January 22, 2025 • 27 mins
Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF.
Columbia Business School Professor of Leadership and Ethics Adam Galinsky discusses his book Inspire: The Universal Path for Leading Yourself and Others. Kristy Akullian, Head of iShares Investment Strategy at BlackRock, provides the details of the firm's 2025 investment outlook.
Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.
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Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio news. This is Bloomberg Business
Week with Carol Masser and Tim Steneveek on Bloomberg Radio.
Speaker 2 (00:14):
Well, today's probably a pretty good day. Where's good day?
As ever? To talk about leadership, we saw here in
the US this week the inauguration of a new president
and administration. Carol, you and I twenty four hours ago,
we're covering that. We're still covering the president's first full day.
We do wait to hear from him as he plans
to speak with tech executives to make a big infrastructre
announcement at the White House. We'll bringing those comments as
(00:35):
we do get them. Leadership, though, and different types of
leaders and what makes a good leader is Adam Glinski's world.
He's Paul Collello, Professor of Leadership and Ethics at Columbia
Business School. He's got a brand new book out, Inspire,
The Universal Path for Leading Yourself and Others. Professor Glinski
joins us here in the Bloomberg Interactive at Brokers Studio.
Before we get into what you write about this inspiring,
(00:57):
infuriating continuum, the different types of leaders that were out there,
I want to hear from you how this book came
together because you essentially created a class at Columbia Business
School that every person who goes to Columbia is required
to take.
Speaker 3 (01:11):
Yeah. So I've been studying leadership and teaching leadership since
two thousand and two. Originally I was at the calleg
School of Management TAD at Berkeley and then at Columbia,
and around two thousand and six I was actually teaching
the FBI, the Federal Bureau of Investigation. We had a
program at Kellogg for agents to come in, about sixty
agents at the time, and one of them just started
(01:31):
talking about a leader that inspired them, and I was
really struck immediately by the transformation in physical transformation. His
eyes lit up right, he almost looked smiled, he got expressive,
his voice spoke really quickly with a little higher pitch,
and it was clearly that he had been fundamentally affected
(01:53):
and impacted by this leader. Then the next year, a
different FBI agent, ironically enough, started saying, I want to
talk about an inspiring person. I want to tell you
about all the infuriating leaders I had. And then so
I started asking hundreds and thousands and probably tens of
thousands of people across the globe. A very simple question.
Tell me about a leader that inspired you, and tell
(02:15):
me about a leader that infuriated you. And notice both
both types of leaders transform you inside. Right, one is
like a well spring, the other is, you know, a
seething cauldron. And one of the things I realized really
quickly is that they're basically mirror images of each other.
So the inspiring leader, right has that optimistic, big, big vision.
(02:35):
The infuritying leader is a pessimist, pedantic, right, you know,
the inspiring leader's courageous, infering leaders cowardly inspiring leader is
elevates people and friendly leader diminishes people. And so you
can start to understand that this happened. The second really
fascinating thing about this research is I started asking people
all over the world, so every continent that you can
(02:55):
think of, you know, dozens of countries, And what I
discovered was there was a single inspiring or in feruiting
characteristic that wasn't mentioned in every single country in the world.
So there's something universal in the very tapestrying fabric of
the human mind that really captures.
Speaker 4 (03:11):
This anything between men and women differences.
Speaker 3 (03:13):
I have not found any It's a great question, you know,
that's That's another one, which is that you know, you know,
women find you know, courageous, big picture, you know, generous
people inspiring, you know, and so do men. And it
doesn't really vary that much by It doesn't vary by gender,
by ethnicity, by country, by culture. There's something really fundamental
(03:35):
about about that. I think there's some variations sometimes in
like you can see Democrats and Republicans right where Democrats
put a little bit more emphasis, let's say, on the
empathy side, and Republicans might put a little bit more
emphasis on the strength side of the equation.
Speaker 2 (03:49):
Well to that point, and I want to jump right
into it because I want to go we do want
to go over some leaders at a certain point, and
you know, whether they're inspiring or infuriating. But I think
to myself, here you are telling us about these different
leadership qualities or the way that people view leaders that
they've encountered in their lives. I think of somebody's top
(04:09):
of mind. President Trump to many people, to more than
seventy million voters, he's an inspiring leader to many people
who didn't vote for him, and even some people who've
worked in previous administrations. In his previous administration, he's not.
He's an infuriating leader. How can one single person be
both of those things to different people?
Speaker 3 (04:29):
So I'll say three things about that. The first is
that one of the things that I think my research
has discovered is that there's these three universal factors, and
I'll sort of go through them talking about Trump in
a second. But it also tells us something fundamental. We're
not inspiring infuriating born that way, and we're not forever
that way. We can be inspiring today and inferating tomorrow,
(04:49):
and we can be inspiring on some dimensions and inferuit
in other dimensions. So in some ways you can say
all of us, every one of us is both inspiring
and inferuiting, or has the potential to be both at
different time, right. And So I think that's one thing.
The second thing I would say is that there's two
things about Trump that I think everyone would agree with.
One is that he has a simple, compelling visual vision
(05:14):
that people everyone can understand. Right, make America great again.
It's even an acronym. Right. And the second thing is
that no one will contend with the fact that he
presents himself as a strong and courageous protector and two
is that he comes across as authentically passionate. And so
those two are to the fundamental of like how we
(05:35):
are in the world, this exemplar thing. And so he
has this very clear vision and he is very clear
presents himself as this strong, courageous, passionate you know, protector.
Now where he falls on the infurity in side is
I think two things. Some people find the vision itself
to be infuriating, like exclusionary it only includes a certain
category of Americans, for example, and find it to be
(05:57):
maybe harsh. And then the second thing is I don't
think any person would argue with the fact that the
third fact, so the three universal factors are being visionary,
how we see the world, being an exemplar how we
are in the world. And then the final one is
mentor how we treat people in the world. And I
don't think anyone would argue with the fact that Trump
doesn't treat people very well. Right. You know, he had
(06:19):
more turnover in his first term than any other president
in terms of you know, the main leaders within his administration.
He is notorious, right for throwing people under the bus, right,
And when I ask people around the world, you know,
describe an inspiring leader, it's always someone who share success
but takes on blame and burden. But with Trump, right,
(06:39):
he forever steals success. It's me, me, me, me me
when things go well, and it's you you u uu
when it goes bad.
