technology. 70 00:02:37,160 --> 00:02:39,000 A ledger, like an accounting book? 71 00:02:39,000 --> 00:02:41,480 Kind of, but in this case, it's a digital one 72 00:02:41,480 --> 00:02:43,760 that's revolutionizing transactions of all kinds. 73 00:02:43,760 --> 00:02:45,880 Okay, so how does it connect to ETFs? 74 00:02:45,880 --> 00:02:48,040 Well, it impacts ETF trades for one thing. 75 00:02:48,040 --> 00:02:49,920 With blockchain, you get increased security 76 00:02:49,920 --> 00:02:53,040 and transparency, plus way faster transaction speeds. 77 00:02:53,040 --> 00:02:55,200 Okay, that makes sense, but cutting out the middleman 78 00:02:55,200 --> 00:02:57,120 like that, doesn't that raise some concerns too? 79 00:02:57,120 --> 00:02:59,560 I mean, who's making sure everything runs smoothly, 80 00:02:59,560 --> 00:03:02,400 no risk of hacking or errors? 81 00:03:02,400 --> 00:03:03,680 You're right to be cautious, 82 00:03:03,680 --> 00:03:06,360 but that's where the design of blockchain is key. 83 00:03:06,360 --> 00:03:08,560 It's not just removing those intermediaries, 84 00:03:08,560 --> 00:03:11,120 it's replacing them with this robust system. 85 00:03:11,120 --> 00:03:12,640 Okay, but what kind of system? 86 00:03:12,640 --> 00:03:16,120 It's a decentralized network that verifies each transaction 87 00:03:16,120 --> 00:03:17,680 across multiple computers. 88 00:03:17,680 --> 00:03:20,360 Ah, I see, so it's like a checks and balances system 89 00:03:20,360 --> 00:03:21,200 built right in. 90 00:03:21,200 --> 00:03:22,440 Exactly. 91 00:03:22,440 --> 00:03:23,920 This makes it incredibly difficult 92 00:03:23,920 --> 00:03:26,360 for anyone to tamper with anything. 93 00:03:26,360 --> 00:03:29,240 And the transparency actually helps with oversight, 94 00:03:29,240 --> 00:03:32,600 since in theory, anyone can audit those transactions. 95 00:03:32,600 --> 00:03:33,520 That's really interesting. 96 00:03:33,520 --> 00:03:37,560 So it's secure, but also kind of like a public record. 97 00:03:37,560 --> 00:03:39,600 Okay, all this tech sounds pretty impressive, 98 00:03:39,600 --> 00:03:41,480 but what about us regular folks? 99 00:03:41,480 --> 00:03:43,640 You mean those of us who aren't Wall Street wizards? 100 00:03:43,640 --> 00:03:44,760 Yeah, exactly. 101 00:03:44,760 --> 00:03:46,680 You know, personalized investment advice 102 00:03:46,680 --> 00:03:48,160 used to be for the wealthy. 103 00:03:48,160 --> 00:03:49,880 Has technology changed that at all? 104 00:03:49,880 --> 00:03:50,720 Oh, absolutely. 105 00:03:50,720 --> 00:03:53,280 So, it's like having this massive shift 106 00:03:53,280 --> 00:03:55,600 towards democratizing investment 107 00:03:55,600 --> 00:03:58,200 and Robo-Advisors have been a game changer. 108 00:03:58,200 --> 00:04:00,760 Robo-Advisors, so like those AI-powered ETFs 109 00:04:00,760 --> 00:04:01,600 we were talking about. 110 00:04:01,600 --> 00:04:03,120 They use similar algorithms, 111 00:04:03,120 --> 00:04:05,680 but instead of just managing an existing ETF, 112 00:04:05,680 --> 00:04:08,800 they actually build custom portfolios for anyone, 113 00:04:08,800 --> 00:04:10,640 regardless of their financial expertise. 114 00:04:10,640 --> 00:04:12,360 And how much money they have to invest. 115 00:04:12,360 --> 00:04:13,200 Exactly. 116 00:04:13,200 --> 00:04:15,560 So it's like having a personal financial advisor 117 00:04:15,560 --> 00:04:18,320 right there in your pocket without the hefty price tag. 118 00:04:18,320 --> 00:04:20,400 No more needing a financial expert 119 00:04:20,400 --> 00:04:21,240 or any related stuff. 