Adrianna / Winter Edition 2021 by Adrianna Media

Adrianna

WINTER Edition 2021

Dear Adrianna,

This magazine isn’t just a means of fulfilling the goal of conveying investment perspectives. It serves as another act symbolizing my determination to provide a better life for you. A life not just while I’m here but when I’m gone as well.

In this edition, I’ve included my ETF investments in between each article. It’s my intention that each article and investment finds our readers well in the hope that future magazine editions include other investors sharing their investment experiences.

The magazine, website, and company all bare your name because parents always want to impart their wisdom and opportunities to their children. And this venture is no different.

In short, it would be a privilege to work with you on future editions and I’ll keep writing to you in each magazine edition as well.

With that being said, wish me luck.

Sincerely, Dad

Inside 8

FROM THERE TO HERE

Written By Marcus L. Craig

XLK

Technology Select Sector SPDR Fund

LITERACY

Written By Marcus L. Craig

Inside 13 USMV

iShares MSCI USA Minimum Volatility Factor ETF

XAR

SPDR S&P Aerospace and Defense ETF

THE LONG RUN

Written By Marcus L. Craig

Inside 17

KIE

SPDR S&P Insurance ETF

XLV

Health Care Select Sector SPDR Fund

IN OUR LIFETIMES

Written By Marcus L. Craig

Inside 21 Special Thanks

XLU

Utilities Sector SPDR Fund

Subscribe To Our Podcast Series.

From There to Here The most expensive thing in this world is freedom. We’ve read about goals people pursue and among them is financial freedom. And it’s not cheap by any means. In conjunction with financial freedom, one of the cornerstones of wanting to become an investor is that it allows me to align myself with industries that are either meaningful to me or because it satisfied a curiosity. While I was younger in school, I started to see the financial rewards and subsequent opportunities that would be afforded to me if I was successful as an investor. My first look of investment success was through CNBC and the Wall Street Journal. But being an illustrator was goal at the time because of an affinity for artwork. But at the end of the day, being an artist wasn’t going to provide the lifestyle I ultimately wanted. Ironically, I would go on to collect artwork from most countries I’ve traveled to over the years. Around the same time, I thought that the best jobs were the ones that paid the most. But there were two things I realized while immaturely thinking that way. The first was learning about a number of high paying jobs out there. And secondly, finding a job that was genuinely fulfilling was its own privilege. Subsequently, I would choose to become a stockbroker. Towards the end of high school, the goal switched from being a stockbroker to an investment banker. It was due to a renewed interest in advising companies on their business dealings. Millions of dollars in fees that are paid to investment banking firms for their work were also of interest. In my eyes, it was like a lucrative, real life game of monopoly being played out globally.

Attending college was the next chapter. I decided to major in the thing you all would have expected me to major in [finance]. That lasted all of one semester. A lot of people will think I was crazy (mostly stupid) to switch from finance to a liberal arts major. The rationale to switch was straight-forward to me more as time would go on. The decision ultimately was founded on a belief that investing is a passion that gives me the room to pursue opportunities as I see fit. It was my take that when you accept a job on Wall Street, you’re often tied to working on a particular asset or a specific field within finance. Then there was the aspect of managing other people’s money. In the end, I wanted to study subjects to help me approach the investment world differently. Being employee number 39007 at a company I felt was not going to end well for me. Years later you now see a decrease of Wall Street jobs as the industry adapts to changing regulations, technological advances, and consumer behavior. Dropping out [of Towson University] created a difficult time, but it was also difficult for my family because it appeared like I threw my future down the drain. But I remained resolute in my ambitions and determination to get to a situation where I would be impactful the most. Seven jobs and nearly 20 years after I first watched high profile investors make fortunes in the stock market, here we are. A podcast series started (The Adrianna Times) and a seasonal magazine released for you all with more to come. The Adrianna Times remains a source for investors to share their experiences and perspectives on investing. It’s not all about the freedom though. Peace of mind is also expensive.

XLK

Technology Select Sector SPDR Fund 1. Tracks the Technology Select Sector Index. 2. One of the largest technology ETFs in America. 3. Wanted the XLK because I wanted broad exposure to the technology space without individually investing in a relatively small amount of companies.

4. The ETF is a part of the SPDR ETF family (from State Street Global Advisors). Meaning the ETF comes from a large and reputable financial firm. 5. Liked the relative concentration in a smaller amount of tech names. The concentration is in a group of companies I’ve already researched and liked. 6. Top holdings in the ETF includes famous names such as Apple, Intel, Visa, Microsoft, and Nvidia. 7. All the companies in the fund are based in the United States (America companies are perceived to have better regulatory and operating standards). 8. Liked the heavy concentration in software and IT services. 9. Expense ratio is 0.13 percent meaning that the ETF is very affordable. 10. Competes with other ETFs like VGT (Vanguard Information Technology ETF), IYW ( iShares US Technology ETF), and the IGM (iShares Expanded Technology Sector ETF).

