0:00 Speaker A
Asset managers are now filing for ETFs that target the Mango’s stock moniker, which has swept across Wall Street.
0:07 Speaker A
That acronym maybe looks to replace the Magnificent 7 as investors look to see the next stages of the AI trade. Let’s look into this with Julie Gons.
0:14 Speaker A
Alliance Bernstein’s Global Head of ETF strategy for this week’s ETF report brought to you by Pimco. Now, first of all,
0:20 Speaker A
we should say what mango what mango is, right? So it’s Meta, um the A is Anthropic, the N is Nvidia,
0:28 Speaker A
G for Google, and then Open AI. I think I’ve got the Mango there.
0:30 Julie Gons
Yes, and S for SpaceX, if we have the S as well.
0:31 Speaker A
Okay, gotcha. If it’s Mango X, right? Or or S, I guess that would be Mangoes in in that particular case. So, there are a couple of ETF providers, Yorkville America and Corgy Securities both filed for this.
0:43 Speaker A
So it’s interesting to me the package first of all, and it’s also interesting to me how quickly now the ETF cycle kind of goes. So talk to me about the package first. Like, are these kinds of things super interesting for investors?
0:53 Julie Gons
Yeah, and I mean, I think what’s really interesting is the ETF industry in general is just getting so quick at innovating and meeting market demand. And so, you know, as these new mega IPOs come to market, the industry’s already there coming up with, you know, an ETF way to access them. And I think that’s the the beauty of the ETF. You can buy one share. So rather than having to buy individual shares of each of these companies, you can get at a relatively low price, you know, access to all, whether it’s Mangoes, Mag 7, you know, whatever the next acronym is. Um, the ETF makes it a really easy way to access, you know, the hottest thing or or whatever your investment view might be.
1:30 Speaker A
Um, you know, when you’re talking to clients about this, like, how should they think about some of these hot ones? Like, are there cautions that you give them or, you know, how did they think about it?
1:41 Julie Gons
Yeah, and I mean, we, you know, Alliance Burnce, we’re an active management shop. We really think about investing for the long term. Um, and so while, you know, watching the latest trends, you can really benefit from them. You have to think about kind of long-term portfolio construction and so it’s what are your goals, what are kind of your your risks and your time horizon, and then where do these different types of ETFs fit within your portfolio?
2:02 Speaker A
The other like sort of exciting momentummy products now have a lot to do with space or even SpaceX specifically with some of these single stock ETFs.
2:12 Speaker A
Um, and we’ve been talking a lot about just the sheer volume of trading around SpaceX. What have you seen on your side of the business?
2:16 Julie Gons
Yeah, I think from an ETF perspective, it’s it’s twofold. It’s, you know, just like, you know, the mango or whatever the trend is, how quickly ETF issuers came out with space specific ETFs. There were, you know, more than 25 filed or launched in the last week alone. And then the other discussion, you know, that we’re hearing within the industry is index construction. When and if are these, you know, new large mega cap companies going to be included in broad-based indices. And, you know, from an active management perspective, we think it it really opens up a an advantage in that passive or index PMs, they don’t have much discretion. They have to follow whatever the index is and and those rules, whereas active PMs can use their investment process and decide if and when they participate in these new IPOs.
