2. ETFs For Beginners – What Are Your Options w/ BetaShares

Bryce: [00:01:12] Welcome to Get Started Investing feed Deep Dive. In this bonus series, we're going to be exploring everything there is to know about exchange traded funds or ETFs so that you can feel confident to start your investing journey. This series is proudly supported by beta shares and we've brought in some of the experts to break it all down for you. My name is Bryce and as always, I'm joined by my equity buddy Ren. How's it going, Bryce? [00:01:34][22.0]

Alec: [00:01:35] I'm very good, Bryce. I'm loving this miniseries so far. Yes, ETFs. Definitely one of the hottest topics in the Equity Mates community we had on last time to break down the basics of ETFs, what it means. And now I'm really excited to get into this one. What are the actual options out there? What can you invest in [00:01:51][16.4]

Bryce: [00:01:51] and to help us through it? We have one of the experts from Beta shares, Adam O'Connor, welcome. Thanks for having me. So in this episode, as Ren said, we are going to be walking through what are your ETF options? As we said at the start of the show, thousands of options worldwide. We'll dig into a couple of them here in Australia. But for those of the audience who haven't listened to our first episode with you a couple of years ago, I think it was where we spoke Haak, and we [00:02:15][24.1]

Alec: [00:02:16] had a little [00:02:16][0.1]

Bryce: [00:02:16] sense of wonderful things [00:02:17][0.9]

Alec: [00:02:17] a little while ago now got me very excited about ETFs. That conversation, I got to say. So hoping to repeat the magic again today. Can you just [00:02:24][6.6]

Bryce: [00:02:24] a quick intro bit about your background and then we can kick into it? [00:02:27][2.6]

Adam: [00:02:27] Yeah, sure. So basically, my title says I'm involved in capital markets and advisory services. So a couple of different roles. Their ideal, a lot with trading and execution for large ETF trades. And, you know, on the other side, didit. I deal primarily with financial advisors and brokers around Australia talking with them around ETF options and what they're doing in their portfolios and trying to maybe see if we can, you know, fit in there and and how our products might fit with their clients. [00:02:57][29.9]

Bryce: [00:02:57] Awesome. So the perfect person to happen to to walk us through all the products available. So I guess let's start at the start. Why do you think an investor would choose to include ETFs in their portfolio, perhaps some of the pros and cons of ETFs compared to other investing options that are out there? [00:03:18][20.8]

Adam: [00:03:19] I think the primary reason for for using in an ETF and why they've got so popular over recent years is firstly diversification. Basically, diversification is simply about, you know, not putting all your eggs in one basket for want of a better term. You know, you hear that analogy come up all the time, but it's so important an ETF is just a really easy way to get a large basket of assets. And there's a whole range of different ETFs across different assets. You can also get ETFs of ETFs. But the core thing is, you know, you're not just buying a single stock or single bond. And you know the other reason, which is, you know, why investors in Australia have really gravitated towards is access. So, you know, if you got a really easy way to access markets and asset classes that you might not have even previously had access to or had any idea of how to do it, you know, you can go and get a gold ETF. You know, we we have a gold ETF that, you know, holds physical gold in vault on behalf of unit holders, whereas the vault [00:04:22][63.3]

Alec: [00:04:25] is in London probably probably under armed guard. That's why they keep it all. Now, Tippity shares 50 Market Street level eleven for Javier Takase or things like, you know, India. [00:04:38][13.7]

Adam: [00:04:39] And I wouldn't have even told you how it would have gone up that and bought an Indian equity before we launched our entire ETF. Right. And I'm in the industry. So it's, you know, giving investors and investors who are just starting out as ways to access different markets, access different asset classes and do it in a way that's diversified. [00:04:56][16.9]

Alec: [00:04:57] So diversification, not putting all your eggs in one basket, access. And then there's probably one more that we should cover of here, which is cost of fees. Yeah, sure. It's probably a [00:05:08][10.6]

Adam: [00:05:08] bad one and probably rhythmicity not to have covered that first, [00:05:10][2.3]

Alec: [00:05:10] but ultimately, [00:05:11][0.4]

