NGPF Podcast: Kevin Carter on two decades of investment product innovation

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Oct 16, 2021
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Podcasts, Investing

 

This week on the NGPF Podcast, you will hear the fascinating entrepreneurial journey of Kevin Carter. Many innovative investment product ideas originated in companies that Kevin founded. You will learn why it took two decades for fractional shares to become widely available for retail investors. You will discover how the direct indexing approach used by companies like Wealthfront and Betterment originated in a company that Kevin had founded a decade earlier. Finally, you will hear about a new approach that Kevin pioneered to create index funds for emerging and frontier markets. Enjoy!

Details:

  • 0:00~0:53 Introduction
  • 0:53~2:07 Kevin’s day job
  • 2:07~4:03 Early money lessons
  • 4:03~8:12 Reading A Random Walk Down Wall Street and the power of index funds
  • 8:12~11:21 Lessons learned as an active investor
  • 11:21~15:31 Starting up eInvesting
  • 15:31~21:32 The emergence of fractional shares
  • 21:32~32:48 Direct indexing and tax loss harvesting
  • 32:48~33:16 A word from NGPF
  • 33:16~39:15 Getting into emerging markets and the Chinese market
  • 39:15~48:42 History of emerging market ETFs and their shortfalls
  • 48:42~55:48 Emerging market consumer ETFs and starting his own fund
  • 55:48~57:24 Conclusion

Resources:

Quote:

  • “I just decided I was going to fight the system. There had to be a better way to do all of this [charging high fees benefiting large investors] and that the internet, which was just showing up in ’98, would provide the ability to change a lot of things that were the problem.”

 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.