Speaker 4 (06:46):
Well and you know, And yet step back for a second,
and whether he took accountability for this or or said that,
you know, in some of the policies that he implemented
or had people implement, whether it's tariffs on China, many
would say this was long and coming, Like there are
certain things he's done that actually people applaud him for. Right,
(07:07):
and those terriffs with China and push back on China
carried over to the Biden administration. Now we're like getting
ready for kind of what comes next. But I'm just
saying that, is it only inspiring leaders that actually get
some stuff done? Is it infuriating leaders also, and you
know or leaders that maybe you know, people don't want
(07:28):
to be around that still bring about some changes.
Speaker 3 (07:31):
Absolutely. I mean, I think if you look at some
of the most famous leaders in our world, you know,
for example, Steve Jobs right, even in some ways Elon
Musk right, that they fit that mold right, being sort
of you know, very clear vision, you know, authentic and passionate,
but not always treating people very well. Right, And so
those people might be great top of the top leaders,
(07:54):
but they wouldn't be very good managers, for example, you know.
And I think that really makes the difference. One thing
I'll say about Trump, though, is that the things that
he's concerned, he's very good at recognizing what other people's
concerns and fears are, right, and so he's able then
to package those in a way like I think everyone
would agree we need to have a very clear immigration
(08:17):
policy to have an effective United States. Now we may
disagree with some of those elements, but he's very good
at simplifying it, right, Like we need to shut our
border down, you know, to figure out what's going on,
and we could maybe then sensibly reopen it at a
later point. And I think you see that the trans
issue is another one that he really expertly understood, which
is that people are concerned about fairness and athletics. They're
(08:39):
concerned about could someone show open a bathroom that would
make me you know, could a man schopen a woman's bathroom?
You know? Using this issue as a ruse, and so
he understood people's fears around that and was able to
articulate them.
Speaker 4 (08:51):
Well, what do you think corporate leaders need to do
going forward? Because often they'll have their employees say listen,
I'm uncomfortable. I don't think of our you know, employee
base as male or female. I think there's other choices.
What do you think is going to how this is
going to play out in corporate America?
Speaker 3 (09:04):
I mean, that's a great question. I mean, I'll say
the first thing I'll say is, I do think that
one of the reasons why Kamala Harris lost the election
was two things that are on vision. She never articulated
the true state of the economy, which was that it
was much better than.
Speaker 4 (09:18):
The economy stupid, right, Like, yeah, there's a reason why
people say that she.
Speaker 3 (09:21):
Didn't defend it. She didn't come out and say, yeah,
prices are higher than they should be. But like she
should have said every single day about djob growth. That's
what Trump would have done, right every single day. And
the second thing is she never articulated at any point
what her vision around let's say, gender identity was, Like
I have no idea, Like I know that she generally
supports the rights, but like, are there limits to that?
(09:44):
Like what is the fabric of that? Like Trump was
very clear and when when you look at some of
the exit polling, you see two things. People at accurate
information on the economy voted for Biden and they voted
for Trump if they didn't, and if they're concerned about
the trans issue, they voted for Trump. And so I
think those are two things. What should corporate leader.
Speaker 2 (10:01):
Well, I was just going to say, we have plenty
of time at least until we start to hear from
the president, and we are awaiting that at the White House.
I do want to ask, because your book it's not
just about leaders on the international stage and leaders in
the border. I mean you talk about parenting and being
a leader in the home. What are some takeaways that
(10:23):
people who are not necessarily in managerial positions right now
can take from the book.
Speaker 3 (10:27):
Yeah, well, you know, I coined a phrase that I
use in the book called the leader amplification effect. And
the leader amplification effect is that when you're a leader,
you're essentially on stage. Eyes are on you. And one
of the things we know from cognitive psychology, and I
know you've had a lot of cognitive psychologists on this
show is that attention amplifies signals and then those also
(10:48):
intensify reactions. So when you're on stage, your signals, whatever
they could be verbal, nonverbal, good, bad, small, big, are
going to get amplified, and then people's reactions are going
to be intensified. And so what is a leader, Well,
a leader is someone who has power and status. Those
are two of the things I've studied the most in
my career social hierarchy for twenty years. And essentially it's
(11:10):
someone with some authority, right, and also people look up
to that person. Guess what parents are, right? Parents are
They have authority over their kids, and their kids generally
look up to them or at least look to them
for information. And so I have coined a phrase that
I call the parent amplification effect, a corollary of the leadership,
which is like they pick up on things. I'll tell
you a very short story about this that I really
(11:33):
love about a former doctoral student at Columbia who worked
with some people you've had on like Sondra Mats. But
when she was twelve years old, she overheard her mom
say to someone else, both girls are great at piano.
But I can't remember right now. Her sister's they know
has a real knack for it. Abby. I think it
was their sister Abby has a real knack for it.
(11:55):
And she was so incensed she never played piano again.
She was like, you know, basically, f you, mom. You
think she's got better thing. And you know, I saw
her mom. And this is what's great about the leader
amplification effect is that we can be totally unaware that
we're we're we're having this impact. And you know, you know,
I told her mom the story. She's like, I had
(12:16):
no idea why she quit PIATO, Like that happened like
twenty years earlier. And Barry Salzburg, who is a he
was CEO of Global Deloitte. About six months after being CEO,
he noticed there was bananas at every meeting. He's like, huh,
like banana is an important symbol of Deloitte. I've been
here thirty years or someone else?
Speaker 2 (12:34):
Did he bring to a media No.
Speaker 3 (12:35):
No, what happened was is his first meeting he went to.
He picked up a banana with a little bit of enthusiasm,
and his the executive assistant, was like, have bananas at
every meeting Barry's at you know, he didn't even say
anything right, and so you know, whether it's your parent,
whether it's you know. And that's why I always say
it's not about a position of leadership. It's like whenever
(12:56):
you matter to someone else, right, it could be a
So it could be in the dating relationship when you
care about the opinion of another person, right, all of
their expressions and could you're paying attention right intentions? Really
that currency.
Speaker 4 (13:09):
Well with kids, I think about that a lot. We've
talked about this, how kids can be branded as well,
you're a math kid or you're really not a math kid,
and they just kind of get it in their head
and and kind of go that route. We want to
ask you about a couple of different leaders. You have
mentioned Elon Musk. You know, it's interesting. We're just coming
off the inauguration. We saw these big tech ceo so
they're kind of top of mind for me when you
(13:31):
think of Elon, when you think of Jeff Bezos, Mark Zuckerberg,
Sundar Pitchai of Alphabet, I don't know, inspira inspiring leaders,
infuriating leaders.
