canada's focus on the etf., this is bloomberg. ♪ headlines now crossing the bloomberg on the nafta talks. canadianshat the don't want to risk -- president trump with the white house responding. the u.s., canada, and mexico talksng a second round of that were already expected to take place. just to give you a sense as far as all the other countries that are concerned. there are still planning to have 3 months out about the concern that is coming from the canadian side here. scarlett. scarlet: one of the biggest things here and involves marijuana. a must see chart on this new space. eric. >> thank you, scarlet. where going to look at the first ever marijuana etf. look, this thing was basically a dead person until recently. look at all those great bars, that is a lot of people excited with this atf -- etf. nobody really paid attention to it, now it is an etf tracking stocks, and it is up to $350 million. market, itys on the is on pace to get to a billion dollars in just under two months or you it would make it the

etf's have $5 trillion right now and you look at the growth rates , etf's took in more money than theyin assets when this conference started in 2008. 2 things -- vanguard and blackrock are invested in the conference, and they are taking it will stall the money. that is a good sign. accountants, custodians, lawyers. it involves the whole ecosystem. that is why this thing could in a decade's time be the biggest investment conference. julie: your second observation 95-5at you are calling the phenomenon. explain in etf's when you talking about. 95% of the media coverage and was affects 5% of your port for you. at this conference they had quincy jones, who is going to be promoting an etf called qj coming up. this is the stuff that people buzz about them but almost all of the money goes to the chief data and smart beta products. that is part of what you saw in the panels. ago smart five years beta was a controversial topic. now it is accepted. now the country is a topic is bitcoin. julie: see if that is accepted in five years time. hedge funds was a big theme of the conference. eric: derivat

virtually, it will get to an etf and that will be good for investors. >> we had the gold etfs.own physical gold behind them here you have a bitcoin that would own physical bitcoin >> the custody issues are a little more complex or significantly more complex, but yeah, digital gold, and i think it will trade like a physical gold >> big story last year, record inflows into etfs. we talked about the trends overall for that, out of mutual funds into etfs. out of active management into index funds. that's a big trend that's going to continue. out of higher cost into lower cost do you see these trends continuing are etfs going to continue to dominate >> i think they're going to accelerate from here a lot of people think this is the year for active. i think we're a couple years off from that. the fee war assets, et cetera, it's all going to spiral up from here >> a lot of people seem to think we'll get a correction in the middle of the year, and active management will make a comeback because they'll look smart, or low volatility etfs will come back in. your thoughts on whether there's

for the most part etf's have not been tested.nd out. >> when we get a correction and a bear market at some point, do you think flows will change? it will depend on how they do. investors, certainly most of the people who use etf's, certainly most retail investors, are what we call trend followers. they decide what to do today date based on what happened yesterday. of course yesterday is over as far as i am concerned. what they should do is decide what to do today based on what will happen tomorrow, and that is harder to know then what happened yesterday, but i think that if you want to be an investor -- i don't encourage trading in etf's short-term -- but if you want to be a long-term investor, no problem. >> you don't appear to use etf's at all in your investing. you buy individual securities. is there a reason or moment you would consider using etf's? >> i can imagine a use for them. givexample, let's say you $50 million to us and say, i want to be invested in high-yield bonds. we start putting your $50 million to work, but you

five etf's. that will quadruple.they will be renamed communication -- mark: you will see the whole product line get launched. would imagine this means money into the individual telecom stocks as they are jiggered in the re etf. >> they're are having all of the money being dumped into them the way that a-shares are moving into bigger benchmarks. julie: really quickly, the first etf's are launching next week, before any bitcoin etf's. , it isity shares anticipated, not certain, but on wednesday they will hold companies like accenture, ibm. anything with blockchain in the name goes to the men. it is interesting with 2 launching in the same day. within a couple of weeks, it will be which one people choose. julie: blockchain, bitcoin, crypto, it is all been going up. thank you. mark: still ahead, retail sales continue. of theef executive national retail federation and looking at the drama surrounding germany's thinking today. ♪ julie: live from bloomberg world headquarters in new york, i am julie hyman. mark: in london, i

