ETFs Gone Wild: How to Find the Few Worth Owning

本站添加: 2026-06-07

[00:00:04]ETFs gone wild. There are now officially more ETFs in the US than publicly traded stocks. I don't know if you remember Joe Francis is a digital marketing, direct marketing phenomenon, which was college pornish stuff. Well, ETF proliferation is the equivalent of financial porn. And I think it's going to end in the same way. Chapter 11 bankruptcy for a lot of ETFs that can't differentiate themselves. So, we're going to tackle that and more tonight because if there's an ETF for everything, you've got to know which ones can actually deliver returns, deliver alpha, have a strategy that's proven, time-tested, and going to increase your bottom line. So, we'll ch we'll focus on that. SpaceX IPO, GLP1 momentum. We've got a huge show for you tonight from the launchpad in Greenpoint, New York. The first show ever in this new studio. Welcome to the Big Skinny with Lou Bassin. And if you haven't noticed yet, we do things just a little bit different. We're not a reverent on purpose. We're just in reverent when the opportunity strikes.

[00:01:06]And I got to tell you, there's been never been an opportunity like this when I look at how many ETFs are out there.

[00:01:11]So, we've got an action-packed show ahead for you. We do it in our traditional style of 111. One headline that you should probably ignore because the consensus often gets it wrong. One chart you definitely should pay attention to because the data seldom lies. And then one investment insight.

[00:01:28]At least one. I guarantee you we'll have four or five tonight. But at least one that you can put to work right away to increase your bottom line. Cuz let's be fair, if we don't make money together and just have fun together, we're not going to be hanging out for long. So the purpose here is to educate, to inform, and to increase our net worth. And we're going to do that here. Starting off, we got two guests, actually two guests live and one virtual tonight. uh recorded uh friends of mine, fellow Fox business regulars, Keith Fitzgerald and I go way back uh way way back. This is one of the guys that I respect the most in the business and every time I think he can't do something great again, he does something new and we're going to talk about that. And then David Nicholas from uh president of Nicholas Wealth Management, who I've come to respect as well as an innovator in the financial industry in terms of the ETF offerings he's making. Go figure, he's not one of the bad guys. as I was talking about.

[00:02:22]So, we're going to get into market insights, what's the latest going on with the Fed, oil, and more importantly, the new investment vehicle that these two gentlemen have come up with that I believe will be a differentiator and an alpha generator for you. So, with that being said, let's start off quickly with one of with this week's rundown what I think is most important in the markets.

[00:02:46]All right, we're coming out here swinging at the ETF industry because Barren has headlines saying, "Hey folks, forget stocks. That's old school. The new school is ETFs and ETFs are hotter than stocks and that's never going to change." Even SpaceX can't change that.

[00:03:11]I call Dan the Man. Cue it up. Uh, boom.

[00:03:15][ __ ] >> Yes, I do. Because here's what I know.

[00:03:19]The proliferation of this many ETFs means they all can't be doing something different. There's going to be a lot that end in a boom and bust. In fact, over almost half of them haven't raised more than $50 million in assets. So, they're not even reaching a sustainability level. They can't make it and survive that long, let alone figure out how to outperform the market. So, Barons might say the ETFs are the new way. I'm going to tell you, yes, there are going to be many ETFs that are very fruitful, that are very profitable, but then there's going to be probably two times as many that have to close their doors and not uh be in existence anymore. So, liar, liar, pants on fire.

[00:03:59]The ETF's proliferation is not a positive trend in the market in my opinion because there's going to be a lot of noise and a lot of investors that get burned. And that's why we're doing this episode tonight to make sure that doesn't happen to you. But ETFs are multiplying like gremlins, however you want to call it. Uh yeah, I mean this quote right now from Doug Bonearth, uh talking about there's an ETF for everything. AI, pets, cannabis, woke, anti-woke. You're investing some in something meaningful for the long term or you're filling out an online quiz for Buzzfeed is it's hard for him to distinguish what it is. And I agree, there's a Democratic woke ETF. There's what's the meme stock ETF. These seem to be fads that fade. I want investments that are like Warren Buffett that endure over time and generate returns over time. So, another uh great quote here from Torston Sllock talking about the fact that a number of publicly listed companies keeps declining and there are now more ways to trade the market than there are stocks in the market. Think about that for a second. We're putting a rapper on stocks and there's more rappers for stocks than there are stocks in the market. This is not a sustainable trend. So, we are endeavoring here at the Big Skinny over the course of the next 6 to 9 months or so to unearth some of the better ETFs, the ones that we think will survive the inevitable downturn. There's a lot of ETFs that go belly up every year. I think you're going to see a lot more of that happen.

[00:05:22]So, look at the data. Just put some context around it. It's an endless ticker factory here coming for ETFs. You can see the crossover happened uh I believe in late 2024.

[00:05:34]uh over 5,000 ETFs now in existence. I'm sorry folks, ETFs are not individual businesses that generate profits and revenues and margins that can endure for decades. Uh they're financial instruments that are based upon derivatives of those real businesses. So tonight's recommendation, the big skinny insight investment takeaway is to buy one of the newest ETFs because I believe it bucks the trend for all of this. And it's the Fitzgerald must-have portfolio ETF. Moments from now, we're going to bring on the portfolio manager behind it and his financial backer, the platform, because I know he saw something in Keith that I saw long ago, too. And we're going to get into the strategy and why this can endure through any market cycle. So stay tuned. We'll be right back after a brief break to talk about why FITS is the future of ETF investing in my mind. I think these are just wildly terrible investments for everyday Americans. Unless you get an allocation because >> Wait a sec. Okay, so you think they're great companies.

[00:06:36]>> Yes.

[00:06:37]>> But you think they're terrible investments. Why would a great company be a bad company to own?

[00:06:42]>> Because buying it at an expensive price makes it a terrible investment. So, you want to own a great company at a great price, which is what Warren Buffett spent his entire career doing and making billions off of this. These are coming to market. If you look, both all of these companies, SpaceX, Open AAI, uh, Anthropic just raised money at a $965 billion valuation, which means its IPO is going to be over a trillion. There's only 11 trillion companies in the world right now. So, you're basically buying at the tippy top and hoping that it goes higher than there. So, I just don't see it yet with the fundamentals. They're too overpriced. They're not value investments. And the track record says you'll get a better chance if you just wait. Patience is not being c a coward in this market in the IPOs. It's actually being a value buyer and a smart investor.