Speaker 3 (13:39):
I mean I think there, you know, they can be
a little bit of both. Right, and some of them,
you know, clearly. Any you know, one of the things
that we are inspired by is people who do amazing
things right, right, Like think of Steph Curry, Like, how
many people are you know? I Steph Curry is my
favorite player, right, he can just do things that no
one else can do. Josh Allen on the football field, right,
(14:00):
is the same way. And so you know, people who
create things are always going to hold, you know, a
big attention in the world. And that's true and throughout
history of the United States, you know, you go back
to you know, some of the famous people in eighteen hundreds,
you know, And and so I think that there's a
way that we really get captivated by that that vision
(14:21):
and that super competence. But also they can start veering
off into the wrong vision, right, and they can also
start not really paying attention to other people. So one
of the problems of the leader and amplification effect is
sometimes we aren't aware of the impact. Right. That's exactly
what happened with Erica's mother. She had no idea this
all in comment would have that impact.
Speaker 4 (14:41):
And so you know, so those employee surveys about your
bosses are really good.
Speaker 3 (14:45):
Yeah, I mean, I think they're really good. I think so.
I mean, I'm a huge fan of three sixty feedback, right,
And I think it's you know, I created, I actually
created a thing called, you know, an are you and
am I inspiring scale that people can sort of measure.
But the best way to use it is to take
it yourself and then have other people take it, and
then you can say, I might think I'm visionary, but
(15:06):
they don't see me as visionary. And that's the you know,
that's what we want, is we want accurate understanding of
how other people perceive us.
Speaker 2 (15:14):
So I'm thinking about other leaders out there who are
in our world. We talked about Elon Musk, we talked
about some of the other tech leaders. We just celebrated
the life of Jimmy Carter and a lot of people
in remembering Jimmy Carter talked about how he had these
qualities that you know, really inspired people around him, but
(15:37):
he was an ineffective president because he was a micromanager
and he didn't play the politics game. How do you
balance where do you balance on this continue to be effective?
Speaker 3 (15:46):
Yeah? I think that's right. I think, Well, if we
just got you know, the last chapter of the book
talks about actually the connection between Jimmy Carter and Donald Trump.
They both lost reelection, you know, and you know, fortunely
was able to get in a couple of paragraphs at
Donald Trump becoming president again, you know after that. But
you know, they lost because I think different different parts
(16:07):
of what I call the VEM diagram of inspiring leadership, visionary,
exemplar and mentor Donald Trump. Sorry, Jimmy Carter was clearly
he was deficient on the visionary end, right. He never
articulated a clear vision first presidency. And there's an amazing
quote by I can't remember exactly what it was, but
(16:27):
it was about even cabinet secretaries need a vision in
order to execute within their departments, and Jimmy Carter never
gave him that vision, so they couldn't execute effectively. And
the micromanagement, you know, the famous story of Jimmy Carter
approving the tennis schedule everything, you know, you know, it's
unclear whether it's actually true or what role played, but
(16:48):
it fit the image of who he was, which was
someone who was lost in the weeds, a micromanager couldn't
see the thing. But all those other qualities right, his
his courage, his calmness, his humanity, the those shown brightly
outside of the Oval office, and so in many ways,
right his entire image was rehabilitated in that process. And
(17:10):
you know, Donald Trump, you know, really benefited from the
fact that distance left him. He lost because he was
a poor mentor, but the distance allowed people to forget
how he treated people well.
Speaker 4 (17:22):
So much in this book you cover a lot of ground, Adam,
Thank you so much, Adam Galinsky. Paul Colillo, Professor of
Leadership and Ethics at the Columbia Business schal His new
book Inspire, The Universal Path for Leading yourself and others.
It is out and really gives you a lot of
things to think about in terms of leadership.
Speaker 1 (17:37):
Today you're listening to Bloomberg BusinessWeek with Carol Masser and
Tim Steneveek on Bloomberg Radio.
Speaker 2 (17:45):
Well, speaking of the president just today and his presidency.
Investors are closely watching further moves from Donald Trump to
assess their effect on markets. JP Morgan Chase, for example,
is establishing a war room just for this purpose. Exactly
how policy proposals will play out is not clear yet.
For example, shares of companies with tariff risks largely shrugged
off the threats, at least for now. Today, in response
(18:08):
to what was reported yesterday. For an idea though of opportunities,
we bring in Christi Acolian. She's head of I Shares
investment strategy over at Blackrock. She joined us from San Francisco.
Let's talk themes for this administration. Christy, where are you bullish?
Speaker 1 (18:25):
Yeah?
Speaker 5 (18:25):
Absolutely, And Simon Carrol, thanks for having me. It's great
to be here. You know, I think that the broad
theme of the investment outlook that we just put out
for twenty twenty five is really that we're risk on,
so we are overweight US equities. We still see really
strong you know translation from that strong economic growth that
we're seeing all the way down to strong corporate profitability.
(18:46):
We're most bullish right now on large caps. We're really
preferring to stay up in quality, even though on a
day like today, I know we saw small caps pop
a lot. Something like qua L, which is our I
Shares quality ETF is where we see the best opportunity
because we think that the fundamentals matter just as much
too as some of the narratives that we're getting, and
from a fundamental perspective, we see the strongest earning growth
(19:09):
coming from the highest quality companies. So that's the number
one area we're bullish right now.
Speaker 4 (19:14):
In terms of you know, christ is. Of course, this
is the first full day of President Trump in the
White House. We're watching various policies start to come out,
or at least indications of ones, and tariff's in particular.
I think there are some concerns. We talked with our
Gina Martin Adams earlier of our Bloomberg intelligence team that targets,
you know, tariffs at target economies usually impact companies, you know,
(19:35):
so if you target something like Canada, which the President
seems to be you know, indicating or possibly talking about
US auto companies, you're going to feel it. All of
this then ultimately impacts the companies, maybe impacts operating margins.
So how do you roll that into your optimistic view.
Speaker 5 (19:53):
Yeah, I mean, you know, our optimistic view is certainly
not without risk. So we're certainly focusing on trade policy
as one source of unknowns, immigration policy as another, and
then potential for deregulation. So I think it's a little
bit of a mixed bag in terms of the direction
that that can have of economic growth. You know, if
we look at kind of again kind of back to
(20:14):
the macro here, we're focused on fundamentals, even though the
headlines are going to move us around quite a bit
this year. What we've seen in terms of inflation looks benign.
