Eric Balchunas
Showing 1–2 of 2 interviews.
- Bloomberg Television42 min
S&P 500 Erases Midterm Losses, Bitcoin Bounce
Rob Arnott, Cinthia Murphy, Dina Tang, Alaina Anderson, Eric Balchunas, Elena Anderson, Scarlett Fu, Joel Weber
Global equity markets rallied on dip-buying sentiment despite NVIDIA's CEO scandal and Bitcoin's decline, while Rob Arnott warned that extreme U.S. market concentration and massive AI capital expenditures pose significant risks of future write-offs. In response to these valuation concerns, investors shifted 40% of flows into smart beta strategies like the Rouse ETF, which prioritizes deep value names over frothy tech, and Franklin Templeton launched a Bitcoin-linked equity fund to offer controlled digital asset exposure. Meanwhile, new products including Tuttle Capital's credit default swap ETFs and Global X's "Magnificent VI" tracker emerged alongside institutional updates on Japan's reforms and the "Revenge of the Tangibles" thesis driven by de-globalization.
- Bloomberg Television8 min
Concentration Risk A 'Serious Issue': Rob Arnott
Rob Arnott, Scarlet Fu, Eric Balchunas
Research Affiliates announced the sale of its index business to TMX Vetify to scale operations while launching the RAUS ETF, a low-cost fund that outperformed the S&P 500 by 170 basis points over 14 months by prioritizing deep value fundamentals over market cap weighting. The fund's strategy reduces concentration risk by excluding "frothy" high-multiple stocks in favor of undervalued giants, achieving significant returns with only a 5% divergence from standard index holdings. This approach challenges traditional indexing norms by aligning portfolio inclusion with business realities to mitigate the potential for asset write-offs driven by rapid technological obsolescence.