120 00:04:21,240 --> 00:04:22,080 Sign me up. 121 00:04:23,240 --> 00:04:26,840 But seriously, how do these Robo-Advisors actually work? 122 00:04:26,840 --> 00:04:29,840 Do they like ask you a bunch of questions first? 123 00:04:29,840 --> 00:04:30,720 That's exactly it. 124 00:04:30,720 --> 00:04:32,720 You usually go through a quick onboarding process 125 00:04:32,720 --> 00:04:34,360 where it asks about your financial situation, 126 00:04:34,360 --> 00:04:36,800 your goals, and how much risk you're comfortable with. 127 00:04:36,800 --> 00:04:39,600 Okay, so it's figuring out my risk tolerance. 128 00:04:39,600 --> 00:04:40,920 What else does it ask about? 129 00:04:40,920 --> 00:04:42,760 It might ask about your timeline. 130 00:04:42,760 --> 00:04:44,160 Are you saving for retirement, 131 00:04:44,160 --> 00:04:47,000 a down payment on a house, something else entirely? 132 00:04:47,000 --> 00:04:48,360 And based on your answers, 133 00:04:48,360 --> 00:04:51,280 it'll recommend a diversified ETF portfolio 134 00:04:51,280 --> 00:04:52,520 tailored to your needs. 135 00:04:52,520 --> 00:04:55,000 Wow, so no more overwhelming spreadsheets 136 00:04:55,000 --> 00:04:56,480 and financial jargon. 137 00:04:56,480 --> 00:04:58,040 But speaking of being overwhelmed 138 00:04:58,040 --> 00:05:00,480 with everything being mobile these days, 139 00:05:00,480 --> 00:05:03,480 how much of this ETF stuff can actually manage from my phone? 140 00:05:03,480 --> 00:05:04,440 Pretty much all of it. 141 00:05:04,440 --> 00:05:05,960 Convenience is king these days. 142 00:05:05,960 --> 00:05:07,800 And mobile apps have made ETF trading 143 00:05:07,800 --> 00:05:10,000 and management incredibly accessible. 144 00:05:10,000 --> 00:05:13,280 So I can buy and sell, track my portfolio, everything. 145 00:05:13,280 --> 00:05:14,120 Yep. 146 00:05:14,120 --> 00:05:15,480 You can even rebalance your portfolio 147 00:05:15,480 --> 00:05:16,560 right from your phone. 148 00:05:16,560 --> 00:05:20,440 Wow, talk about having an ETF command center in your pocket. 149 00:05:20,440 --> 00:05:21,960 So we've covered a lot of ground here, 150 00:05:21,960 --> 00:05:25,640 speed, AI, blockchain, robo-advisors. 151 00:05:25,640 --> 00:05:27,040 It's clear that technology 152 00:05:27,040 --> 00:05:29,400 has brought a lot of benefits to the ETF world. 153 00:05:29,400 --> 00:05:31,640 Absolutely, it's made investing more accessible, 154 00:05:31,640 --> 00:05:35,960 more efficient, and way more customizable than ever before. 155 00:05:35,960 --> 00:05:38,560 Just imagine trying to manage a complex portfolio 156 00:05:38,560 --> 00:05:41,600 using like paper spreadsheets. 157 00:05:41,600 --> 00:05:43,000 Yeah, that sounds like a nightmare. 158 00:05:43,000 --> 00:05:45,840 Technology takes care of all that heavy lifting for us now. 159 00:05:45,840 --> 00:05:48,600 That's pretty incredible when you think about it. 160 00:05:48,600 --> 00:05:51,040 So before we wrap up this part of our deep dive, 161 00:05:51,040 --> 00:05:53,600 what's the one key takeaway our listeners should remember 162 00:05:53,600 --> 00:05:55,840 about the tech driving ETFs today? 163 00:05:55,840 --> 00:05:57,160 I think the main thing to remember 164 00:05:57,160 --> 00:05:59,960 is that technology has revolutionized ETFs. 165 00:05:59,960 --> 00:06:02,240 It's made them far more powerful and flexible 166 00:06:02,240 --> 00:06:03,080 than they used to be. 167 00:06:03,080 --> 00:06:06,080 So it's not just about basic market exposure anymore. 