be sure to catch us every wednesday from bloomberg etf iq, the first show solely focused on etf's.t's at 12:30 new york time every wednesday. ahead, the u.s. is having a big impact on commodities. how it is impacting everything from oil to oranges, next. this is bloomberg. ♪ scarlet: from a frigid blue bloomberg headquarters in midtown manhattan, i'm scarlet fu. the wti is gaining today to its highest level since june 2015. weekly u.s. inventories come out tomorrow, and that report will confirm the longest decline in crude stockpiles since the summer driving season. the frigid weather i was referring to is also impacting oil. producers in west texas have been training their output as some wealth freeze up -- wells freeze up. orange juice is gaining today, icy conditions are in florida and the profits are at risk of freezing up. its note in tallahassee for the first time in 28 years. in tallahassee for the first time in 28 years. is slipping today, off by one point 5%. while it is cold, there is hope on the horizon. so whether models are forcasting a thaw mid-january, but we have to

and liquidity right now can etfs withstand a downturn?ack, they have they've gone through different market cycles when you think of some of the challenging reopening the stock markets after september 11th when you think of all of the fall of 2008 and 2009, etfs provided liquidity in the marketplace. i think there's a better chance etfs will get us out of the next crisis rather than cause the next crisis. >> give me a number. 3.4 trillion assets under management let's go forward five or six years. how big will the etf business be 2025 >> a lot of it depends on global growth trends. i mean that because the u.s. will continue to grow, i'm confident of that. we want to see more etf growth in emerging markets like china and india. if we see that, in addition to the millennials, the fastest growing segment growing 6 0e% a year, i think we could see upwards of 2025, i think we could get to 25 trillion. >> 25 trillion. >> it's only got 12 trillion in it or something like that? >> i don't know what it is right now. >> bigger than the mutual fund i

so important, for any etf investor.minal here and you have the first third of the screen that theree market and after-hours trade. christian, talk about the distinction between your etf block and blcn. passive, why do people like passive investing right now? the technology universe of companies is so dynamic and changing daily with announcements and initiatives that impact valuations significantly. we thought we could take up happened only buy and sell these names once every six months, like the other index etf does. we had to have a portfolio manager not only responding to those activities on a daily basis, but also avoiding some of these companies that are using blockchain in their name just to prop up the stock valuations. we think this is the responsible blockchain,t in actively managed, using the manager to be responsive on the upside and also to manage downside risk. scarlet: you talk about name change. it's interesting because the sec asked you and the other etf to change her name to no longer allow locked change

so can investors expect more marijuana etfs to hit the marketplace?et to bob pisani in hollywood, florida he's got the shakes, by the beach, a hollywood swinger bob, tang it away. >> yeah, alternative harv zest njx is the symbol. sam masucci running it you've stef into a real pot here, my friend. they started december 26th they have almost $400 million. >> is there enough to invest in? can you buy enough to have a half a billion etf fun >> you can it's made up of 30 stocks, they trade 500,000 shares, minute with us per day, and the business is growing, the companies entering it are growing, like scott miracle-gro, which has invested $500 million, they were wildly held. we have pulled them together i think our indecent parts is -- look at gw pharmaceuticals, right? it's been wildly held. not to throw a kink into this happy stories, but jeff sessions says he doesn't like this idea and will not look the other way. what if we get a bunch of fir troops stoling in. >> the majority of our countries are outside the u.s., so we'll manies like that that are ben

there will not be a bitcoin etf anytime soon but one of the firms applying for a future-based etf says he still thought the fcc's concerns could be addressed. >> i think they are trying to think about this which is an entirely new asset it's software. so people are trading so access to software and software-developed rights and they are identifying the key issues that we have to engage with them to try to address these issues. >> reporter: but neither bitcoin nor trade wars with the enthese yachl of this crowd. the professionals here expect that trend to continue. for "nightly business report," i'm bob pisani, in hollywood, florida. >>> the retail broker td amerit trade says investors can buy and share five days a woke on its plat fo platform. here to discuss what it means for you is j.j., chief market strategist at td ameritrade. let's talk about why you decided to do this. are there fundamental events that when they occur in the overnight trading hours perhaps put some investors at a disadvantage? >> yes. you know, you look at what happened last year and we had brexit and the preside