[00:07:27]Roughly one in three ETFs that are launched each year don't exist after 5 years. They don't make it. But I'm going to go on the record and say this new ETF brought to us by Keith Fitzgerald, David Nicholas, Nicholas Wealth Management, is going to persist and exist a decade from now. So without further ado, ETF's gone wild. I want to bring in none other than Keith Fitzgerald, my friend, and David Nicholas, my friend across the Fox Business Channel, Airwaves. Gentlemen, welcome to the show.

[00:07:55]>> Great to be here, Lou.

[00:07:57]>> Listen, we were bantering before. I wish I could grow a goatee and man, your mustache that you had days ago, it's missing you. The TV screen is missing the mustache. David, >> you know, it's it's still hiding under there. And you know, I try to get Keith to grow the mustache. He said, he gave me a verbal commit that he may do it.

[00:08:13]So, we'll see. We got to get to about a billion first and I think he's gonna >> Can we put that on the air? I just went on the record saying five years from now you're going to still be around. If you get to a billion aum, will you go with a mustache?

[00:08:26]>> Absolutely. I can't guarantee what it's going to look like, but you better believe it.

[00:08:30]>> Listen, I'll grow a stash. I'll I'll go alongside that bet. When you get to a billionaire aum, >> I'll I'll spoil my mustache and we'll just have mustache envy with David. So, um, >> they may not let you on TV though with that with with that thing. We'll see.

[00:08:45]>> Yeah, I might lose my contributorship pretty quickly for that. But, well, worse things have happened, uh, than wearing a mustache on TV. But anyway, let's get to it. Look, guys, I want to get your take. What bold move to come out? I mean, David, we've had you on the show multiple times. You're very innovative ETFs that are doing very well in the in the blockchain space, uh, divid, you know, Bitcoin giving income yields. But now, Keith, you come out surprised. is keep like I got a special I you know thing that's going to happen in a few weeks and lo and behold you launched the FITS ETF. So how did this all come about and what's the purpose of it?

[00:09:20]>> Well here's the deal Ray. So most investors Lou as you well know they're using a road map that was built 30 40 50 years ago to navigate a world that looks absolutely nothing today like it did back then. So the premise is very simple. Most investors are using models and allocation decision- makingaking capa capacity that is based on where the world's been. I want to go where the world's going. The world's most successful investors. They concentrate.

[00:09:45]They don't spread their money around and hope they're going to back into the big winners. They start with the big winners. And so that's really again what we're trying to do. This is for investors who want one-stop shop to get great companies that they can count on and if we're doing our jobs properly, create huge amounts of wealth over their lifetime.

[00:10:01]>> Yeah. So David, I looked at this and the strategy behind the portfolio and we'll put up the top 10 holdings in a little bit here and I view this as a way to have a hedge fund with Keith Fitzgerald managing it. How did you view it? Like where did how did this come about where you guys launched this ETF together?

[00:10:15]>> Yeah, you know, so Keith called me about just about a year ago and uh he said, "David, I got an idea." He's like, "I spoke with a few other issuers. I didn't love what I heard, so I wanted to talk with you about this." And and he said a line to me that that I'll never get. He said, "David, you know, most investors play not to lose." He goes, "I play to win and we select stocks win." I was like, you know, it's so it's so true because and really and I and I think Keith really was what pioneered this mindset quite a bit, but we diver we think diversification somehow leads to this great success. And really when you look at it, Keith Keith's talked about this before. If you look at the last hundred years, four about 40 companies have created 50% of all the wealth created in the last 100 years. And so I would say that Fitz is the antithesis of broad diversification. It's like no, we want to we want to own names that we know and love. And these aren't names that we're going to be buying today, selling two weeks from now to make a quick profit. These are names that we truly believe in long term. So I think you're right, Lou. This is a way you get access to Keith, which it's typically it's very expensive to do that and you get it in an ETF rapper where anyone can access. So I was excited day one. I was just grateful and honored to partner with them on Yeah, I I love the point about the diversification because if you look at the billionaires early in their career, they were heavily concentrated in very small number of names and so like wealth creation happens from concentration. Wealth preservation happens from diversification. So I love that that's your focus. Keith, talk to me a little bit about I think it's five pillars here. The digitalization, say that three times fast, defense, diffusion, distribution, and dislocation. uh you've always been one with the alliteration and the acronyms but underpinned by sound strategy. I believe your background is in fractal math as well which I don't even know what that means. So like tell us what the the overall management selection criteria is and how you construct this portfolio before we get to some of the names.

[00:12:10]>> I'd be happy to. So so the very first thing right Lou is you got to understand where we're coming from on this. We believe I believe my analysis suggests and I've spent years and years and years as a card carrying member of the propeller beanie club. You know we live on the cusp of this sixth wave. That's what we call this. We've had steam.

[00:12:27]We've had electricity. We've had penicellin. We've had the internet.

[00:12:30]We've had the internet of things. We've had all sorts of things through human history. Each of which took 40, 50 years to to sort of bring to fruition. Now we're on the cusp of what we call the sixth wave. That's really where these 5Ds come in because I believe that there will be more wealth created in the next 10 years than the last 50 combined as a result of this. We've never seen data create data create value in human history. This is going to alter the course of our planet, change the human trajectory. And what we want to focus on is these five pillars because they're forward-looking and each of them is backed by trillions of dollars that will get spent practically no matter who's in the White House, no matter what the Fed does next, no matter how Wall Street tries to manipulate the system. No matter how many ETFs come on, these are companies that going forward to the world we're going to live in, not visiting the world we're leaving behind.

[00:13:17]>> So David, let me pick your brain on this. You look at the portfolio now. I think there's right around 30 holdings.

[00:13:22]Is that correct?

[00:13:23]>> What stands out to you? because I I look at it and it's very diverse. Um, but what excites you from your vantage point because you're a similar market, you know, strategist and and share insights.

[00:13:33]So, let's talk positively about Keith while he's in front of us.