Right We got CPI data last week that was the
lowest core reading month over months since July. The path
that the economy is on right now feels good, so
that underpins a lot of our bullish outlook. But the
risks in terms of how those those policy changes might
(20:36):
be implemented are are worth watching this year. So I
think that you brought up tearff policy. Trade policy is
obviously incredibly important. If that does reignite or reaccelerate immigration,
then we think that there's some portfolio adjustments that you
might need to make. We're talking about some thematic exposures
right now, something like made great ticker for made in
(20:57):
the USA that really focuses on domestic manufacturing if we
do see those widespread tariffs put into place, or something
like technology independence. I think both of those thematic ideas
have a place in a portfolio, especially if you're concerned about,
you know, trade policy. Even though maybe what we saw
from from President Trump yesterday was a little bit more
(21:17):
benign than markets weren't anticipating. So I think we did
see a bit of a relief rally that the tariff
potential was not quite as high as as investers maybe
had thought maybe what was priced into markets coming in.
Speaker 4 (21:28):
It's still early, Yeah, okay, So what about when it
comes to international Obviously, you know you're bullish on US.
Speaker 2 (21:36):
That's that's not a contrarian position right now, we hear
I've lost track of the number of times, Carol, people
talk about US exceptionalism in recent months. It's certainly the
theme for the year. International equities, though they are less
expensive relative to their US counterparts, what's the opportunity there?
Speaker 5 (21:56):
Yeah, absolutely so we you know, we think that you
need international exposure in your portfolio for diversification. They're just
different sources of risk and return, and that is important,
especially to your point in this environment where we're overweight,
and you know, we're enthusiastic about the opportunity set in
the US, but so is everyone else. So I think
that the benefit you get from adding to international is
(22:17):
those lower evaluations in terms of the way that we
think it's sort of best expressed right now, again kind
of leaning into that quality notion. But internationally, we like
international dividend payers, so companies you know that screen a
little bit higher quality that can can pay that dividend
and a steady dividend over time. We also think it's
an opportunity for active management because it is a environment
(22:38):
that is changing quickly and in on a path of
global divergence. In terms of global growth, I think you
need to have sort of high conviction in some of
the areas of opportunity that you see. So we do
like international, even though we're overweight the US, but I
think the best opportunity there leans and screening a little
bit higher quality and dividends is an interesting way to
do that. Something like BIDD, which is are active international
(23:01):
dividend fund that we just launched. I think that's going
to be a really interesting one for this year.
Speaker 3 (23:05):
Christy.
Speaker 4 (23:05):
You know, you get to see right the big picture,
right in terms of what's going on in the ETF
industry and specifically in terms of black rock flows, I
mean the industry. The ETF industry saw a record flow
of about a trillion dollars into ETFs in twenty twenty four.
What are you seeing in terms of flow so far
(23:27):
here in twenty twenty five, Where is the money going?
Where's the money maybe flowing out of Yeah?
Speaker 5 (23:34):
Absolutely so to your point, the first trillion dollar year
for US ETFs, which is just a huge milestone, So
I think that's really interesting. A big part of that
was driven by newer asset classes and newer exposures. So obviously,
you know cryptocurrencies and spot bitcoin ETFs that were launched
the last January just about a year ago, took up
a lot of the attention and took up a lot
(23:55):
of the flows. But I also think that you know
what we're seeing right now in this environment that is
overall strong, but not without risks. We're seeing investors lean
into some more niche areas of the market, something like
outcome products and outcome ETFs. I think that's an area
of focus where we've seen some flows. We tend to
see flows follow performance. You certainly saw that in the
(24:17):
last quarter of twenty twenty four and Q three as well.
In terms of small cap you saw large inflows to
small caps. Some of that has reversed and we've seen
that continue to reverse a little bit more. It really
is underscored by our preference for being up in quality
and large cap that we think the fundamentals can catch
up to some of those smaller cap names where we're
seeing investors maybe get out over take profits.
Speaker 4 (24:38):
When you talk about outcome ets, just to clarify for
those who may not be in the note, that's when
you kind of use options right to achieve various goals.
Speaker 5 (24:45):
Yeah, absolutely so, you know, we have different forms of
buffered products. I think it's probably the most the most
popular there. So whether you want to you know, protect
yourself to the downside of a five, a ten, or
twenty percent draw down, the being able to use options
to to be able to trade away some of your
upside potential in exchange for really locking and more certainty
of outcome on the downside. I think that's been a
(25:07):
really interesting conversation with investors, especially in this world where
we're not seeing the same diversification benefits from bonds. So
if you love equities and your overweight equities, which you
know we are right now, but at the same time
you're not getting that same ballast or diversification from longer
term bonds, how are you constructing a portfolio that can
weather a variety of different environments, and I think those
(25:30):
outcomes that having that certainty of outcome has been really
important for investors too.
Speaker 2 (25:34):
Christy, how should people think about overlap with the S
and P five hundred in an ETF with the the
USA Quality Factory TF. The QUAL is the ticker, because
if I look at the holdings there, Apple's the biggest holding.
You got Microsoft and Vidia, Visa, MasterCard, Meta Platforms, Eli,
(25:54):
Lilly Alphabet, United Health, TJX companies. How should investors think
about that compared to just buying an index fund with
the S and P five hundred.
Speaker 5 (26:03):
Yeah, a couple of different things. I think quality is
as much about what you don't own as what you do.
So QUAL is a little bit more concentrated, and you're
gonna see some similar exposures to just the broad based index,
but they're held at different weights and they're really screening
out some of those lower quality companies. So I think
that's the important thing. The other thing, too, though, is
just when you look at a different at an ETF,
(26:25):
it's really important to know what you own. The way
that we construct our factory TF, so quality is one
of them is sector constrained. So it's giving you a
representative slice of the market.
Speaker 3 (26:35):
It's not just.
Speaker 5 (26:36):
Giving you an entirely technology fund, because technology stocks screen
high quality. Really importantly, it's giving you the highest quality
companies within each sector. So I think knowing whether it's
a substitute for an S ANDPI founder at augmenting it
is important, and the way that it is constructed is
meant to be sort of a quiry.
Speaker 4 (26:54):
Chris, you just got about a minute left here. A
story that we've been looking at in the world Raymond
James Financial entering the ETF market through its asset manager division.
They have a vast network of financial advisors who up
to this point we're probably offering things like black Rocky tfs.
We are increasingly seeing others get into the ETF industry,
(27:17):
and especially those with their own financial advisor network. We're competition.
Does that make it a little bit tougher for you guys, Well.
Speaker 5 (27:25):
I mean, I think the general trend that we saw
in terms of the one trillion dollars of flows just
means that the overall pie is getting bigger. So, you know,
competition is not bad. You know, we lean a lot
into our reputation and brand and the really full suite
of product offerings that we have, so really feeling very
confident about ETF flows this year as well.