if you have a bitcoin etf, you and i can easily buy it. etfs are packaged by money management firms, institutional product that people, that average people can access some of this stuff, so this will become bitcoin could become a much more of a mom-and-pop commodity to trade. and what they're saying is what's the difference between the transparency where gold is trading at where one gold mine in the middle of nowhere which may or may not be real can fluctuate the price of gold and bitcoin? not that much difference and there is a demand. if people want to blow all their money. we'll give them the opportunity to do it, you know? here's the way to do it, etf. they think they can get this done before the end of the year. one other point i'd like to make, you mentioned ge was down or up today? liz: down, i hope i said down. >> let's be real clear. when the markets are down, when the markets are up ge is down, when the markets are down ge is down. does that scare you in any way? liz: the lowest price we're seeing at $16.83, the lowest since dece

the alternate harvest etf.he fund was previously, get this, a latin america real estate etf before it was relaunched under the new name. joining us is sam mas,ucci, the etf ceo. a week or so ago, maybe a little longer, this was a latin american real estate fund with how much assets under management >> up until a week ago, it was latin american real estate with $5.7 million under management. we launched that fund two years ago. >> two years ago you announced you were going to convert it, sell all that nice latin american real estate equities and go into an index based on cannabis plays. how much assets under management do you have since you announced that change? >> we have added about $70 million in assets in a week. >> so $70 million in assets in a week >> yes >> what do you -- how -- >> can we just say wow holy smokes. >> yeah. this is like a company out on long island that put block chain in its name and went from a market value of zero to whatever it is. how do you explain to all the nice latin american rea

etf's -- it isic not like vanguard of the world.mance is a way out of obscurity to get your name out there. right now, trailing the s&p 500 a little bit, it is and i that latches on and gets people easily. have copycat efforts from someone else? >> we have seen one similar fonts to gop, but i think we are doing something different. i know you're familiar with the reese --, so maga rebounds quite frequently. managed, andly where putting forth our best ideas, 38 names in the portfolio. it fits into the conversation we are having -- sentiments as we head towards the midterms later this year. >> that is a big we are excited about that is launching next week. alertn sign up and get an -- launching next tuesday, it will include a policy meter and the sum that is very cold that will tell you whether you are in a republican or democratic market. it is going to be something that is focused in midterms, and another thing you can look at is the week today and the one-year performance of the individual some things, these policy baskets. .ulia:

issue etfs, and we had an issuer final to -- that was not a nor stock exchange etf we've see all sort of numbers in inflows, is there anything that can stop it juggernaut people say indexes is way too big. what worries you about -- >> i'm not a prognosticator, but i don't see a reason why this trend will stop. they continue to get lower cost, more official. the end involvedor continues to become more comfortable in their portfolio. so there's both of benefit and the comfort. we continue to see innovation. we had an launch last week that already haz 150 -- it's a bit complain coin represented. they're investing in companies that are committed to investing in the blockchain, for example, ibm and citi. >> melissa has a follow-up. >> so if the s.e.c. said yes, go ahead, would the new york stock exchange feel the go ahead to -- >> first of all, it's a hypothetical, because the s.e.c. could not have been more clear with their letter they don't intend to do that. >> it's rare for the ceo of an exchange to say there are some fundamental laws that has a futures contract >> okay. >> there you g

this is "bloomberg etf iq." we focus on the access list and awards offered by etf.is the tide turning for commodities with oil back at $50? they are trading in an 11 month high. what are the best etf's to play this recovery? onsit down with marc levine why he soured on hedge funds throughout almost -- enter his weight behind index funds. new year, new trends.

for fans, we have an etf for you.game and etf is looking to draw fans to its funds -- it tracks companies that sponsor a half broadcasting rights with professional american football, baseball, basketball, and hockey leagues. they have 70 names and range from papa john's and h&r block, because they're equally weighted, it means exposure to smaller names across industries. they have gathered 4 million dollars in assets, trading volume is low, so limited volumes are recommended for fans, and just like the super bowl, it is a pricey ticket. i think i am the biggest sports fan of the three of us, julia, the super bowl. julia: it is my first super bowl party. scarlet: who are you rooting for? julia: i don't know. [laughter] joe: coming up, what you need to know about tomorrow's trading day. this is bloomberg. ♪ scarlet: some earnings after the bell. don't miss this, coming out at 10 a.m. eastern time tomorrow. joe: i be looking at initial jobless claims. this, and don't miss apple and amazon reporting earnings tomorrow. joe

we look into the world of interest rate hedged high-yield etf pass. -- etf's. losing ground to blackrock when it comes to new cash. how they plan to get back on track. what is in a name? and we drill down into a new etf that goes incognito.

