Did You Hear What Harris & Trump are Saying About Drug Addiction, Treatment & Prevention? Neither has Ric

Plus, the Invesco Innovation Suite offers new opportunities for adding technology to your portfolio 

Ric Edelman: It's Thursday, October 17th. We're going to talk today in our continuing series on the presidential election and helping me resolve my conflict. I'm undecided. We're going to talk today about drug addiction, treatment, incarceration, along with the related issues of smoking and vaping.

But before we do that, I have a couple of other topics I want to get to. First, a question about ETFs from Doug who is in Clarence, New York.

Doug: “Ric, I hear your advocacy for ETFs over mutual funds, and ETFs clearly have structural advantages. But one they don't have, if I understand correctly, is the ability to dollar cost average into. Do 401(k)s offer ETFs? Can I dollar cost average into ETFs in my brokerage account?

Ric Edelman: Doug, no you can’t, and yes, you're absolutely right. No, 401(k)s do not offer ETFs. 401(k)s are a unique breed and they offer, frankly, not even mutual funds in many cases. They offer a technical version of them. Bottom line is no, they don't offer ETFs.

They offer collective trusts, which are clones of mutual funds in many cases, just for regulatory reasons that don't make a whole lot of difference here. Bottom line is in most corporate plans, you can only buy these collective trusts or their mutual fund siblings, close cousins, clones, whatever you want to call them, where the fees are higher than they are for ETFs. Unless you do the following.

Many employers have an option that allows you to choose a self-directed 401(k). If you check that box, you can now invest in anything, not merely the options made available by the employer plan itself. And in the self-directed option, you can go buy ETFs. So, there's your solution.

Regarding your taxable brokerage account, can you buy ETFs and then dollar cost average into them? Not efficiently. Because with a mutual fund, they often have a dividend reinvestment option, which I don't like anyway because some funds pay higher dividends than others. Some funds pay no dividends.

So, I always prefer that you take the dividends that are paid by your investments and have them go to your cash account. And then you manually reallocate based on the needs of each investment relative to the overall asset allocation you're trying to create. So, all those sound too confusing, too complicated.

Just read my book, The Truth About Money. It'll clarify it for you. So no, you cannot dollar cost average using ETFs, but you can do it manually. The fact you can't do it an automated basis, who cares? Most importantly, when I say you do it manually, I don't mean you do it manually. Have your advisor do it on your behalf. That makes it automated for you. That's what you're paying the advisor their fee for. So, problem solved.

An issue related to Doug's question is the bigger broader question of investments themselves. What investments do I pick? How do I create a portfolio that is what I need? And the big area that people are looking at these days is technology.

You know, AI is getting all the rage and attention. Artificial intelligence, big data, language models, LLMs (Large Language Models) and related other subjects in the area of exponential technologies, including, robotics and bionics, bioinformatics, FinTech, EdTech, AgTech, 3-D printing, the list goes on and on and on. Of course, crypto, blockchain technology is embedded in there as well.

So how do you do that? Well, there are a bunch of investments that I want to mention to you today, all coming courtesy of one of my sponsors, Invesco. There are whole bunch of these funds that I want to mention, including IGPT, that's the symbol for the Invesco AI and Next Gen software ETF.

This invests in software companies like Meta, Advanced Micro Devices, NVIDIA, Alphabet, Adobe, Qualcomm. That particular fund, the Invesco AI and Next Gen Software ETF is all part of something Invesco has put together called the QQQ Innovation Suite. Invesco and Nasdaq have had this really important relationship for decades, now going on three decades, giving investors access to companies that are at the forefront of innovation and technology.

So, when investors tell me that they're looking for ways to focus on this, quite simply, Invesco and Nasdaq are a great resource to go to. The Nasdaq stock exchange, of course, is well known for hosting groundbreaking companies, and that gives you the chance to diversify your portfolio.