Speaker 4 (27:44):
All Right, cool, Steph, great overview. Christy Aculi and she's
head of I shares Investment strategy at Blackrock, joining us
on this Tuesday from San Francisco
Bloomberg Audio Studios, Podcasts, radio news. This is Bloomberg Business
Week with Carol Masser and Tim Steneveek on Bloomberg Radio.
Speaker 2 (00:14):
Well, today's probably a pretty good day. Where's good day?
As ever? To talk about leadership, we saw here in
the US this week the inauguration of a new president
and administration. Carol, you and I twenty four hours ago,
we're covering that. We're still covering the president's first full day.
We do wait to hear from him as he plans
to speak with tech executives to make a big infrastructre
announcement at the White House. We'll bringing those comments as
(00:35):
we do get them. Leadership, though, and different types of
leaders and what makes a good leader is Adam Glinski's world.
He's Paul Collello, Professor of Leadership and Ethics at Columbia
Business School. He's got a brand new book out, Inspire,
The Universal Path for Leading Yourself and Others. Professor Glinski
joins us here in the Bloomberg Interactive at Brokers Studio.
Before we get into what you write about this inspiring,
(00:57):
infuriating continuum, the different types of leaders that were out there,
I want to hear from you how this book came
together because you essentially created a class at Columbia Business
School that every person who goes to Columbia is required
to take.
Speaker 3 (01:11):
Yeah. So I've been studying leadership and teaching leadership since
two thousand and two. Originally I was at the calleg
School of Management TAD at Berkeley and then at Columbia,
and around two thousand and six I was actually teaching
the FBI, the Federal Bureau of Investigation. We had a
program at Kellogg for agents to come in, about sixty
agents at the time, and one of them just started
(01:31):
talking about a leader that inspired them, and I was
really struck immediately by the transformation in physical transformation. His
eyes lit up right, he almost looked smiled, he got expressive,
his voice spoke really quickly with a little higher pitch,
and it was clearly that he had been fundamentally affected
(01:53):
and impacted by this leader. Then the next year, a
different FBI agent, ironically enough, started saying, I want to
talk about an inspiring person. I want to tell you
about all the infuriating leaders I had. And then so
I started asking hundreds and thousands and probably tens of
thousands of people across the globe. A very simple question.
Tell me about a leader that inspired you, and tell
(02:15):
me about a leader that infuriated you. And notice both
both types of leaders transform you inside. Right, one is
like a well spring, the other is, you know, a
seething cauldron. And one of the things I realized really
quickly is that they're basically mirror images of each other.
So the inspiring leader, right has that optimistic, big, big vision.
(02:35):
The infuritying leader is a pessimist, pedantic, right, you know,
the inspiring leader's courageous, infering leaders cowardly inspiring leader is
elevates people and friendly leader diminishes people. And so you
can start to understand that this happened. The second really
fascinating thing about this research is I started asking people
all over the world, so every continent that you can
(02:55):
think of, you know, dozens of countries, And what I
discovered was there was a single inspiring or in feruiting
characteristic that wasn't mentioned in every single country in the world.
So there's something universal in the very tapestrying fabric of
the human mind that really captures.
Speaker 4 (03:11):
This anything between men and women differences.
Speaker 3 (03:13):
I have not found any It's a great question, you know,
that's That's another one, which is that you know, you know,
women find you know, courageous, big picture, you know, generous
people inspiring, you know, and so do men. And it
doesn't really vary that much by It doesn't vary by gender,
by ethnicity, by country, by culture. There's something really fundamental
(03:35):
about about that. I think there's some variations sometimes in
like you can see Democrats and Republicans right where Democrats
put a little bit more emphasis, let's say, on the
empathy side, and Republicans might put a little bit more
emphasis on the strength side of the equation.
Speaker 2 (03:49):
Well to that point, and I want to jump right
into it because I want to go we do want
to go over some leaders at a certain point, and
you know, whether they're inspiring or infuriating. But I think
to myself, here you are telling us about these different
leadership qualities or the way that people view leaders that
they've encountered in their lives. I think of somebody's top
(04:09):
of mind. President Trump to many people, to more than
seventy million voters, he's an inspiring leader to many people
who didn't vote for him, and even some people who've
worked in previous administrations. In his previous administration, he's not.
He's an infuriating leader. How can one single person be
both of those things to different people?
Speaker 3 (04:29):
So I'll say three things about that. The first is
that one of the things that I think my research
has discovered is that there's these three universal factors, and
I'll sort of go through them talking about Trump in
a second. But it also tells us something fundamental. We're
not inspiring infuriating born that way, and we're not forever
that way. We can be inspiring today and inferating tomorrow,
(04:49):
and we can be inspiring on some dimensions and inferuit
in other dimensions. So in some ways you can say
all of us, every one of us is both inspiring
and inferuiting, or has the potential to be both at
different time, right. And So I think that's one thing.
The second thing I would say is that there's two
things about Trump that I think everyone would agree with.
One is that he has a simple, compelling visual vision
(05:14):
that people everyone can understand. Right, make America great again.
It's even an acronym. Right. And the second thing is
that no one will contend with the fact that he
presents himself as a strong and courageous protector and two
is that he comes across as authentically passionate. And so
those two are to the fundamental of like how we
(05:35):
are in the world, this exemplar thing. And so he
has this very clear vision and he is very clear
presents himself as this strong, courageous, passionate you know, protector.
Now where he falls on the infurity in side is
I think two things. Some people find the vision itself
to be infuriating, like exclusionary it only includes a certain
category of Americans, for example, and find it to be
(05:57):
maybe harsh. And then the second thing is I don't
think any person would argue with the fact that the
third fact, so the three universal factors are being visionary,
how we see the world, being an exemplar how we
are in the world. And then the final one is
mentor how we treat people in the world. And I
don't think anyone would argue with the fact that Trump
doesn't treat people very well. Right. You know, he had
(06:19):
more turnover in his first term than any other president
in terms of you know, the main leaders within his administration.
He is notorious, right for throwing people under the bus, right,
And when I ask people around the world, you know,
describe an inspiring leader, it's always someone who share success
but takes on blame and burden. But with Trump, right,
(06:39):
he forever steals success. It's me, me, me, me me
when things go well, and it's you you u uu
when it goes bad.
Speaker 4 (06:46):
Well and you know, And yet step back for a second,
and whether he took accountability for this or or said that,
you know, in some of the policies that he implemented
or had people implement, whether it's tariffs on China, many
would say this was long and coming, Like there are
certain things he's done that actually people applaud him for. Right,
(07:07):
and those terriffs with China and push back on China
carried over to the Biden administration. Now we're like getting
ready for kind of what comes next. But I'm just
saying that, is it only inspiring leaders that actually get
some stuff done? Is it infuriating leaders also, and you
know or leaders that maybe you know, people don't want
(07:28):
to be around that still bring about some changes.
