I’m talking about Dutch Bros (BROS +4.68%) and On Holding (ONON +2.16%). Both have taken a bit of a beating lately, which, as any seasoned investor (or anxious relative) knows, is often when the interesting things happen.
Both ETFs nibble at your returns with a 0.50% annual fee – a small price to pay for the privilege of participating in a market driven by irrational exuberance and occasional panic. The ‘Beta’ figure, which measures volatility relative to the S&P 500, is a bit like trying to measure the speed of a thought – interesting in theory, but ultimately unhelpful. (It’s calculated from five-year weekly returns, which, given the inherent chaos of the universe, is roughly equivalent to predicting the weather on Jupiter.) SLV, with its considerably larger ‘AUM’ (Assets Under Management), has been around longer. Which, in market terms, is like saying it’s had more time to accumulate dust…and investors.
VXUS is the “broad brush” approach. Stocks from everywhere outside the US. Developed, emerging, whatever. It’s like they’re afraid to commit. EEM, on the other hand, says, “No, I’m going all in on emerging markets.” Which is fine, if you like risk. Personally, I prefer things a little less… dramatic. It’s just a matter of temperament, I suppose. Though, honestly, what does “emerging” even mean anymore? It feels… condescending.
Observe, if you will, the disparity in cost. AAAU, the more frugal of the two, demands a mere pittance in annual fees – less than half that of its rival. One might expect prudence to be rewarded, yet SGDM, with a boldness that borders on recklessness, has yielded a return more than double that of AAAU. A most perplexing paradox, wouldn’t you agree?
A simple accounting reveals much. The expense ratios, those seemingly minor levies upon one’s capital, are nearly identical for both. Yet, to focus solely on such details is to mistake the map for the territory. GLD, with its vast holdings – a sum exceeding one hundred and seventy-five billion dollars – possesses a stability born of sheer scale. It moves with the deliberate pace of a great ship, while SLVP, a more nimble vessel, is subject to the whims of the silver mining companies, their fortunes tied to the unpredictable geology and the ever-shifting demands of industry. The beta, a measure of volatility, speaks to this difference: a mere 0.14 for GLD, suggesting a placid response to the broader market’s turbulence, and 0.79 for SLVP, indicating a more spirited, and therefore riskier, dance.
Nipun Capital now commands a substantial 22.96% stake within the ETF’s assets under management. A considerable influence, akin to a well-placed whisper in a crowded bazaar. The top holdings, as of this latest filing, reveal a certain… discernment. INDA, at $90.78 million, leads the pack, followed by our subject, MCHI, at $50.31 million. Then comes FXI at $46.08 million, TSM at $22.29 million, and VWO at $4.96 million. A curious assortment, suggesting a portfolio assembled with a blend of calculation and, perhaps, a touch of whimsy.
It came into view quickly, a bright spark after Nvidia, a giant in the silicon hills, cast a glance its way in 2024. The giant moved on, as giants will, leaving SoundHound to stand on its own. Some saw abandonment. Others, like a seasoned prospector, saw opportunity. The stock drifted, yes, but sometimes a thing needs to drift before it finds the current that will carry it forward.
Let us, then, examine the particulars of this situation, not merely as a recitation of figures, but as a study in the human condition – the hopes, the fears, and the often-irrational impulses that drive the great engine of commerce. For what is a stock, after all, but a vessel for these very things?
Let’s look at the numbers, because that’s what we’re supposed to do, isn’t it? The expense ratio on AAAU is…reasonable. 0.18%. Fine. SIL? 0.65%. More than three times as much! What are they doing with that extra money? Paying for better shovels? I suspect it’s going toward executive bonuses. Always the bonuses.
Sandisk, or Sandisk as the ticker tape insists, has had a bit of a rollercoaster ride. Not all that long ago, the NAND flash memory market was, to put it politely, a bit of a mess. Everyone and their cousin was making the stuff, leading to a glut that sent prices tumbling. It was a classic case of overenthusiasm, like everyone simultaneously deciding to open a bakery. But then, something unexpected happened. Demand didn’t just recover, it went absolutely stratospheric, largely thanks to this new craze for Artificial Intelligence. And, crucially, Sandisk was rather well-positioned to take advantage of it.