[00:13:36]>> Yeah, we'll get off here in a second.

[00:13:40]But, you know, I think what what what excites me about this is I could break fits up into really about six or seven different themes. First one is like it's AI beyond just the Mac seven. And so when you look at some of the names that you got crowd strike, you've got other names that are eye on Q that are kind of beneficiaries of this AI trade. You also have defense, right? And so you got AI, but you also have defense. You got names like Loheed Martin, RTX. You've got the energy trade, right? We got GE in the portfolio. We've got health care. So we're we're playing into the aging demographics of health care costs in this country. Eli Lilly, Avy, Gilead.

[00:14:13]You also have solid quality financials like JP Morgan. And then you also have consumer uh pricing power companies that are right there at the the spear of the consumer. So you got names like Walmart, Costco, you got Apple. These are names that have pricing power at god forbid if inflation stays a little stickier, you got names that are able to adapt to that. So I look at this as a broad way to get exposure not to just the hut theme today, but to really give you a nice mix of the themes that aren't just going to work in the next quarter, but I think are really going to work for the next five to 10 years. and really provide some really good upside. So, that's what really excites me the most.

[00:14:49]>> Yeah. So, Keith, any divergence from that? Any additional comments you want to make on that since you are the portfolio manager?

[00:14:55]>> Well, theoretically, right? Um, no, I want to put, you know, a little bit more of a point. David's very conservative and that's one of the things I admire about him is he's he's very gently spoken, right? But what I want to do is I want to put a little bit of a spin on that because when you're slicing and dicing, you're diversifying. The premise behind the 5Ds and what David has just outlined is that we're connecting the dots. That's a very different concept.

[00:15:17]So take something like GE Renova in the AI trade. Everybody's saying, "Oh, AI needs energy. AI needs energy. AI needs energy." Absolutely true. But when you think about it, they're also using AI to improve their operations, to improve the electrical grid, to improve the set, to improve the tie-ins. So the very technology that they're helping propel, they're using. And so you can take a company like that and now suddenly you've got two out of the five 5Ds connected to it. You've got more economic certainty. You got more cash flow. You've got more earnings power.

[00:15:47]You got more margin protection power. If you look at a company that's must have and that's how we define this portfolio.

[00:15:53]Every single company Lou, every single company that's in it that Dave and I have talked about, chosen, selected, looked at, makes a must-h have product service that has at least one if not multiple zero to one catalyst. And that's super critical because if you're gonna change the world, you got to have something that truly changes. You can't just invent a better mousetrap. You know, Apple's got two and a half billion installed devices. And I know you and David and I all think alike. You can add a couple lines of code and make billions of dollars. A company like Pelaton is going to be potentially the world's most expensive laundry hanger. An iPad on a bike is not must have. It's nice to have.

[00:16:31]>> Listen, for me it was a hamper.

[00:16:34]I I bought one in CO and wrote it once and said, "This is miserable." And then it sat there in the corner for the next 3 years. And thankfully, a friend of mine really wanted one, couldn't afford it. I donated it to him and he lost about 50 lbs. Like, good for him. But, um, I love what you're talking about.

[00:16:50]These are generational companies that you want to get in involved with. They have multiple levers that they're going to pull. So, it begs the question, right? 0ero to one SpaceX IPO. Where does this fit in? Right. I I don't think you would be jumping into an IPO, but do you eventually think SpaceX could be one of these 5D companies that make it into the portfolio?

[00:17:09]>> No question in my mind is going to be one of them. The question is how you buy it and what that looks like, right?

[00:17:14]Because that's the other problem and something that led to the creation of this ETF, right? I'd love to tell you with a straight face, it's the greatest thing since canned beer, but it's not. I think it's probably the next best thing to beer if you use the right tactics.

[00:17:26]And and that's the part retail investors don't understand yet. The risks of all this volatility are that they go in or out at the wrong time. But if you very carefully, very measuredly step into a a thought process like this, it's hard not to get it right over time, even though you might mess up at moments in time.

[00:17:44]It's a it's a super critical important distinction. Very subtle, but very very important to the profitm process.

[00:17:50]>> Yeah. Well, as you guys know, we're live streaming on X and YouTube. We've got a comment here from a viewer that I want to bring up uh talking about the expense ratio. You got a 75 basis point expense ratio, which I think is very fair in this world for an active managed uh ETF, but they can't find the stocks that it's invested in in Schwab. How can you advise someone to invest in an ETF that you don't know the exact stocks you're investing in? Scott, I appreciate that comment, but we're going to direct you.

[00:18:15]Actually, we got a QR code we can bring up on the screen that will direct you to the website, not Schwabs, that will bring it to you. guys, how do you how do you uh want to talk about that where they can get the best information about FITS?

[00:18:27]>> Yeah, they can handle that. No. Yeah.

[00:18:29]>> Yeah. I was going to say just really the best ways to go to the website, right?

[00:18:32]The the quick way to get there is fitsf.com. It gets you right to the website. Every single night at about midnight, all of the holdings are updated so you get real time holdings. I mean, your custodians like Schwab, uh Fidelity, they they should upload the holdings. But if you want the real-time holdings, go to the website. You'll see those updated every single day on the on the website.

[00:18:52]>> Yeah. Uh >> let me tackle the expense ratio.

[00:18:56]>> What? Hey, hang on a sec because this this is another one that's come up a lot lately.

[00:18:59]>> If if you want to invest in 29,000 bazillion stocks and whatever you want to index, fine. You want to pay 0.3%.

[00:19:07]Fine. We just had this discussion in the team meeting here earlier today. Let me make the point. You know, people can talk about cost all they want, but the opportunity that they're missing is significant if they're going to pinch pennies. And let me let me give you an example. The stock we were talking about in our meeting had appreciated something like $2,000. The stock that I was talking about, it appreciated 20. One of my team members looked at the other one, said, "There's your 75 and 18,000 reasons why it's worth every penny."

[00:19:33]>> Yeah. Look, I look, I agree. I think a 75 basis point expense ratio is very fair for an active managed portfolio that's got a defined strategy that has proven for your entire career. This is your life's work, consolidating into an ETF. So, I know it's going to be successful. And that's, you know, look, the alternative is if you ran a hedge fund and you take two and 20 or, you know, one and 30%, which is a heck of a lot more than 75 basis points.

