YouSaid · the spoken record

Matt Hougan

lines on the record: 89
first: 2019-02-01
most recent: 2019-02-01
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Yeah, so we have filed two applications for cryptocurrency ETFs. One is an index basket that holds the top 10 crypto assets, and one is Bitcoin only.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“That's right. And Bitcoin's gone through six or seven 70% plus drawdowns in the past. And each of those has set the stage for a new rally. Now, I'm not saying that will necessarily happen here, but it's down 70%. It's up 300% over the last two years. So it depends on your perspective.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“No, that is true. It is an early stage technology. And I'm not claiming it's more established than gold. You know, if you look back at gold when it came off the US gold standard, it went through a period of rapidly rising prices and massive volatility. It had years when it went up 100%, years when it went down 33%. We just don't remember that. This is a new sovereign store of value. You would expect sort of an asymptotic rise in prices, and you would expect massive volatility. I'm right about Bitcoin 10 years from now, it will be boring like gold too. And that's what we're waiting for.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Right now. That's definitely true. That is definitely true. Any early stage technology takes a while to get up the spectrum. I'm not sure you're right about the liquidity in size. It depends on, you can get liquid in Bitcoin at very reasonable sizes very quickly. Certainly gold's a deeper.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“And I would say there are a lot of analogies between Bitcoin and gold. They're both non sovereign stores of value. But Bitcoin is much more useful in gold. It's much more easily divisible. It can be spent. It can be stored. It can be transferred easily. So it is. It's like an upgraded version of gold.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Discuss. Yeah, well, it's definitely true. Every generation has an asset that they love or a way of getting exposure that they love. The greatest generation loved gold. Then people loved active mutual funds. Gen X loved hedge funds. Millennials loved crypto. If you ask millennials, which would they rather hold, gold or Bitcoin? It's Bitcoin by a mile. Which would they rather hold equities or Bitcoin? It's Bitcoin by a mile. Really?”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“That is definitely Of course. Which is hilarious. It is hilarious. And Jeremy Siegel is magic on stage. Yeah. I love seeing Jeremy Siegel before he goes on stage, whereas he's old professor sort of mean to him. Right. And then he goes on stage and he's just supernova. It's amazing to watch him. He's a fantastic presenter.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“I've seen him before. He's fantastic. He's fantastic, and he seems honest and organic. He's totally organic, which is unique. Not everyone is. A lot of people speak their book. For sure. And that's not true. I'm really excited about Michael Lewis. We've tried to get him many years, and the schedule has not worked out. He's one of my favorite authors. I see him around town in Berkeley, and I always want to like stalk him and ask him to come straight.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I'm really looking for. I mentioned this earlier. I'm really looking forward to Schiller speaking. I think the time.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“In that boardroom. There's a huge amount of volume. There's a thing called the inside ETF effect, which ETF volumes tend to be down for the three days. Get out of here.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I think everyone from the traditional asset management industry is there. So every ETF issuer, every index provider, all the APs and market makers, also all the mutual fund managers who must be thinking about the ETF space are there to see and learn. And on the flip side, there are really two classes of investors. So there are a large number of financial advisors. And there's a rising number of institutional investors because they're increasingly using ETFs at the core of their portfolio and not just on the edges. So that mix comes together.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Client exposures. And just like we talked about robo advisors five years ago when no one cared, I think getting people to think about mass customization, personalized indexing, ESG overlays now will be helpful to their business in the years ahead. So those are some of the things I want them to take away.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so the event is focused primarily on financial advisors, and to my mind it's a success if the people who come and take three days out of their lives to attend that away from their families find a way to sustain or grow their business. And so to do that, I want them to learn at this particular year's event a few things. I want them to think deeply about where we are in the economic cycle and what that means for clients and what that means for their bond holdings, et cetera. I want them to think deeply about these new areas of the market that are opening up, not just crypto, which we talked about, but some of the thematic ETFs and whether those are performance chasing or valuable and interesting. And then one thing we try to do a little bit is ask them to think five years ahead. I think the financial advisory business is going to be fundamentally transformed in the next five years. I think we're on the cusp of an era of mass customization.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“He was great. I heard how you find him, I read a great article where he reflected on sort of the challenges that he had faced. I thought he would be an interesting person to listen to. It's four days. And so you can't do four days of creation, redemption, and emerging market debt. You need to give people a chance to reflect and think about other things. And yeah, we're really excited. I think having Shiller there this year at this time in the market is really timely and looking forward to that.