MI252: ETF Deep Dive w/ Andrew Kadjeski

The Intrinsic Value Podcast - The Investor’s Podcast Network

The Investor's Podcast Network

Education, Investing, Business

4.6 • 592 Ratings

🗓️ 26 January 2023

⏱️ 52 minutes

🔗️ Recording | iTunes | RSS

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Summary

Rebecca Hotsko chats with Andrew Kadjeski about how the ETF structure and ecosystem works, how to compare ETFs with similar objectives but different indices and determine which is better, the importance of keeping a consistent exposure to the same index for investors building a portfolio using several ETFs, why Vanguard dumped MSCI Indexes in favor of CRSP for most US index funds in 2012, the three main costs associated with ETFs, when and how ETF’s take their fees, why investors should avoid trading ETFs really early in the open of a market open, why it's better to trade international ETFs at a time that coincides with the hours of the underlying shares local markets, what are some ways that ETFs can be used for short term goals, the two types of capital gains investors need to be aware of with ETFs, the difference between CAD listed vs US listed ETFs that track the same market, why can ETFs differ from their NAV, what does this mean if it’s trading at a premium or discount to the NAV, when is the best time to buy international ETFs, and so much more! IN THIS EPISODE, YOU’LL LEARN: 00:00 - Intro 03:07 - How the ETF structure and ecosystem work. 07:55 - How to compare ETFs with similar objectives but different indices and determine which is better. 09:45 - The purpose of the indexes that ETFs track. 10:58 - Why Vanguard dumped MSCI Indexes in favor of CRSP for most US index funds in 2012. 13:48 -The three main costs associated with ETFs. 13:48 - When and how ETF take their fees? 13:48 - Why investors should avoid trading ETFs really early in the open of a market open. 20:56 - Why it's better to trade international ETFs at a time that coincides with the hours of the underlying shares local markets. 23:03 - What are some ways that ETFs can be used for short term goals? 24:16 - The two types of capital gains investors need to be aware of with ETFs. 27:42 - The difference between CAD listed vs US listed ETFs that track the same market. 32:34 - Why can ETFs differ from their NAV, what does this mean if it’s trading at a premium or discount? 32:34 - When is the best time to buy international ETFs? 38:45 - For investors building a portfolio using several ETFs, the importance of keeping a consistent exposure to the same index. 49:29 - What differentiates Vanguard from other ETF providers? 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: Currency Hedging Decision. Related Episode: Listen to MI244: Mastering Factor Investing w/ Wes Crill, or watch the video. NEW TO THE SHOW? Check out our Millennial Investing Starter Packs. Browse through all our episodes (complete with transcripts) here. Try Robert and Rebecca’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 Andrew: Website | LinkedIn 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 Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TIP.
0:02.8	Now, if that's the case, again, it's really important for investors to understand how the different index providers define the sub-asset class.
0:10.1	You need to get under the hood of the ETF.
0:12.2	For example, again, if an investor were to choose an S&P 500 ETF like Vanguard's V-O-O-O for large-cap exposure,
0:19.2	but then the Russell 2000 ETF like VTWO, right, for small-cap exposure,
0:25.0	that investor would actually end up with gaps in their portfolio, right?
0:28.6	They're going to be missing exposure to certain mid-cap companies.
0:31.6	Again, at the end of the day, the simplest way for an investor to ensure they have exposure
0:36.2	to the full investable market is to choose
0:38.8	a total market fund.
0:43.5	On today's episode, I'm joined by Andrew Kajeski.
0:47.6	Andrew is the head of brokerage and investments for Vanguard's personal investor business.
0:52.7	He's responsible for the core brokered services,
0:55.4	as well as the investment product portfolio for individual investors.
0:59.7	During this episode, Andrew explains how the ETF structure and ecosystem works,
1:05.0	how to compare ETFs with similar objectives, but track different indices,
1:09.2	and how to determine which is better. He also
1:12.2	discusses why keeping a consistent exposure to the same index is important for investors
1:17.4	building a portfolio using several ETFs, why investors should avoid trading ETFs really early in
1:24.3	a trading open, when is the best time to trade international ETFs, the differences
1:29.5	between Canadian listed and US listed ETFs that track the same market, why ETFs can differ
1:36.0	from their net asset value, what does it mean if it's trading at a premium or a discount to the
	...

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