same thing for somatic etf's. other etf's,ere active etf that have been to similarly successful?n the fixed income side, they continue to rake in money. emco has a couple of etf's that have done well -- pimco has a couple of etf's that have done well. bond benchmarks are so beautiful. back to a sports metaphor, they are like the washington generals of indexes were the s&p is a 96 -- the 1996 chicago bulls. these bond benchmarks are so weak and so active, it is still on the course side of these fixed income portfolio advisors. active etf continue to taken money. julie: how much of all of this is marketing? even with a small firm like ark, do they have a strong, marketing firm to get the message out that they are performing so well? eric: not really. are nowhere near like a vanguard the giant, marketing machines. to be active is overcoming a lot of barriers in terms of gaining assets. i would look to ark if you are an active stock ticker to maybe battle this blood bath the flows and equity. julie: it is so interesting that it is so small. is it word-of-mouth? eric: performance. bea

coming up, we will hear from the bond etf king about the fears surrounding junk-bond etf.his is bloomberg. ♪ scarlet: "what'd you miss?" jitters in the junk-bond market this month have caused a brief upload of money in junk-bond etf. hyg posted the biggest inflow in nearly seven weeks. i spoke to the firms had matthew tucker and began by asking him how etf's have changed the fixed income world. bond you think about what etf's have done, they have helped improve liquidity for i think theys, and a thin are changing -- people have traded bonds has changed in the past decade since the financial crisis. a lot investors are looking for different ways to trade whether that is electronically or peer-to-peer networks. become part of this way to trade fixed income in a way that you could not do it a decade ago, so we are helping to give investors access to liquidity in the bond market. scarlet: there is the key word, access. you the focus this year is credit etf. where are they within the acceptance? matthew: you know, i think it is still early days in some ways. if you look at the

julie: ironically, we may have blocking etfs before bitcoin etfs.ing the software that supports bitcoin current >> there are two new filings from amplify and reality shares. they will basically track stocks related to blocking technology. just putting block chain in the title is good for $100 million. i commend them for that. this will probably be approved before next summer, probably because that's probably in a couple of months. they're ultimately not the holy grill and probably won't be close to as big as bitcoin etfs. julie: we have to leave it there. shery: julie, thank you so much. plenty more coming up. this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outman

and we use etfs as any other mutual fund. these are really designed even though you can trade as often as you want. usually you do so at your own per i for us we want more -- >> let's get to your picks here. we're going to begin with one about as familiar as they come. it is an etf, dow jones industrial dia is the ticker symbol. why start there? >> main reason i think, right now if nothing else, you shouldn't be fighting this market. you've got to embrace it in some way, shape or form. why not buy the s&p 500, currently you're better served investing in a more concentrated portfolio. >> t dow has done a little better and certainly you get the blue chips there. next one is ishares momentum factor etf, ticker mtum. 123 stocks in it. how were they chosen? >> sure, this is a factor driven strategy as opposed to the dow buying the market. here instead of buying cheap stocks, you're buying stocks with good moment you will on a adjusted basis. currently own the same names but this fund has done a good job of adapting to the changing

the total value of all etfs in the u.s. is a trillion dollars, a tiny percentage of the roughly $26 trillion value of the u.s. equity market and the even bigger $38 trillion u.s. bond market melissa, etfs are not just taking up a lot of stocks. there are fewer stocks to trade overall. the wilshire 5,000, the broadest measure of the u.s. stock market, they haven't had 5,000 stocks for years at the end of 2016, which is the last data we have, it was down to 3,618 stocks. blame it on m&a and a less than robust ipo market for the last decade back to you, melissa >> 3618 is not nearly as catchy. bob, thank you, bob pisani at the nyse chris harvey, head of equity strategy at wells fargo securities, says not only will passive investment keep the market afloat, it could even drive stocks to more record highs. chris, welcome how does that work >> thank you this is how it works what we've labeled -- passive is a new qe when you look to qe, qe took a significant portion of the treasury market out of circulation, putting upward pressur