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Bob Schiller. Yeah, we don't mess around. Well, we, you know, one of the great things about running a conference company is that you get to indulge all your intellectual interests. So I love Michael Lewis. So why don't we want to have him there? We love sports so you can get football giants there.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Oh, I still love ETFs. And I still think the ETF industry is evolving rapidly. And I still think there are a lot of things that people need to learn, particularly as we enter a different cycle in the market. So the ability to still influence that conference was really appealing. I like to keep my hand in. I'm also on the board of a small ETF issuer, so I like to stay involved in the ETF space because I still think we have miles to go there.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's amazing, and it's amazing that it exists. We all buy something called title insurance to guard against the risk that somehow this most important asset we've ever bought is not actually ours. It is incredible that that still exists in today's society. I think that example is a great one, and there are many like that.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly. No, but people thought corporate intranets were the thing. The analogy between an open internet, which people are like, no one will trust that, is the same between private blockchains and public blockchains, public blockchains that are open and accessible by anyone need a crypto asset to function. And I think over the long term, public, open, accessible technologies tend to win. Now, private blockchains are important. I think they could revolutionize settlement. One of the things blockchain does really well is settle transactions much faster. I think they could memorials data. I think they let you trace back transactions. But I think those are actually modest improvements. And I think the massive improvement is this displacement of a trusted middleman that public blockchains allow.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“It is. If you remember the early days of the internet, the really early days when there were books and you'd look up a website and type it in, everyone was really excited about corporate intranets. They're like, oh, it'd be great to send files to Joe and accounting without having to walk over. People thought corporate...”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“There's a huge deal. Now, we're miles away. We're years away. It's an early stage technology. We're years away. But already you can go to IBM and you can wire money using a crypto asset internationally for much cheaper than you can send it through a traditional banking system. So it is going to get here, but it is early.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, crypto is the first time we've been able to engage in financial transactions between people who don't know each other without someone in the middle to verify those transactions. That's all that blockchain technology does. It allows you to replace someone in the middle verifying transactions like Visa or like your bank and your friends bank with software that does it automatically in for free. And so much of the financial industry is at some level a middleman like an escrow agent that verifies trust and crosses transactions and crypto has shown that you don't need that. That's a big deal.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think those parallels are accurate. I think it is the next.com. But remember, the dot-com bubble created pets.com, but it also created Amazon. So, I think there are 2,000 cryptocurrencies out there, 95% of them are useless and will die a painful death. The sooner that happens, the better. There's also a lot of bad activity, bubble-related activity that's getting cleared up. But from those ashes, if you call them ashes, I mean, crypto's up 300% over the last two years. If that's ashes, they're nice ashes. But from those ashes, I think will emerge important things, just like from the dot-com ashes emerged, Amazon, Google, Facebook, et cetera.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“If you give it two and a half minutes of thought, you think it's fair unicorn money on the internet. And it takes hours and days of really analyzing it to see where it might and may have value. So I see a lot of parallels.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“But these were not people didn't think ETFs would amount to much, right? They were a last ditch effort to save the AMAX and create trading volume there. People didn't realize how good they were. And the same thing as crypto. People are reflexively dismissive of crypto. Most people have given it about two and a half minutes of thought.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Do you remember when people talked about ETFs as weapons of mass destruction? Sure. Do you remember when people didn't think ETFs would ever amount to much? I think they were the iShares franchise was sold for a dollar from Morgan Stanley to BGI, right? Nice trade. Yeah, exactly. I think Eric Valsoon has called it the Louisiana Purchase of Yeah, I hope someone's still.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“I actually ended up with two. I ended up with crypto and with options strategies. Both of which I think are potentially very important, and both of which are really poorly understood by most investors. But this unique crypto opportunity to be involved in the first crypto index fund appealed to my inner indexing nerd.