And I'll bet you're familiar with QQQ. The Q's are one of the oldest and largest ETFs. Now 25 years old, it tracks the Nasdaq-100, the 100 largest companies that are listed on the Nasdaq Exchange, excluding financial stocks. Because you know, banks are a whole different breed. But now, 25 years since QQQ was launched, Invesco has gone far beyond that one ETF to an entire innovation suite.

They now have QQQM, QQQJ, QQQS, QQA, QQMG, QQJG. I know it's an alphabet soup isn't it? Let me just give you a really quick brief rundown of the options and the differences between these different ETFs because they're really worth consideration.

First QQQM. This is the Invesco Nasdaq 100 ETF. Now you got the original QQQ. That was not an ETF because 25 years ago ETFs were not a thing. QQQ is a mutual fund. So now Invesco offers QQQM. It's the same thing as QQQ except it's in an ETF wrapper. And that means it's cheaper. It's like 25% cheaper. So, if you love the idea of the Q's, buy the M version because you'll simply save money. So, no brainer.

Then there's QQQJ. This is the Invesco Nasdaq Next Gen 100 ETF. In other words, the Q's and QQQM, they invest in the NASDAQ 100 biggest stocks. QQQJ invests in the next 100 biggest. So smaller companies, which therefore arguably have more potential.

Then there's QQQS, which is the Invesco Nasdaq Future Gen 200 ETF. This invests equally in 200 small cap stocks that each own a lot of patents. So, the theory behind this is that the companies that have the most valuable patents are the ones that are going to be the most profitable in the future. The stocks that are in this fund are not in QQQ or M or J. And that means there's no redundancy. So, adding QQQS to your holdings of QQQJ and M give you broader diversification in a really unique way.

Then there's QQA. This is the Invesco QQQ Income Advantage ETF. This is for investors who are looking for income. It gives you exposure to the Nasdaq-100, but it also has an active option income overlay that generates income. And it also gives you both upside and downside participation. So, if you're looking for income, you normally can't get that from tech stocks. Well, the QQA ETF is an opportunity for you.

Two more to go. QQMG and QQJG. The first one, QQMG, is the Invesco ESG Nasdaq 100 ETF for people who want an ESG filter. Environmental, social, and governance. These are people who want their values to be reflected in their investments. I'm not personally a huge fan of this, but a lot of people are. And so, the companies in this fund meet criteria that is set by Invesco. Like avoiding companies that are involved in alcohol, cannabis, weapons, gambling, nuclear power, oil, and gas, and tobacco. So, if you want to avoid those stocks, because morally you don't like it, that's what QQMG does for you.

And then QQJG, the Invesco ESG Nasdaq Next Gen 100 ETF is the same thing, but it's for the next 100. So, a way for you to invest in the biggest 100 and the second biggest 100 between QQMG and QQJG.

And finally, two more final ETFs I want to mention from Invesco, which rounds out their innovation suite, IVNQX and RSPT.

The IVNQX is the Invesco Nasdaq 100 Index Fund. It invests in the Nasdaq 100 companies, the top 100, that spend a lot of money on R & D, Research and Development. Again, similar to the patent approach. This says that companies that are spending a lot of money on R & D are the ones that are going to be introducing the newer, better products that are going to capture a lot of sales and therefore a lot of profit for the company.

The companies that are listed in this fund include Microsoft, Apple, NVIDIA, Alphabet, Amazon, Broadcom, Meta Platforms, Costco, Tesla, Netflix, you get the drift.

And then finally, the last one, RSPT. This is the Invesco S&P 500 Equal Weight Technology ETF. I like this idea. The big complaint I've always had about the S&P 500 is that it's cap weighted, meaning they rank the 500 biggest stocks on the S&P 500, but they put money based on how big the company is. So, the top 25 stocks in the S&P have more in investment than the other 475 combined. In other words, what's the point of investing in the other 475 if such a little amount of your money is going into them?

The RSPT solves that problem. It invests in all 500 of these stocks equally. And that, I think, solves the problem of over concentration or under concentration. With these ETFs as a whole, you can enhance your core exposure, complement your value equity strategies, you can replace high fee, under performing active strategies. It really offers a lot of opportunity for you.

