ETF bubble explained, past & present of ETFs & are gold ETFs distorting the market? Ft David Tuckwell

How big can the ETF market get? And are we in an ETF bubble? On this episode of the Australian Investors Podcast, we are joined by David Tuckwell, Author and Investment Strategist at Global X ETFs. David shares his wealth of knowledge on all things ETFs, including what we can expect the market to look like.

Global X ETFs celebrated 20 years of their GOLD ETFm and David shares his insights on investing in commodities, the role gold can have in a portfolio, and using gold during various parts of the economic cycle.

This is a super insightful interview that anyone who is interested in ETFs and investing should tune into.

On this episode of the Australian Investors Podcast, Owen and David discuss:

The ETF story: 

• Early days of ETFs (locally or abroad) and some of the friction/challenges the industry had to overcome? The journey ETFs, as an industry, have been on in Australia? How big can they get?

ETF Bubble:

•  There’s a lot of talk about ETFs being in a bubble. And more ETFs coming to market that maybe aren’t as high quality. Are there any potential risks that could arise out of the ETF market?

Investing in commodities:

• The difference between synthetic and physical ETFs
• What does it mean when contracts are being used instead of physical holdings? How do providers get exposure? What are the key considerations investors need to make when analysing a synthetic ETF

GOLD ETF

• Global X has just celebrated its 20th anniversary for the GOLD ETF. It’s Australia’s biggest gold ETF, providing unhedged/USD exposure to physical gold. 
• What is the opportunity within gold as an asset class?
• What are the benefits of holding gold during rising interest rates, inflation?
• How would we expect gold prices to fair now, versus say over the past 10 years when rates were falling and the economy was “stable” (or in a bull market)?
• Are gold ETFs impacting the underlying price of gold? 

David’s investment philosophy – theory versus reality