Upcoming Nov. "Bogleheads on Investing" podcast guest is Eric Balchunas

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Rick Ferri
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Upcoming Nov. "Bogleheads on Investing" podcast guest is Eric Balchunas

Post by Rick Ferri » Mon Nov 04, 2019 8:31 am

This episode is everything ETF.

My guest this week will be Eric Balchunas, Senior ETF Analyst, Bloomberg Intelligence. In this role, he writes research, articles and feature stories about ETFs for the Bloomberg terminal and Bloomberg.com. He also appears in a weekly on-air segment for Bloomberg TV and Radio called "Exchange-Traded Friday" in which he discusses different ETFs and the way investors can utilize them.

He is author of the book "The Institutional ETF Toolbox," which was published by Wiley. The book is at once a primer on ETFs that both novices and professionals can understand as well as a guide to doing proper due diligence on the fast-growing world of ETFs.

Please post your questions for Eric here. Only general questions, please. No personal advice questions.

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peseta
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Re: Upcoming Nov. "Bogleheads on Investing" podcast guest is Eric Balchunas

Post by peseta » Mon Nov 04, 2019 12:14 pm

Thanks, Rick. One suggestion: Why did target-date ETFs die, and will they ever come back (especially in light of the fact that target-date mutual funds tend to have higher expense ratios than the component funds "inside" do)?

peseta

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Re: Upcoming Nov. "Bogleheads on Investing" podcast guest is Eric Balchunas

Post by stan1 » Mon Nov 04, 2019 12:32 pm

I'd ask about how and when ETFs will transition into world of 401Ks.

Also what is the impact of trading in fractional shares which enables investors to contribute dollars rather than buy shares? Is this as big of a deal as it seems to some of us on Bogleheads? Will this innovation along with better software to manage asset allocations eliminate the need for date targeted and risk targeted ETFs (like existing Target Retirement funds and Moderate/Conservative growth funds)?

Does he see a large group of investors transitioning into something like M1 Finance's "pie" approach to asset allocation (401K, IRA)? Where basically advisors would "sell" a pie strategy to investors? A "pie marketplace" or storefront so to speak.

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Re: Upcoming Nov. "Bogleheads on Investing" podcast guest is Eric Balchunas

Post by aednichols » Mon Nov 04, 2019 12:43 pm

With the recent industry-wide elimination of commissions, the old commission-free ETF lists at brokerages have lost their meaning.

Will this accelerate the "winner takes all" or "winner takes most" trend? Investors are now more likely to choose the most popular brand instead of using the equivalent, smaller player that paid to be on the commission-free list.

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Re: Upcoming Nov. "Bogleheads on Investing" podcast guest is Eric Balchunas

Post by Silence Dogood » Mon Nov 04, 2019 4:51 pm

peseta wrote:
Mon Nov 04, 2019 12:14 pm
Thanks, Rick. One suggestion: Why did target-date ETFs die, and will they ever come back (especially in light of the fact that target-date mutual funds tend to have higher expense ratios than the component funds "inside" do)?

peseta
For what it's worth, supposedly Vanguard may start using the ETF share classes for the underlying funds of their Target Retirement funds (right now they use the investor-class shares).

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Re: Upcoming Nov. "Bogleheads on Investing" podcast guest is Eric Balchunas

Post by BeachPerson » Mon Nov 04, 2019 5:02 pm

Great guest!!! Eric writes well about Vanguard.

Post a link to the podcast.
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Re: Upcoming Nov. "Bogleheads on Investing" podcast guest is Eric Balchunas

Post by Atticus » Mon Nov 04, 2019 5:42 pm

stan1 wrote:
Mon Nov 04, 2019 12:32 pm
Also what is the impact of trading in fractional shares which enables investors to contribute dollars rather than buy shares? Is this as big of a deal as it seems to some of us on Bogleheads? Will this innovation along with better software to manage asset allocations eliminate the need for date targeted and risk targeted ETFs (like existing Target Retirement funds and Moderate/Conservative growth funds)?
I would be interested to hear about this as well.

Also, I'd like to hear his perspective on the less-transparent ETF structures that have been proposed, which would only require quarterly disclosure of holdings, and whether these are a good or bad development for investers.

Thanks Rick! Appreciate your efforts on this podcast.

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Re: Upcoming Nov. "Bogleheads on Investing" podcast guest is Eric Balchunas

Post by FBN2014 » Tue Nov 05, 2019 7:19 am

What is the link to access all the podcasts that Rick has recorded?
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Re: Upcoming Nov. "Bogleheads on Investing" podcast guest is Eric Balchunas

Post by stan1 » Tue Nov 05, 2019 7:23 am

FBN2014 wrote:
Tue Nov 05, 2019 7:19 am
What is the link to access all the podcasts that Rick has recorded?
They are on multiple podcast platforms (e.g. Apple). Search for "Bogleheads"

Also on Rick's website:
https://rickferri.com/boglehead-podcast/

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Re: Upcoming Nov. "Bogleheads on Investing" podcast guest is Eric Balchunas

Post by livesoft » Tue Nov 05, 2019 7:26 am

Perhaps not strict ETF questions, but ...

What's stopping major brokerage firms from having fractional share trading of ETFs and trading by dollar-amount just like mutual fund shares? Will these features be added to ETF trading in the near future?
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Re: Upcoming Nov. "Bogleheads on Investing" podcast guest is Eric Balchunas

Post by sigmadave_2000 » Tue Nov 05, 2019 12:46 pm

It seems like ETF costs are being driven to zero. But how do these firms make any money?

Should we shy away from funds with extremely low fees compared to their rivals? For instance, Franklin’s Japan ETF FLJP costs 9 basis points, and the more popular EWJ costs 47 basis points. That’s more than 5 times the annual cost. Seems like for the Long-term buy and hold investor saving 38 basis points per year would add up. Is there a catch or some hidden fees we aren’t aware of?

Thanks.

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Re: Upcoming Nov. "Bogleheads on Investing" podcast guest is Eric Balchunas

Post by bck63 » Tue Nov 05, 2019 5:48 pm

I find each of your podcasts interesting and helpful, Rick. Thank you.

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Re: Upcoming Nov. "Bogleheads on Investing" podcast guest is Eric Balchunas

Post by Rick Ferri » Thu Nov 07, 2019 10:45 pm

Thanks for the input!

The podcast has been posted.

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