Speaker 3 (07:31):
Absolutely. I mean, I think if you look at some
of the most famous leaders in our world, you know,
for example, Steve Jobs right, even in some ways Elon
Musk right, that they fit that mold right, being sort
of you know, very clear vision, you know, authentic and passionate,
but not always treating people very well. Right, And so
those people might be great top of the top leaders,
(07:54):
but they wouldn't be very good managers, for example, you know.
And I think that really makes the difference. One thing
I'll say about Trump, though, is that the things that
he's concerned, he's very good at recognizing what other people's
concerns and fears are, right, and so he's able then
to package those in a way like I think everyone
would agree we need to have a very clear immigration
(08:17):
policy to have an effective United States. Now we may
disagree with some of those elements, but he's very good
at simplifying it, right, Like we need to shut our
border down, you know, to figure out what's going on,
and we could maybe then sensibly reopen it at a
later point. And I think you see that the trans
issue is another one that he really expertly understood, which
is that people are concerned about fairness and athletics. They're
(08:39):
concerned about could someone show open a bathroom that would
make me you know, could a man schopen a woman's bathroom?
You know? Using this issue as a ruse, and so
he understood people's fears around that and was able to
articulate them.
Speaker 4 (08:51):
Well, what do you think corporate leaders need to do
going forward? Because often they'll have their employees say listen,
I'm uncomfortable. I don't think of our you know, employee
base as male or female. I think there's other choices.
What do you think is going to how this is
going to play out in corporate America?
Speaker 3 (09:04):
I mean, that's a great question. I mean, I'll say
the first thing I'll say is, I do think that
one of the reasons why Kamala Harris lost the election
was two things that are on vision. She never articulated
the true state of the economy, which was that it
was much better than.
Speaker 4 (09:18):
The economy stupid, right, Like, yeah, there's a reason why
people say that she.
Speaker 3 (09:21):
Didn't defend it. She didn't come out and say, yeah,
prices are higher than they should be. But like she
should have said every single day about djob growth. That's
what Trump would have done, right every single day. And
the second thing is she never articulated at any point
what her vision around let's say, gender identity was, Like
I have no idea, Like I know that she generally
supports the rights, but like, are there limits to that?
(09:44):
Like what is the fabric of that? Like Trump was
very clear and when when you look at some of
the exit polling, you see two things. People at accurate
information on the economy voted for Biden and they voted
for Trump if they didn't, and if they're concerned about
the trans issue, they voted for Trump. And so I
think those are two things. What should corporate leader.
Speaker 2 (10:01):
Well, I was just going to say, we have plenty
of time at least until we start to hear from
the president, and we are awaiting that at the White House.
I do want to ask, because your book it's not
just about leaders on the international stage and leaders in
the border. I mean you talk about parenting and being
a leader in the home. What are some takeaways that
(10:23):
people who are not necessarily in managerial positions right now
can take from the book.
Speaker 3 (10:27):
Yeah, well, you know, I coined a phrase that I
use in the book called the leader amplification effect. And
the leader amplification effect is that when you're a leader,
you're essentially on stage. Eyes are on you. And one
of the things we know from cognitive psychology, and I
know you've had a lot of cognitive psychologists on this
show is that attention amplifies signals and then those also
(10:48):
intensify reactions. So when you're on stage, your signals, whatever
they could be verbal, nonverbal, good, bad, small, big, are
going to get amplified, and then people's reactions are going
to be intensified. And so what is a leader, Well,
a leader is someone who has power and status. Those
are two of the things I've studied the most in
my career social hierarchy for twenty years. And essentially it's
(11:10):
someone with some authority, right, and also people look up
to that person. Guess what parents are, right? Parents are
They have authority over their kids, and their kids generally
look up to them or at least look to them
for information. And so I have coined a phrase that
I call the parent amplification effect, a corollary of the leadership,
which is like they pick up on things. I'll tell
you a very short story about this that I really
(11:33):
love about a former doctoral student at Columbia who worked
with some people you've had on like Sondra Mats. But
when she was twelve years old, she overheard her mom
say to someone else, both girls are great at piano.
But I can't remember right now. Her sister's they know
has a real knack for it. Abby. I think it
was their sister Abby has a real knack for it.
(11:55):
And she was so incensed she never played piano again.
She was like, you know, basically, f you, mom. You
think she's got better thing. And you know, I saw
her mom. And this is what's great about the leader
amplification effect is that we can be totally unaware that
we're we're we're having this impact. And you know, you know,
I told her mom the story. She's like, I had
(12:16):
no idea why she quit PIATO, Like that happened like
twenty years earlier. And Barry Salzburg, who is a he
was CEO of Global Deloitte. About six months after being CEO,
he noticed there was bananas at every meeting. He's like, huh,
like banana is an important symbol of Deloitte. I've been
here thirty years or someone else?
Speaker 2 (12:34):
Did he bring to a media No.
Speaker 3 (12:35):
No, what happened was is his first meeting he went to.
He picked up a banana with a little bit of enthusiasm,
and his the executive assistant, was like, have bananas at
every meeting Barry's at you know, he didn't even say
anything right, and so you know, whether it's your parent,
whether it's you know. And that's why I always say
it's not about a position of leadership. It's like whenever
(12:56):
you matter to someone else, right, it could be a
So it could be in the dating relationship when you
care about the opinion of another person, right, all of
their expressions and could you're paying attention right intentions? Really
that currency.
Speaker 4 (13:09):
Well with kids, I think about that a lot. We've
talked about this, how kids can be branded as well,
you're a math kid or you're really not a math kid,
and they just kind of get it in their head
and and kind of go that route. We want to
ask you about a couple of different leaders. You have
mentioned Elon Musk. You know, it's interesting. We're just coming
off the inauguration. We saw these big tech ceo so
they're kind of top of mind for me when you
(13:31):
think of Elon, when you think of Jeff Bezos, Mark Zuckerberg,
Sundar Pitchai of Alphabet, I don't know, inspira inspiring leaders,
infuriating leaders.