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. >>> plus signs for the most part today, especially after word got out that the senate had enough votes to pass the bill to bring the government back into business the dow just off its highs, up about quarter of a percent right now. the best performer is the nasdaq technology doing well, up about three-quarters of a percent. investors, speaking of technology, are keeping a close eye on twitter today after a report that lender sofi has offered the ceo job to chief operating offer anthony noto mr. noto has not accepted the job but he is said to be considering it, but evercore says it would be difficult for twitter to receipt plac

this is "bloomberg etf iq."on the risks and rewards offered by etf. ♪ scarlet: is the tide turning for commodities back at $60. they are trading in an 11 month high. what are the best etf's to play this recovery? we sit down with marc levine on why he soured on hedge funds and through almost all of his weight behind index funds. new year, new trends. what happens when big asset managers tu

this is "bloomberg etf iq." risks and rewards offered by etf. ♪ scarlet: is the tide turning for commodities, with oil back at $60 and the bloomberg commodity index trading in an 11 month high. what are the best etf's to play this recovery? we sit down with marc levine on why he soured on hedge funds and throughout almost all of his weight behind index funds. new year, new trends. what happens when big

etf, but americans .annot it has always existed in the etf world.base is primarily canadian. the canadians themselves are very optimistic for the canadian marijuana -- julia: so much of the features. scarlet: is why the growth we have seen in canada is why they have high ambitions of a can be done in the united states. >> some of the numbers from colorado and state like that have already improved recreational has been astronomical. the state revenue generated has been great. we see that forecasting into canada and we see it as very popular. julia: that is why they will fight the federal government. ofrlet: president and co-ceo etf. thank you very much. it is now time for the bloomberg business flash, a look at some of the rig's business stories in the news right now. a stock sale could come under scrutiny from the fcc. the transaction to place in the fourth quarter of last year after the discovery that modern processors are vulnerable to hackers. intel says the move was part of a prearranged plan. toyota wants to become a leader of the driverless ca

this is "bloomberg etf iq."here we focus on the assets, risks and rewards offered by etf. ♪ scarlet: is the tide turning for commodities, with oil back at $60 and then trading at an 11 month high? what are the best etf's for this recovery? we sit down with mark levine of the illinois state board of investment on why he soured on hedge funds and put his weight behind

we also have a partnership to have a full range of etf's, some of them are proprietary etf's, some ofnot. so our goal is to have everything that someone could reasonably want on our platform, and make it available to them in a way that is the most value added. david: well you mentioned low fees and good service, but what do you think investors mostly want? low fees, good service or high returns? abigail: everything. [laughter] they want all three and you of those, and you better be doing more of every single one of those every year or you will find yourself behind. because every year, i tell everybody because it is what i hear from our customers -- give me more, and give it to me for less money. david: who manages your money? does fidelity manage your money? does that person get nervous if the stock goes down because you are the ceo? they don't get nervous? [laughter] abigail: i think part of my role as a ceo is to also experience the company as a customer. so i do have a couple of our reps who work as a team, who call me several times a year and take me through the portfolio. david:

coming up, bloomberg etf iq, the first show on etf and features industry data and analysis.coming up at 12:30 new york time. this is bloomberg. ♪ scarlet: this is "bloomberg etf iq". ♪ doing good but not getting much love in return. -- soors urging companies why are flows backing up the rhetoric. at thet help but look next downturn and ask how much money will be in mutual funds today if it weren't for all those unrealized gains.