etf that tracks a high-yield credit market. you can see it as had a decline over the past few days and is rebounding today. investors starting to pull their money out before the decline began. that is interesting. schilling jitters leading into the declines we have seen. we will be talking much more about high-yield etf's in just a little bit with our eric balchunas. nejra: thank you so much, julie. 90 minutes into the close of equity trading in europe. jitters continuing in the european equity market. nonetheless, quite a lot of red. the ftse 100 is off. sterling on the front and cable up by .5%. the euro higher by 2/10 of 1%. in yields continuing to move higher in the sovereign space. a little bit of a picture -- a little bit of a different picture in the periphery. looking at the equity declines i was talking about, it is a little synchronized selloff in europe. this chart is selling major european benchmarks. the dax, the cac 40 and ibex 45, all poised for their worst week since august. it is a selloff we are seeing quite b

the sec regulates etfs. here is the problem. the sec says bitcoin is an unregulated market and because of that, they won't be able to enter into any surveillance agreements between other relevant agencies like the cftc. you can't really blame the sec for being worried. if bitcoin is really unregulated, in the sec's eyes, it would be subject to manipulation and fraud. and giving exposure to an unregulated mark supposs the sec to a lot of potential problems. it's possible that establishing a futures market might go a long way towards addressing the issue. maybe. but think about this. bitcoin itself was designed to be unregulated. while the blockchain has not been hacked, the platforms that support the crypto currencies have been hacked. and no one is necessarily watching over all those groups in a coherent regulated manner. so you could see why the sec is concerned. for "nightly business repor" m bob pisani at the new york stock exchange. >>> jack howe joins us to talk about the frenzy behind bitcoin, he's a columnist at barrons.

so it's going to really hurt how tax efficient the etfs can be. and it's going to take away a lot of the benefit of the etfs' edge. that's why you see the investment company institute trying to beat this proposal back. >> okay. we should just remind everybody, this is only a proposal. it hasn't been passed. but if it were to pass, especially before the end of the year, because this would take effect january 1st of 2018, what would you think people would want to do before the end of the year? >> i think that there are two strategies where this is very important. one is if you owned a thousand shares and you have ten different lots bought at different times, and you knew you were going to sell after the first year or two, after january 1st you would be forced to use your fifo price. if that creates a giant capital gain then maybe what you should be doing is accelerating that selling now and identifying the shares with the highest cost basis, triggering the least amount of gain. the second issue is people that give stocks to charity. if you bought a

and a package that an etf provides.a managers have a lot of different options in terms of the packaging of their products. you can use regular mutual funds or a separate account or you can use etf packets. active taken our very research and packaged it into an etf. still meant to be active, but the packet itself is an etf that is officially preferred by lot of investors these days. scarlet: they are cheaper and easier to understand and easier to access. what's stopping all products from eventually taking on that etf characteristic? >> we were uniquely positioned to do so because we can create an index and express all of her insights in this index. -- our insights in this index. this is something that other firms like bernstein could replicate. it will be interesting to see if other asset managers might say can we package our research into an index and publish that for the world and create an etf off of that? scarlet: it's only a matter of time before others decide to join in? will we get similar products at goldman sach

the etf community is very involved in trying tofigure ou how they can get etfs with smaller group of stocks in hot sectors out there faster than the current sec rules allow. if this is successful, this is the first product which is exactly like this. you can expect other products in the future >> this is not an etf, not a future's base etf, a full-on futures contract, the way we think about. oil and copper, for example. >> that's exactly right. it will have that same decay function you are buying futures contract of these ten companies you are wrapping it up into a singles futures contract >> what would the difference be bob? this is maybe a stupid question. i am willing to ask. what would the difference be between trading these futures between taking options positions on these stocks? >> to the extent that the options diverts from the futures, there would be a difference you could synthetically create something like this by owning the options as well. that's the whole point of course, goldman sachs can and does synthetically create this kind of trade all day long >> would this be ea

this is "bloomberg etf iq." on the assets, s, and rewards of exchange traded funds. ♪ scarlet: fcc chairman jay clayton works to streamline the agency's approach to approving new etf's, a welcome sign for the industry. bitcoin is in your future as the cme announces plans to announce bitcoin futures contracts, paving the way for bitcoin etf's. video games are a billion-dollar plustr