Adam: [00:05:12] you know, ETFs versus your traditional, you know, active managed funds, you can have active ETFs. But the ETF that, you know, most of your listeners who are starting out would probably be familiar with is the low cost, broad equities ETF. And the one of the reasons that I got so popular in the first place and why they continue to get more and more popular is they're giving investors a way to access and build a portfolio where you're not having to pay a professional manager to run that for you. And I don't need to go into, you know, all the data and research that's gone into, you know, buying in the market, buying the whole market, passive investing and doing it and controlling costs. You know, it's an easy way for them to do that at. And build a low cost portfolio [00:05:55][43.5]

Alec: [00:05:56] just for people who hear that term, you know, at some low cost and don't really understand what that means. Can you put into context the cost of an ETF compared to some of those other funds? [00:06:05][9.1]

Adam: [00:06:06] Yeah, exactly. You know, you mentioned before that actively managed fund might be, say, one percent. So that's charging you, you know, on your total portfolio, you have to pay one percent a year of that to that manager to run that. Now, I'll give a really good example, a 200, which a lot of people are familiar with. That's our broad Australian passive ETF. That's zero point zero seven. And so it's a very, very small fraction of what you might be paying an active manager to build a portfolio for you. [00:06:38][32.3]

Bryce: [00:06:39] Yeah, nice. And I guess the key message for that is that if you're investing over a long period of time, that one percent year after year after year adds up, adds up, and then that zero point zero seven percent. The difference between the two is quite significant over a 40 year period. [00:06:54][15.8]

Adam: [00:06:55] Exactly. I mean, there's a lot of people out there that, you know, believe from an investment standpoint that one of the only things you can control is cost. So if you want to build wealth and compound that over time, the best way to do that is to control the cost of your portfolio. [00:07:09][14.0]

Alec: [00:07:10] Well, the number one Equity Mates policy is way high fees. And that's exactly why, because you can control it and it makes a difference. Yeah. [00:07:17][7.4]

Bryce: [00:07:18] So, Adam, you've gone through a list of the pros there. Are there any sort of high level cons of ETFs that we should sort of be aware of when we're sort of looking at the ATF versus individual stocks? [00:07:30][12.6]

Adam: [00:07:31] I mean, I definitely wouldn't say there's cons, but there's definitely things for people to be conscious of when they're investing in an ETF. And things were always reminding people, it's like when you are investing, know what you're investing in, understand what the index or the ETF is trying to do. And we always say, you know, what sort of outcomes you're trying to achieve. So they kind of ETF or fund that someone who's elderly, you know, retired and really trying to protect their wealth. The kind of fund that they're going to look to invest in is going to be very different from, you know, something that may be, you know, you or I might might look towards. And that's probably the the key things to be aware of is just look under the hood of the ATF and know what you're investing in. [00:08:17][46.1]

Alec: [00:08:18] Now, ETFs have been increasingly popular in the Equity Mates community for a number of years, but also just more broadly in Australia and actually around the world. Before we get stuck into some of the major options, can you just give us, I guess, an overview of the ATF landscape? You know, how many ATF products are out there and how's it been growing and stuff like that [00:08:38][20.5]

Adam: [00:08:39] big, big landscape, [00:08:40][0.9]

Alec: [00:08:41] is it? Look, I [00:08:42][1.7]

Adam: [00:08:42] think the numbers there's there's around 230 in Australia now. Now, to put that in perspective, I mean, there's thousands in the U.S. in the US, they close more ETFs per year than than we have listed. Right. So it's a big universe. And, you know, we're trying to build that out. That's why I think beta shares and, you know, there's other ATF providers similar to us that have really tried to to build out the menu that's available for Australian investors. But, you know, we're by no means at the point where we you know, they are out in the US where, you know, you could get cruise line or ATF very, very sort of nasch type Sollozzo that can get quite Natia, such such a bigger addressable market. So, yeah, in Australia, you know, we have 230 ETFs now. And I mentioned before that they range across asset classes. Now, an asset class can either be, you know, equities and stocks. It can be bonds. It can be gold. Like I mentioned before, it can even be currencies or, you know, commodities like energy. So I guess the main ones in equities, you've then got Australian equities. You've got you know, you can get mid-cap equities and then you can get us tech sectors like cyber security and robotics regions like Asia. So it's quite broad in what you can access through the ETF, [00:10:03][80.3]