the etfs reflected that too.is the one everyone would have guested the other is aerospace and defense. boeing was a very strong theme as well, also up close to 40%, and then housing a narrower sector, but the itb, they're both etfs that track the home building sector and broader housing sectors, all did well. let's look within tech and see what worked. the short story is almost everything worked within tech. hard to find a negative area, but the igv, the north america tech software etf, heavily rated in some of the broader names like microsoft, like adobe, we have talked about adobe many times, and sales force as well these are the big software platform stocks everybody loves. also semi-conductors the philadelphia semi-conductor etf, soxx, driven by almost all the names there. naturally, heavily weighted in intel. texas instruments was a great performance among the old legacy techs, and nvidia had an outsized impact as it soared in market cap this etf did very well despite the tact that qualcomm, which was flat l

up, oaktree capital chairman howard marks joins bloomberg etf iq, the first show solely focused on etfdustry data and analysis. that is at 12:30 eastern. this is bloomberg. ♪ we use our phones and computers the same way these days. so why do we pay to have a phone connected when we're already paying for internet? shouldn't it all just be one thing? that's why xfinity mobile comes with your internet. you can get 5 lines of talk and text included at no extra cost. so all you pay for is data. choose by the gig or unlimited. and ask how to get a $150 prepaid card when you buy a new lg x charge. it's a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com retail. under pressure like never before. and its 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

this is "bloomberg etf iq."focus on the access, risk, and rewards offered by exchange traded funds. ♪ scarlet: do you need star power like a linked index to get assets to $16 trillion by 2024? we discussed what role endorsements can play in the industry's growth. why dan draper is on trial for computer programmers rather than mbas. and with the holidays

on the first one, xop, oil and gas exploration, up 6 to 7% since mid december and xng, natural gas etfp 8% in the last couple of weeks on the frigid weather that we've been getting. home builders, itb, that is the one that's been doing well all year, up 50% last year the retail index up 15% since mid november again, i keep emphasizing this, how unusual it is to see retailers outperforming throughout the month of december and even yesterday they were on the upside. one thing we're not seeing, even though we're essentially at new highs is a real breakout sector in terms of new highs, if you look at the new high list this morning, you've got a couple of big industrial names you have united technologies and union pacific and smattering of material names like new core, one or two other steel stocks and one or two home builders, what i'm waiting to see is it would take a while for these energy stocks like eog to really break out. they did today chevron did last week to new highs, but they were hit so badly it would be a while before you get them on the new high list not a very strong pattern

you have seen money flowing out of dollar based etfs if you look at the japan equity et etfs, they haveinflow. so the big question here, guys, is whether or not this trend that is really mature right now, more than three years on, and what it would mean for the other markets. right now the stock exchange is really happen with the dollar, the rest of the world is growing very well, and it means that other strange banks earlier in their process has been great for stocks would have reversal higher in the dollar be that thing, the pebble in the pond that ripples across >> what the whole world doing as well as it is, maybe they don't matter as much >> they may not. if you look at it from a big picture point of view, the dollar rally is giving back about half of that since let's say early last year. so it's not exactly like to is creating new lows. the currenty markets do trend in a long direction and they reflect where the economy is growing more or more than expected i guess is the way to look at it. >> maybe the president will address it don't go too far let's get a update at this hour. >>

in this particular etf, the biggest stocks are going to carry the most weight. market cap weighted index tracking etf you look at names like united technologies, also names like boeing, also other stocks out there, say general dynamics, boeing already up 87% for the year 12 months. $177 billion market cap. united technology is up 17%. lockheed martin up district% general dynamic, 17% raytheon, 28%. as we talk about the exchange traded fund and the stocks that could get us to dow 30,000, if it ever happens, it could be boeing is one of those driving names as part of the bigger defense trump trade, carl. back over to you guys. >> thank you very much dominic chu at hq. let's get to landon dowdy today for a cnbc news update at this hour >> good morning. i'm landon dowdy here's your news update at this hour michael wolff is defending his bombshell account of the trump white house. the author of "fire and fury" told the "today" show he stands by, quote, absolutely everything in the book. this comes after president trump tweeted that it was filled with lies meanwhile,

investors have pulled cash from the biggest investment-grade bond etf at the fastest pace in more ofr. fresh set of short bets which have been placed on the fund. that spring -- let's bring in dani burger and patrick armstrong. investment conditions should be bullish. spreads are very tight, but there are signs that investors think otherwise. dani: the tightness is since 2007, but things have really deteriorated. thetipper here is ld2, biggest investment-grade corporate bond in the u.s. assets so farlion this month. and the strange thing here if you have short interest moving even higher, 3.7% now and yet, we seem to have a good underlying spread, with appetite for new issues continuing at a healthy pace. so, investors in the etf and derivatives are seeing a very different story that investors in the underlying. you have to imagine that will trickle down at some point. this is definitely something to keep an ion, not only in corporate bonds, but jump ones as well. there is a really big disconnect between the underlying in the bond. matt: there is a great chart that bloomberg users ca

