Transcript
Scott McKenna:
You can see here there’s a button contact sales, sign up. I’m going to click that sign up button. And so you guys go to app.logicly.finance, click on that sign up button. You’ll see here, this is the subscription offer. That’s just the list price. We actually have a special price for you guys at the end. You got to sit through the whole thing and we’ll give you some special discount on this pricing here. You can subscribe right away if you’d like, or you can go ahead and click the free trial. I’m assuming most of you guys are going to click the free trial. That’s going to give you seven days free access to the platform. So you can go ahead, give us your details right now, fill this out, let us know what region you’re in. So I assume United States, agree to then user agreement and then click sign up.
Scott McKenna:
You’re going to get an email from trials@logicly.finance. Make sure that you check your email because you have to confirm via that email to get into the platform. But once you confirm, you’ll be able to look at some of the same stuff that we’ll be looking at in the platform. And we’ll walk you through how to look at each one of those things and where to get to a specific place where we’re at in the platform throughout the event. So jumping back to the deck here, just a quick disclaimer, this video is for educational purposes only. So no information that me or Lindsey Tewell are talking about today should be considered investment trading or tax advice.
Scott McKenna:
So before we get started again, I wanted to have you guys involved interacting with us. So if you could answer the question here, let us know, what are you currently using to construct and analyze portfolios? You can respond to that audience question using the chat function, which looks like this bubble here, or you can ask questions to presenters or answer anonymously using the Q & A button that looks like that. And actually if you type into the chat as well, no one else can see those except me and Lindsey. So you don’t have to worry about any of the other attendees seeing what you’re talking about. It’s just goes to me and Lindsey, and we won’t say any names as well. We’ll just say, a presenter. So who are we? My name is Scott McKenna and I’m the Sales and Marketing Director here at ETFLogic. And today I’m joined by Lindsey Tewell, who’s our Head of Sales, head guru of the Logicly platform. Lindsey, how are you today?
Lindsey Tewell:
Hey, I am doing well. Thank you guys for joining.
Scott McKenna:
So Lindsey, do you mind giving us just a little bit of background on ETFLogic and our platform for those who might not be familiar?
Lindsey Tewell:
Yeah, sure. So ETFLogic, I’ve been with the company since our inception a little over three years ago and at the heart of it, we’re really a technology company, but we all come from the ETF world and we came together a few years ago, looking at the rise of passive investment, rise and BTS, right? There’s a new one every day. There’s about 5 trillion or more in assets now, I think. I saw half a trillion came in just over the last 12 months. November has been a huge month for ETFs, specifically US Equity ETFs. And we came together and said, there’s really not a great B2B level analytics platform to help understand and bring transparency to this rising investment space. So we started working with ETF issuers first and understanding their pain points and presenting their products to folks like yourself, advisors, [inaudible 00:03:45] asset managers, etc.
Lindsey Tewell:
And we started building tools around showing a liquidity of an ETF. ETFs trade on exchanges. So there’s differences between ETFs and mutual funds, obviously. So there’s some complexity that needs to be education around. There needs to be tools to help convey that to the investor community. So we started building the tools for the issuers and then over the last year or so, we said, you know what? Why don’t we level the playing field and make this platform available to advisors.
Lindsey Tewell:
So instead of just listening to the whole sellers calling you, I can say that because I was one of them at one point, you can actually do your own research and diligence on the ETF space, through our platform. You can construct portfolios on our platform. You can analyze those portfolios, optimizes those portfolios, present recommendations to clients, showing why you selected a certain ETF or built a model around it. And I know I keep saying ETFs, because that is you. The heart of our company was starting from ETFs, and we’ve now grown to add a mutual fund support and give single stocks support, and we’re a truly global platform. So that was kind of a long-winded explanation of who we are, but just to kind of set the stage for what… Sorry, Leo, my dog wanted to jump in there.
Scott McKenna:
Sounds like he has a lot to say about Logicly as well. So let’s talk a little bit about the topics that we wanted to discuss on today’s event. Number one, I think we want to go over some potential 2021 market trends that we’ve identified and think would be a solid investment opportunity for your clients in the new year. And we also want to talk a little bit about taking those trends and we’ll look at specific ETFs within each one of those trends, but then we want to also look at some ways that you can implement those trends into your portfolios and analyze them, since that’s big part of what we do here at Logicly.
