 S&Ps are off four and a half. Let's go over to our MMS, the David Mazza. David is the head of product development, managing director of direction. And of course, we have plenty of calls on the direction ETF structures, whether we're talking financials, whether we're talking the small caps, whether we're talking oil and whether we are talking gold. David, welcome to TFNN. Hey, thanks for having me on today. Absolutely. So, you know, ETFs in general, David, right? What's so intriguing is that, you know, we have a lot of guests, of course, and listeners that love trading your doubles and your triples, right? Could you just give us, could you give us a little history of the ETF market in general? Because I think what, you know, some of the newer listeners, younger listeners don't realize that they haven't been around forever. That's right. ETFs are actually first launched in 1993. And really, the first one was SPY. And it was targeted to institutional investors as an alternative to a futures contract. And of course, since that time, there's been ETFs on fixed income, convertible securities, gold, and of course, the triple leveraged long and short ETFs, which we really pioneered in the 3X side. We have a competitor that is in the space as well. So it's still actually, to your point, a relatively new market. And really only recently have we seen a wide range of investors really access the products, both for long-term allocations and in particular, the vehicles that we offer for investors looking to amplify their exposures to trades on a short-term tactical basis. So what I love about ETFs is whether you're buying one share or a million shares, everyone pays the same price. All the information from a trading volume perspective, et cetera, is democratic and it's available to retail investors, institutions, et cetera. Yes, when you talk about democratic, it's absolutely changed the business. I mean, in the last 15 years, right? Yeah, exactly. I mean, historically, in investors, you have few options. You can either give your money to an active mutual fund and maybe hope that a manager, whether they're picking stocks or bonds, or the ability to outperform. Or if you're a do-it-yourself investor, there was tools available to you, individual securities, of course. But really the access points were zero. What's great about ETFs, there's a significant amount of liquidity behind them. But as you know, and I'm sure as you talk about all the time with your listeners, we're talking about not just the S&P 500. We're talking about every sector. We're talking about every industry. We're talking about global exposures, six-income exposures, what have you. So the ability to have both tools to build long-term portfolios and tools to take advantage of trends that may be short-term in nature are really available in a never-before-away with ETFs. You know, it's going to be interesting here. It seems that we have a lot of listeners, no doubt, that they love trading the financials, the small caps, gold. And if we can talk about the financials a second, because what has happened is that as of last week, you have the large broker-dealer community. They're going down to zero commissions. You have your FAS, your FAZ that people love trading. The aspect of the Russell 1000, the make-up inside of that, like when that changes, I guess you have to change your make-up inside the FAZ and the FAS, right? Yeah, exactly. So the intention of FAS and FAZ is to offer amplified exposure on a daily basis to the Russell 1000 Financial Services Index. In that basket, though, is a diversified exposure to financials. So the performance on a daily basis is going to be driven by both your money center, mega-cap banks. There's still real estate investment trusts in there. There's regional banks, there's insurance companies. So it's that broad-based perspective of financials. We also have ETFs that are focused on regional banks, for example. So we oftentimes are seeing investors now play those two relative to one another. So let's say maybe we want to see what impact the yield curve might have just on regionals relative to the large cap banks. We tend to see investors doing both along and the short side on that at late, because to your point, financials, it's been a difficult long-term trade for good reason, primarily because of the yield curve and because of the cost pressures that continue to be there. But for traders, there's still a lot of opportunities. Yes. Now, have you seen in the past, let's say five to seven years, that the actual trading community has got a lot more educated than the aspect of what a double leverage product is, what a triple leverage product is in general? Yes, that's correct. I think there's still a lot of misconceptions out there. Really, these products are intended for folks like your audience, like your listeners who are paying close attention to their portfolios on a daily basis, looking advantage of tactical trades, because as we know, depending upon the market environment you might in, they're not intended to be long-term holdings in the fact that we are seeking to get three times the exposure, for example, in FAS and FZ on a daily basis. So every day, that's the goal, meaning if you were to own that over a one-day, two-day, three-day period, it might actually deliver that perspective. It will on a daily basis, but not in an environment that might be highly volatile. So trend is your friend with these particular products, but we really encourage everyone to understand how they're constructed and how they can be used in both the bull side and on the bear side. No doubt. Now, if we can talk about the small caps a bit, because between the TZA and the TNA, I know folks love to trade that. What's so intriguing about the small caps in general, David, is that the market's at highs, but yet the small caps topped out in July of 2018. Yeah, they've been left far behind, especially their large-cap brothers and sisters. Long-term forecasters are pointing to that being a real negative on the markets, where you're not seeing risk on, be confirmed, but the small caps are lagging so much. And there might be some truth to that. A lot of the reason, though, that small caps have under performed over that time period actually comes down to something that's very simple, comes into the sector way differences. Large-cap dominated by our tech plus, and tech plus is really your fang names, that we're all in tech, and then of course with the gig-sector change made into a few other sectors, financials, that's dominated in small cap. So we talked about the issues that FAS and FAB have had for a long-term perspective. It's not that they're similar to small cap, so a lot of financials in there pulling down the overall price of that area. But again, for people who are looking for more tactical opportunities, we've seen it in the small-cap space too, but yeah, it's been a difficult long-term trade. It's pretty cool understanding, and I think what you folks have done is you get people to understand different sectors, what's in the sector and what's in the weighting of the sector. The weighting of the sector is so tremendous, right? I mean, you have to understand that if you want to trade those vehicles. Yeah, exactly. It's kind of funny. We often look just what's on the screen, right, because the price of an ETF, price of individual security, we can watch that, put our indicators around that from a technical perspective. But at the end of the day with these particular products, especially when you get to the sector and industry side, because some of the industry funds might only have 30 names in there, you're still going to know what you own, because at every day, the weights of that particular securities in that are going to drive performance. So my point earlier, the regional banks are going to behave a lot differently than just the large mega-cap banks. So for an investor who wants to weigh those two things together, we have the tools and opportunities set for them. The same can be said in a different area with our, we have both a gold mining ETF, two of them, and then junior gold miners on the leverage and inverse side. So in the long run, their performance is highly correlated, but because the juniors are inherently riskier because of their mining operations, you tend to see a much more volatile performance out of those particular two products than even you do with the larger caps. And you know what's so cool about those two products actually is that there's so many listeners that actually are in the gold market and the juniors. And what I've seen is that they will basically hedge out, even if it's for a day, if they think a bad day is coming, which is pretty cool. Yeah, that's a good tool for that. Yeah, that's huge. Listen, David, thank you so much for the great education, really appreciate it, and look forward to having you on again. Yeah, thank you for having me. Thank you. Stay right there, folks. We are coming right back. That was our man, Mr. David Mazza. He is the director, managing director, head of product development at Direction Trade.