Evolution of Investing: From Index Funds to Bitcoin ETFs (Eric Balchunas)
In this compelling episode we welcome Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence and author of the bestselling book "The Bogle Effect: How John Bogle and Vanguard Turned Wall Street Inside Out and Saved Investors Trillions". Eric is one of the most recognized voices in the world of exchange-traded funds, combining deep financial expertise with an exceptional ability to communicate complex concepts in an accessible way.During our conversation, we explore the revolution that Jack Bogle sparked on Wall Street—a story about how one man created the first index fund and built one of the most important financial institutions of recent decades, Vanguard. Eric shares fascinating behind-the-scenes details from writing his book, including insights from three interviews he conducted with Bogle before his passing. As it turns out, Bogle didn't even know about the Efficient Market Hypothesis when he created the first index fund—his idea was born out of necessity and a serendipitous encounter with an article by Paul Samuelson.We also discuss the unique ownership structure of Vanguard – a mutual corporation that is the only organization in the world allowing investors to be owners of the firm managing their assets. This distinctive structure enabled systematic fee reductions over decades – from 60 basis points down to nearly zero costs today – and became a "delayed-action bomb" within the financial industry itself.Eric explains the complicated relationship between Bogle and ETFs. Although Bogle himself was skeptical of exchange-traded funds—fearing they would encourage excessive trading among investors—today Vanguard's ETFs, such as VTIand VOO, have become the world's largest funds and have effectively democratized the philosophy of cheap, passive investing on a scale that Bogle himself could never have imagined.We also discuss the future of active management, emerging categories of ETF products—ranging from "hot sauce" (thematic and speculative ETFs) to "boomer candy" (buffered funds designed to protect investors from losses)—as well as the revolution brought by spot Bitcoin ETFs. Eric calls the SEC's approval of these funds in January 2024 the "moon landing moment" for crypto, which kicked off an era of "suit coiners"—the institutional adoption of Bitcoin by the traditional finance world.Finally, Eric reveals details about his upcoming book, "Both Sides of the Coin" which aims to show how Bitcoin ETFs have transformed the investment landscape and why investors should take a fresh look at cryptocurrencies—even if they were skeptical about them before.AgendaIntroduction – Who is Eric Balchunas and how he became an ETF analyst at BloombergThe Genesis of "The Bogle Effect" – Why Eric decided to write about Jack BogleBogle's Underestimated Impact – Why he was the father not only of passive investing, but also of low costsThe Critical Role of Funds – How funds stand between investors and the value created by companiesWas Indexing Inevitable? Why the world would look different without BogleThe Genius of Vanguard's Ownership Structure – How mutual ownership transformed the industryBogle and the Efficient Market Hypothesis – How he arrived at the idea of an index fundThe Cost Matters Hypothesis – A simple message that reached millions of AmericansBogle and ETFs – A Complicated Relationship with the Product That Most Effectively Spread His PhilosophyPassive vs. Active – Is Passive Investing Really Passive?The End of Active Management? How the industry is evolving in the era of cheap index fundsHot Sauce and Boomer Candy – New Categories of ETF Products for Different Generations of InvestorsBitcoin ETFs as a Moon Landing Moment – Why the Approval of Spot Bitcoin ETFs Was a BreakthroughWhat Would Bogle Have Thought About Bitcoin? A Hypothetical Fourth Conversation with a LegendTokenization vs. ETFs – Which Technology Will Win in the Future?The New Book "Both Sides of the Coin" – What Eric Wants to Convey to Readers About the Crypto RevolutionKey People Mentioned in This EpisodeJack Bogle – Founder of Vanguard and creator of the first index fund. The central figure of Eric's book "The Bogle Effect" Bogle revolutionized investing by introducing the mutual ownership structure and championing low-cost index funds.Paul Samuelson – Nobel Prize-winning economist whose article in a finance journal inspired Bogle to create the first index fund. Samuelson called for someone to launch an index fund to provide a benchmark against active managers.Nate Most – Creator of the first ETF (SPY). He approached Bogle in the early 1990s asking to create an ETF based on Vanguard's index fund, but Bogle declined, fearing it would encourage excessive trading.Warren Buffett – Legendary investor and Berkshire Hathaway CEO. One of over 50 people Eric interviewed for "The Bogle Effect." Like Bogle, Buffett shares skepticism toward assets without cash flows and intrinsic value.Larry Fink – CEO of BlackRock. His company's filing for a spot Bitcoin ETF in 2023 marked a turning point for crypto legitimacy. BlackRock's involvement brought institutional credibility to Bitcoin investing.Michael Saylor – CEO of MicroStrategy, mentioned as an example of how the S&P 500 index committee has discretion to exclude companies that meet technical requirements.Zohran Mamdani – NYC Democratic mayoral candidate and socialist politician. Eric mentions him in the context of how currency debasement and housing affordability issues—similar to Bitcoin's appeal—influence election outcomes.powered by ETFatlas.com
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Evidence-Based Investing: How Academic Research Transformed Investing (Larry Swedroe)
In this compelling episode of the ETFatlas podcast, host Jack Lempart sits down with Larry Swedroe, one of the most influential voices in evidence-based investing and author of 18 groundbreaking books on finance.Larry shares his remarkable journey from aspiring security analyst during the 1973-74 market crash to principal and director of research at Buckingham Strategic Wealth, where he spent nearly three decades revolutionizing how investors think about portfolio construction. Throughout the conversation, Larry explains how academic research has systematically converted what was once considered alpha into beta, revealing that strategies employed by legendary investors like Warren Buffett can now be replicated through low-cost systematic approaches.He discusses the dramatic decline in active managers generating statistically significant alpha—from 20% in 1998 to just 2% by 2011—and explores why the shrinking pool of uninformed investors has made markets increasingly efficient.Larry passionately advocates for his “big rocks” philosophy of life, emphasizing that the pursuit of marginal outperformance often comes at the expense of what truly matters: time with family, personal relationships, and living a well-balanced life. This episode offers invaluable insights for both novice and experienced investors seeking to understand the science of investing while maintaining perspective on life’s priorities.powered by ETFatlas.com