Scott McKenna:
So in terms of the… Well, before we get started and talk about some of the trends, want to get some feedback from you guys who are watching, what do you think are some of the strong themes that we’ll see in 2021 with the markets or just generally economically? If you want to drop those answers in the chat, just let us know where you think some trends are that we’ll see in 2021. And then we’ll jump in and we’ll talk about some of the trends we’ve identified.
Scott McKenna:
Awesome. So a couple of different responses, people say, expect to see a lot of volatility, our big rebound if we see some vaccines and that’s actually one of the first themes that we’ve identified as well, is the potential for a vaccine. I think I saw something just pop up on my phone earlier about New York actually almost being able to get a couple 100,000 doses of the vaccine, if everything goes accordingly by December 15th. So I’m sure we’re going to hear more and more over the next coming weeks about a potential vaccine. So obviously that has a big impact on how we’ll see the markets play out, right? In the next couple months. Similarly, I think Congress has been battling over this a fiscal stimulus. So we’ll dive into that trend and talk about some ETFs. I would encapsulate that trend.
Scott McKenna:
Also, we’ve recently seen the value in terms of factor investing value ETFs, and the value factor has been kind of on a comeback recently. Also, with some of the policy changes that we’ll see with the Biden administration. I think another trend that we had identified is clean energy. So we’ll talk about clean energy, ESG, ETFs. And another interesting one as well is cannabis. So with this past election, we saw a bunch of states come out and have some kind of legislation that was pro cannabis. I think Congress has set to vote on some kind of decriminalization or legalization pretty soon. So we’ll talk about some ETFs within that category. And then also globalism. So as we see with the new policy of a new president, as well as if we see a vaccine and things start to open up again, we’re going to see more of a globalist attitude. And we’ll talk about some ETFs that would capitalize on that trend.
Scott McKenna:
So Lindsey, why don’t we talk a little bit about the one that we had an identified, right? Which was the vaccine. So Pfizer had announced that their vaccine candidate is over 90% effective now. We’ve seen other ones as well. And so let’s talk about some ETFs. What do you think are the ETFs that are going to set to benefit from something like that?
Lindsey Tewell:
Yeah. So I think, we’ve heard from Pfizer, we’ve heard from Moderna, we’ve heard from others. We just saw the UK approved the vaccine. I think we’re still at the FDA with us. But when we think about vaccines, we think about healthcare obviously and biotech companies. We have a tool on the platform and you can actually look for ETFs that have exposure to Pfizer or to Moderna, or any single stock globally. You can see that. So there’s a few ways that we could go about finding an ETF that takes advantage of that potential ongoing theme. So maybe the first thing we could show would be… Well, while we’re on this screen are we looking at the trends, just some of the things that we brought up, you can see right here, right?
Lindsey Tewell:
This first ETF, GERM. It’s a treatment testing advancement biotech, ETF. And that was looking earlier and actually the largest holding within GERM is Moderna. So that’s interesting to see. You also see the cannabis funds up. And right now this is the market trend screen, which is the homepage for the platform. And there’s different views of this. And right now, we’re just looking at US listed equity ETFs over the last week, in this case month, for buy returns, you could also look at that by a different asset class in the score. You can look at it by flows. Also, we’re fully global. So that dropped down menu where you see the US flag, you can look at any country where ETFs are listed.
Lindsey Tewell:
So this is a great tool just to keep up with what’s going on. It’s always here when you sign in, you can take a look and you can always drill down further into any of these ETFs. But while we’re talking about biotech and vaccines, another way that you could look to see what ETFs have strong percentage holdings of a particular single stock is the stock to ETF lookup tool. So we just typed in Moderna MRNA. So we’ll get a list of all the ETFs that have the holding as a holding, and then we can sort by the weight column there, you can see BBH and GERM have the highest exposure to that name. You could also put multiple tickers in there. So if you wanted to see who has the most exposure to and Pfizer, right? We can add that energy the same kind of sort by weight. And you can see ETFs that have both names.