[00:19:59]>> Well, that's the other thing, too. You know, do you go to Peter Luger's in New York City and get a $200 stake and then offer to pay him 10? Do you do you quibble over whether the best brain surgeon in the world is going to give you a 50cent coupon? I mean, no. So, if you're the kind of investor that thinks the 75 bips is is an expensive fund for something you're going to buy a lifetime of work for, you know, maybe it is, maybe it isn't, but that's a decision they can make. I submit that the right manager is worth more than quibbling the penny run is pound foolish.

[00:20:27]>> Yeah, I agree. I there's never been a billionaire that's made it there by pinching pennies, right? So, you got to take risks. You got to be willing to pay the piper along the way in terms of fees and you are worth your weight in it. So, David, let's come back to you. Let's talk about how this fits into your fund family as well, the ETF family of funds as well. I want to give you an opportunity to expose some of those uh innovative ETFs that again I think are going to outlast this fad of just everyone and their mother gets an ETF.

[00:20:53]>> Yeah, you know, it's a great point about you know there's ETFs here today, gone tomorrow. Look, if ETFs it's a tough business, right, in that it takes a lot of time, capital just to get, you know, multiple six figures just to get one ETF off the ground. And so really when we bring an ETF to market, we have to feel pretty confident that the market's going to want it, that there's going to be real success behind it. Uh so Fitz is our 11th ETF that we've launched. And I'll tell you, it fits in so perfectly.

[00:21:17]It's actually our first long only ETF outside of our night, which is our overnight Bitcoin ETF. It's our first thematic really core ETF. And so we really felt that's the piece we were missing, right? We had a lot of we have we have uh global equity, we had crypto, we had nuclear defense, uh we had gold, silver, we had all these other thematic funds, but we didn't have a core thematic equity long only fund. So it really fits into there, but it really balances nicely. If you take our crypto ETF, the same kind of risk management that we brought to blocks, right? If if you you know look at that chart, shameless plug, but you know, cryp Bitcoin is down 36% since blocks launched about a year ago. Uh blocks is up 30%. So there's a 66% delta in our performance there. We take that same risk management, that same type of outlook and expertise as we as we advise on fits as we do with the rest of our fund family. So for us, I think it's if you're an investor that you're like, David, I don't know what to buy, right?

[00:22:14]I have money in my 401k, my IRA, my account. I don't know. I've had multiple people say, "David, I would much rather hitch my wagon to Fitz and let you know Keith and his his great team do the picking than it rely just on me." So, I think it's a great long only core fund to add to your portfolio.

[00:22:31]>> I agree. And I also want to see a wagon hitched up to a Ducati because that's what fits rides on the weekends. That'll be that'd be one for the record books.

[00:22:39]>> It'd be a fast wagon.

[00:22:41]>> Yeah, way fast wagon. Listen, you guys, tremendous success out of the gate. You launched last week, I believe. I looked last night. You're almost up to 50 million in aumum, which is an imply start. Would love to have you come back on. We I'll do a mini stash for a hundred million in AUM. That's probably next week, so I should stop shaving right now. But any any additional words you want to share about Fitz, the launch, uh where you can get more information, we'll put the QR code on the screen again.

[00:23:08]>> David, >> yeah, you know, so excited. What we're so grateful that for the amount of overwhelming support that we saw the first couple days of trading that we're continuing to see. So again, I think this is a fund where if you're looking to find that core for your portfolio where you're hoping to have nice diversification, but a core investment across themes, I think this is the fund for you. You can go to fitzetf.com and we are so excited. There's more to come uh from from Keith as well. So we just appreciate you being a part of the journey.

[00:23:38]>> Yeah, listen man, I'm excited for you guys. I'm honored that you came on the show to share this. Keith and I were talking maybe last week and he's like, "You should launch an ETF." I'm like, "Yeah, but the ticker would have to be four letters." And L US S doesn't work.

[00:23:50]Lose is not the ETF ticker that wins.

[00:23:53]So, we'll have to figure something better out if that day ever comes. But guys, honestly, wish you all the success in the world. Would love to celebrate the big milestones with you. Um, I am raving fans of both of you and the strategies that you implement and what you do for your clients. So, uh, much hats off to you and can't wait to celebrate our mustaches on the big skinny, uh, where Keith and I just have envy of David. But that day is coming soon, folks.

[00:24:20]>> Can't wait. Can't wait.

[00:24:22]>> You're very kind. Thank you, Lou.

[00:24:23]>> All right, boys. We'll talk soon.

[00:24:26]Honestly, there are so many good guys and women in this industry that I think don't get enough of the praise that they deserve. it eventually comes and it's just an honor to have Keith and David join us tonight to talk about the new launch of the Fitz ETF. I tell you to keep an eye on the website there, the updates. Uh you can see the all the holdings in the portfolio. So if you're looking for idea generation and I would just tell you just buy fits. I'm going to be doing it tomorrow. Wanted to bring it here to the audience first. I also want to bring to your attention as an audience that we're live on socials and we want you to follow us on socials. We want to be like this much like Mr. Beast. We don't want to have employees that are caught insider trading on Kali, but we want to have some subscribers on YouTube. And here's the benefit. You'll never miss an episode of The Big Skinny.

[00:25:11]You'll get a reminder every time we launch one. We're not just live Thursdays at 5:00 p.m. We're actually doing sitdown interviews, two to three per week that we launch on our YouTube channel. So, check those out. In the next block, we're going to feature some highlights from them from Matthew Tuttle, Tuttle Capital Management, another innovative ETF creator. But also follow us on Twitter. I refuse to call it X until Elon Musk follows me. So, we may be calling it Twitter forever, my friends. Especially after my negative SpaceX comments that have been lately on the airwaves, but anyway, follow us on X. That's uh shoot, I said it. Follow us on Twitter. It's where I share insights throughout the market day. Yeah, ruined my own rule, knucklehead. Uh we'd love to have you follow us there and find out more information. We'll be right back after a short break.

[00:25:53]>> Senator Elizabeth Warren.