168 00:06:06,080 --> 00:06:08,880 Nope, you have speed, sophisticated analysis, 169 00:06:08,880 --> 00:06:11,640 customization, all sorts of opportunities 170 00:06:11,640 --> 00:06:13,720 that used to be out of reach for most investors. 171 00:06:13,720 --> 00:06:16,800 So we've gone from basic market exposure 172 00:06:16,800 --> 00:06:21,320 to AI-powered portfolios, blockchain security, 173 00:06:21,320 --> 00:06:25,080 robo-advisors, and we can control it all from our phones. 174 00:06:25,080 --> 00:06:26,880 It's been quite a journey. 175 00:06:26,880 --> 00:06:28,720 But before we get ahead of ourselves, 176 00:06:28,720 --> 00:06:31,000 let's take a closer look at how all this tech 177 00:06:31,000 --> 00:06:33,400 is changing the types of ETFs available. 178 00:06:33,400 --> 00:06:34,520 That's a great point. 179 00:06:34,520 --> 00:06:38,800 It's not just about how ETFs are managed anymore, 180 00:06:38,800 --> 00:06:41,160 but the sheer variety they offer. 181 00:06:41,160 --> 00:06:43,680 So it's not just your basic stock market ETFs 182 00:06:43,680 --> 00:06:45,560 anymore, what other options are out there. 183 00:06:45,560 --> 00:06:48,000 So it's not just your basic stock market ETFs anymore, 184 00:06:48,000 --> 00:06:49,320 what other options are out there? 185 00:06:49,320 --> 00:06:50,360 You hit the nail on the head. 186 00:06:50,360 --> 00:06:52,000 It's like, remember that car analogy? 187 00:06:52,000 --> 00:06:52,960 Our basic sedan? 188 00:06:52,960 --> 00:06:54,360 Yeah, the one that got a tech upgrade. 189 00:06:54,360 --> 00:06:56,080 Well, now we've got a whole lineup. 190 00:06:56,080 --> 00:06:57,960 Need an SUV for hauling cargo. 191 00:06:57,960 --> 00:06:58,800 Okay, I'm listening. 192 00:06:58,800 --> 00:06:59,640 There's an ETF for that. 193 00:06:59,640 --> 00:07:00,800 Want a sporty convertible? 194 00:07:00,800 --> 00:07:02,000 There's an ETF for that too. 195 00:07:02,000 --> 00:07:04,200 Okay, less about cars, more about investments. 196 00:07:04,200 --> 00:07:07,200 Give me some concrete examples of these new ETF types. 197 00:07:07,200 --> 00:07:08,040 All right, all right. 198 00:07:08,040 --> 00:07:09,720 How about thematic ETFs? 199 00:07:09,720 --> 00:07:13,360 They focus on specific trends like renewable energy, 200 00:07:13,360 --> 00:07:14,200 artificial intelligence. 201 00:07:14,200 --> 00:07:16,240 That makes sense. 202 00:07:16,240 --> 00:07:17,080 Anything else? 203 00:07:17,080 --> 00:07:18,000 Even the metaverse. 204 00:07:18,000 --> 00:07:19,200 Hold on, the metaverse. 205 00:07:19,200 --> 00:07:20,600 So I could invest in companies 206 00:07:20,600 --> 00:07:23,880 building those virtual worlds through an ETF. 207 00:07:23,880 --> 00:07:24,720 That's wild. 208 00:07:24,720 --> 00:07:26,880 It is, and it shows how ETFs are evolving 209 00:07:26,880 --> 00:07:28,960 to keep pace with all this new tech. 210 00:07:28,960 --> 00:07:30,880 And then you've got ETFs focused 211 00:07:30,880 --> 00:07:32,600 on specific investment strategies, 212 00:07:32,600 --> 00:07:34,560 like ESG investing, for example. 213 00:07:34,560 --> 00:07:35,400 ESG. 214 00:07:35,400 --> 00:07:38,280 Yeah, stands for environmental, social, and governance. 215 00:07:38,280 --> 00:07:39,960 So it considers those factors 216 00:07:39,960 --> 00:07:41,320 when making investment decisions. 217 00:07:41,320 --> 00:07:43,320 Right, so if someone's really into sustainability, 218 00:07:43,320 --> 00:07:46,560 they could find an ETF that matches their values. 