ETF Apocalypse Now! Prepare for the Product Tsunami, Beet Farmers!

A Schrute Farms Financial Forecast

Bears. Beets. Battlestar Galactica. And now... ETFs! The Securities and Exchange Commission (SEC) those paper pushing bureaucrats are about to unleash a kraken of exchange traded funds (ETFs) upon us. We're talking a biblical flood people. Dave Nadig some so called 'expert,' predicts the current 4,000 ETFs will balloon to over 7,000 in a single month. That's like multiplying my beet harvest tenfold! What does this mean for you loyal reader? Opportunity and potential disaster if you don't heed my words.

Dwight's Guide to Navigating the Product Tsunami

Nadig whom I'm sure is not as resourceful as Assistant Regional Manager warns of an 'absolute tsunami of product.' He claims it's 'about to get a lot worse.' I Dwight K. Schrute am never one to back down from a challenge and neither should you! As Sun Tzu said 'Every battle is won before it is ever fought.' This means do your homework. Study the market. Understand your risk tolerance. And for the love of God don't invest in anything Michael Scott recommends.

Beets vs. Bonds: A Question of Risk

This year alone $400 billion has flowed into ETFs. That's enough to buy a lifetime supply of beet juice... for the entire Eastern Pennsylvania region! But before you start throwing money at the latest and greatest ETF remember the words of Benjamin Franklin: 'A penny saved is a penny earned.' Many of these new ETFs will be as exciting as watching paint dry. Traditional asset allocation boring! You want excitement? Grow beets. Confront a bear.

The Vanguard Vanguard: A Schrute Approved Investment

Vanguard like a well oiled beet harvester continues to dominate the ETF landscape. Their S&P 500 ETF (VOO) is breaking records. It's the kind of reliable steady performer you want in your portfolio. Like a loyal bloodhound it always finds its way home. But don't get complacent. Even a beet farmer needs to diversify his crops.

Beware the Active Manager: A History of Failure

The mutual fund industry Nadig correctly points out has a history of active managers failing to beat the index. They charge you more and they deliver less. It's like paying extra for a beet that's been gnawed on by a bear. However these new ETF share classes may offer strategies at lower fees. If you genuinely want a product from one of these companies this may be the best way to do it but as I always say 'Whenever I'm about to do something I think 'Would an idiot do that?' And if they would I do not do that thing.'

Private Credit and Other Financial Fiascos: A Schrute Warning

Nadig warns about jumping into straight to ETF strategies. Take private credit for example. State Street and Apollo launched the PRIV ETF but it's trading in the 'thousands of dollars a day.' It's 'absolutely fallen off a cliff,' he said! Like Michael's management skills a financial freefall. Don't be tempted by shiny objects like privately held companies such as SpaceX and Klarna. Remember diversification is key. Keep your portfolio balanced like a well stacked pile of beet boxes. And as always trust your instincts. If it smells like beets gone bad it probably is.