Speaker 3 (13:39):
I mean I think there, you know, they can be
a little bit of both. Right, and some of them,
you know, clearly. Any you know, one of the things
that we are inspired by is people who do amazing
things right, right, Like think of Steph Curry, Like, how
many people are you know? I Steph Curry is my
favorite player, right, he can just do things that no
one else can do. Josh Allen on the football field, right,
(14:00):
is the same way. And so you know, people who
create things are always going to hold, you know, a
big attention in the world. And that's true and throughout
history of the United States, you know, you go back
to you know, some of the famous people in eighteen hundreds,
you know, And and so I think that there's a
way that we really get captivated by that that vision
(14:21):
and that super competence. But also they can start veering
off into the wrong vision, right, and they can also
start not really paying attention to other people. So one
of the problems of the leader and amplification effect is
sometimes we aren't aware of the impact. Right. That's exactly
what happened with Erica's mother. She had no idea this
all in comment would have that impact.
Speaker 4 (14:41):
And so you know, so those employee surveys about your
bosses are really good.
Speaker 3 (14:45):
Yeah, I mean, I think they're really good. I think so.
I mean, I'm a huge fan of three sixty feedback, right,
And I think it's you know, I created, I actually
created a thing called, you know, an are you and
am I inspiring scale that people can sort of measure.
But the best way to use it is to take
it yourself and then have other people take it, and
then you can say, I might think I'm visionary, but
(15:06):
they don't see me as visionary. And that's the you know,
that's what we want, is we want accurate understanding of
how other people perceive us.
Speaker 2 (15:14):
So I'm thinking about other leaders out there who are
in our world. We talked about Elon Musk, we talked
about some of the other tech leaders. We just celebrated
the life of Jimmy Carter and a lot of people
in remembering Jimmy Carter talked about how he had these
qualities that you know, really inspired people around him, but
(15:37):
he was an ineffective president because he was a micromanager
and he didn't play the politics game. How do you
balance where do you balance on this continue to be effective?
Speaker 3 (15:46):
Yeah? I think that's right. I think, Well, if we
just got you know, the last chapter of the book
talks about actually the connection between Jimmy Carter and Donald Trump.
They both lost reelection, you know, and you know, fortunely
was able to get in a couple of paragraphs at
Donald Trump becoming president again, you know after that. But
you know, they lost because I think different different parts
(16:07):
of what I call the VEM diagram of inspiring leadership, visionary,
exemplar and mentor Donald Trump. Sorry, Jimmy Carter was clearly
he was deficient on the visionary end, right. He never
articulated a clear vision first presidency. And there's an amazing
quote by I can't remember exactly what it was, but
(16:27):
it was about even cabinet secretaries need a vision in
order to execute within their departments, and Jimmy Carter never
gave him that vision, so they couldn't execute effectively. And
the micromanagement, you know, the famous story of Jimmy Carter
approving the tennis schedule everything, you know, you know, it's
unclear whether it's actually true or what role played, but
(16:48):
it fit the image of who he was, which was
someone who was lost in the weeds, a micromanager couldn't
see the thing. But all those other qualities right, his
his courage, his calmness, his humanity, the those shown brightly
outside of the Oval office, and so in many ways,
right his entire image was rehabilitated in that process. And
(17:10):
you know, Donald Trump, you know, really benefited from the
fact that distance left him. He lost because he was
a poor mentor, but the distance allowed people to forget
how he treated people well.
Speaker 4 (17:22):
So much in this book you cover a lot of ground, Adam,
Thank you so much, Adam Galinsky. Paul Colillo, Professor of
Leadership and Ethics at the Columbia Business schal His new
book Inspire, The Universal Path for Leading yourself and others.
It is out and really gives you a lot of
things to think about in terms of leadership.
Speaker 1 (17:37):
Today you're listening to Bloomberg BusinessWeek with Carol Masser and
Tim Steneveek on Bloomberg Radio.
Speaker 2 (17:45):
Well, speaking of the president just today and his presidency.
Investors are closely watching further moves from Donald Trump to
assess their effect on markets. JP Morgan Chase, for example,
is establishing a war room just for this purpose. Exactly
how policy proposals will play out is not clear yet.
For example, shares of companies with tariff risks largely shrugged
off the threats, at least for now. Today, in response
(18:08):
to what was reported yesterday. For an idea though of opportunities,
we bring in Christi Acolian. She's head of I Shares
investment strategy over at Blackrock. She joined us from San Francisco.
Let's talk themes for this administration. Christy, where are you bullish?
Speaker 1 (18:25):
Yeah?
Speaker 5 (18:25):
Absolutely, And Simon Carrol, thanks for having me. It's great
to be here. You know, I think that the broad
theme of the investment outlook that we just put out
for twenty twenty five is really that we're risk on,
so we are overweight US equities. We still see really
strong you know translation from that strong economic growth that
we're seeing all the way down to strong corporate profitability.
(18:46):
We're most bullish right now on large caps. We're really
preferring to stay up in quality, even though on a
day like today, I know we saw small caps pop
a lot. Something like qua L, which is our I
Shares quality ETF is where we see the best opportunity
because we think that the fundamentals matter just as much
too as some of the narratives that we're getting, and
from a fundamental perspective, we see the strongest earning growth
(19:09):
coming from the highest quality companies. So that's the number
one area we're bullish right now.
Speaker 4 (19:14):
In terms of you know, christ is. Of course, this
is the first full day of President Trump in the
White House. We're watching various policies start to come out,
or at least indications of ones, and tariff's in particular.
I think there are some concerns. We talked with our
Gina Martin Adams earlier of our Bloomberg intelligence team that targets,
you know, tariffs at target economies usually impact companies, you know,
(19:35):
so if you target something like Canada, which the President
seems to be you know, indicating or possibly talking about
US auto companies, you're going to feel it. All of
this then ultimately impacts the companies, maybe impacts operating margins.
So how do you roll that into your optimistic view.
Speaker 5 (19:53):
Yeah, I mean, you know, our optimistic view is certainly
not without risk. So we're certainly focusing on trade policy
as one source of unknowns, immigration policy as another, and
then potential for deregulation. So I think it's a little
bit of a mixed bag in terms of the direction
that that can have of economic growth. You know, if
we look at kind of again kind of back to
(20:14):
the macro here, we're focused on fundamentals, even though the
headlines are going to move us around quite a bit
this year. What we've seen in terms of inflation looks benign.
Right We got CPI data last week that was the
lowest core reading month over months since July. The path
that the economy is on right now feels good, so
that underpins a lot of our bullish outlook. But the
risks in terms of how those those policy changes might
(20:36):
be implemented are are worth watching this year. So I
think that you brought up tearff policy. Trade policy is
obviously incredibly important. If that does reignite or reaccelerate immigration,
then we think that there's some portfolio adjustments that you
might need to make. We're talking about some thematic exposures
right now, something like made great ticker for made in
(20:57):
the USA that really focuses on domestic manufacturing if we
do see those widespread tariffs put into place, or something
like technology independence. I think both of those thematic ideas
have a place in a portfolio, especially if you're concerned about,
you know, trade policy. Even though maybe what we saw
from from President Trump yesterday was a little bit more
(21:17):
benign than markets weren't anticipating. So I think we did
see a bit of a relief rally that the tariff
potential was not quite as high as as investers maybe
had thought maybe what was priced into markets coming in.