Scott McKenna:
Excellent. And then also, if you wanted to export this, and this is available on all the tools, you can export any of the visuals into Excel or PDFs. So if you’re writing, let’s say market commentary, blog posts, anything that you’re sending out to clients, talking about the markets or removes your specific, maybe you want to give them the list of ETFs, right? And say, hey, I know you said you wanted to get in, cash in on Moderna and Pfizer. Well, here’s some ETFs that would kind of diversify that exposure, right? So you can put that into Excel, PDF, and you can even customize it. So you can put your logo, you can put a name you’re prepared for, and that’s available on basically any of the tools.
Scott McKenna:
So you’re able to take those reports, share them with your clients. A big part of our platform is trying to make it a little bit simpler and easier to look at when it comes down to communicating both investment decisions and outcomes with your clients. And we’ll show you more about the outcomes when we go into portfolio analysis, but just wanted to highlight that feature. So jumping back to these… Oh, well, another thing that would benefit, right? So airlines obviously travel has been down significantly. If we saw a significant rollout from something like a vaccine, globally, we could expect to see ETFs such as JETS, which is a global airline ETF. And also, this is a recently new one it’s called AWAY, and it’s a travel technology ETF. And I’m going to pop that open, actually curious to see what kind of companies are within that.
Scott McKenna:
So kind of reverse engineering. We were thinking about stock to ETF lookup, right? For things that were had exposure to Moderna and Pfizer, in the same way, we can go ahead and say, I’m interested in what stocks are within a particular ETF. I searched for that ETF up in the top. I’m just going through it again, if you guys are following along in the platform. So I searched for it. I see AWAY US there’s that travel tech ETF. And I could see there’s a whole lot of stats here to look at about it, but I’m just curious about top holdings. Right? And I can even pop that open and look at full holdings and now I’m able to see, okay, what kind of securities are within this travel tech ETF. You can see things like Uber, Expedia Group, right? Lyft, Tripadvisor, all things that would definitely be up right. If we saw travel surge after a vaccine. So another great way to kind of think about it the other way around and say, hey, I’m curious what stocks are within a particular ETF.
Lindsey Tewell:
Yeah. And with the other ETF, we mentioned JETS, I was looking at that today and flows into that have been insane. So in March, the beginning of this, assets were only 30 million, and now assets are up to close to over to two billion. So you can kind of see that trend definitely playing out.
Scott McKenna:
Yeah. I can see, I clicked advanced charting here and I’m kind of opening up the chart for JETS. And what I can see here is actually the volumes as well. So I can see recently on November 9th, last month we saw a huge volume and overall, people have been trading this name a lot more than they were back in August or definitely March. Right? And then people can, there’s a little more interest here in June. So we can expect to see that, and you can even compare this. So let’s say we want it to look at JETS in a way the pricing for those, I can pull that up again, looking from now, I’m going to go back to March 1st to yesterday, the pricing for those. So you can see steep decline for both of them. And they kind of tracked pretty similarly, right? Although AWAY is a little bit above, but a great way.
Scott McKenna:
And then if I wanted to share this, I can go ahead and download that PNG, JPEG, SVG, or PDF to share in market commentary. Let’s say I was writing a blog about these two ETFs, I could go ahead and do that. So a great feature again, if you’re sharing content with your clients. So jumping back, let’s talk about the second theme that we had identified. Right? Which is a fiscal stimulus. So I think a lot of investors agree that we might see some kind of fiscal stimulus that’s if there’s no vaccine, right? Within the next month or so. But there’s still no real idea of timing or size of a deal, but Lindsey, why don’t we talk about some ETFs that we think would benefit if we did see a second stimulus?
Lindsey Tewell:
Yeah. Even with the vaccine, I think we’re still going to see some sort of stimulus, I think, especially, with the announcement of Janet Yellen, as new treasury secretary, it’s kind of reignited things. And I know there’s a lot of different discussions with different plans being proposed, but I think that there will be something. And so with that, you think when there’s some sort of injection of money into the economy, you think that folks will use that money for things they need. Right? So for food, for consumer staples if you will, so maybe look at stocks like Walmart or different grocery chains. So I think maybe to dive into this let’s go into the ETF screener. And it’s a great idea-
Scott McKenna:
So for those who were following along as well. We went to that hamburger menu on the side, pop that open, and we clicked ETF screener to pull up in this tool.