[00:25:55]>> Yeah. She wants to tax AI companies and data centers. She wants to fund programs such as use the money that she brings in to fund programs like universal healthcare if those tax increases were inact enacted. Would it seriously hurt the AI industry?

[00:26:11]>> Oh me, oh my. Senator Search, she always introduces new bills to tax everything.

[00:26:16]And here's the thing. I had an interview with Governor Rick Perry uh one time and he said, "Look, if you want more of something, you incentivize it by cutting taxes. If you want less of something, you tax it more." It's absolutely going to impact the demand for AI, the growth of that trend. This is very nearsighted.

[00:26:33]You don't start taxing the railroad before it's built. You do it afterwards when there's actual margin and competitive advantages there. Uh this is akin to AOC and Bernie Sanders saying, "Let's put a moratorium on all data centers." Yeah. Why don't we just shoot ourselves in the foot and make sure we lose this AI race?

[00:26:49]>> So, you don't approve?

[00:26:49]>> I think it's the dumbest idea I've heard. But she's got a lot of these financial dumb ideas that don't work for the markets, but maybe they work for politicians.

[00:26:57]>> Ah, now you're talking. All right. All right. Stay there with me, please.

[00:27:01]>> 99% of ETFs suck, my friend. Uh, they suck. That's according to Matthew Tuttle of Tuttle Capital Management. We sat down with him in the last week and he shared not just why he thinks that. And that's funny because he's a guy that creates new ETFs, but he shared some of his ETFs that don't suck, obviously. uh as well as some unique insights on the oil industry. Uh what's going on with AI stocks in terms of do you own too much Nvidia? You probably do and you don't know it yet. So, not sure if you listen to it yet, Dodd. Did you listen to the episode?

[00:27:32]>> Of course I did. Just a couple times. I I I did, but uh you know, great interview with uh Kevin and David. I had a couple questions about >> Keith and David. You didn't even pay attention to the episode. The interview, >> dude. I'm thinking about my question, let alone the >> Keith and David.

[00:27:50]>> I'm with I don't even know. You know, like how do you you can't screw up DOD?

[00:27:54]Like I can't like >> Well, you know what that it that's that's the first thing I wanted to bring to the forefront. You know, you mentioned that the LE ETF is probably not a good idea, but the DOT ETF, I think that that has a nice ring to it.

[00:28:07]So, you know, we could >> Department of Defense Department. It could be the red department of redundancy department. There we go. It's just let's just table it for a brainstorm uh you know later. But no, >> go for it. You got questions. We might have answers.

[00:28:21]>> Now question I had you you were talking about the uh basis points. So 0.75 basis points and you said that was a good thing. What does that mean exactly? And you you have a can you lify that for me a little >> basis points is just fractions of a percent. So a 100 basis points would be equal to 1%. So you're basically getting charged less than 1% to have a professionally managed portfolio by someone who's crushed the markets for the last 30 to 40 years. So >> well that's really what I meant like you're getting charged. So how are you getting charged? What are you getting charged? So when you're getting you're getting less than 1% charge is that what you're saying?

[00:28:56]>> Yeah, it just automatically it happens behind the scenes. It gets deducted from the the calculation in the ETF in terms of the value the net asset value where the market price adjusts to. So an ETF is basically just think about putting a a bunch of stocks into a basket and then the value of that ETF or that basket is just the sum of all the stocks in it.

[00:29:20]Right? So sometimes an ETF will trade a little bit above that value and a little bit below. That's called a premium or a discount. So obviously if you can buy ETFs that trade at a small discount, you're getting a, you know, it's basically like a coupon. Uh, but there's the fees that get deducted from the assets that come in to cover the expense ratio and that gets reflected in the net asset value. So, it's take your basket of stocks, stick them all in there. If you got 10 that are worth 10 bucks, it's a $100 basket and it's going to be uh.75% less that's deducted from those assets that they manage over time.

[00:29:54]>> So, you're just paying the fees. Um it's re very reasonable like if you look at mutual funds equity stockbased mutual funds typically charge anywhere from one to one and a half percent over time. Uh with the proliferation of ETFs and lowcost ones like Vanguard, those have come down. If you're talking about a bond fund, boring old bonds, they're usually 25 to 30 basis points. So a quarter of a percent. They're kind of like the interest rates pre uh pre the the Fed hiking rates that you earned on your checking account.

[00:30:26]That sounds all exciting. But no, you're I think you know the other thing you said which I thought was um really awesome with Keith uh was that you know this his ETF, the Fitz ETF, you get his you know experience and you know to hire Keith you know just as a fund manager you would have to invest millions and millions and millions. I'm not exactly sure how much you have to vest but it's a lot. So this is a great way for retail investors to get involved. Last question real fast before we move on. I know we got other stuff. Is just to confirm, you can buy um Fitz ETF on, you know, Schwab, you know, Robin Hood, all platforms, right?

[00:31:04]>> All platforms. It's traded like a stock, trades on a major exchange. You can go in there and buy any day, sell any day as well. So, you get daily liquidity.

[00:31:12]>> All right, good deal. All right, derail the uh >> No, great questions for an ETF that doesn't suck. So, let's talk about our conversation we had with Matthew Tuttle, who uh innovative. He launched the UFO D ETF that we had him on the live stream a couple weeks back, maybe about a month ago, talking about how do you invest in space and the space economy. Um, but now we got a clip to show about, you know, just the headline out there is that oil could make it all the way back into the 60s. I think that's a [ __ ] and uh so does Matthew, but let's hear why he is in [ __ ] >> synchronicity with [ __ ] >> I call [ __ ] as well.

[00:31:50]>> Yeah. First of all, well, yeah. So, is the war really over? I mean, it's been over what, 15 times? I'll believe it when I see it. Even if it is, over means to me from an investment standpoint, I mean, from a personal standpoint, yeah, get rid of the uranium. From an investment standpoint, over means ships can go through the straight like they did before. Nobody's getting fired on.

[00:32:12]No one's got to worry about mines.

[00:32:14]Business as usual. And I think it's going to be a while before we have that.

[00:32:19]So, I don't see oil going back to the 60s anytime soon. And we've been telling people, you know, every time it dips, you know, buy the oil stocks.

