Are new ETFs worth the hype? An insider’s view into the world of investing

Are new ETFs worth the hype?
Today Kate & Owen chat to Nick Nicolaides, the founder of Pearler, our wonderful long-term partner of the podcast.
In today’s conversation, we’re tackling a topic Nick is very familiar with: ETFs. Specifically, what are thematic ETFs, how new ETFs come to market and how to know if you’re falling prey to an ETF hype cycle. Plenty for brand-new and experienced ETF investors to take away today, so let’s jump right in!
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[@donnamari4259]

What about tax return time. How do you declare your ETFs and how does it effect tax return 🤔

[@jasonbourne6323]

Nick seems a little carefull with his words. Just seems like he really doesnt want to market theme etfs as a wise choice.

[@mangoman9290]

Sector picking is just one step away from stock picking :)

[@DerekDDuval]

Strange no one mentioned the fact that thematic ETF’s have higher fees. Surely that’s THE single most important thing to discuss?

[@DoubtingThomas333]

Well... especially when they're several X more expensive than a typical index. I generally have a rule of 3x the median cost of a typical index. Otherwise, it's off the table as an option.

[@RaskFinance]

Fair enough team! These are great comments. We have covered thematics so many times, we probably just neglected to make that - very important - point. I (Owen) kind of just accept *slightly* higher fees for thematics or “non traditional” investments (emerging markets, private markets, etc.). @DoubtingThomas333 I like your framework! For example, an Australian shares thematic ETF might have… 0.3 in fees and be okay under that rule? Given VAS and others are about 0.07-0.1? MVW (equal weight) is 0.35% MER. Which isn’t really a thematic. Nor sector ETF. So it probably doesn’t *need* a higher fee to pay analysts or whatever…

[@iamdedlok]

ROFL. 29:24 Kate's Reaction to Nick's response to Owen's statement is GOLD! hahahaha