is so high that it is almost no what is vanguard's view of the etf? a sunday in. >> we love the underlying block technology behind bitcoin. the digital distributor ledger but for other reasons. bitcoin, you will never see a fund from vanguard on bitcoin. we tend to stay away from assets that don't have underlying economic value that don't generate earnings or cash flows. we don't have a gold fund either so the bitcoin, its value is based off scarcity and it is real tough to imagine where the long-term return comes from other than speculation. >> tim buckley, this is your first tv interview as the ceo of vanguard congratulations. you have been there a long time and nice to see you at the top $5 trillion in assets, $1 billion a day you take in. that's a remarkable number. >> incredible trust put in us by our clients. >> thank you, sir, for being here have a good afternoon. we'll be here for the next two days talking to 2500 investment professionals. we'll have all sorts of people on, including discussions about bitcoin coming up with the man who has the

the portfolio companies that made their way into the alternative harvest etf.e very focused on cannabis biopharma. derivatives used for very, very important medical work sump as treatment of cancer, glaucoma, parkinson's -- >> sorry to interrupt. how does jeff sessions rescinding the obama era policies make marijuana more legitimate >> i think it makes the companies that make their way into our portfolio more legitimate >> why >> well, we have 200 million dollar minimum cap values. aurora as mentioned before is almost 7.5% of our portfolio. >> you're not making sense to me jeff sessions says he thinks this stuff is illegal. so to meep that, a negative able to do less of what they intended to do >> we still see a global expansion of, and this is a global portfolio by the way, of the use of medical marijuana, and there are so many important developments being done that, you know, the train had left the station when it comes to harvesting the value out of cannabis and it's used in the melted field. >> sam -- >> yeah? >> sam, let me put the question this way i'm al

most etfs only track a benchmark. flexshares etfs are built around the way investors think.es 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. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. . >> the national average retail price of regular gas -- the national average of regular grade gasoline has increase the by about 3 cents over the past three weeks. that reverses the 3 cent decline from the first two weeks of december the av

. >>> welcome back 2017 was a banner year for etfs with money flowing into etfs and international fundswhat can you expect for 2018 >> 2017 was a record breaking year inflows, 476 billion assets under management, 3.4 trillion money pouring into u.s. stocks funds and also international funds. investors have put a lot of money into u.s. fixed income funds. investors took small amounts of money out of high yield funds and mexico funds gold miners saw outflows, despite talk of an infrastructure plan, utilities and transports had outemployeeor the year the story for 2018 is investors will take money out of mutual funds and put them into lower cost etfs. stock pickers will continue to lose investment dollars. money will come out of active management and into funds tied into indexes like the s&p 500 and money will come out of funds that charge higher fees into funds that charge lower fees, which is why etfs are coming out ahead. it's good news for investors who get broad diversification for lower costs every year. >>> the world will not wait for us that's the message that angela merkel had for

we look into interest rate hedged high-yield etf.en it comes to new cash. -- they plan to get back on track. what is in a name?

or you're not in an etf if you're not in an etf the difference between active and passive is crazy it'ssmall caps where the tax changes can really be more meaningful, management can divert those funds into the businesses much quicker than larger caps. we think they're going o outperform greatly. >> to what extent does that call rely on seeing genuine reinvestment not just from the small caps, from the big caps too and the way it filters down. does it rely heavily on seeing larger investment as opposed to just big share buy backs and the like >> so small cap company in my mind can move the ship a lot quicker than a large cap company. i think as you're looking at a larger cap company, the investment time frames will be larger good management with discretionary cash flow is going to be able to move the needle a lot quicker. i think you're going to see reinvestment happening a lot more than some of the speculation where the money is going straight to dividends. i think entrepreneurs will be excited to put the money to work in businesses. we're seeing that in the companies we cover. >> you'v