Lindsey Tewell:
So in this first view that you’re seeing, this is our predefined screener, so we’re giving you how we break down peer groups. So right now we’re just on US equity. So you see the different market cap, large cap, mid cap, etc. And seeing the different sectors, they’re all greens. They’ve all been up over the last, this one month returns over the last month. And then you can drill down further into any of these groups. So if we look at consumer staples, again, this is just plain vanilla market cap, weighted consumer staples. There’s probably more consumer staples within equity tilts and smart beta type of BTS. But in this case, it just gives you five. And as you see, you get a quick glimpse of the important statistics to look at, AUM, expense ratio as volatility, returns, flows, but you can also drill down further into those on the different tabs above.
Lindsey Tewell:
One of the unique things that we do is equity fundamentals. So what makes us different from the Morningstar for example, or Ycharts is that we get the daily fund files from the issuers on a nightly basis. And we do all of our analytics at the individual stock level for the baskets and make up the ETF. So that allows us to do things such as this. So your traditional cashflow balance sheet income statement ratios, you can look at the ETF level. So if you’re used to looking at single stocks and reading equity reports, you can do the same thing here with the ETFs tap level.
Scott McKenna:
Yeah, that’s super handy. I know a lot of people have complained about other platforms because it doesn’t give them that same level of deep dive into equity ETFs, and somewhere with fixed income. Right? I think, one of the key thing differentiators for us is kind of showing off and diving to the constituent level of the fixed income holdings, which I think some other platforms fall short when it comes down to looking as thoroughly at fixed income. So let’s say Lindsey, that we have two that we’re interested in, I’m just going to go back to the overview, let’s just say we pick the two cheapest ones here. Right? So FSTA and VDC, how would you kind of go about choosing which one to pick? Right? I think-
Lindsey Tewell:
Yeah, so I didn’t… I mean, we haven’t been tool for this, which is called our side-by-side analysis. So we could go back to the hamburger tool menu, and under portfolio tools, the side by side. This is a great way to look at, compare to ETFs, which we’re going to do in this case, which were FSTA and make me see that FSTA. And here you can actually, you can put as many checkers as you’d like here and create your own portfolio, mutual funds, single stocks, cash positions, ETFs. Of course, you can upload your own portfolios. You can pull them in from your custodian, etc.
Lindsey Tewell:
But for purposes of today, we’ll just look at these two ETFs. Our goal is to find which consumers staples, ETF makes the most sense for our client’s objectives. So when you hit apply, also to mention there is a set benchmark, so you can set your own benchmark. In this case, we’d probably just do SPY since It’s a US equity names, but the system does default to a… It’ll automatically give you a benchmark, but you can change that to an ETF, to a blend of ETFs, really anything you want. So when we hit apply, we’re going to see comparison of these two names. Yeah. The profile, what’s the AUM? Expense ratios, which we did see on the screener, but a little bit more detail here. And visually you can see.
Scott McKenna:
And Lindsey, what says this ETFLogic TruLiquidity score?
Lindsey Tewell:
Yeah, so we did a lot of work, especially the first tool that we built for issuers. And when you look at an ETF and you see it’s trading on screen, you look at the AEB and some ETFs might not be as trade as much on spring, but that doesn’t mean that they’re not liquid. Liquidity is based on the underlying. So as long as the underlying is liquid, that means that ETF is truly liquid. And there’s different degrees of that. So we do our own analysis on that at the individual stock level, again, to give you a score and it’s based on a curve, but then it wasn’t in the peer group. So it looks like Vanguard in this case has a higher, TruLiquidity score. And that’s, again, based on the underlying and against the peer group.
Scott McKenna:
Mm-hmm (affirmative). Cool.
Lindsey Tewell:
And so here, you can see obviously the performance of the two very close here.
Scott McKenna:
And we can look at different timeframes there to… So we can see over the past whole, let’s say six months or a year, right? We can see that VDC tracks a little bit higher than FSTA. Asset class breakdowns, obviously in this case, they’re very similar. Right? They’re all US stock. Geography the same sector, obviously it would be a little bit concerning if they weren’t a 100% the same. Right? And then here’s where it breaks down a little bit further, right? When we go into industry breakdowns, again, market cap, they’re mostly the same in terms of being large cap names, right? Some mid caps and very small cap exposure. But in this case, household products, VDC has much stronger food products, much stronger with VDC, right? Tobacco, more exposure through FSTA.