this is "etf: iq." ♪ investors pull more than 2 billion in a week for global etfs, but they are not exitingtely. even with an passive during a race to the bottom. we tell you why focusing on fees can backfire. we check out rtmx, an

most etfs only track a benchmark. flexshares etfs are built around the way investors think.objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. our dive into the calls of the day or at least the ones that we think are key. >> which is very important. >> exactly >> first stock, qualcomm, downgrading the analyst down side especially if broadcom withdraws the acquisition offer. it's possible that broadcom will make a second bid, but they expect negotiations will be protracted priss target here $75. >> second stock is navistar. susquehanna has a positive rating and a $50 target and the truck maker is exiting the darkness by the failed engine, end quote, and the partnership gives the immediate relief and long-term potential and the analyst does acknowledge customer trust issues

this is "bloomberg etf iq."on the assets, risks, and rewards of exchange traded funds. ♪ scarlet: high-yield alert . investors pull more than 2 billion in a week from junk-bond etf but they are not exiting credit completely. etf's are a win for the cost of success, but there is a race to the bottom. we tell you why this can backfire. with commodity prices on the move, we c

tax reform, he thinks, and an etf for investors looking for yield. it's his first time on the program but he's going to do just fine. he's the ceo of lanberg thalman, thanks for being with us. let's get your thoughts about this second week in a row of a little bit of a swoon for the market. is it anything you're worried about? >> no, not really. if you think about earnings season, it's pretty strong. total earnings up around 7%, and total sales, which i care more about, over 5%. those are total numbers. housing starts came up today, you see inflation moderating, wages up 2.5%. those are all good what we call numbers, the economy is warm enough to keep going. that will support stocks. >> your first pick, the i shares russell mid-cap value etf. >> you think about that wonderful term, a santa claus rally, going to the year, there's a lot of euphoria around consumer spending, that's what's held up the economy. mid-cap value stocks are only up 9% of the year, sister stocks, mid-cap growth, are over 21. you're going to get a market that's going to do well

etf goes down.e one and one minus -- >> if retail stocks stop going down that day, what happens? >> then you make money >> the investors will make money. >> that's right. >> a shortage. >> that's right. >> here is the thing this is what was the intro and i saw an ad this weekend and i thought -- i did not think it was a joke i worry, is it and i have no problem of short selling it is cnbc, in some way, is it to profit off store closures >> yes look, i think everybody has the right to make money in this world so we are not taking any particular moral positions we are putting out a financial vehicle that allows people to have the view that retail and leg brick and mortar players in decline and there is a lot of positions on that. >> would this help stocks decline if you are right you can push people in that'll drive the short position that could push companies down. >> the odds are darn slim. given of the size of the etf and the under lining markets >> it will come back and say, they're trying to get

etf iq is next.loomberg. ♪ scarlet: this is etf iq. ♪ scarlet: dealmaking his back and a big way. why are etf's fighting the love? we speak with black rocks matt tucker -- blackrock's matt tucker.

it is the first show to focus on etf's. etf iq wednesdays at 12:30 new york time.s get you to the bloomberg business flash. there is a game plan for open banking. fundamentally, what do i mean ,y this, taking the challenge understanding the need to embrace the model and new technology, technology or my -- relies at the heart of the banking relationship. sharet: enforces banks to data with third parties and competitors. amazon's move into the 450 billion dollar u.s. pharmaceuticals market could reshape the industry. the shares of cbs and walgreens have dropped since speculation about entry into that market intensified. it could use its considerable buying power to offer generic. draft will begin live streaming basketball games by european teams. to woo cording cutting sports fans. experience, media and gaming are going to be in the same place and seamlessly acceptable to customers. it increases revenue and participation. if we can demonstrate that there will be other sports that will be eager to work with us. businessthat is your flash update. walmart versus apple.

scarlet: this is "bloomberg etf iq." ♪ making it back in a big way.tf's designed to act like mergers are not finding the love. ltd, the first fixed income says active managers are using passive etf's turning the act of debate on its head.

