ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Dave Nadig Appears on ETF Edge
News
Share

Dave Nadig Appears on ETF Edge

Evan HarpAug 29, 2022
2022-08-29

VettaFi Financial Futurist Dave Nadig joined Wes Crill and host Bob Pisani on CNBC’s ETF Edge to discuss a grab bag of topics ranging from emerging markets, to value investing, to cryptocurrency.

Over the past few weeks, $50 billion flowed into the market, broadly leaning on U.S. equity and fixed-income. Nadig sees international exposure as being overlooked, “I worry that U.S. investors here have gotten a little over their skies in terms of home bias. It sort of worked for you because we’ve had such a strong dollar, but I think as we think about positioning portfolios for the rest of the year we need to be thinking about international diversification.”

From 2000 through 2009 U.S. stocks were largely flat. During “the lost decade,” investors who had global diversification fared better, but Nadig says investors need to think beyond market capitalization when weighing emerging markets. Pointing to Perthe Tolle’s Freedom 100 Emerging Markets ETF (FRDM C), which explicitly excludes China and other countries with human rights issues. “I think that’s a reasonable approach,” Nadig said. “It’s not just about whether you support their policies, it has to do with rule of law and whether or not you are actually doing the same thing by investing in a Chinese equity that you are when you invest in a U.S. equity. It is reasonable to have different metrics there.”

Value-able Advice

Value investing struggled in the pandemic, which favored growth investing. “We did see some interest in mid-cap value over the last few weeks here, but in general this has been either a broad asset class market, a thematic market, or a growth market. Value hasn’t been able to catch a bid the way some of those other things have,” said Nadig.

Dividends have managed to steal a lot of value’s thunder and have become popular with investors. Crill notes that dividends can go down at a moment’s notice, and thinks that fixed income provides a less volatile, more efficient way to generate yields.


Content continues below advertisement

The Single Stock Phenomenon

Crill sees single-stock ETFs as risky, especially considering the need for healthy, versatile portfolios that can help investors meet their retirement goals.

But many single stock ETFs, including several funds focused on Tesla (TLSA), have created a lot of volume. “Volume is the right word here. It’s not that they’ve garnered a lot of assets, they’ve garnered tons of volume,” Nadig said, pointing out that the funds are essentially trading their entire AUM each day – which means they are being used as designed. “They are very sharp tools, however, if you are a day trader or a hedge fund who really needs to make liquidity matter.”

Asked if they were a risk to the market, Nadig said there’s a world where the trading product gets all the play and the underlying stocks stop trading. “That’s where you could actually end up with a situation where the rebalance on the complex is driving end-of-day prices,” Nadig said. “It’s theoretically possible.”

Crypto Still Has Utility

Pivoting to cryptocurrency, Crill doesn’t see crypto as either a solid returns vehicle or a risk mitigation tool, given its volatility. He wonders where it fits in a portfolio given that it doesn’t seem to serve a concrete role. Nadig pushed back, noting that cryptocurrencies still have value as diversifiers. “I do think a few percent acts as a significant diversifier, even with this drawdown that we’ve seen,” Nadig said.

For more news, information, and strategy, visit VettaFi.

» Popular Pages

  • Tickers
  • Articles

Mar 24

Markets Bounce in Wake of Banking Crisis and Rate Hike

Mar 24

Main Management Market Note: March 24, 2023

Mar 24

Meet an Advisor: Ramona Maior

Mar 24

Tobin McDaniel: ETFs Crucial in SoFi's Growth

Mar 24

Semiconductors Spark Investors’ Hope

Mar 24

Take a Look at EWCO, RYT, and RCD

Mar 24

VettaFi Voices On: The Fed's Next Steps On Rate Hikes

Mar 24

ETF Issuer League: 7% Jump for Barclays

Mar 24

Opportunity Knocks With KWEB

Mar 24

To Access High Dividend International Stocks, Use IDOG

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

VOO

Vanguard S&P 500 ETF

VGT

Vanguard Information...

SMH

VanEck Semiconductor ETF

XLK

Technology Select Sector SPDR...

VTI

Vanguard Total Stock Market...

SOXX

iShares Semiconductor ETF

BLOK

Amplify Transformational Data...

META

Roundhill Ball Metaverse ETF


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X