Speaker 4 (21:28):
It's still early, Yeah, okay, So what about when it
comes to international Obviously, you know you're bullish on US.
Speaker 2 (21:36):
That's that's not a contrarian position right now, we hear
I've lost track of the number of times, Carol, people
talk about US exceptionalism in recent months. It's certainly the
theme for the year. International equities, though they are less
expensive relative to their US counterparts, what's the opportunity there?
Speaker 5 (21:56):
Yeah, absolutely so we you know, we think that you
need international exposure in your portfolio for diversification. They're just
different sources of risk and return, and that is important,
especially to your point in this environment where we're overweight,
and you know, we're enthusiastic about the opportunity set in
the US, but so is everyone else. So I think
that the benefit you get from adding to international is
(22:17):
those lower evaluations in terms of the way that we
think it's sort of best expressed right now, again kind
of leaning into that quality notion. But internationally, we like
international dividend payers, so companies you know that screen a
little bit higher quality that can can pay that dividend
and a steady dividend over time. We also think it's
an opportunity for active management because it is a environment
(22:38):
that is changing quickly and in on a path of
global divergence. In terms of global growth, I think you
need to have sort of high conviction in some of
the areas of opportunity that you see. So we do
like international, even though we're overweight the US, but I
think the best opportunity there leans and screening a little
bit higher quality and dividends is an interesting way to
do that. Something like BIDD, which is are active international
(23:01):
dividend fund that we just launched. I think that's going
to be a really interesting one for this year.
Speaker 3 (23:05):
Christy.
Speaker 4 (23:05):
You know, you get to see right the big picture,
right in terms of what's going on in the ETF
industry and specifically in terms of black rock flows, I
mean the industry. The ETF industry saw a record flow
of about a trillion dollars into ETFs in twenty twenty four.
What are you seeing in terms of flow so far
(23:27):
here in twenty twenty five, Where is the money going?
Where's the money maybe flowing out of Yeah?
Speaker 5 (23:34):
Absolutely so to your point, the first trillion dollar year
for US ETFs, which is just a huge milestone, So
I think that's really interesting. A big part of that
was driven by newer asset classes and newer exposures. So obviously,
you know cryptocurrencies and spot bitcoin ETFs that were launched
the last January just about a year ago, took up
a lot of the attention and took up a lot
(23:55):
of the flows. But I also think that you know
what we're seeing right now in this environment that is
overall strong, but not without risks. We're seeing investors lean
into some more niche areas of the market, something like
outcome products and outcome ETFs. I think that's an area
of focus where we've seen some flows. We tend to
see flows follow performance. You certainly saw that in the
(24:17):
last quarter of twenty twenty four and Q three as well.
In terms of small cap you saw large inflows to
small caps. Some of that has reversed and we've seen
that continue to reverse a little bit more. It really
is underscored by our preference for being up in quality
and large cap that we think the fundamentals can catch
up to some of those smaller cap names where we're
seeing investors maybe get out over take profits.
Speaker 4 (24:38):
When you talk about outcome ets, just to clarify for
those who may not be in the note, that's when
you kind of use options right to achieve various goals.
Speaker 5 (24:45):
Yeah, absolutely so, you know, we have different forms of
buffered products. I think it's probably the most the most
popular there. So whether you want to you know, protect
yourself to the downside of a five, a ten, or
twenty percent draw down, the being able to use options
to to be able to trade away some of your
upside potential in exchange for really locking and more certainty
of outcome on the downside. I think that's been a
(25:07):
really interesting conversation with investors, especially in this world where
we're not seeing the same diversification benefits from bonds. So
if you love equities and your overweight equities, which you
know we are right now, but at the same time
you're not getting that same ballast or diversification from longer
term bonds, how are you constructing a portfolio that can
weather a variety of different environments, and I think those
(25:30):
outcomes that having that certainty of outcome has been really
important for investors too.
Speaker 2 (25:34):
Christy, how should people think about overlap with the S
and P five hundred in an ETF with the the
USA Quality Factory TF. The QUAL is the ticker, because
if I look at the holdings there, Apple's the biggest holding.
You got Microsoft and Vidia, Visa, MasterCard, Meta Platforms, Eli,
(25:54):
Lilly Alphabet, United Health, TJX companies. How should investors think
about that compared to just buying an index fund with
the S and P five hundred.
Speaker 5 (26:03):
Yeah, a couple of different things. I think quality is
as much about what you don't own as what you do.
So QUAL is a little bit more concentrated, and you're
gonna see some similar exposures to just the broad based index,
but they're held at different weights and they're really screening
out some of those lower quality companies. So I think
that's the important thing. The other thing, too, though, is
just when you look at a different at an ETF,
(26:25):
it's really important to know what you own. The way
that we construct our factory TF, so quality is one
of them is sector constrained. So it's giving you a
representative slice of the market.
Speaker 3 (26:35):
It's not just.
Speaker 5 (26:36):
Giving you an entirely technology fund, because technology stocks screen
high quality. Really importantly, it's giving you the highest quality
companies within each sector. So I think knowing whether it's
a substitute for an S ANDPI founder at augmenting it
is important, and the way that it is constructed is
meant to be sort of a quiry.
Speaker 4 (26:54):
Chris, you just got about a minute left here. A
story that we've been looking at in the world Raymond
James Financial entering the ETF market through its asset manager division.
They have a vast network of financial advisors who up
to this point we're probably offering things like black Rocky tfs.
We are increasingly seeing others get into the ETF industry,
(27:17):
and especially those with their own financial advisor network. We're competition.
Does that make it a little bit tougher for you guys, Well.
Speaker 5 (27:25):
I mean, I think the general trend that we saw
in terms of the one trillion dollars of flows just
means that the overall pie is getting bigger. So, you know,
competition is not bad. You know, we lean a lot
into our reputation and brand and the really full suite
of product offerings that we have, so really feeling very
confident about ETF flows this year as well.
Speaker 4 (27:44):
All Right, cool, Steph, great overview. Christy Aculi and she's
head of I shares Investment strategy at Blackrock, joining us
on this Tuesday from San Francisco
Hosts And Creators
Tim Stenovec
Carol Massar
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