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, yeah, although it was the plan to jump into it started earlier than that, but that's absolutely true. I would say there are three things. You know, when I got into ETFs, they weren't well understood and they weren't widely adopted and they were still a new and emerging industry. And the only skill I have to the extent I have a skill is the ability to explain complex things in a simple way. And I felt like a lot of what I wanted to do in ETFs had been accomplished. I had helped create the first ETF rating system. I'd helped create the first ETF classification system. I'd done some small part to move ETFs into the mainstream. And now they are the dominant way people get exposure to the market. So I felt most of what I had done, what I wanted to do had been achieved. And I went and looking for the next area of disruptive opportunity where I thought the quality of information was poor.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Good luck. People worry about bond ETFs blowing up. What they should be worried about is in a bond market crisis, corporate bond mutual funds blowing up and having real issues. I think that could happen.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“For investors, yeah, it's totally right. And you're absolutely right about the liquidity as long as the underlying is liquid, the ETF is liquid, which is why, and people get this wrong, the only bond funds that have blown up have been bond mutual funds. Because they have to redeem out and cash.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“No, you are absolutely right. I actually think if the ETF came first, the SEC would never approved a mutual fund structure, right? You're going to make people share in the tax event. That's insane. Social losers.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Why does that matter? And it matters for a bunch of different reasons. I'll give you two. So, first, think about when you send money to a mutual fund company, they have to hire people who go into the market, decide what to buy, trade. It costs money. That raises the fees. The other reason it matters is when you redeem from a mutual fund, they have to sell actual stocks. If those stocks have appreciated in value,”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Just on the exchange, right? I might buy 100 shares of spy and you might be selling it, and we'll get matched at the exchange level. What happens with an ETF is instead of the ETF going out and buying the securities, it publishes a list of what securities it wants to buy and a big institutional investor called an authorized participant goes out and acquires that list of securities. Say it's the S&P 500. They buy all 500 securities. And then they send all 500 securities to the ETF company in exchange for the same value of shares in the ETF, which they can just send, sell on the markets. Same thing happens in reverse. When these APs want to redeem shares, they say, we want to have 50,000 shares of this ETF. They send the 50,000 shares to the ETF company, and the ETF company sends them the equivalent dollar amount in stocks, which they can then sell. Now, you may wonder.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“And then when you want your money back, the exact same thing happens in reverse. You say, I want my $100,000 back, they sell $100,000 of whatever stocks are out of favor, and they send you your cash. And that's a creation and a redemption in the mutual fund, but you're doing it. In an ETF, when you buy an ETF, you just buy it like you buy shares of IB. I buy my share of”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“Sure. So let me start with mutual funds because people understand them better. When you invest money in a mutual fund, you send them cash and then the mutual fund manager sits on that cash overnight. Then they come into work and they pick which stocks to buy and they buy stocks with that cash.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“People have to remember that early in the days of ETFs, no one believed in them, no one trusted them, and no one understood them. There were huge myths about ETF liquidity. People didn't know what a creation redemption was. Sure. And people had no way to even answer basic questions like, what are all the emerging market ETFs? That didn't exist. No way to answer how well does this ETF track its index. So we spent a huge amount of time. I must have explained creation redemption.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“So we sold our business in three separate sales. We sold our data business to FactSet, our events business to Informa, and our media business, etf.com, the property to CBOE, which is now BATS. Or we sold it to Bats, which is now CBOE. Right. To confuse matters more, we sold Dave with the data business to FactSet. And then he left FactSet to go to ETF.com at CBOE Bat. So it's virtually impossible to keep straight in your head.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“No one had even gone through the prospectuses to make sure that they were actually tracking total return indexes. It was a mess. So we built the first classification and rating system, which we subsequently sold the fact sets, now Powers FACSET system.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think it was a no brainer. Yeah. So we switched to ETF.com. I eventually became the CEO of the business. Some of the things I'm most proud of that we did there, we built the largest ETF conference in the world inside ETFs. We built the first ETF classification and rating system. It's hard to imagine an ETF land that eight or nine years ago things like tracking error were not available to most investors.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source
“So I started as a freelance reporter for its predecessor, which was Index Universe. I recall that. We left the worst URL in the world with Index Universe.”
2019-02-01 · Masters in Business · Matt Hougan Discusses Cryptocurrency and ETF Indexes (Podcast) · IDENTIFIED FROM THE TRANSCRIPT · source