3+1 Active Investor Series

VIDEO SERIES

“3 Things You Need to Know + 1 You Don’t!”
The 3+1 Investors Series is BlackRock’s weekly investor video franchise, created to start your week with insights from the voices shaping markets. Featuring the firm’s leading investors, each episode highlights three perspectives on what’s driving markets today.

BlackRock | 3+1 Series
Episode 126 PL: Jennifer Hsui
Transcript 102826

One second just to gather my thoughts. Okay, I got it.

Good morning, I’m Jennifer Hsui, Head of Index Equity Portfolio Management at BlackRock. It's the week of November 2nd. Here are three things you need to know, and one you don’t.

Number one.
There has been a lot of talk about mega IPOs. There’s a misconception that these companies are going to immediately dominate index weighings, but this isn’t the case. Index inclusion is driven by float-adjusted market capitalization. The percentage of a company's shares that are freely tradeable. An example, Space X went public with a total valuation of over 1.75 trillion. What it floated was about $75 billion. Initial weighting in Russell 1000 was 0.1%. Investors really shouldn’t worry that these IPOs are immediately going to dominate indexes.

Next Up.
Until all indexes add, you will see differences in index composition across different indexes and benchmarks. That could drive meaningful differences in index performance. It’s important to really understand exposures that you’re invested in and the construction of the index. Ultimately, every investment decision is an active decision.

Which brings us to.
Another decision that investors need to make around this time of year is how to manage taxes in capital gains. Over the last five years in the US, only 3% of index ETFs distributed capital gains. That compares to about 65% of index mutual funds. It’s really important for investors to understand and consider the capital gains positions of the investments that they’re in.

And finally.
Speaking of taxes, I collected my favorite candy bar from my children after trick or treating. I'm probably the only person in the world that likes the 100 Grand Bar. My hot take? Any parent who isn’t taxing their kids at least 100 Grand is missing the mark.

To get more 3+1, make sure to follow us on LinkedIn and YouTube. We’ll see you next week.

3+1 Episode 26: Jennifer Hsui

In this week’s episode of 3+1, Jennifer Hsui, BlackRock’s Head of Index Equity Portfolio Management, connects a Halloween hot take with a closer look at the decisions behind index investing.

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BlackRock | 3+1 Series
Episode 125 PL: Tony Kim (w/ Dynamic Creatures)
Transcript 102226

Marc: We created our first cute and cuddly living character robot.
Tony: Hugo!
Hugo: Yodel-ay-hee-hoo!
Marc: He actually speaks a specific Yeti dialect in the Alps.

Good morning, I’m Tony Kim, Head of the Global Technology Team at BlackRock. It's the week of October 26th. Here are three things you need to know, and one you don’t.

First up.
The robotics revolution has changed, because of the digital brain. For decades robotics didn’t have this digital brain. Automation was predominantly in industrial use cases. The market is now set at a precipice here of significant expansion into global society at large. In particular, consumer robots. The opportunity here for robotics and humanoids beyond a limited industrial base could be one of the biggest industries in the world.

Number two.
Tony: Joining me now, Marc Theerman, the CEO of Dynamic Creatures. Marc, what do you think about this next wave of AI and robotics?
Marc: I think now it's time for these robots to walk into our daily lives. I think we will see robots in hotels, in resorts, in restaurants. Over the next five years, there’s gonna be a tremendous shift where all of a sudden we will learn to live with these robots side-by-side. If you ask a person on the street they’re probably underestimating the profound impact that walking robots will have in our lives in this decade.

Which brings us to.
Tony: At Dynamic Creatures, can you tell us what you’re building and what you’re really focused on?
Marc: It’s really creating a connection. If there is a world with millions, if not billions, of robots I personally think they should be cute and cuddly. And, so what Dynamic Creatures is focused on is building the software and hardware tools to make these robots much more approachable, so that we can actually create a connection with them and maybe have an empathetic relationship.

And finally.
Marc: Tony we actually have a surprise. Hugo wanted to come say hello.
Tony: Hi, Hugo
Hugo: Hello!
Tony: Hugo, we love a hot take on this series. I think pistachios are the greatest snack of all time. What do you think?
Hugo: Hmm…
Marc: I think, I think it’s a Twix.
Hugo: Strudel! Ha ha ha.
Tony: That’s good. I love that.
Marc: Tony, there you have it. First hot take from a yeti.
Tony: Can I get my own C-3PO?

To get more 3+1, follow us on LinkedIn and YouTube. We’ll see you next week.