Scott McKenna:
And then going further into the performance measures. We can see the entire history, year to date, calendar returns, trailing returns. We also show that on a chart here. I took off the benchmarks since I don’t want to look at 60, 40, SPY. Right? But again, you can set that to whatever you want. I’m going to take those off again. And you can see here the risk overviews as well. So I know risk is an important part of what advisors are looking at and talking about with clients, right? I’m sure you guys are often talking about the risk of investments with clients, so we show those here. So comparatively, pretty similar, but if you want to just shave off 0.4% of risk of volatility, you’d probably want to go for FSTA.
Scott McKenna:
Factor exposure. So factors is another unique thing we look at, right? So we show the beta sensitivities to each one of these factors and that’s based off of a traditional Fama French model. And then taking those factors and putting them into a back test. So again, I took off that benchmark and I get very similar factors so tracked very similarly, when we’re talking about the historical back test as well. Also, scenario analysis. So I’m sure you guys get questions a lot about, how would this perform, in this case we’ve added the pandemic, right? So how would this have performed in the pandemic? While you can see here a 20, 15, another global market sell off, something like the great recession. Seven, you can see how they would have performed. So great kind of talking points to say, hypothetically, this would have performed like this, in this market environment.
Lindsey Tewell:
Given the factor profile of the… Yeah. So it’s a simulation to show how it could have performed.
Scott McKenna:
Yeah. So that kind of covers the second topic. Another one Lindsey, I think you wanted to talk about was the comeback of value. So while we were on the topic of factor investing, we’ve seen some movement in the value factor, correct?
Lindsey Tewell:
Yeah. So it looks like value’s kind of peeking its head again. It’s been a long time. It’s been about five or six years that growth has really been dominating, outperforming value and especially driven by tech. But with this whole kind of reopening recovery mode, if you will, that we’re going into just in the last month, we’ve seen value outperform growth. The vaccine is helping that obviously. One that I was looking at, it’s not mentioned right here, but I was looking at this ETF today that struck my attention is one of JPMorgan’s JVAL. So maybe we could go into the platform and just look at this one. It’s interesting because it’s diversified value play and it’s sector neutral. So it’s not weighted heavy in any sector, but it limits the single stock exposure within the ETF to just 2%.
Lindsey Tewell:
So it’s very diversifying play on value. And so if you look even as a performance and kind of hover over, just look at November 1st, right? You see the spike up going into today. So this is one that I was looking at personally. I think also a small cap, this one is I think it’s diversified. So it’s large and small. And then, but small cap is also coming back and playing in the mainstream and smaller companies with the recovery play.
Lindsey Tewell:
But maybe one of the other tools we can show with this is if we showed the overlap in correlation. So we could look at other plays similar to JVAL here, we’ll show you other ETFs that are highly correlated or have to be of high overlap in the constituents. So that first column, or the third column is showing the correlations of SPVU, which is a Invesco Enhanced Value or iShares Value. The KBWB, which is the Invesco regional banks, ETF. That’s interesting. I’ve heard a lot about that, smaller banks and financials coming back with the value play. So it gives you a breadth of things to take a look at, just by plugging in that overlap and correlation tool.
Scott McKenna:
So yeah, we can sort that right, and say, and you could even reverse engineer, right? Let’s say we wanted to find something that had little to no correlation to JVAL, if we were trying to diversify, right? You can kind of use that same thing with these and say, AVUV, if you wanted to get more small cap value, right? There’s only 5% of JVAL in that ETF. So you can really diversify your exposure that way.
Lindsey Tewell:
Yeah.
Scott McKenna:
Excellent. So moving to… I think we had also identified financials, right? Would be another one that would kind of value a boost in… If you wanted to look at financials, for those of you guys who are on the platform, you can go ahead, hit the side menu, you go to the ETF screener, and then you can actually use the detailed screener. So we’re going to pop open the detailed screener and there’s a lot of different tabs here. And we can go ahead. Let’s say we want to look at the classification. We can see exposure countries, development levels, and then here’s where we’re going to get dive deeper into the sector. So we want to find ones with financials, see that universe of almost 2000 ETFs is now down to 300. I’m actually going to go back up to the top. I just want to look at US listed ETFs in this case, again, because our platform is global. When you go through the screener, you’ll see a lot of ETFs.