Bryce: [00:10:04] 230 odd ETFs available. We had a question coming from our audience that sort of alluded to the fact that choosing between all the ETF options that are out there almost feels like picking stocks. You know, there are so many options that it can be difficult to say of all the indexes or ETFs that follow the top 200 in Australia, how to actually distinguish between which one is right for me. So I guess if you're building a portfolio of ETFs, how should we think about the ETF process of discovery and distinguishing between you know, you mentioned there there's the you know, the thematics as the US top 500. How do you sort of think about that process [00:10:45][41.4]

Adam: [00:10:46] starting out and and sort of building your first portfolio? I mean, you can start really simple. You can just thinks, hey, look, I've got a thousand. And Dollars to invest here and what you can get an ETF of ETFs [00:10:58][11.8]

Alec: [00:11:00] so that you can [00:11:01][1.8]

Adam: [00:11:02] you can look at you can start really high high level and say, you know what, I just want to invest. How long have I got to invest? I might just buy a high growth ETF of ETFs. And that's going to tell you that, you know, it's broadly looking like a portfolio should it's going to be mostly equities can have Australian stocks, international stocks, and it's going to have a little bit of bonds in it. Now, in next level, you can start to look at, you know, do I want the broad Australian market, which is what, you know, you sort of would look at under the hood of an ETF of ETFs and you can go, you know, I can get a 200. I can look at, you know, the US market via the S&P 500. And that's one of the beauties of of ETFs. You can say it's like picking an individual stock. It can be to an extent. But what an ETF can give you the ability to do is say you wanted to buy Asian technology, for example. You were like, I you know, I really want to get a get a piece of what Tencent and Alibaba are doing about you have no ability to do fundamental analysis on which one to pick, where you can go and buy an ETF that gives you a lot of exposure to that sector. And it says, you know, do I see cyber security for, for example, is another one? Do I see cyber security being a more meaningful expenditure for businesses in a decade's time? Yeah, I do. That industry is probably going to grow. I have no ability to pick which individual stock I want to I want to invest in so I can go and use the ETF as a vehicle to invest in the whole sector. And it's that, you know, rising tide lifts all boats theory. And, you know, another analogy, you know, by the dart board, don't throw the darts. [00:12:37][95.9]

Bryce: [00:12:39] So, Adam, it feels like and this is why I like ETFs, I'm sure Ren a lot of our community that you don't have to be in the detail company by company to start investing with ETFs. You can really just identify where you generally think the economy is going to go or a particular thematic bayit tech you mentioned or, you know, marijuana industry or health care or whatever it may be and get broad exposure that way, which is takes a lot of the pain, I guess, and uncertainty for a beginner investor. But if you were to have three ETFs that all give access to the Australian top 200 companies, and this is something that a lot of our investors face sort of high level, how do you distinguish between which one you should be going for? [00:13:22][43.3]

Adam: [00:13:23] I can understand it can be quite a daunting task for someone who's just starting out. You can go to the fund web page and have a look at the different underly. So I'll show their top ten holdings. It'll also show what's called an index methodology, which says, what does that fund track? What does it what does it invest in now using broad Australia as an example, you'll have, you know, our Australia two hundred by market cap. You can have the S&P ASX 200 by market capitalisation. So that means they hold the biggest stocks in weighting by their size. Now, broadly speaking, they are going to be very similar. Another thing you can look at, which is probably also okay, is look at the performance of them over one, three, five years. You'll find they're very similar. So what does that leave you with? How much does it cost? Yeah, yeah. Comparing broad market exposures can be quite can be quite similar if you're looking at broad market and you know, then cost becomes becomes the biggest factor. [00:14:24][61.1]

Alec: [00:14:25] And for people who want to find cost, where should they be looking? [00:14:28][3.6]

Adam: [00:14:29] It's going to be on the fund web page. [00:14:30][0.9]

Alec: [00:14:30] I think that's going to be a theme across all three of these other sites. The fund Web page is. [00:14:34][4.2]

Adam: [00:14:35] So, yes, it's your best resource if you're doing this on your own. I'm telling you the things you've got to look out on the fund web page. You can look at the index, what attracts look at the top ten, look at the long term performance and look at the cost. [00:14:49][13.8]