219 00:07:46,560 --> 00:07:48,040 But it's not just stocks, right? 220 00:07:48,040 --> 00:07:49,960 You mentioned something about bonds before. 221 00:07:49,960 --> 00:07:50,880 Exactly. 222 00:07:50,880 --> 00:07:55,240 There are ETFs for bonds, commodities, real estate. 223 00:07:55,240 --> 00:07:57,480 You name it, even currencies. 224 00:07:57,480 --> 00:08:00,520 It's incredible how much choice investors have now. 225 00:08:00,520 --> 00:08:01,960 And it's all thanks to tech, really. 226 00:08:01,960 --> 00:08:03,800 It's made it possible to create 227 00:08:03,800 --> 00:08:06,000 and manage these increasingly complex 228 00:08:06,000 --> 00:08:07,720 and specialized ETFs. 229 00:08:07,720 --> 00:08:09,560 Okay, so more types of ETFs. 230 00:08:09,560 --> 00:08:11,880 They're faster, smarter, more secure. 231 00:08:11,880 --> 00:08:13,160 But what about the downsides? 232 00:08:13,160 --> 00:08:15,040 All this tech-driven evolution, 233 00:08:15,040 --> 00:08:16,600 it can't all be good, right? 234 00:08:16,600 --> 00:08:19,440 You bring up a really important point, and honestly, 235 00:08:20,400 --> 00:08:22,120 you're right, there are some potential risks 236 00:08:22,120 --> 00:08:23,000 to think about. 237 00:08:23,000 --> 00:08:26,760 For one, the speed and complexity of HFT. 238 00:08:26,760 --> 00:08:29,400 Well, it can make the market more volatile. 239 00:08:29,400 --> 00:08:32,040 So it's like going back to our analogy. 240 00:08:32,040 --> 00:08:33,440 It's like our sports car. 241 00:08:33,440 --> 00:08:35,480 Great for handling those tight corners, 242 00:08:35,480 --> 00:08:37,880 but you need a skilled driver behind the wheel 243 00:08:37,880 --> 00:08:39,160 or things can go wrong. 244 00:08:39,160 --> 00:08:42,160 So it's powerful, but you need to know what you're doing. 245 00:08:42,160 --> 00:08:44,200 What else should people be cautious about? 246 00:08:44,200 --> 00:08:47,720 Well, with all this automation and data flying around, 247 00:08:47,720 --> 00:08:50,400 there's always a chance for errors or glitches, 248 00:08:50,400 --> 00:08:52,640 you know, like those flash crashes we've seen in the market. 249 00:08:52,640 --> 00:08:53,800 Those are pretty scary. 250 00:08:53,800 --> 00:08:56,360 Those are a prime example of how things can go haywire 251 00:08:56,360 --> 00:08:57,760 when technology's involved. 252 00:08:57,760 --> 00:08:58,840 That's a little unnerving. 253 00:08:58,840 --> 00:09:01,240 Makes you wonder about the safety nets in place. 254 00:09:01,240 --> 00:09:02,880 And here's a crucial point. 255 00:09:02,880 --> 00:09:05,520 Even with AI and RoboAdvisors, 256 00:09:05,520 --> 00:09:08,160 there's still risk involved with investing. 257 00:09:08,160 --> 00:09:10,720 No technology can guarantee returns 258 00:09:10,720 --> 00:09:12,680 or predict the future perfectly. 259 00:09:12,680 --> 00:09:14,640 So it's a tool to help us navigate, 260 00:09:14,640 --> 00:09:17,280 but it's not a guarantee that we'll reach our destination. 261 00:09:17,280 --> 00:09:18,440 Precisely. 262 00:09:18,440 --> 00:09:19,840 It's like using a GPS. 263 00:09:19,840 --> 00:09:21,080 It can guide you, 264 00:09:21,080 --> 00:09:23,840 but it can't prevent every traffic jam or wrong turn. 265 00:09:23,840 --> 00:09:24,680 That makes sense. 266 00:09:24,680 --> 00:09:27,760 So for someone using a RoboAdvisor, for example, 267 00:09:27,760 --> 00:09:31,160 should they be double checking its work just to be safe? 268 00:09:31,160 --> 00:09:33,600 Doing your own research is always a good idea. 269 00:09:33,600 --> 00:09:35,280 You need to understand the risks 270 00:09:35,280 --> 00:09:38,000 and not just blindly trust technology. 