Scott McKenna:
So now we’re down to 81 US ETF funds that have financials exposure. We can go ahead and there’s a lot of different tabs here to look at the group of ETFs in different ways. In this case, we want to look at classification, right? So we’re going to go and look at this. We can see the asset class exposure, market cap main exposure, development level, and I’m going to scroll over and again, in this case, they’re all financials. But then you can dive even deeper into the subsectors as well.
Scott McKenna:
So if we wanted to sort this and look at specifically banks, right? We can see here the list, the top ETFs here are going to be like KBE, KRE, IAT, right? So you can dive even deeper into those classifications to take a look at that. And then let’s say you wanted to create a watch list as well. So let’s say, I want to keep an eye on some of these. So I’m going to add to watch list and I can create a new watch list and call it banks watch list, and you’ll be able to pull that up whenever you want and get alerts and just keep those ETFs in mind when you’re talking about different investments.
Lindsey Tewell:
Well, while we’re here, let’s go over to the ESG tab. So this is also something unique that we do. So we use a data provider called Arabesk Asway and they rate or score companies on different ESG metrics, environmental, social governance, even labor rights, human rights, many different things. And so we take that at the individual stock level and then, percolated up to the ETF level or to the portfolio level and give you what those scores are. It’s interesting because it’s a zero to 100 scoring, but really all of those scores seem to be within 30 to 70 on the high end.
Lindsey Tewell:
But it gives you a drill down and you can… Your client doesn’t want alcohol exposure or gambling, or tobacco, or firearms, any of those things, you can immediately see in the flags or the percentage of that ETF that has that exposure and say, okay, maybe this is not a good fit. And then you can even drill down further on our platform to see where that’s coming from within the ETF, what that single stock is. So you could, as Scott Larson said, you could reverse engineer and say, where you just take out that one single stock or find ETFs without that stuff.
Scott McKenna:
Yeah. And on the topic of ESG, I think that kind of goes into the next theme that we wanted to talk about. Right? Which was clean energy. We can see from a Biden administration that there’s going to be more emphasis on maybe getting back and doing some climate deals and focusing on more environmentally sustainability. Right? So going back, I’m going to clear all these, I’m going to click reset all filters here. So that’s pulling out all of those filters that I said, I’m going to go back again. I want to say only the trading country is the US. So I said, trading country is the US. Yeah. I took out. And then I’m going to close the general and I’m going to look for the tags and you can see there’s different tags. So I’m going to click the ESG tag.
Scott McKenna:
And it’s interesting too, I think we’ve identified 62 funds here, but a lot of ETFs have ESG in their name, but in reality some of them actually have pretty high exposure to basically your average tech stocks, the big fangs and things like that. So when it comes down to really making an ESG investment, some people would argue that, that’s not true ESG, right? So again, when you’re looking at these with ESG in the name, let’s pop open this the ESG tab again, and let’s just look at the overall score, and this is out of a 100, right? So but oftentimes it will see a range between 30 and 70. So I’m going to sort from highest to lowest.
Scott McKenna:
So you can see here that really the best score for the ESG fund is 63 for this WisdomTree International ESG Fund, does pretty well on human rights, labor rights, environmental, very good, right at 67. Anti-corruption, okay. Governance score at a 53, and then also we can see exposure to specific warning flags. So for instance, you have a client that’s asking specific thing, maybe for religious reasons, they don’t want exposure to pork or tobacco, or gambling. Right? You can go ahead and sort those. So let’s say, it’s a religious reason, they don’t want to be invested in pork. I’m going to sort this, I’m going to go back and sort back to high to low. (silence) So you can see here, if you want zero exposure to pork, you’re going to want to be right around on page two. And the other ones have some exposure. So something like, NUMG or EMXF would be probably something like that. So you can kind of figure out which ETFs have specific exposure that you want to avoid, and also go around it like that.
Scott McKenna:
So while we’re here, we can also talk about some of these other tabs as well. And specifically, I think, we showed a classification ESG. Going back to the overview, we’ll see some basic stats name, issuer, NAV, shares outstanding, launch date, expense ratio. So if you care about sorting by expense ratios, you can go ahead and do that. AUM, listing country, and then you could see those tags as well. Looking at the fun profile. No, this is diving a little bit deeper into, what’s the legal form, right? Does it do security lending? The replication method. So this is a little bit more detailed going into the type of ETF and how it’s structured, right? The risk metrics, another good one to show, and something you’d probably want to talk about with clients, right? So you can see volatility, momentum, the price and the intraday volatility as well.