higher, it is go showing up in etf's.what about the flows overall for broader commodity-based etf's? what did the flows look like this year? mike: the first thing you have to say is gold. precious metals and 30%, and the rest -- energy, the flows of them positive, but energy is widely traded in etf's. ofot of leverage, a lot shorts, so people trade them a lot and energy flows have been out as the market is at the upper end of the range. there have been decent flows in broad commodities and international gas. it is interesting you bring of energy because you have had a tremendous called on oil a few months ago when oil, wti was close to $45. now it is close to up you $60. if we hop into the bloomberg intake a look at the chart and make the case of its moving range. now closer to the higher end of that range. what do you think is next? and there is the bloomberg scoop saying russia and opec are said to have agreed to extend cuts. will that help will go higher from here? mike: the key thing they got right is a marketing. of

this is "bloomberg etf iq." the assets, risks, and rewards of exchange traded funds. ♪ scarlet: fcc chairman jay clayton works to streamline the agency's approach to approving new etf's, a welcome sign for the industry. bitcoin is in your future as the cme announces plans to announce bitcoin futures contracts, paving the way for bitcoin etf's. video games are a billion-dollar plus industry. we dig into who is capitalizing in this market. whether you e

have to doax reform with etfs? and a surge in commerce benefiting a surgeon for street

performance and these ones are the ones with the biggest influence at least within the sector and this etf overall. back to you. >> thanks very much, dom chu let's trade technology and, josh, i'll start off with you because this gets at the question that all individual investors face right now and that's do you stick with what is working into year end? if you know that the top eight companies by market cap have had $1.5 trillion in market cap year to date, is that what we still buy? >> obviously the inner contrarian inside of everyone that never wants to look foolish and wants to be ahead of the next thing would look at that and everything dom just brought up and say, yes, it's too much or it's too far too fast or it's too big. the problem is you get beyond the xlk and start looking at the individual companies, and they are crushing it to such a degree that it's like, yes, as much as i want to be the guy that says, nope, this is it, this is the top. it's too much. it's so hard to make the case that any of these companies are at execution risk or not going to kill it in 2018 now, of course,

etfs, spdr ones.ok a look right after the closing bell things were still settling out these numbers are interesting. they now changed dramatically in just the last 15 minutes as trades have settled out. the three, etfs among the big spdr etfs that had the most activity relative to where they normally trade are these, the financial, tech and industrial etfs we looked at their 90-day trading volumes and then looked at what their trading volumes were today in relation to that to get an idea how much surge there was in trading volumes turni ins out for the spdr financials it was more than double and now it's more than more than double 120%, 130% average daily volume over the last 90 days. the tech side of things, a huge surge, 135%. we have 71 here. it went up dramatically in the last few minutes industrials, 128% more than average 90-day trading volumes the one cause for maybe a little bit of caution that some traders are looking at right now is the s&p financials spdr. the xlf. that's the ticker that tr

there is no snooze button in the etf market.ou don't get out fast, you will get caught in a cascade of terrified etf people who will blow the sox off a price collapse. scarlet: people were worried we saw that last week, but there is no indication of a downward spiral. it is quite orderly. >> take yourself back to detroit in puerto rico and the mutual fund. what brought that crisis to a price collapse head is the panic among retail investors eating out of their mutual fund as quickly as they could. human behavior is always the common thread. patterson, thank you so much. coming up, we debut our new charts. we would do technical rundown on the risk off mood plaguing global equities. from new york, this is bloomberg. ♪ ♪ it is time for our new weekly segments, charts . been an certainly has air of risk off in trading action recently. joining me now to break this down is our guest. you have had tremendous calls over the last number of years, and three weeks ago you called for a near-term pullback. now we have stocks in a pullbac

this is "bloomberg etf iq." the assets, risks, and rewards of exchange traded funds. ♪ scarlet: fcc chairman jay clayton works to streamline the agency's approach to approving new etf's, a welcome sign for the industry. bitcoin is in your future as the cme announces plans to announce bitcoin futures contracts, paving the way for bitcoin etf's. video games are a $100 billion plus industry.