[00:32:31]Went on to say, or buy the XLE, which we've talked about and been banging the table on for a while as they're 21 of the top oil and gas producers in the country. Last week, we talked about crack CR, which gives you the refiners that benefit from this high oil environment. But, um, what do you think?

[00:32:47]Like I'm curious cuz I'm in the financial media so much. We keep talking about the war in Iran ending and we're going to get to a ceasefire and the strait's going to open. What are you thinking on Main Street? You think most people are thinking the same thing like man we keep saying that every weekend by Monday it's going to be okay.

[00:33:03]>> Absolutely. I think I mean that's all you see is you know I think Trump said today that you know it this weekend is when it was going you know talks were going to happen and there was going to be a deal you know signed and I think it's it just they just keep kicking the kicking the can down the down the hallway so absolutely >> it's down the road not the hallway no one kicks cans down the hallway bro >> dude some people do and you know maybe they order >> your chops because you're making fun of the ETF with my name on it my friend but no this is Another thing that >> M lose is is not that bad to crack. I mean crack is another ETF. And I have to say this could be a great new game of you know guess the ETF. Is it real? You know we had crap.

[00:33:48]>> We can make a game of this. Well, listen. Another thing that came up in the conversation with Tuttle was about this K-shaped economy and this chart drives it home that the economy roll runs on Rolex is the headline, which is appropriate because if you look at consumer spending based upon the top 10% of income earners, they account for like 50% of it and then the bottom 80% are hovering around 40%. So this this is that whole K-shaped economy where the rich are doing very well and continuing to spend and those that are not in the top 10%. I mean higher oil prices make things more expensive. And that was the point from Tuttle is that hey don't go anywhere near the consumer discretionary sector. Here's this clip. He starts explaining why in more detail he would avoid it.

[00:34:35]>> I'm an ETF guy but I'm also a believer 99% of the ETFs out there suck. they they don't give you the exposure you want. We have an ETF we just launched.

[00:34:46]It's heavy asset low obsolescence ETF.

[00:34:48]>> I definitely want to talk about that.

[00:34:49]>> Yeah, that's got some energy names in it. But also, you know, I would I I would pick my own names because you're not in most ETFs. If you get an oil ETF, you're probably not going to get the exposure you want. If you know what you're doing, I'd pick your own names.

[00:35:04]If not, then you know, you hold your nose and you buy like XL year.

[00:35:09]>> Yeah. So he's saying forget consumer discretionary, get into his ETFs that give you exposure to these halo stocks.

[00:35:16]Are you familiar with halo stocks?

[00:35:18]>> Um I think from what he under what he explained was they're just stocks that need AI but don't are not affected by AI. Is that correct? You know something?

[00:35:27]>> Yeah. And he launched an ETF ticker is HX that trades nothing but in these halo stocks heavy asset low obsolescence, right? So they're think of physical assets that have very low risk of being replaced because of AI, right? So mining and oil and gas, uh, railroads, things that you just can't have be digitized and go away. Um, he explained that further in detail and I I think it's an interesting concept, right? So I encourage people listen to the full explanation of it and his thesis behind these companies. It's one of the newer ETFs that uh, Matthews launched. You can check out the portfolio on his website.

[00:36:07]But I think we had one other clip that I wanted to show where he gets into this interesting discussion about Nvidia because Do you own Nvidia?

[00:36:15]>> I do not.

[00:36:16]>> I own Nvidia. I own a very small amount.

[00:36:18]I got into it very late. I'm not mad about it. It's growing like gang busters. It's cheaply valued. But you probably own Nvidia and you don't know about it because you own an indexed ETF or it's in some other fund.

[00:36:32]>> It's very deep somewhere. But I I was way way late to the party and at that point, you know, I just uh I did not jump in. So >> yeah. So let's show this clip about Nvidia because he reveals where else he would be investing now.

[00:36:44]>> And I would argue Nvidia is still a must own, but you're not getting Alpha from owning Nvidia. And you got Nvidia in 30 places in your portfolio already. You don't need more Nvidia.

[00:36:55]>> Now it's memory, and we've seen those stocks go insane. It's photonics because of the speed of the data going back. And we've seen those stocks go insane.

[00:37:05]>> And to me, space is a bottleneck. And it's a bottleneck from the standpoint of we need more data centers. You don't want one in your backyard. I don't want one in my backyard. It's starting to get very unpopular. You're seeing senators say, "Hey, no more data centers. Where are we going to put them?" Elon says we're putting them in space. I'm not betting against Elon.

[00:37:25]>> So Tuttle likes space, too. I don't think he's going to be buying SpaceX on the uh the IPO though, but you can check it out in our full conversation. Uh he's a fan of Halo Stocks, which uh the head of the Launchpad here aptly reminded me that downtown Josh Brown is the inventor of that acronym for heavy asset, low obsolescence. He's got a great podcast called The Compound. Uh would love to join them one time. We'll see if it happens. Maybe if we launch lose, we can talk about how we're going to take our loser ticker and turn it into a winner.

[00:37:59]>> Yeah, you know, I just heard another idea that I thought was pretty fantastic. What about Lou? Lou Bass L.

[00:38:07]I'm out, Jerry.

[00:38:08]>> That's genius idea. I think that you're out. Okay.

[00:38:11]>> Yeah.

[00:38:11]>> Well, it's back to Dodd. Dod it is >> story for another day. I used to write under a pen name Lou Bass for Bassin.

[00:38:18]But, uh, we'll leave it there, my friends. We are coming back right after a quick break.

[00:38:25]>> There's not a revenue problem. There's no revenue problem with the money's coming in. It's a spending problem.

[00:38:30]Which is why Diamond said this also uh when he sat down there about don't chase these billionaires out by raising their taxes. Listen, >> I think good the other good policy is free. I feel like telling the politicians, don't don't try to raise more taxes or spend more money. Sit down and fix policy.

[00:38:47]>> Hello. Yeah. Yeah, I mean, you can't raise more taxes if you force your tax base out. And David's exactly right.

[00:38:52]This problem, the tide's been going out for a while. If you just looked at new business formation in New York, it's down 4,900 businesses through the second quarter of last year, which is phenomenal to think about that. I think I can't decide. Is this tax and flee economics or is it the make Florida and Texas richer now? Because that's exactly what's happening. And I think it's too little too late. I don't know if if Jaimeie Diamond was super stern with mom Donnie that it can really stem the tide.