271 00:09:38,000 --> 00:09:39,800 RoboAdvisors can be fantastic 272 00:09:39,800 --> 00:09:41,760 for building a diversified portfolio, 273 00:09:41,760 --> 00:09:44,600 but you should always know what you're investing in and why. 274 00:09:44,600 --> 00:09:46,600 That's a really important reminder. 275 00:09:46,600 --> 00:09:48,400 Blindly following any advice, 276 00:09:48,400 --> 00:09:50,800 whether it's from a person or a piece of tech, 277 00:09:50,800 --> 00:09:52,440 can be risky. 278 00:09:52,440 --> 00:09:53,680 But even with these risks, 279 00:09:53,680 --> 00:09:55,200 it seems like technology has brought 280 00:09:55,200 --> 00:09:57,200 a ton of benefits to ETFs, right? 281 00:09:57,200 --> 00:09:58,160 Oh, absolutely. 282 00:09:58,160 --> 00:10:00,600 It's made investing more accessible, 283 00:10:00,600 --> 00:10:03,720 more efficient, and more customizable than ever before. 284 00:10:03,720 --> 00:10:05,640 So as we wrap up this part of our deep dive, 285 00:10:05,640 --> 00:10:07,920 what's the key takeaway for our listeners? 286 00:10:07,920 --> 00:10:11,840 What should they remember about all this tech-driving ETFs today? 287 00:10:11,840 --> 00:10:13,680 I think the biggest thing to remember is this. 288 00:10:13,680 --> 00:10:17,480 Technology has undeniably revolutionized ETFs, 289 00:10:17,480 --> 00:10:19,480 but it's important to approach all these advancements 290 00:10:19,480 --> 00:10:22,720 with both enthusiasm and a healthy dose of caution. 291 00:10:22,720 --> 00:10:24,400 Right, so embrace the opportunities, 292 00:10:24,400 --> 00:10:26,280 but keep those risks in mind. 293 00:10:26,280 --> 00:10:28,520 And always remember, knowledge is power 294 00:10:28,520 --> 00:10:29,920 when it comes to investing. 295 00:10:30,840 --> 00:10:33,840 Speaking of the future, that's where we're headed next. 296 00:10:33,840 --> 00:10:36,240 We've seen how tech has changed ETFs so far, 297 00:10:36,240 --> 00:10:37,600 but what about the road ahead? 298 00:10:37,600 --> 00:10:38,840 What can investors expect? 299 00:10:38,840 --> 00:10:40,360 What does the future hold? 300 00:10:40,360 --> 00:10:43,360 Well, the future of ETFs is full of possibilities. 301 00:10:43,360 --> 00:10:45,520 And one trend we're seeing is this rise 302 00:10:45,520 --> 00:10:47,640 of hyper-personalization. 303 00:10:47,640 --> 00:10:50,000 Hyper-personalization, okay, I'm officially intrigued, 304 00:10:50,000 --> 00:10:52,760 but what does that even mean when we're talking about ETFs? 305 00:10:52,760 --> 00:10:54,560 It sounds pretty futuristic. 306 00:10:54,560 --> 00:10:57,720 Hyper-personalization, okay, I'm officially intrigued, 307 00:10:57,720 --> 00:10:58,760 but what does that even mean 308 00:10:58,760 --> 00:10:59,920 when we're talking about ETFs? 309 00:10:59,920 --> 00:11:01,320 It sounds pretty futuristic. 310 00:11:01,320 --> 00:11:02,160 Think of it this way. 311 00:11:02,160 --> 00:11:03,840 Imagine ETFs that are tailored 312 00:11:03,840 --> 00:11:07,200 to your specific financial goals, your risk tolerance, 313 00:11:07,200 --> 00:11:08,320 even your values. 314 00:11:08,320 --> 00:11:11,000 So not just picking an ETF that tracks, 315 00:11:11,000 --> 00:11:12,840 say, renewable energy or something. 316 00:11:12,840 --> 00:11:14,160 It's way more specific than that. 317 00:11:14,160 --> 00:11:15,000 We're talking about ETFs 318 00:11:15,000 --> 00:11:16,640 that are practically built just for you. 319 00:11:16,640 --> 00:11:18,680 So instead of me choosing from a list 320 00:11:18,680 --> 00:11:22,880 of like pre-made ETFs, the ETF itself is customized. 