kevin: you can hear everything about etf's each wednesday at 12:30 p.m.fu and eric bring you the latest news and trends in the industry. coming up, tesla has been plans in the works. can elon musk deliver on his latest promises? that is next. this is bloomberg. ♪ ♪ kevin: this is "bloomberg markets." elon musk is never one to shy away from grandiose plans, but his latest pronouncements are no exception. add anlectric semi -- electric semi-that go hundreds of miles on one charge, a car that will go from zero to 60 in 1.9 seconds. how will the company do all of that? i would like to bring in kevin tynan. how they actually going to do all this? kevin t.: it does not matter in 2020 or whatever. what matters is he generates a little bit of cash flow now and taking deposits on those products that don't exist. not only do they not exist, doesn't even have the capacity to make them yet. the idea is that is a little bit of a capital raise. i think those targets are far enough out there where currently they make sense on paper. maybe not synergistically they all wo

kind of interesting especially when the sector has massively outperformed technology as a whole, the etfhat tracks the semiconductor sector is up 43% year to date, the s&p is up 15%. to me, i think you really want to look out to some sentiment, guys nvidia reports next week, the implied move is 8% in either direction. it's $10 million on a stock up 100% year to date. things are getting a little frothy real quickly, we've been talking over the last month, intel is a stock up 30 something percent in two months, this was a stock left for dead, the second largest holdings in the smh. it's setting up for a period when we're going to get consolidation and possibly giveback >> intel is still cheap, when everything else is going to the moon the nxpi deal, that thing is trading over the deal price. qualcomm has agreed to acquire them for $110 per share, it's trading closer to $120 some people think they have to bid the price up or not enough people will tender, there's a little bit of wonkiness there. what was a blockbuster deal when announced over a year ago, now is not good enough >> a lot of t

look at bunds. >> right, exactly, but let me get to one point the point is that i think the etfs that are put up there are perhaps even more crowded in technology without people understanding the fundamentals, and there's so much that can go wrong and as josh astutely points out, some of them are just weighted to a few stocks in just one or two sectors, but you've got to know what you're doing. >> all right we good? >> i feel like you want us to say more. >> have something else to say, say it. >> you should have a portfolio that reflects the global opportunity set. if you think you're diversified because you own intel and nvidia, that's not real -- look, they have been great stocks. they may not be for the next five years, especially at the levels where that sector is now, so i'm glad that scott wanted to do this segment and everyone needs to understand there is a global equity opportunity set. you don't have to be an expert in every company you just have to understand what kind of exposure you want. >> and you mentioned this about negative interest rates. when that switches that's go

check out what's happening here with the ezu this is the euro zone etf and there's a hedged etf as well tak it takes out the currency move it's 27% higher. if you take out the currency basics of it, it's only 17% of the upside same thing here for a big etf that attracts the emerging markets. one of the bigger plays out there. the eem is 32%, 33% up right now. if you take out the currency effects, it's only about 26, 27%. as investors talk about investing in geographic markets, it's important to note when these investments are hedged for currency or unhedged as well back over to you >> thank you it truly is amazing what don was laying out i tweeted out stats from around the world. u.s. markets gap about 18% even more for technology the european stock up about 16%. asian markets doing better than that the latin american markets not including venezuela up nearly 30% this year. truly incredible let's bring in eric friedman eric, have you been buying into these global markets a and are you still buying into these markets given these out sized returns. >> bryan, we have been we've been involv

most etfs only track a benchmark. flexshares etfs are built around the way investors think.ike building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. and at $4.95, you can trade with a clear advantage. feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. >>> check please >> time tnow for check please let's kick it off with michelle in michigan. >> hey there, melissa, as we've been talking about, we're her

it is the first etf show dedicated to the universe of etf's.ive's, there is an etf for that -- and some more obscure products. alix: i swear this background looks like tron. i got super excited. >> if you have a retro 80's thing going on, you will love the show and the graphics. alix: who doesn't? jonathan: it's great to have you. kevin -- joining us. etf iq coming up a little bit later today. in the market, here is the situation. futures a little bit negative, down .1%. a slow retreat from an all-time high. treasury yields higher a little bit earlier -- cable rates showing the weakness in the defense space against the dollar, the only currency -- the pound at -- >> -- and 25 seconds after closing at a five-day winning streak, and an all-time high monday session. the small retreat on the s&p 500 today could add to that move, down by .1%. futures are pretty much dead flat. close to all-time highs on every single one of those numbers you see on the screen. the story in the bond market, treasury yields come in a basis point on the 10 year. it is t