So, I invite you to check out Invesco's QQQ Innovation Suite. All that information is available at their website, Invesco. com. The link to it is in your show notes. If you're looking for ways you can improve the diversification of your portfolio, increase your focus on technology, Invesco's Innovation Suite is definitely worth a look.

Now let's move on to today's topic in this 19-podcast series. We're covering the 34 subjects within the presidential campaign. Today's focus, as I mentioned, drug addiction, treatment, incarceration, smoking, and vaping. And I’ve got to tell you, this is going to be a short conversation.

For the simple reason that neither Donald Trump nor Kamala Harris has said anything on these subjects that frankly is worth mentioning. Even though surveys show that when it comes to the top threats to public health, Americans say they consider opioids, like fentanyl, to be as big an issue as obesity.

We're worried more about addiction than we are about guns, and that's saying something. Harris and Trump have had lots to say about guns. But, virtually nothing to say about addiction. The fact is that 48 million Americans have a substance use disorder. More than 100,000 people die from overdoses every year in this country. It affects families of all walks of life. Every race and religion. Every economic status. From poor to super wealthy. But only 13% percent of addicts in this country get any treatment at all.

There's a bill in Congress, but I couldn't find any statement from Harris or Trump about it. Do they support it? Do they oppose it? I don't know. And they are silent on education and prevention. Kids come across counterfeit pills these days that look like Xanax, but actually contain fentanyl. A single dose can turn you into an instant addict, or even kill you. And what did Trump and Harris have to say about it? Pretty much nothing.

The only thing I could find recently is a statement that Harris made saying she'll double the money that the Department of Justice spends fighting drug cartels. I couldn't find out how much money that is, or whether that's going to make any difference. So, this is a sad draw.

Neither of them get my vote on this topic. And that is a shame.

Tomorrow, you're going to like this one, democracy, voting integrity, the Electoral College, campaign finance, corruption, election integrity, and gerrymandering. That's on tomorrow's podcast.

Hey, while I've got you, what are you doing on Wednesday, October 23^rd at 2:00pm EDT? This is a really big deal. We're doing a special webinar, entitled How to Factor Longevity into Your Financial Planning.

I mean, do you have any idea how long you're likely to live? If you're a financial advisor, do you have any idea how long your clients are likely to live? We've got massive ongoing innovations in medicine and healthcare, and it is extending life expectancies to an unprecedented level. People are living longer today than at any point in human history. And longevity risk…yeah, there's a risk to living too long. The risk that you outlive your money. So, I need you to join me for this fascinating and important conversation to talk about emerging solutions that are designed to help you resolve this issue so you can serve your clients yourself in a really important fundamental way.

Joining me is going to be Nate Conrad, the head of LifeX at Stone Ridge Asset Management. The webinar is free. If you're an advisor, you get one CE credit. Register right now. The link is in the show notes. Hard to imagine any topic more important than longevity. Mark your calendar for Wednesday, October 23rd, 2:00pm EDT.

If you like what you're hearing, be sure to follow and subscribe to the show, wherever you get your podcasts, Apple, Spotify, YouTube, and remember leave a review on Apple podcasts. I read them all. Never miss an episode of The Truth About Your Future. Follow and subscribe on your favorite podcast app.

See you tomorrow.

----

Subscribe to podcast updates: https://form.jotform.com/223614751580152

Ask Ric: https://www.thetayf.com/pages/ask-ric

----- 

Links from today’s show: 

Invesco AI and Next Gen Software ETF (IGPT) https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=IGPT&msockid=2f875d5f650668cd386e49aa641469e2

Invesco's QQQ Innovation Suite: https://www.invesco.com/us/en/solutions/innovation-suite.html?

Invesco QQQ ETF (QQQ)  https://www.invesco.com/qqq-etf/en/home.html?

Invesco NASDAQ 100 ETF (QQQM) https://www.invesco.com/us/en/etf/nasdaq-100-qqqm.html?