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The biggest mistakes beginner investors make—and how to avoid them (Paul Merriman)
In this practical and inspiring ETFatlas podcast episode, host Jack Lempart welcomes Paul Merriman for a return conversation focused on the biggest mistakes beginner investors make—and how to avoid them.The discussion reveals why most investing errors are emotional, not technical. Paul emphasizes that successful investing is usually simple, though almost never easy.Paul Merriman draws on decades of experience as an educator, advisor, and founder of the Merriman Financial Education Foundation to spotlight key pitfalls:Trusting the wrong adviceStarting too late with investingLetting emotions drive decisionsChasing recent performancePaul’s conversation goes further, sharing actionable tips:How defensive investing and diversification protect you from major mistakesPractical ways to automate good habits and avoid behavioral biasesInsights from both US and European market examplesYou’ll also hear why academic research has shaped today’s best investment practices. Paul strongly advocates:Automating decisions wherever possibleBroad diversificationMaintaining discipline during market turbulenceListeners receive clear advice on keeping investing simple, avoiding high fees, and building portfolios designed to withstand uncertainty.The episode closes with tips for further reading—including free educational resources and helpful links—to support every investor’s learning journey.AgendaPaul Merriman’s journey from stockbroker to financial educator and foundation founderIntroduction to the most costly mistakes for beginners and how they can affect lifetime wealthWhy trusting the wrong advice is potentially the biggest error investors makeThe importance of choosing academically sound, evidence-based sources over industry “experts” or neighborsAnalysis of how starting too late in investing can dramatically reduce future wealthThe emotional traps beginners face and the impact of behavioral biases on decision-makingThe problem of performance chasing and recency bias in investment choicesAutomating investments and the value of regular, disciplined contributionsWhy diversification is considered “the only free lunch” in investing by expertsAdvantages of keeping portfolios simple with solutions like target-date funds and low-cost ETFsExamples illustrating the massive impact of investment fees over decadesThe difference between defensive and offensive strategies in long-term market successReal-world lessons from market history, including US, Europe, and JapanHow to avoid paralysis from choice overwhelm in a landscape of thousands of ETFspowered by ETFatlas.com
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1:46:56
Boring Portfolio vs Trading: What Every Investor Must Know (Rob Carver)
In this enlightening conversation, Jack Lempart welcomes Robert Carver—a former portfolio manager at AHL, one of the world's largest systematic hedge funds. Rob managed multi-billiondollar portfolios before transitioning to independent trading and authorship, bringing deep industry insights to individual investors.The interview tackles one of the biggest questions facing everyday investors: Should people try active trading, or is building a simple, sensible portfolio the smarter way? Carver shares honest, actionable advice rooted in his own professional experience and investment research, explaining why most individuals struggle to beat the market as traders and how ETFs can simplify long-term financial success. Topics include concrete approaches for building diversified portfolios, managing risk in turbulent times, practical tips for rebalancing, and ways to avoid costly mistakes.Listeners also learn how to spot hidden fees and marketing pitfalls, diversify globally, and decide when "simple" might need to evolve into something more sophisticated.AgendaWhy most individual investors should avoid active trading The three deadly mistakes that destroy trading performance: overconfidence, over-trading, and excessive leverageRobert's three essential questions framework: what to invest in, how much to invest, and when to make changesPractical ETF portfolio construction strategies for different investment amountsBeyond stocks and bonds: incorporating commodities, real estate, and international markets through ETFsSimple rebalancing strategies that minimize costs while maintaining discipline during market volatilityInternational diversification: managing currency risk and global exposureHidden costs in ETF investing and red flags to avoid when selecting fundsWhen simple portfolios might not be enough: graduation criteria for more sophisticated approachesFinal advice for building habits that protect against emotional investing mistakespowered by ETFatlas.com
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Play Dead: Why Simplicity Beats Complexity in Investing (Ramin Nakisa)
Episode AgendaGuest Introduction: Ramin, founder of PensionCraftOverview of current investment environmentKey market trends and sources of uncertaintyAnalysis of global diversification—benefits and pitfallsETF selection: criteria and practical tipsRisks associated with concentration in thematic or sector ETFsPerspectives on long-term investing mindsetAsset allocation strategies in periods of volatilityPersonal anecdotes on navigating difficult marketsCommon listener questions addressedConcluding thoughts on building robust portfoliosEpisode SummaryIn this episode, the host interviews Ramin from PensionCraft, who shares practical insights on investing amid market uncertainty and changing trends. The discussion opens with a review of recent global economic developments and focuses on how diversification can help mitigate risk, but also why it is important to avoid concentrations in popular themes or sectors. Ramin illustrates the use of ETFs for efficient asset allocation and highlights criteria for choosing funds that suit different investor profiles. Throughout the conversation, he underscores the value of maintaining a long-term perspective, especially during periods of heightened volatility. Personal experiences and listener questions enrich the dialogue, offering actionable guidance for building resilient investment strategies. The episode closes with recommendations for thoughtful portfolio construction and continuous learning.powered by ETFatlas.compowered by ETFatlas.com
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