Advanced ETF portfolio construction with Jess Leung from Global X

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Jess Leung (2:00)

So your portfolio is essentially a little soccer team. Would you go out and buy 11 of the best strikers in the world?

Owen Raszkiewicz (2:06)

No, you wouldn't.

Jess Leung (2:06)

Right. You still need midfields, goalies. Always take it back. What role does it have to play? And overall, how is my team functioning as a whole?

Owen Raszkiewicz (2:15)

What risk does it bring? What return does it bring? And then how does that play well with the rest of the team? Yeah. Welcome to episode four of our Portfolio Construction Series. In this episode, I'm going to be joined by Jess Leung, ETF Portfolio Manager. She is an expert in pretty much everything we're going to talk about today, which is how do you bring a portfolio together like a pro? We're going to talk about some of the theory behind it all, some of the maths, but don't worry, it's a podcast. It's not going to be a math lesson. We're going to talk about some of the concepts that we've learned so far throughout the series, like how to combine growth and income and defensive investments, and some of the core essential topics that we've talked about in episode one. Without further ado, I hope you enjoy this episode with Jess Leung from Global X.

Hey there, here's a quick note. This podcast contains general financial information only. That means it's not specific to you, your needs, goals, or financial objectives. So don't act on the information until you've spoken to your financial planner. You'll find our full disclosure, disclaimer, and link to our financial services guide in the show notes.

Jess, how are you doing?

Jess Leung (3:18)

I'm good. Thank you for having me back.

Owen Raszkiewicz (3:20)

Yeah, it's so good to have you back. I think in the last episode, you didn't have your glasses.

SPEAKER_1 (3:23)

Now you've got your glasses.

Owen Raszkiewicz (3:24)

I've changed costume as well. So it's really good. But in this episode, we are talking about advanced portfolio mechanics. So we're talking about how more sophisticated investors actually build portfolios.

Jess Leung (3:39)

Yeah.

Owen Raszkiewicz (3:40)

Now, before we get into that, I really just want to get a quick sense, for listeners to get a quick sense. What does an ETF portfolio manager do?

Jess Leung (3:49)

So my job is to manage the underlying holdings of the ETF. So let's just say, Fang, one of the ETFs that I manage, every time you invest, which would lead to a creation, that means I'm the one that would actually go to market and buy the underlying 10 stocks. Oh, wow. Then on a day-to-day basis, that would also include managing all the cash flows, corporate actions and index rebalancing as well.