Alec: [00:14:49] Yeah, and the cost. You'll see it expressed as management, fee management, expense ratio, expense ratio. I'm sure there's other terms that I'm not using, but different fund managers will use different terms, but they all just mean the management fee and it will be expressed as a percentage. [00:15:04][14.6]

Adam: [00:15:04] They mean the amount that's that's coming out. And it's always expressed in an annual fee. Yeah, yeah, yeah. [00:15:09][4.8]

Bryce: [00:15:09] So that's really the key here is. Yeah, if you're comparing the same ETF across providers, really the determining factor is going to be your face. [00:15:18][8.9]

Adam: [00:15:19] And just while we're on the matter of phase, we get this question a lot, particularly from investors starting out. It doesn't mean you have to send in a cheque at the end of the year. But what that is, yeah, it comes in really. [00:15:28][9.3]

Alec: [00:15:28] I've been doing that well. I'm very much in arrears with my face. Like I said, it comes out daily. Yeah, yeah, yeah. You don't have to do anything. It's all done by, you know, beta shares of Vanguard or whoever. Yeah. So I do want to pick up on one thing there, because when we're talking about broad market, so like the biggest 200 companies in Australia, the holdings are all going to be pretty similar. The biggest 100 companies are the biggest two hundred companies. Very much so when we're talking about. The Mattick, ETFs or other types of ETFs, let's say there's a couple of different cyber security ETFs out there. Is it the same or is there something else we have to think about now? [00:16:06][37.1]

Adam: [00:16:06] This is where it starts to become really interesting and a bit more intricate. You probably have to do a bit of due diligence on on what you're actually buying. This is why you you know, you start to go down this level of investing and start to look at sectors. It becomes important to look under the hood and without ending up down a rabbit hole too much. On this, you go away from broad market market capitalisation indexes and then you get to what we'd call maybe smart beta. And a lot of the thematics are based on that. And that's where you start to use things like you look at how they weight their stocks, how they weigh their underlying holdings, how many companies are in the index and things like how do they get to the companies that are included into the in the index as well. So, you know, what percentage of their revenues have to be derived from that particular sector? You know, you look at things like robotics. That's a really interesting one. It's you know, there's debate and different indexes on that. And it's like, you know, are you only including pure play robotics and AI companies or are you including companies that have a very small portion of their of their business involved? You know, when really it's it's not really a meaningful part of their ultimate, you know, revenue streams. So that's where you start to have to look and know what you're investing in. [00:17:23][76.9]

Alec: [00:17:23] Yeah. And just for people who are now thinking about their robotics idea for their cybersecurity and wondering what am I actually investing in? Is it the same answer as before? I go to the website and you can say it all there? [00:17:35][11.7]

Adam: [00:17:35] Yeah, very much so. And I mean, you don't have to get tied down to you can go down, you can go down when you're comparing to against one another. And ultimately you can probably run yourself around in circles. The reality is I understand what you're investing in, but for most of the sector ETFs, they're probably going to give you the exposure that you're looking for. [00:17:54][19.3]

Alec: [00:17:54] Yeah, yeah. I think for me, speaking personally, if I'm investing in like a tech ETF, I'm not going to get worried if it's got five percent Apple or seven percent Apple, you know, either way, it's got Apple. That's the main thing. The only thing that would get me concerned is if I was looking at a tech ETF and like Microsoft and Apple just weren't in like if those companies that I want some exposure to and they're not there, then it's like, well, maybe this isn't the ETF for me, but, you know, for cyber security, it's not in my circle of competence. I don't know these companies well enough to know which ones should and shouldn't be in there. There's people smarter than me building that index. Yeah, there is [00:18:31][37.0]

Adam: [00:18:32] an element of how I look. This is a you know, this is a reputable fund manager running this. There's a lot of money invested in it. You know, you got there's an element of trust that the managers sort of knows what they're doing in terms of building, tracking an index and building an index effectively with the index provider. [00:18:46][14.4]

Bryce: [00:18:47] So access was something that you mentioned, Adam, as being one of the pros of ETFs, access to different asset classes, access to different countries around the world without getting into the technicalities of tax and that sort of stuff. As a beginner investor, do I need to if so, if there's an ETF that's going to give me access to India, is there anything different that I need to do from a trading point of view, or is it all packaged up by the provider now? [00:19:12][25.3]