the etf enters with a six day losing streak behind it.the story has been the sharper move and longer term treasury yields and tied to the mortgage rates nearly every stock held by the fund has moved lower ranging from smaller cap home builders like vizer homes and all the way to the fund's bigger holdings as measured by market cap which are home depot and lowe's it's worth noting that the etf has seen a surge in trading volume over the last couple of days trading 6.2 million shares just yesterday versus average volume of closer to 2.5 million. while it did close lower, yesterday, yes, it did, it did manage to bounce off the interday lows and slowly gain ground interest rates no doubt a huge part of the housing story in the coming weeks, but the housing industry overall could also become another measure, a barometer, a tea leaf, if you will, whether that trump trade remains intact today we are seeing some strength in the home trades and this etf back over to you >> okay. thank you. let's send it over now to morgan brennan for a cnbc news u

the xlv etf health care down 2%.ell you more on why let's get a check on the oil market, it's set to close. >>> good afternoon, brian. stocks closed under $65 a barrel, a loss of a little less than 2%. crude inventories tomorrow, expectations for a build as we enter the seasonal slow period before the spring and summer everyone will be watching the u.s. production number embedded in the eia report looking to see if tomorrow is the day that the u.s. tops 10 million barrels a day, that would be a key psychological level. now the dollar is still under 09 and red on the session but that's not enough to add support here with the rest of the market dynamics at play, guys. >> thank you very much, jackie de angelis behind the health carouska care, amazon, berkshire hathaway and j.p. morgan chase teaming up to lower health care cost for their employees. bertha coomes is here to tell us about about it. >> health care stocks are getting hit today because the new venture with berkshire hathaway and j.p. morgan chase to bring dow

the xrt is a great etf for anyone who wants to trade and not be stuck with individual names.s got jcpenney and macy's, it's got them all. $1.8 trillion market cap, 7% of the s&p. let's look at some charts and try to figure out whether this is good or bad we know we've got a five-fold increase you're talking about 10 to 50. there's no debating that that's excessive how excessive? a five-bagger that then ever since, based on the last 2 1/2 years, has been stalled. i want to key in on this level take away the long term trend line and put in the new trend line what's happened here is we've rallied consistently next chart and we have failed one, two, three. it touched to the penny and backed away. in the context of the news of today and recent days. all right. here is the up close again, i'm making the bet that we have failed on the line, on the line and we failed again on the line. and i want to make the bet that we're going to go back about 8%. hold this in context you can say, but wait a minute, the market itself is way up here why would i want to get short something that's und

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. >>> dow closed above 26,000 for the first time after trying and failing to do that yesterday again, a rapid assent. we just closed above 25,000 less than two weeks ago 322 point gains in the blue chips, s&p up 26, nasdaq up 24, russell up 13. record closing for everybody, gains of 1% across the board time now for a cnbc news update, sue? >> reporter: hello, kelly. thank you so much. here's what's happening at this time, everyone the white house is firing back at arizona senator jeff flake who compared president trump's attack on the press to the rhetoric of stalin press secretary called flake a failing politician looking for a

that xme, that's the metal etf south africa etf, commodity producing company.are associated withed global reflation, those were the biggest. semiconductors, smh notably weak anything with robotics, botz, that was hot, that was notably weak gaming and video technology etfs, gmar was hot and that was weak you can buy these internet stocks in china that are hot through this etf, they were weak bottom line, momentum stocks were notably weak. anything associated with the global economic recovery, that was weak as well the final big question here, what about this end of the month window dressing, we don't know if that was a factor we'll know in two days, february 1st we'll answer all those questions. >> that's true bob pisani joining us to make sense of it is sam stovall at post nine, chief strategist at cfre you focus on earnings number how do you view the pullback against that >> i view the pullback basically is we got a bit overextended as of friday we were 7% above the 50-day moving average. 14% above the 200-day moving average. both of those are one and a half s

etf, yourt about the space here?gail: not surprising, the etf holdings some of these shares down on the day. to joe's point, the popularity of the stocks and the performers we've seen most recently, if we look at the inflows into the alternative harvest etf, the inflows, and this is the etf on the day, down about 5.5%. inflows,y are, those just over the last five days, take a look at it. actually up until tuesday. will be interesting to see what it will look like after it is updated. joe: it already did give it to marijuana. abigail doolittle, thanks so much per let's say with the topic of legal marijuana and what it means for the state themselves. we welcome jenny kaplan. give us a little more context to what exactly attorney general jeff sessions it. he didn't so much change the law .s rescind a memo talk about how that manifests itself. >> correct. what jeff sessions did is come he basically put out a memo today saying that he is resending what is known as the call memo and another call the ogden memo. what they d

