What are ETFs: Investing Basics w/ Andrew Kadjeski (MI252)

Rebecca Hotsko chats with Andrew Kadjeski about how the ETF structure and ecosystem works, how to compare ETFs with similar objectives but different indices and determine which is better, and much more!   

 Andrew Kadjeski, Head of Vanguard Personal Investor, Brokerage and Investments at Vanguard. In this capacity, he leads Retail Brokerage (trading, cash management, margin, securities lending, settlement, corporate actions, tax, and regulated output) and Education Savings (e.g., 529 plans). Since joining Vanguard in 2006, Andrew has also held various positions in Vanguard’s Finance, International and Institutional divisions. He received a B.S. in International Business from Elizabethtown College and an M.B.A. from The Wharton School of the University of Pennsylvania. 

IN THIS EPISODE, YOU’LL LEARN:
00:00:00 - Intro
00:00:37 - How the ETF structure and ecosystem works
00:03:21 - The purpose of the indexes that ETFs track
00:06:01 - How to compare ETFs with similar objectives but different indices and determine which is better
00:08:11 - For investors building a portfolio using several ETFs, the importance of keeping consistent exposure to the same index
00:09:42 - Why Vanguard dumped MSCI Indexes in favor of CRSP for most US index funds in 2012
00:12:41 - When and how ETF take their fees
00:13:16 - The three main costs associated with ETFs
00:15:21 - Why investors should avoid trading ETFs really early in the open of a market open
00:15:51 - Why it's better to trade international ETFs at a time that coincides with the hours of the underlying shares local markets
00:18:44 - Some ways that ETFs can be used for short-term goals
00:19:55 - Two types of capital gains investors need to be aware of with ETFs
00:23:40 - The difference between CAD-listed vs US-listed ETFs that track the same market
00:29:10 - Why can ETFs differ from their NAV, what does this mean if it’s trading at a premium or discount?
00:43:00 - What differentiates Vanguard from other ETF providers

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WHO I AM:
I’m Rebecca Hotsko, an investor and entrepreneur 💼 based in Canada; co-founder of a luxury boat ⛵ sharing club in Kelowna, British Columbia. I graduated from the University of Saskatchewan with a bachelor’s degree 🎓 in Economics and completed CFA level I and II. I gained valuable experience working as an analyst for the Bank of Canada 🏦, the federal energy regulator and in investment management. My passion for teaching others how to invest using time-tested strategies backed by empirical data led me to create an investing blog 💻 in 2020. 

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