Adam: [00:19:13] Not at all. It's packaged up by a provider and that's the real beauty of it. That's really one of the key benefits of an ETF, is that, you know, there are some some considerations that come down the tax side of things. But, you know, from trading, execution and access perspective, you can just traded on the ASX like you would, you know, any other stock listed on the ASX. [00:19:33][20.0]

Alec: [00:19:33] So we'll get a bit more into the tax implications of ETFs and how people should think about that in the next episode. So everyone should stay tuned for that, although they're all going to be released at the same time. So just listen to that, because we've touched on a number of elements. I guess I might just want to pause here and get you to sort of sum up the options that we have available. So we sort of talked about there's a bunch of different asset classes and then a bunch of different countries and stuff. Twenty five words or less, I guess if you were summing up everything that was available, how would you do that? To sum up everything that's about [00:20:05][31.9]

Adam: [00:20:06] what's unless you have a range of ETFs available over Australian equities, international equities, international regions, sectors, bonds, currencies and commodities underlying that are things where you can look at just the US market as the US market. Or you can look at something like the Nasdaq 100, which is going to have a much bigger technology tilt to it. Or you can look at something like an ETF where you have a listing on Friday, which is an S&P 500 equal weighting. So then you can look at different ways to construct your portfolio. [00:20:43][36.7]

Alec: [00:20:44] So basically, any country, any investable asset class except cryptocurrency or any investing theme that you want to. Vestine, there's probably an ATF out there for you, that's probably the way if you're [00:20:58][13.5]

Adam: [00:20:58] thinking about investing in something, chances are there's an 80. [00:21:00][2.3]

Alec: [00:21:01] But chances are beta shares of Vanguard or some of the other ATF providers have already had that thought and have built a product. So to sum [00:21:07][6.8]

Adam: [00:21:08] it up, in less than 10 words, there's an ETF for [00:21:09][1.9]

Alec: [00:21:11] Google. Whatever your craziest idea is with ATF after, it certainly will be there. And if we don't have it, feel free to email us. Yeah. What's your personal email? We'll do that on the show. [00:21:23][11.3]

Bryce: [00:21:24] So, Adam, everything that we've sort of touched on in terms of the way that ETFs following an index and managed is that sort of buzzword, passive ETF, passive management. The other buzz word that beginners will come across when doing some research into ETFs is active management or an active ETF broadly. What is the difference between the two? [00:21:44][20.2]

Adam: [00:21:45] Yeah, sure. So I mean, broadly speaking, what people should understand from the outset is the ETF is really just a way to, you know, buy and sell. It's a structure. It's really a way to buy and sell your position in a fund. So the fund is exchange traded as opposed to the way they were in the past where you used to have to, you know, fill out a form, write it in and send it to a fund manager. So the original ETFs were passive. So they're the ones we were talking about that broadly track an index. They buy the whole lot biggest companies to smallest companies, and they tend to be lower cost. Now, an active ETF is a newer form of ATFP and it's definitely growing. But what that is, is it's a way to get access to those actively managed funds where previously you only had to write in and had to fill out the form and send it to the manager. It's a way to get access to those in a really easy way where the way you just trade the units like you would try to a passive ETF and now the active ETF is different because instead of just, you know, tracking, you know, the largest the the index largest stock to smallest stock, what you have is a professional manager on the end making decisions on what to buy and sell for you. [00:23:05][80.5]

Bryce: [00:23:06] That's the key there is that you're active is literally someone actively managing the shares and the companies that are within that passive, they are just buying all 200 and letting it [00:23:18][12.7]

Adam: [00:23:19] do its thing. And without going too far into it. Oftentimes there are you know, we talk about asset classes, their asset classes, where we genuinely believe that active management is necessary hybrids, for example. Now, we won't go into what a hybrid is, but our hybrids fund is extremely popular and that is actively managed because we think that it needs an active manager for that asset class because it is more complex than just buy in the equities market. So that's where it can be be necessary. Yeah. And then you have some other active, you know, equities funds where, you know, some people believe that it's a good manager. So they're worth the extra fee. [00:23:59][40.8]