321 00:11:22,880 --> 00:11:24,280 How would that even work? 322 00:11:24,280 --> 00:11:27,240 AI and machine learning are gonna be the architects here. 323 00:11:27,240 --> 00:11:29,200 They'll analyze your financial data, 324 00:11:29,200 --> 00:11:32,000 understand your goals, even factor in things 325 00:11:32,000 --> 00:11:35,080 like your ethical preferences or your long-term plans. 326 00:11:35,080 --> 00:11:36,520 Does that really getting to know me? 327 00:11:36,520 --> 00:11:37,360 Exactly. 328 00:11:37,360 --> 00:11:40,120 And based on that deep dive into your finances, 329 00:11:40,120 --> 00:11:43,640 they'll craft a portfolio of underlying assets 330 00:11:43,640 --> 00:11:46,680 that aligns perfectly with your unique circumstances. 331 00:11:46,680 --> 00:11:49,560 It's like having a bespoke suit, but for my investments, 332 00:11:49,560 --> 00:11:50,560 that's pretty mind blowing, 333 00:11:50,560 --> 00:11:52,560 but access is a big thing for me. 334 00:11:52,560 --> 00:11:57,560 Will this level of personalization be available to everyone 335 00:11:58,080 --> 00:12:00,800 or just people with a ton of money to invest? 336 00:12:00,800 --> 00:12:01,640 That's a great question. 337 00:12:01,640 --> 00:12:04,040 And accessibility is definitely key. 338 00:12:04,040 --> 00:12:06,120 Another exciting area that's opening things up 339 00:12:06,120 --> 00:12:08,120 is fractional shares in ETFs. 340 00:12:08,120 --> 00:12:09,480 Fractional shares. 341 00:12:09,480 --> 00:12:13,080 So instead of needing to buy a whole share of an ETF, 342 00:12:13,080 --> 00:12:16,480 which can be pricey, you could buy a fraction. 343 00:12:16,480 --> 00:12:17,320 That's the idea. 344 00:12:17,320 --> 00:12:19,800 It could open up ETF investing to a wider audience, 345 00:12:19,800 --> 00:12:21,440 especially younger investors 346 00:12:21,440 --> 00:12:23,800 who maybe don't have a lot of capital to start with. 347 00:12:23,800 --> 00:12:24,640 I love that. 348 00:12:24,640 --> 00:12:25,560 Makes investing more inclusive. 349 00:12:25,560 --> 00:12:27,320 So how would that work exactly? 350 00:12:27,320 --> 00:12:30,480 Well, fractional shares basically make it easier 351 00:12:30,480 --> 00:12:32,960 to dip your toes into the ETF world 352 00:12:32,960 --> 00:12:35,240 without needing a huge initial investment. 353 00:12:35,240 --> 00:12:38,480 It also allows for more precise portfolio allocation, 354 00:12:38,480 --> 00:12:41,160 even if you're working with smaller amounts of money. 355 00:12:41,160 --> 00:12:44,520 So hyper personalization and fractional shares, 356 00:12:44,520 --> 00:12:47,600 that's making ETFs more accessible, A&D, 357 00:12:47,600 --> 00:12:50,360 tailored to individual needs. 358 00:12:50,360 --> 00:12:52,760 What other trends are we seeing on the horizon? 359 00:12:52,760 --> 00:12:55,560 Well, we're gonna see even more use of blockchain technology 360 00:12:55,560 --> 00:12:57,800 and it's gonna get even more sophisticated. 361 00:12:57,800 --> 00:12:58,640 Remember when we talked about 362 00:12:58,640 --> 00:13:00,480 the security and transparency benefits? 363 00:13:00,480 --> 00:13:02,360 Yeah, blockchain seem pretty impressive. 364 00:13:02,360 --> 00:13:05,240 Well, in the future, it could lead to even faster settlement times, 365 00:13:05,240 --> 00:13:07,880 increased efficiency, and even lower fees 366 00:13:07,880 --> 00:13:09,440 for those ETF transactions. 