Scott McKenna:
And then if you want to take some metrics from any one of these tabs, you can also create a custom view. So I’m going to call it, a custom view one, and let’s say, I wanted to look at the overview, the name, the NAV. We also have something called ranking. So we actually are deciling all ETFs and saying, does it rank high in terms of volumes? Does it rank high in terms of having a low expense ratio? Does it rank high in terms of performance, volatility, income, diversification? So you can use those rankings as well to, if you don’t have a specific exposure you’re looking for, but you want to say, I want to find low expense ratio ETFs with great performance and high income. You can use those as well.
Scott McKenna:
And so you can add those to your view and you created this custom view now where you can see all that. And then you can put it into Excel, again, if you wanted to share. So we can sort and say, out of these ETFs the lowest expense ratio is going to be USSG or ESGV. So another way to kind of cut it and figure out which one is going to be the best one for you and your client based on specific constraints. So Lindsey, go-
Lindsey Tewell:
I was going to say, I think we’re running close on time. So maybe we want to share the portfolio analysis tool with…
Scott McKenna:
Yeah, definitely. So let’s just say we wanted to go with ESGV, right? So click that, then we’ll click that analyze button. Right? And so now that pulled up into the portfolio analysis tool, but I want to see how it would fit in a portfolio, right? So there’s a couple different ways you can upload it. One is, I have saved portfolios and our team will actually help you set up any portfolios you want, with a paid subscription. That’s one of the things we offer is you give us the portfolio, we’ll get into the platform for you. We have integrations with Schwab. Some of the major custodian makes as well, TD.
Scott McKenna:
Fidelity you can pull those in via API or I can upload a CSV drag and drop. In this case, so I’m just going to add SPY and BND to basic funds. And I’m going to just set these equal. So I’ve added, let’s say I had a 60, 40, and I took a third of that and I wanted to put it into this ESGV fund, I’m going to hit apply. And you can see here a lot of different stats. So Lindsey, you want to walk us through this.
Lindsey Tewell:
Sure. So the overview tab here, we’ll just give you what you’ve seen for both on the portfolio level. So if you had a quick look, you’ll see what the performance is over the last year, in volatility or the risk, and the weighted cost of that portfolio. As you move further in the tabs, performance will give you further drill down performance of that portfolio. And again, you can set your own benchmark in this case of [inaudible 00:44:42] but it’s going to give you performance measures such as, Sharpe ratios, alpha, beta, R-squared, active returns, active risk. Also the draw downs, we are going to look at.
Scott McKenna:
So yeah, just wanted to highlight that this is something that I don’t see on a lot of other platforms, just being able to drill down so deeply into the performance. Also, moving down here, we can see performance attribution as well. So SPY being the biggest driver of performance, ESGV actually, drawing it down as we can see up here. And also, breaking that down by asset class focus, investment strategy, security type, geography focused. So obviously this is all US fund our portfolio, right? So you can see here. And then going month to month, how each one of those have performed. So actually early in the year, BND, which is the fixed income one had the highest performance out of all of them.
Scott McKenna:
And then obviously as we saw the markets come back up, actually ESGV was the leader basically since the pandemic, right? So that’s a great way to drive into performance, also risks. So we talked about risk before, but giving you a risk overview. One year volatility, when your downside what’s contributing the most risk? In this case SPY makes up 70% of that risk then forward risk estimates. So this is something you guys probably see if you use any risk profiling tools. We go a little bit further than just the 95% confidence interval looking forward six months. So we’ll break it down by a quarter up to one year at the 95, 90, 85 and 80 confidence interval as well.
Scott McKenna:
Then going into costs, obviously, costs are becoming more and more important. When we’re talking about, we’re seeing fee compression in terms of fund expenses, and obviously your fees as well. And something to point out with this is you can actually add your fees. So let’s say, you’re charging a 1% fee on a quarterly basis, you can go ahead and hit apply and add that. And now it’s actually going to be more reflective of the performance cost risk, after you take out your fee. So we go back to costs. You can see the portfolio expense ratio.