that's real etf innovation. flexshares. built by investors, for investors.der the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. >>> check please >> so in the last hour, a group of bondholders joined together in caracas, met at a big event that was supposed to be for bondholders to meet with the government, figure out what they were going to do it ended in about 30 minutes the question is, did the two individuals who were on the sanctions list, supposedly running the negotiation, actually show up because a lot of americans were nervous about having to meet with somebody who was on the sanctions list >> forbidden to do business. >> exactly >> all right we've been saying all show long that it's a big, big week for taxes and what happens to tax cuts and tax reform. take a look at the underlying aspects of the market. see a strong bid for utilities in today's session real bit for safety. up by about 1% this, in fact, looks like it's a new all-time high for the s&p u

but with this excitement, there's no bitcoin etf in sight.b here to explain why next. >>> skrnz ready for the health care conference in march featuring top health care ceos, investors, and entrepreneurs for more information and to get tickets, go to cnbc.com/healthyreturns. ♪ we are the driven... the dedicated... the overachievers. we know our best investment is in ourselves. we don't take no for an answer. we fight for what we want. even for the things that were once a given. going to college... buying a home... and not being in debt for it for the rest of our lives. but we're only as strong as our community. who inspires and pushes us to go further than we could ever go alone. sofi. get there sooner. >>> bitcoin prices hit another all-time high crossing the $11,000 mark before pulling back shoorp sharply the nasdaq announced plans to launch bitcoin futures next year bitcoin is up around 900% this year, and the speed of which it's reached major milestones is accelerating rapidly bitcoin hit 1,000 back in october of 2013. it took nearly 1300

this is "bloomberg etf iq." the assets, risks, and rewards of exchange traded funds. ♪ : high-yield alert investors pull more than 2 billion week. they are not exiting credit completely. etf's are a win for the cost of the -- there is a race to the bottom. we tell you why this can backfire. with commodity prices on the move

in october, they pulled back on their etf purchases. it clear.e he has no sense that it is going to change yet. >> the fed stands pat and funds remain in the range of one to one and -- of 1% to 1.25%. made to the statement are minimal. the fed vice chair for supervision gives his first vote and joins in a unanimous decision. now it is all about who donald trump taps to be the new fed chair. wax the stuff you expect with normalizations after the hurricanes. the real meaningful changes here, the fed dismisses the in september and they upgraded their growth characterization from solid to moderate. into means they are buying what we've seen on gdp the last couple of quarters. ratekes in the federal increase in signal the conviction about rate hikes in 2018. raisingank of england rates today for the first time in just over a decade. unemployment at a 42 year low, inflation running above target, and growth just above the lower speed limit, the time has come to ease our foot a little off the accelerator. to bek carney seems selling this as a movement of

, like the exploration and production etf, the oil services etf, they've been much higher volumes inhe last week or so. but this oil rally hasn't really translated into an oil stock rally, at least not yet. many tried to buy into the oil rally earlier this year. but when oil fell apart in the middle of the year, and it fell apart twice, investors just gave up and the big oil etfs fell apart and they never really recovered. one exception is the refiners, up over 36% this year, far outperforming the e&p and the oil service names. refiners have notably outperformed, partially because gasoline prices started rising in the middle of the year against oil and rose knonotably after the hurricanes phillips 66 was up more than 10% in september there's talk we could be staying in the mid-50s, maybe even move towards the obvio60s, that woule the saudis happy would the u.s. fracking industry ramp up production or show some discipline we should have these problems, melissa, thank you >> bob pisani at the new york stock exchange that's the cycle they always go in >> the last part is critical do we

flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. his family. his steinway, which met a burst pipe. so grant met his insurance: you are caller number 12. which didn't quite cover the steinway. but what if he'd met pure insurance? owned by members. he'd have met: lisa, your member advocate. who'd introduce him to gustav, a temporary address, and help him get tickets to the mozart festival. excuse me, grant likes beethoven! uh, the beethoven festival. pure. love your insurance. >>> welcome back we want to bring your attention to the crypt ocurrency spay, and this is because a possible software upgrade to the system is being postponed another record high that's gone very far, ve

they regulate etfs.coin is an unregulated market and because of that they won't enter into surveillance agreements with other relevant agents to monitor this you can't blame the sec for being a bit worried here if bitcoin is unregulated as they say in their eyes it would be subject to manipulation and fraud. giving it exposure to a regulated market like the etf business exposes the sec to a lot of potential problems. what would it take to be a regulated market it's possible that establishing a futures market might go a long way toward addressing the issue, perhaps. but think about this bitcoin itself was sort of designed to be unregulated the blockchain has not been hacked platforms supporting the crypto currencies have been hacked. no one is necessarily regulating all those groups you can see why the sec is concerned about this and melissa, i anticipate some of these etf companies will re-file with the sec, though, on this news, hoping that the news around the futures market may be enough for the sec >>

. >> of course, but the etfs and passive funds and other individuals, they are not, so how -- >> it's so outrageous as you said someone close to the administration and the very tax policy we're talking about. >> this was not in my tax cut plan. >> how did it get in there now >> i don't know. i'm going to find out. i don't know i -- i had ron johnson on the radio saturday, and i didn't goat ask him this because he's holding up the whole bill, and he's right by the way. i'm going to find out. i have no idea some goofball revenueration staff thing. staff does weird things, but you know what's amazing to me. the mutual fund industry lobby, this is a very highly paid group. they got it out for them, but not for the rest it, and that makes it even more disgusting. >> we're reunite kudlow and cramer. >> good to see you, and we've been always been pro investor and have been pro investors, never against mutual funds or index funds but the idea of owning stocks and owning them for dividend and owning them for capital gains is a great american tradition, and i guess these people don't really car

most etfs only track a benchmark. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. >>> this record-breaking rally won't give up. the dow and s&p 500, hitting new highs once again check out what else has been flying recently. roe c roku rallied more than 55% it was up as much as 10% before short seller tweeted calling roku stock a total joke. up more than 70% from last month. the mattel toymaker surging almost 30% footlocker is up 25% amazon up about 10% in that time >>> would you look at those big gains along with the record highs? here and around the world. they all have us wondering how much longer can the markets keep heading up as they have been in a relatively straight line let's bring in andrew slimmen

very popular etf's actually down on the year.e credit business coming down, and that, combined with what we have seen in the u.s. in terms of lending to the commercial, which is also falling quite dramatically, to the extent that we are seeing a recession warning on that side, combined with the fact that the forward-looking fed is not believed by the markets. matt: i have the hyg etf on my terminal, and you are right. year-to-date, it is down, not at its worst level, but the worst in 10 months. is a lot ofs is -- the equity moves due to an expectation we could get reforms in the u.s.? steen: particularly referring back to the high-yield space. the thingkey part of the high-yield market will be looking for. there is about an 8 billion cost to 10 billion cost as it stands right now. the credit impulse, don't forget we saw the 10-year rate breaking 4% last night. the day before last night. clearly, china is on a campaign to deleverage economy. we also have to remember that lending will create the credit cycle, so the credit cycle is

melissa, when you're buying etfs, there's currency effect. the dollar is weaker, the etfs are stronger this year. you have to take that into consideration with currency. >> thank you, bob pisani we have to go to the ambassador. is this a sweet trade that's turned sour? >> as we went into the people's depre congress, the government was trying to make sure the stock market ran the big chinese-backed which have re cheap here, things like t tencent, are off their highs to me, all those people trying to game china and make a big call on when this debt market overwhelms them have been losing the trade over and over again. consumption in china is growing. i think you have better peg ratios, better growth relative to their pe in the big cap chinese names than the ones here >> for me as a layperson, eem gets a lot of it done. i think it's about 25% china, 10% of it is tencent and alibaba. and, you know, i just want to own to for a long time it's not that volatile, because it's so diverse. >> right baba has been a monster. >> that's the way i play this

