Trillions

Inside a Liquidation

Launching an exchange-traded fund is easy. Finding success is a different story entirely. About a quarter of all ETFs that have been launched have ended up having to liquidate. These stories can sometimes be forgotten given how much the successful ones are celebrated—but they can also provide a lesson about the marketplace and the importance of timing.  On this episode of Trillions, Joel Weber and Eric Balchunas speak with Jack Forehand and Justin Carbonneau, respectively the president and vice president of of Validea. They launched the value-focused Validea Market Legends ETF (VALX) back in 2014, right around the same time Cathie Wood launched ARKK. But they ended up closing it in 2020 due to a lack of assets. We speak to them about their journey, why timing is so important and the state of value investing today. See <a href="https://omnystudio.com/listener">omnystudio.com/listener</a> for privacy information.

Money goes where it's treated best. That simple truth is a big reason why more and more money—trillions, in fact—flows into a powerful, low-cost tool that's quietly transformed investing in recent years. Exchange-traded funds, or ETFs, let you invest in everything from the stock market to gold like never before. This biweekly podcast will demystify them—and delight you in the process.