Bryce: [00:24:00] We think they're worth the extra fee in some instances, [00:24:02][2.0]

Alec: [00:24:03] as we said before, that there's plenty of options out there. If people have had an idea about an investing theme or an interesting idea, there's probably an ETF that tracks it. We've sort of put that to the test a little bit. We've created a bit of a game. We found some of the most obscure ETFs. None of these are beta shares examples. So, you know, they're not products that you work with. We've got some real ones and then we've made up some fake ones. And we want to test your knowledge would [00:24:29][26.0]

Adam: [00:24:29] be in trouble if I didn't know really. I mean, I know. I know. I've got a lot of them and it's hard [00:24:33][4.0]

Alec: [00:24:33] to keep track. So you're up for play. All right, let's do it. So we'll start at home. First one Australian retail ETF, real or fake? Fake. He's good. He's very good. [00:24:44][10.8]

Bryce: [00:24:46] Obesity ETF. I am what I am. [00:24:50][4.3]

Alec: [00:24:50] This is the fake. It's real. It's real. Yeah. Female leaders ATFP, Ticha, W.M. and fake. [00:25:00][9.9]

Bryce: [00:25:01] It's fake space ETF ticker is UFO fake. [00:25:05][3.8]

Alec: [00:25:06] Real, real. Why don't you throw a fake a millennial's thematic atfp ticker maiello and real. [00:25:14][8.3]

Adam: [00:25:15] It is real. Yeah. Sansbury said that sounds legitimate [00:25:17][2.3]

Bryce: [00:25:17] enough international football ticha FIFA [00:25:19][2.3]

Adam: [00:25:21] fake. I'm not sure. I'm not sure if it would licence themselves trying. [00:25:24][3.6]

Alec: [00:25:26] He's good. A forensic accounting. ATFP Tica F.L. AJ Flag. [00:25:31][4.7]

Adam: [00:25:32] I want to say real because that take his poor is real. [00:25:35][3.1]

Alec: [00:25:36] You're not a fan of that tyga not a no flag for forensic accounting. It's like a red flag sort of thing. [00:25:41][5.3]

Adam: [00:25:42] Yeah I watched it on CSI or something. [00:25:44][2.0]

Alec: [00:25:44] I know that's. Hey that's why you're paid the big bucks. [00:25:46][1.9]

Bryce: [00:25:46] Classic accounting move. Credit Suisse merger arbitrage liquid ETF. And it's. [00:25:53][6.4]

Alec: [00:25:54] New York Stock [00:25:55][0.4]

Bryce: [00:25:55] Exchange CSM, I [00:25:57][1.9]

Adam: [00:25:58] always stop buying real or fake. [00:25:59][0.9]

Alec: [00:26:00] Yeah, I'm going to say real because that is why too convoluted. So yeah, from that name, would you have any idea what they do? I forgot what the number is. [00:26:09][9.1]

Bryce: [00:26:09] Credit Suisse merger arbitrage, liquid ETFs. I think it's [00:26:14][4.8]

Alec: [00:26:14] I think I think it's high time. Yeah. If you, if you, [00:26:18][4.0]

Adam: [00:26:19] if you're buying companies in anticipation of a merger. [00:26:22][2.7]

Alec: [00:26:22] Yeah. Yeah. There's always a little bit of a price. [00:26:24][2.0]

Adam: [00:26:24] Diaby That's really [00:26:26][1.3]

Alec: [00:26:26] odd. Anyway, that's not something for beginners. You can live a long and happy life without ever investing in that ETF. Yeah. [00:26:33][6.5]

Bryce: [00:26:33] So Adam, just to close out the conversation around what our options are, again, when people are doing research, especially for international stocks, well, it would only be for international ETFs. They're going to come across a word, hedged or unhedged. Are you able to give a pretty basic definition of what that actually would mean? And should it be something you consider as a beginner investor? [00:26:55][22.2]

