MI237: Are We In an Index Fund Bubble? w/ Eric Balchunas

The Intrinsic Value Podcast - The Investor’s Podcast Network

The Investor's Podcast Network

Education, Investing, Business

4.6 • 592 Ratings

🗓️ 24 November 2022

⏱️ 60 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

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. NEW TO THE SHOW? Check out our Millennial Investing Starter Packs. Browse through all our episodes (complete with transcripts) here. Try Kyle’s favorite tool for picking stock winners and managing our portfolios: TIP Finance. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Fiscal.AI Connect with Eric: LinkedIn | Twitter Connect with Rebecca: Twitter | Instagram HELP US OUT! Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

Click on a timestamp to play from that location

0:00.0	You're listening to TIP.
0:02.9	Vanguard has the number one vote in 70% of the companies in the S&P 500.
0:08.2	And they're within the top three of 99%.
0:10.9	And so when they vote, it matters.
0:13.2	Same with BlackRock.
0:17.6	On today's episode, I'm joined by Eric Baltunas. Eric is the senior ETF analyst at Bloomberg Intelligence,
0:25.4	and he's the author of the institutional ETF toolbox and the Bogle effect. In this episode,
0:31.9	I chat with Eric all about ETFs, including how the ETF space has evolved over the past year,
0:39.3	why passive indexing is sometimes viewed as weak hands or dumb money. I get his thoughts on the passive indexing bubble and how
0:44.6	index funds actually affect the underlying company's stock prices. I also get his thoughts on some
0:50.2	common criticisms of ETFs, including are the misallocation of capital and is now the
0:55.9	worst time to be a passive index investor. We also talk about single stock ETFs, leveraged
1:02.2	ETFs, what these products are, what investors should know about them, and why they may not
1:07.7	perform as you expect. So without further ado, let's jump into the episode.
1:14.1	You're listening to Millennial Investing by the Investors Podcast Network,
1:18.7	where your hosts Robert Leonard and Rebecca Hotsko,
1:21.9	interview successful entrepreneurs, business leaders and investors
1:25.2	to help educate and inspire the millennial generation.
1:36.5	Welcome to the millennial investing podcast.
1:39.5	I'm your host, Rebecca Hotsko, and on today's episode, I am joined by Eric Baltunas.
1:44.9	Eric, welcome to the show.
1:46.8	It's great to be here.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from The Investor's Podcast Network, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of The Investor's Podcast Network and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.