[00:39:16]I think we're going to have to work through this and really see the negative consequences in New York City.

[00:39:23]>> Are GLP1 drugs the next miracle in the making?

[00:39:28]>> Do you f around and find out in some stock investments? Is an IPO too expensive? We're going to cover that all and more in Headlines and head scratchers, Dodd, right now. Right here.

[00:39:40]This is my favorite segment, by the way.

[00:39:42]>> This is your what?

[00:39:43]>> My favorite segment. And you can't talk about how we ended the last segment cuz this is a new segment. That didn't happen. It's selective amnesia. I've forgotten about that. I remember only what's >> even explain why my face is red because of the last segment.

[00:39:58]>> GLP me. Let's do it.

[00:40:00]>> GLP me. I look I did some more research because I have been an early advocate for GLP-1 drugs solving a just host of other metabolic disorders. And lo and behold, the latest study comes out talking about GLP-1 use lowering the incidence of breast cancer in women that have been using the drug. Um, and I'm I'm really reluctant to call them drugs because they're just chains of amino acids, which are the building blocks of proteins, which is basically how the entire body functions. Those are the signals to the immune system, to the entire body, what to do, when to do it, how to do it. Um, but we're seeing a growing list of of diseases and just conditions that GLP1s treat. You want to guess how many I counted that there's sturdy scientific evidence for treatments with GLP1s?

[00:40:50]>> Do I want to guess? Uh, >> yeah, just guess. I mean, what's the over under? Do you think it's 5, 10, 30, 50?

[00:40:55]>> I'm going to go 14.

[00:40:59]>> Double it and add a few more because it's 38 as of last night. as many as I mean you got breast cancer other other types of cancers you have sleep apnea forms of addiction these are very credible clinical studies FDA validated also early studies and indications that GLP-1 drugs really do solve a host of other indications or potentially outside of what they were originally created for which was the type 2 diabetes uh and then now obesity right so this story is far from over if anyone's listening and doubts it, go listen to last week's episode where we talked about Eli Liy. I think that is the ETF in a stock way to play GLP1s and the future of just modern medicine.

[00:41:45]And >> do insurers start looking at GLP1s as a preventative medicine at some point? And then is that, you know, just from a from an investment perspective in those companies just another, you know, launchpad?

[00:41:59]>> Yeah, for I think they should another launchpad. Well, the Oh, nice nice plug.

[00:42:03]Um, I don't I don't think I would never buy the insurance companies. I think that's a really tough business. Medical insurance in particular, uh, the margins aren't there. So many people are uninsured. So, insurance companies have a really tough battle making profits just like hospitals do. But no, I definitely think investing in GLP1s, Eli Liy is the play for me, not Novodorisk.

[00:42:25]Novadoris kicked off this whole space with Ozmpic and WGOI, but that's semiglutide. If you remember from last week, how many receptors does that target?

[00:42:34]>> One.

[00:42:35]>> Look at you, man. Eli Lily has tzipetide, which targets >> two.

[00:42:41]>> That's right. And they also, we talked about their latest GLP3, which is retatrutide. Dan Newman corrected me.

[00:42:48]Retataride. Whatever it begins with an R.

[00:42:51]>> Watch the episode if you want to pronounce that correctly.

[00:42:53]>> Yeah, it starts with it starts with an R for triple. It's got target three receptors showing over 80 weeks 30% weight loss. Dude, that's the equivalent of beriatric surgery where you're basically restricting the flow of food into your stomach. Uh yeah, give me an injection instead of performing surgery on my internal organs. So going to be the next blockbuster drug in my opinion.

[00:43:16]>> Just that fact alone is pretty crazy.

[00:43:18]>> It is, isn't it?

[00:43:19]>> Crazy. Yes. All right. IP dough.

[00:43:22]>> IPO do Homer Simpson here. Look, this is the easiest way to explain. There's 99 problems and SpaceX has about 98 of them. Uh, this one being their price to sales ratio. It's close to 100 times. I think the latest valuation for the price for the IPO next week is $135 a share, which equals about 90 times sales. Super expensive. Way more expensive than the companies that were coming public in the dotcom days. All that to say, SpaceX is going to be a great investment at some point, just not in the IPO.

[00:43:55]>> See, I I wore my UCF space game uh butcher golf quarter zip just for the occasion of the IPO. The >> I don't even know what a UCF space game is. Is like is that where they go try and play on another planet so they can win or like I what is that?

[00:44:09]>> Do you really want to know?

[00:44:11]>> UCF is was known as an aeronautical university because we are just very few miles from Kennedy Space Center. So back in 1963 when the university was founded, it was a uh you know it it it taught a lot of uh you know the engineers that worked on uh all the rockets and spaceships. So UCF is uh us in Houston kind of battle it out a lot for who's the uh >> the uh space university.

[00:44:39]>> Look at you dropping extraterrestrial knowledge on the pod about your alma mater UCF. Go Gators. But the cool part is they make some killer uniforms for spa for the space game every year. And uh you know, Butcher Golf made some awesome ones, too. So, >> butcherolf.com where you can get 25% off your first order if you put in sweet Lou in the coupon code. Go to butchergolf.com. This man is wearing it right now. Really fast, really custom.

[00:45:09]Quarter zips and golf polos in 25 days or less. How's that for a cold?

[00:45:13]>> Wow. This turned into an advertisement.

[00:45:15]What are you doing?

[00:45:18]>> That's right. Dodd is a man of many talents and businesses. So go to butcher golf.com. F around and find out is next.

[00:45:26]>> F AFO.

[00:45:28]>> Yeah.

[00:45:28]>> Another another you know last last week or you know we had you know someone getting arrested for uh you know polyarket scam. This is uh you know a short seller. Who is Andrew Left?

[00:45:38]>> Yeah karma sucks. That's what I got to say. as long as you're doing bad stuff.

[00:45:43]Andrew Left, notorious short seller.

[00:45:46]2017 to 2023, I think, was the uh charges that were against him. I crossed paths with him a few times. He had a huge platform to put out short recommendations and he would say he was long or short something and then actually be doing the opposite. Got busted for market manipulation. Some people crying because it's free speech.