Adam: [00:26:56] Yeah, easiest way to understand hedge versus unhedged if you buy an unhedged, which is anything that doesn't have currency hedging in it. What you've got to understand is if you're buying, you know, I'll use us if you're buying, you know, the S&P 500 or you buy index you the NASDAQ, what you're also buying is that equivalent dollar value in US dollars. Yes. So there's going to be two things that influence your return. It's the performance of the equities and it's the currency. What currency hedging does is it takes that second asset class out of consideration. Now, a lot of people prefer unhedged. They aren't hedging products actually tend to be the bigger products where we'd use hedged versions. We have hedged in on hedge, but where specifically often we do use hedged is for some of those sector ETFs we were talking to before, like our global energy sector ETF. And one of the reasons for that is, you know, a lot of the times investors who want to get exposure to that sector want exposure. That sector, they don't want to look back on their returns six months later and find out that, you know, Global Energy's rallied 20 percent. But because the currency has gone the wrong way, they're back where they started. So that's really one of the reasons why you would consider currency hedging is if you didn't want the currency, you know, involved in in your returns. [00:28:21][85.0]

Alec: [00:28:22] Yes. So for a beginner investor who's thinking about, you know, long term 20, 30 year time horizon, does it matter or how should they be thinking about that decision for for like a broad index? So like the American S&P 500 or something like that. [00:28:36][14.8]

Adam: [00:28:37] Look at can a lot of the research says that it comes out in the wash, which is why a lot of people don't really take it into consideration. A lot of times people don't want to consider currency too much. [00:28:48][10.9]

Alec: [00:28:49] And then one more question on that. Are the fees different for a hedge or an unhedged ETF? A marginally [00:28:55][6.2]

Adam: [00:28:56] but generally not meaningfully [00:28:57][1.0]

Alec: [00:28:58] at all is unhedged generally cheaper because you have to do less [00:29:01][3.0]

Adam: [00:29:01] slightly a lot like single. What's your basis point. [00:29:05][4.2]

Alec: [00:29:05] So, yeah. Right. Okay, so very, very simple. But hey, we hate all fees, whether they're large or small. So, you know, every little bit counts. [00:29:12][6.8]

Bryce: [00:29:13] So, Adam, thank you for your time today. Unpacking the universe of ETFs. I think the key message is that regardless of where you're at in your journey, ETFs are certainly something that can fit into your portfolio. If you are a beginner investor, though, you can almost find an ETF that suits anything in terms of your investing goals or if you want to be investing in different asset classes, different countries, different regions, different than matics. There's plenty of options available. So I guess for more information on the products that you guys offer, beta shares dotcom today, you. [00:29:45][31.4]

Adam: [00:29:45] That's it. And that'll have all the information that you need. And, you know, one of the other things, if if you're starting out in a way, sort of pride ourselves on, you know, education, collateral, our insights. So if you are trying to get more information on on ETFs, you can look at our website, on our blog and search, and you can generally find the information that you're looking for. [00:30:07][21.7]

Alec: [00:30:07] Nice, nice one. [00:30:08][0.8]

Bryce: [00:30:08] Well, as always, a pleasure to speak with you. Thank you for your time, Adam. Looking forward to keeping in touch over the next whatever period of time. We're not going anywhere [00:30:17][8.3]

Alec: [00:30:18] right now, and I'm glad I got it. [00:30:19][1.0]

Bryce: [00:30:20] Peter. Shares are always pumping out new ETFs, but every second day. [00:30:23][3.4]

Adam: [00:30:24] So just really trying to build out that menu for everyone and [00:30:26][2.9]

Alec: [00:30:27] give us play and give us plenty to talk [00:30:29][1.3]

Adam: [00:30:29] about so I can always come back in here and, you know, talk to what we're saying and. Yeah. And some ideas for investors. So thanks again for having us on. It's always a pleasure to come in here and talk to you guys. [00:30:40][11.0]

Bryce: [00:30:40] So that's one. Thanks, Adam. [00:30:41][0.8]

Speaker 3: [00:30:43] Thanks for listening to Get Started Investing feed, a production of Equity Mates media. Please remember that everything you hear in Get Started Investing feed is general advice. Only the content has been prepared without knowing your personal objectives, specific financial circumstances or goals. The host of Get Started Investing feed may maintain positions in the companies discussed before considering any investment. Please read the product [00:31:04][21.5]

Unidentified: [00:31:05] disclosure statement and consider speaking to a licenced financial professor. [00:31:05][0.0]

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