Scott McKenna:
And then also if you pop this open, I always find this interesting, looking at the peer group expense ratios as well. So in this case, and this is a good stat to share with your client to show that you’re being fee conscious. So you could say I’m in BND and ESGV and SPY, and all three of these are with below the meeting expense ratio of that peer group, right? So though that’s an excellent stat to show your clients, to show them that you’re being fee conscious.
Scott McKenna:
Then we also break down those portfolio costs a little bit further as well. So you can see that in this chart here. And we mentioned this before with the exposures, I’m going to skip the equity stuff and just drop down to the fixed income, just to show you guys how deep we drill into those fixed income exposures. We go into the bond types, maturity exposures, as well as the credit exposures, as well. So you can see where it is classified in terms of those exposures. We have that all broken down. So really driving deep into those. So we showed some of the ESG stuff, two other ones that I think are important, and then we can kind of wrap it up. The tax. So we actually do some tax loss analysis.
Scott McKenna:
Looks like I’m having a little bit of internet trouble. Let’s see if it pops up, looks like I’m having some trouble with my internet, but that would basically give you alternative. So in the case where ESGV was down year to date, we’d actually give you three alternative positions that you can do to maybe do a tax loss swap, right? And that’s super important. And we see a lot of advisors coming on using that feature, that tax grid recently, because it is the end of the year and how do you add some extra value to your clients? You can help reduce their tax liability, right? And so using that tool is a great way to kind of steer you in the right direction and give some guidance on some potential tax loss trades.
Scott McKenna:
The other grid here is the income grid. So obviously another thing, especially when you’re talking with clients who are nearing retirement, right? You want to show, you want to have high income. We’ll show income yield, what’s the total distributions? If there’s any special dividends warnings and then going, diving into those by the security, the line items, breaking down those special dividend warnings, and then also showing those historical dividends broken out. So really interesting grid. Again, if you’re really focused on income for your clients.
Scott McKenna:
So I think we’re running out of time. Just wanted to highlight before I’ll give it back over to Lindsey, that the PDF capabilities, and we see a lot of advisors are using this for client reporting. So you can select this and you can also change the order. So let’s say, I only want it to look at a few metrics. I can go ahead and swap those around, create it in the order that I want to discuss it with my clients, and I can go ahead and customize it.
Scott McKenna:
So Scott McKenna, I prepared this for Lindsey Tewell. I can add in a special logo, whatever logo that I have, address. And then also in the notes, this is a great feature, we see a lot of people using it for a disclaimer, so you can copy and paste any disclaimers you need, add that to that. You can save that report and then download it and share it with your client. So we see a lot of advisors using that when it comes down to their end of your client reviews or Zooms, they just want to talk about some investment and decisions. We see advisors using that a lot.
Lindsey Tewell:
Yeah. So I guess to wrap it up, we are offering a special discount to you guys because you joined the webinar today and listened the whole way through. So someone from our team will be reaching out to you and we would be willing to give you 50% off that monthly rate that you saw, if you sign up within the next week of your trial. And so that would be $99 a month. So you will be hearing from someone on our team and thank you guys so much for joining and let us know if you have any questions. You can reach us at sales@etflogic.io, or you can hit the button on the platform. There’s a help button in the comment. You can talk to us.
Scott McKenna:
Right there. Awesome. Well, thank you guys. And I can walk you through quickly how to sign up for that free trial. So you can go ahead, go to app.logicly.finance, click sign up, you’ll see there that’s the subscription. That’s now the subscription price, and we’re giving you 50% off, so $99 a month. So you click that free trial button. You enter your details. You go ahead say, enter your details, agree to the end user license, click sign up, and then you will get a email. Once you confirm your email, you’ll be able to get into the platform and access it for seven days.
Scott McKenna:
If you guys would like a free trial, a member of our team will be reaching out to you shortly after the event to talk to you about that as well. So thank you so much for joining. If you need any help, again, you can go to app.logicly.finance. If you need help on a demo, once you’re on there, you can click that orange icon and you can send us a message. So thanks again for hopping on today, guys. And again, if you need any help sales@etflogic.io, or you can click that orange button on the platform. Thanks again for tuning in.