367 00:13:09,440 --> 00:13:13,280 So even more perks from blockchain, sounds like a win-win. 368 00:13:13,280 --> 00:13:15,120 But with all this innovation happening, 369 00:13:15,120 --> 00:13:17,800 are there any potential challenges or concerns 370 00:13:17,800 --> 00:13:19,000 we should be thinking about? 371 00:13:19,000 --> 00:13:19,840 You know, you're right. 372 00:13:19,840 --> 00:13:22,280 Rapid innovation always comes with challenges. 373 00:13:22,280 --> 00:13:23,960 One of the biggest ones is making sure 374 00:13:23,960 --> 00:13:26,200 these advancements benefit all investors, 375 00:13:26,200 --> 00:13:27,720 not just a select few. 376 00:13:27,720 --> 00:13:29,240 That's a really important point. 377 00:13:29,240 --> 00:13:30,960 We don't want a two tiered system 378 00:13:30,960 --> 00:13:34,400 where only the wealthy can access the best ETF tools, right? 379 00:13:34,400 --> 00:13:35,480 Exactly. 380 00:13:35,480 --> 00:13:37,640 It's about making sure that democratization 381 00:13:37,640 --> 00:13:38,880 of investing we talked about 382 00:13:38,880 --> 00:13:41,600 extends to these future advancements too. 383 00:13:41,600 --> 00:13:43,840 Everyone deserves the opportunity to benefit. 384 00:13:43,840 --> 00:13:45,040 I totally agree. 385 00:13:45,040 --> 00:13:47,600 Are there any other challenges on your radar? 386 00:13:47,600 --> 00:13:49,680 Regulation is gonna be key. 387 00:13:49,680 --> 00:13:52,800 As ETFs become more complex and tech driven, 388 00:13:52,800 --> 00:13:54,680 regulators are gonna need to adapt 389 00:13:54,680 --> 00:13:57,280 and make sure investor protections are in place. 390 00:13:57,280 --> 00:13:58,480 It's a balancing act really. 391 00:13:58,480 --> 00:14:00,880 Between fostering innovation and protecting people. 392 00:14:00,880 --> 00:14:01,720 Exactly. 393 00:14:01,720 --> 00:14:03,320 You don't want to stifle progress, 394 00:14:03,320 --> 00:14:05,400 but you also need to safeguard investors. 395 00:14:05,400 --> 00:14:07,920 Finding that sweet spot can be tough. 396 00:14:07,920 --> 00:14:11,760 So as we wrap up our deep dive into ETF, 397 00:14:11,760 --> 00:14:13,560 what's the one key takeaway 398 00:14:13,560 --> 00:14:16,280 you wanna leave our listeners with about the future? 399 00:14:16,280 --> 00:14:18,320 The future of ETFs is bright. 400 00:14:18,320 --> 00:14:19,680 That's the main thing. 401 00:14:19,680 --> 00:14:21,880 Technology is driving incredible innovation 402 00:14:21,880 --> 00:14:24,800 and creating opportunities we've never seen before. 403 00:14:24,800 --> 00:14:27,040 But it's crucial to approach these advancements 404 00:14:27,040 --> 00:14:28,760 with both excitement and caution. 405 00:14:28,760 --> 00:14:30,680 So don't get swept up in all the hype. 406 00:14:30,680 --> 00:14:32,800 But don't be afraid to explore either. 407 00:14:32,800 --> 00:14:33,640 Exactly. 408 00:14:33,640 --> 00:14:35,240 Do your research, ask questions, 409 00:14:35,240 --> 00:14:37,560 and make sure you really understand the risks, 410 00:14:37,560 --> 00:14:39,240 as well as the potential rewards. 411 00:14:39,240 --> 00:14:42,040 It's like anything else, knowledge is power. 412 00:14:42,040 --> 00:14:43,040 Well, that's all the time we have 413 00:14:43,040 --> 00:14:45,480 for today's deep dive into ETFs. 414 00:14:45,480 --> 00:14:48,520 It's clear that the world of ETFs is constantly changing 415 00:14:48,520 --> 00:14:50,520 and it's an exciting time to be an investor. 416 00:14:50,520 --> 00:15:01,520 Thanks for joining us.