msci, usa momentum etf essentially it's a smarter beta etf which selects stocks based on displayed shareentum it's basically piling into the stocks that have shown very good relative strength. other criteria, as well. what's fascinating it's not necessarily the most high octane kind of glamour stocks you might expect to see in a fund like this it's tech 38% of this fund is in tech, 20% in financials. those are some of the leading sectors. 15% in health care and on down the dow stocks you'll find in here is fascinating. six of the eight largest holdings in this fund as of last night are dow stocks jpmorg jpmorgan, apple, boeing, microsoft, and visa sa these global bellwethers, these companies exposed to global growth as well as some of the big tech names have been leaders but it is fascinating and reminds me of early 2017 last year when you started to see the technology weighting in the low volatility etf go up a lot tech stocks were cast in a different role as very safe defensive stocks right here. right here dow stocks have been where the momentum has been. it's not necessarily what you

lot of issuers that issued etf's last year alone.umber of them have gone through the filing process. the sec came out last week or the following week, i lose track of time in davos, and put out a paper with a lot of questions about cryptocurrency. at the core of that, i saw a message that said this is not a mature asset last in the vein of the u.s. dollar or gold. it will be a while. collectiblefrom baseball cards to gold, and bitcoin has more than collectible baseball cards and less than gold. if i had to guess, it is a while. i don't have timing, but it is not imminent. erik: the president on the new york stock exchange. vonnie: a great interview. i have a question for you. a lot of the macro conversations are happening and although. it is a macro-themed event. global capital markets, what conversations are happening? good question. i do not know if you saw josh friedman who was sitting in a chair that tom is occupying a few minutes ago. there are not a lot of places for smart money to go, it is more about where smart money is not

compared with similar etf's, is not tied any single commodity.lay on industrial miners, which makes it more diversified. as a result it is more overlap with world equities than it does with gold prices and gdfs/ a cost 39 basis points. ♪ to our animation team at bloomberg intelligence. join us every wednesday for bloomberg etf iq. available at 12:30 p.m. new york time every thursday right here. this is bloomberg. ♪ ♪ worldt: from bloomberg headquarters in midtown manhattan, this"bloomberg markets." is -- this is"bloomberg markets." stockpiles by the end of march thed be 23 percent below five-year average. natural gas is up by 1.58 percent on the day. if you look at precious metals, the green arrows, you can see gold is up by 3%. secretaryws treasury steve mnuchin's comments in favor of a weaker dollar. that translated into gains for gold and silver. a weaker dollar is certainly one factor but better than expected u.s. manufacturing him i a rebound from yesterday's losses. copper and nickel making the biggest strides. in the soft commodities space

for etfs. for one week, that's a really big move just a couple more things as far as across the country perspective, the u.s. got the bulk of those assets but a lot of them spread around europe, emerging markets, japan. so money's out there really trying to find a place to go it's surging big-time into the markets. now, michael hartnet, chief investment strategist at bank of america, merrill lynch used the term bull capitulation we need to think about as we see a market up over 5% this year, alone, as dom chu said before, we're at a 15-time high in terms of the start of the year more and more concern being expressed over the froth in the markets now and investors really committing big money toward those equity funds >> sarg, i was going to ask you, this goes back to what we were saying earlier, part of the reason i ask how does it make you feel, we you hear some of these things or see the way the market's playing out, is there any instinct of wanting to fade it especially when we see this kind

you look at etf flows. you have a little bit more money coming into europe a lot that have is performance chasing. >> why wouldn't you buy the heck out of europe until draghi gives you an indication he's ready to raise rates. >> you want to be overweight international markets. don't mean you throw out the u.s. or don't have exposure there but if you're thinking about forward returns on a valuation basis. history says you'll get more bang for your buck if you're diversified rather than just u.s. >> well, bond yields are ron the move, albeit slightly today. let's talk about that with rick r re-iter, the global chief investment officer at blackrock. good to see you again. >> thanks for having me. good to see you, scott are you amazed as tepper is about where yields are >> this is a great conversation. i agree with what david is saying there is -- rates are -- what poem don't consider is what our equities are the free cash flow discounted by the cost of financing which is the rate market we've talked about this