i call it the etf of america >> there's a lot of money flowing in >> are we at peak etf?i don't think we're at peak i think we have a long way to go when investors realize how difficult it is to out perform the market from an investment management standpoint. it's very difficult and it's hard to know which ones to pick. >> more investors, you think, are willing to accept the idea they're not going to out perform the market average and low cost and low turnover works fine. >> it does understand your risk tolerance, have a goal and invest toward the goal >> let's talk about two sides of technology you guys have always been out front on technology and bringing it to the individual investor. what does technology let you do today to serve your customers better and what is the next wave what's it going to do five years from now >> the big thing technology is doing is eliminating trade offs in our industry. quick story. a couple weeks ago on a saturday morning i needed an item i ordered it online. at 2:00 in the afternoon it was delivered in my driveway that's what's happening.

elan musk is changing the world and because of that i bought a lithium etf, because of the batteriesthe cars is up 20% in the year. >> dagen: gary b., do you like it? >> no, i don't. >> dagen: [laughter] short and sweet baby jonas? your prediction? >> it's official news this week having a dog will make you live longer so that's why i got two to live twice as long for the people in study good for the pharmaceutical business. spider pharmaceuticals etf up 20 % in a year. >> dagen: john help me, [laughter] >> i can't figure out which one is jonas. dagen you married him, can you tell me? >> dagen: the dogs are a lot cuter [laughter] >> i would agree. >> dagen: thank you so much everybody. the number one business block cost of freedom continues neilll cavuto is now. >> neil: lawmakers very hopeful that a cut for some could mean a boost for all hello welcome i'm neil cavuto. the grand old party seems very confident that bringing the corporate tax rate down will pry business investments up but billionaire ceo mark cuban says not so fast. >> competition drives what i do in my business is a w

has that changed the returns for the etf's?g up, they would feel it a little bit, but this one tries to do the exact same thing . i think they would tell you that it's just not the strategy, doing it the way that everyone has done it for years, capturing a target company over that time. alix: are there any other strategies? eric: go for the equal weighted etf. xpi is a great example. yourself, give to targets. they did that after the fact, but by doing this, they have outperformed the ibb by a significant margin. etf soundsnting gimmicky. it a huge lift. somatic and weight. we know how much the pops happen. john? jonathan: moore intraday record highs in the market in the united states. another record on the s&p 500. the coverage continues right here, on bloomberg. >> this is "bloomberg daybreak." coming up tomorrow, we will be joined exclusively by the citigroup ceo, michael cormack. this is bloomberg. ♪ alix: the banking industry kicks off its conference today. dozens of financial and i doubt it leaders are attending the clear

>> top of etf marketing -- >> no, there already before. think in conjunction with walmart's big rally yesterday, with the skepticism that evan portrays -- >> i don't have skepticism toward walmart. >> also the abercrombie rally today. the lit fany of traditional retailers fighting back. >> i happen to think these are probably terrible investment vehicles they're probably expensive i don't know the details of them these etfs are kind of expensive. you're probably better off shorting a few names that you believe will not be around long term >> really, you think you're best shorting a few, just as if that's like -- >> no -- >> -- a low risk >> no, if your point of view is -- >> isn't it better to get short a basket, like -- >> not necessarily because right now, it's very hard to say, you know what, like, a home depot, you know, there are plenty of online, rather, brick and mortar retailers like a home depot or a walmart that want to be here 20 or 30 years from now i don't -- i'm not sure abercrombie and fitch will be -- >> you want to borrow

why are etf's designed to act like mergers are not finding the love.d, the first fixed income says active managers are using passive etf's turning the act of debate on its head. the most wonderful time of the year for shopaholics and the most crucial t

this is "bloomberg etf iq." risks, and rewards of exchange traded funds. ♪ scarlet: fcc chairman jay clayton works to streamline the agency's approach to approving new etf's, a welcome sign for the industry. bitcoin is in your future as the cme announces plans to announce bitcoin futures contracts, paving the way for bitcoin etf's. video games are a $100 billion plus industry. we dig intis