[00:46:06]You should be able to say what you want.

[00:46:07]That's not the issue here. This is not why why he got found guilty on I think 13 of 15 or 13 of 17 charges. It's because he was disclaiming one thing and doing the opposite. The SEC rules >> Yeah. for financial gain for to the tune of $21 million of what they know of. My guess is that it was much more than that. He was arrogant about it, too. So, he got what was coming to him. Uh I had some nasty interactions with him. And here's the thing, the SEC and FINRA are fine if you say, "I love this stock. Go buy the hell out of it." And as long as you disclaim and say, "I own it. I got paid to talk about it. I, you know, I got given shares to talk about it." As long as you disclaim what your ownership is, you can say whatever you want. So that's not market manipulation. That's advertising, right? But the problem with him was he was saying one thing and actually doing the opposite. And then it probably didn't help either that he was talking with hedge funds in advance and like, "Hey, here's a heads up. I'm going to be bullish on Nvidia." And then the hedge funds were getting the front run those trades. He posts about it, it ripped, and then they they sell and make retail investors the suckers that bought bought all of it. So, good for him. He deserves whatever is coming to him because he definitely is guilty of it. I know it firsthand.

[00:47:18]>> So, be careful who you follow.

[00:47:20]>> That's right. Be careful who you follow.

[00:47:21]And I don't even have to disclaim this with allegedly. He's convicted. He's guilty.

[00:47:26]>> All right. Cushing Cushing.

[00:47:29]>> Say that's >> I had to look this up. This is where in Oklahoma. Cushing, Oklahoma is where a large oil supply is. Is that >> Cushing is where all the oil and gas comes down to for the most part. It's a collection point for oil and gas in the United States. There's obviously storage there with the war in Iran going much longer than anyone anticipated. We're having to tap into storage in those tanks. You're talking about a very precarious situation here where if we get down, it's supply and demand. If supplies are dwindled and we're at the bottom of the tanks, guess what's going to happen? Demand hasn't changed. So, prices are going to go way higher. I think we're on the cusp of another energy crisis. No matter if the war in Iran stops today, tomorrow, uh or uh by Monday of next week, we've really depleted about a billion barrels worth of oil. Uh we've harmed infrastructure.

[00:48:14]You can't just flip a switch and turn this thing back on because the straighter Hammuz has reopened.

[00:48:19]>> Are we just running out of oil? Is that what that means?

[00:48:21]>> We're not running out of oil. That's a peak oil. That's nonsense. We don't We don't spit nonsense here. That's Yeah, >> it was a question. It wasn't It wasn't a statement.

[00:48:29]>> I know. Yeah, it was a question. But here's the question. We have 60 seconds left, my friend.

[00:48:34]>> Oh, beer me.

[00:48:36]>> We started late, so we got a few more.

[00:48:38]We Dan, the man of Tan says we got more and I got a little bit left in the beer.

[00:48:41]Beer me.

[00:48:43]>> All right.

[00:48:44]>> I can't remember. What are we talking about?

[00:48:46]>> This is uh I don't know. What is this?

[00:48:50]Longevity medicines.

[00:48:52]>> Um big betting aging drugs could become biotech's next massive market. This is because you've been banging the drum on biotech for a long time, right?

[00:49:00]>> Yeah. And I think I've figured out how to reframe it, right? Because biotech for most investors has been considered binary, too risky. The drug works, you make a bunch of money. The drug doesn't work, you lose all your money, right?

[00:49:11]It's kind of like red or black on the roulette wheel, right? It's you win with one, you lose with the other depending on where you bet. I am arguing that science and AI is enabling this even more to the probability of these drugs that get developed is going up and higher and higher and we're now entering an age of longevity where you're going to see people living to 120 150 years old on the regular that sounds preposterous. What sounds even more preposterous about six or seven months ago I said within 10 years we're going to treat most forms of cancer like we do a headache. You're going to pop a pill and Advil and it's going to go away in a couple hours. It sounds crazy, but the science is not. This is a validation of it. Beer me, because we're right. This is going to turn out. This is some of the the founder of Coinbase is leading this longevity charge. They're focusing on anti-aging in liver cells. So, that's why it's the beer meat, right? The good old Irish in me says, "If I have one too many Guinnesses in my lifetime and we apply this longevity drug, we can reverse time and we can keep drinking Guinness all the way to 150 years old."

[00:50:14]>> I like it. I like it. So, a lot of innovations to come. It's funny. We've we've kind of just inadvertently focused on several themes. We just kind of aggregated around it. So, ETFs, there's so many. There's too many tickers, not enough time to evaluate it. So, we're going to help you sort through that noise. Biotech, uh, we've unearthed a ton of different opportunities there. We got a question from Falco. Viking Therapeutics. Want to hear if you're still tracking it. Absolutely. I think Viking Therapeutics gets acquired by Eli Liy or Nova Nordisk. Um, it's the only way that Nova Nordisk is going to get out of the value trap. It's they need it to leapfrog ahead of Eli Liy in this GLP-1 race. So, Viking has actually arguably the best clinical data in terms of a weight loss drug. It's also administered subcutaneously and in pill form. So, it would be a huge differentiator. Uh, so yes, Viking Therapeutics still own it, still like it with biotech. You got to be patient.

[00:51:13]Oh, sounds like Kramer. But Kramer hasn't been busted yet. Is that me or is that Andrew?

[00:51:18]>> I think he's talking about the guy in handcuffs. I don't think you, sir.

[00:51:25]>> I'm just busting. Chad Tower is always making an appearance and we appreciate it for you. This beer's for you, Chad.

[00:51:31]This beer's for all of you for tuning in today. Hope it was worthwhile. We'll be back. Same big skinny channel. Same big skinny time. Actually, 6 p.m. next week.

[00:51:40]We got some uh other >> you skipping before >> obligations.

[00:51:44]>> Yeah, I I don't know what we're just gonna be at six next week. So, for the next two weeks, tune in on X or YouTube and follow us on all the socials so you never miss another episode. Big Skinny Live coming at you next week.

[00:51:57]>> Don't say go Nights.