Invesco Nasdaq Next Gen 100 ETF (QQQJ) https://www.invesco.com/us/en/etf/nasdaq-next-gen-100-qqqj.html?

Invesco Nasdaq Future Gen 200 ETF (QQQS) https://www.invesco.com/us/en/etf/nasdaq-future-gen-200-qqqs.html?

Invesco QQQ Income Advantage ETF (QQA)  https://www.invesco.com/us/financial-products/etfs/product-detail?productId=ETF-QQA

Invesco ESG Nasdaq 100 ETF (QQMG)        https://www.invesco.com/us/financial-products/etfs/product-detail?productId=ETF-QQMG

Invesco ESG Nasdaq Next Gen 100 ETF (QQJG) https://www.invesco.com/us/financial-products/etfs/product-detail?productId=ETF-QQJG

Invesco Nasdaq 100 Index Fund (IVNQX)   https://www.invesco.com/us/financial-products/mutual-funds/product-detail?audienceType=Investor&productId=FUND-32123

Invesco S&P 500 Equal Weight Technology ETF (RSPT) https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=RSPT

Ric’s #1 Bestseller - The Truth About Money:  https://www.amazon.com/Truth-About-Money-4th/dp/0062006487/?

Click here for Ric's worksheet to help you evaluate the candidates

10/7 Monday Election Podcast-The 34 Election Issues and Ric’s worksheet for you: https://www.thetayf.com/blogs/this-weeks-stories/the-2024-election-the-tool-i-ve-created-to-help-me-decide-who-gets-my-vote

10/8 Tuesday Election Podcast-The Economy, Stupid!: https://www.thetayf.com/blogs/this-weeks-stories/ric-chooses-between-harris-and-trump-on-the-big-topic-the-economy-stupid

10/9 Wednesday Election Podcast-Housing and Homeownership: https://www.thetayf.com/blogs/this-weeks-stories/10-9-24-housing-and-homeownership-among-the-34-key-issues-of-election-2024

10/10 Thursday Election Podcast-Education: https://www.thetayf.com/blogs/this-weeks-stories/both-harris-and-trump-need-an-education-on-education

10/11 Friday Election Podcast-Abortion: https://www.thetayf.com/blogs/this-weeks-stories/abortion-the-most-emotional-election-issue

10/15 Tuesday Election Podcast-Healthcare: https://www.thetayf.com/blogs/this-weeks-stories/what-harris-and-trump-say-about-healthcare

10/16 Wednesday Election Podcast-Climate Change:   https://www.thetayf.com/blogs/this-weeks-stories/climate-change-and-the-candidates

Kamala Harris Official Campaign Website Policy Page: https://www.kamalaharris.com/issues/

Donald Trump Official Campaign Website Policy Page: https://www.donaldjtrump.com/platform

10/23 Webinar - How to Factor Longevity into Your Financial Planning: https://www.thetayf.com/pages/october-2024-webinar-how-to-factor-longevity-into-your-financial-planning

10/9 Webinar Replay- Crypto for RIAs: Yield, Staking, Lending and Custody. What’s beyond the ETFs? https://dacfp.com/events/crypto-for-rias-yield-staking-lending-and-custody-whats-beyond-the-etfs/

----- 

Follow Ric on social media: 

Facebook: https://www.facebook.com/RicEdelman

Instagram: https://www.instagram.com/ric_edelman/

LinkedIn: https://www.linkedin.com/in/ricedelman/

X: https://twitter.com/ricedelman

YouTube: https://www.youtube.com/@RicEdelman

----- 

Brought to you by: 

Invesco QQQ: https://www.invesco.com/qqq-etf/en/home.html

State Street Global Advisors: https://www.ssga.com/us/en/intermediary/etfs/capabilities/spdr-core-equity-etfs/spy-sp-500/cornerstones

Schwab: https://www.schwab.com/

TAYF Disclosure page: https://www.thetayf.com/pages/sponsorship-disclosure-fee