Literacy Financial literacy is a cornerstone of investing. For whatever the reason, financial literacy is often not taught in school. You’d think it would be taught given that there are plenty of things being taught that don’t apply to daily life. However, understanding the ripple effects of situations when you’re reviewing financial terminology is also of great importance. Remember to think to yourself: how does this information transform into impact. The growing shortage of latex gloves during the pandemic is an example of recent events. People may think at first glance that a shortage of that kind wouldn’t be significant. Latex gloves are used in a variety of applications to include the healthcare space. A quick look-up would show that some of the largest manufacturers of latex gloves (and other latex products) in the world are out of the country Malaysia. If Malaysia were to prioritize the needs of its citizens over other parts of the world, the ripple effect is global. In short, events that occur in a different country, on a different continent can have huge implications for people in America and other nations as well. And that can have an effect on your investment portfolio as well. Another instance of ripple effect that involves more of the stock market would be the price of West Texas Intermediate (WTI) crude oil. Review more information about WTI crude oil so that you understand why it’s called that and can start to familiarize yourself with assets often discussed in the news. I mention WTI because the price of crude oil has far reaching implications. It can not only affect the price you pay at the pump but also your spending habits, the logistics industry as well as manufacturers. From an investment perspective, you’ll see what kinds of industries can benefit from a decline or increase in oil prices and begin to look for investment opportunities there. Consequently, I couldn’t let you all read this article and not help a brother or sister out by providing a few resources to help you along the way. As I’ve talked about them in the past, CNBC is a great resource to work with because journalists are great at not just breaking the news but also providing the requisite context in their articles. Another great resource is Investopedia. Their website not only will define financial terms for you (hence the name) but will often have follow-on information regarding context and other related articles.

Bloomberg, known for their data analytics prowess is another great resource for would-be investors. Over all these years they still hit me with something I’m not that familiar with. But that’s also a good thing. Where would we wind up if our goals did not challenge us early and often? Their articles still embolden me to learn to this day. Not just to further my own financial literacy but to further my awareness of so many dynamic events occurring around the world. When coupling reading business news with your desire to be more financially literate, you start to approach things like a student of the game. One reason why a student’s mentality is so important is that it keeps a person humble. And humility can be a rare thing to see these days. Another reason why that mentality is significant is that curiosity can lead to other positive circumstances that aren’t always financial in nature. And that’s not a bad thing for personal growth. With all these things being said, I recommend not rushing your journey of achieving a better sense of financial literacy. All of us had to start somewhere. It’s important to start learning in the first place.

Time itself has a compounding benefit when you’re both learning and applying what you’ve learned along the way. That’s why it pays to start as early as possible. There are plenty of reasons to start but at the same time, everyone has their own reasons. But with time also comes opportunity. Teaching our kids about financial literacy is a prime example. I recommend we all not rely on school system to reliably teach our future generations what they need to know about what’s in their wallet. My own goal for my daughter is that it doesn’t pain her to understand what she’s looking at in her financial life. This, in turn, hopefully leads to better financial decisions made in the future. Because if the world is not short on challenges and opportunities, then there’s no shortage of things to grow from.

USMV iShares MSCI USA Minimum Volatility Factor ETF

1. 1. Tracks the MSCI USA Minimum Volatility Index. 2.

2. Low volatility means that you’re not getting the roller coaster ride you observe in other stocks on a daily basis. These stocks are more of a slow and steady wins the race type. 3. iShares is a go-to brand in the ETF space. I usually invest in iShares branded or SPDR branded ETFs. 4. Expense ratio is a really low 0.13 percent. 5. Information Technology is the biggest industry represented in the ETF. 6. Much of the holdings I’m a fan of to include Verizon Communications, Waste Management, McDonalds, and T-Mobile. 7. A similar ETF would be the EEMV (iShares MSCI Emerging Markets Minimum Volatility Factor ETF).

XAR

SPDR S&P Aerospace and Defense ETF 1. Tracks the S&P Aerospace & Defense Select Industry Index. 2. Aerospace and defense are industries that are going to be around for generations to come. 3. America is hands down the world’s largest defense spender. But the country is also home to some of the largest defense contractors in the world. 4. The industry is more sensitive to items such as federal spending. 5. Expense ratio is at 0.35 percent. 6. You’ll see famously large names in the ETF such as Northrop Grumman and General Dynamics but you’ll also smaller names like Aerojet Rocketdyne and TransDigm Group. 7. Similar ETFs would be the ITA (U.S. Aerospace and Defense ETF) and the DFEN (Direxion Daily Aerospace and Defense Bull 3X ETF).

The Long Run Patience isn’t just a virtue. It’s a practice. Successful investing isn’t just based on picking the right assets, at the right time, and letting money come to you. Investing is often times the sum of your consistent habits through long stretches of time. You can’t reasonably expect achievement of your financial goals in a straight line and in a short time period. A question that people ask themselves is how do you work on patience? For me, there are two practices that have helped me. First, was reminding myself of the reasons why I’m investing to begin with. And secondly would be to take it one day at a time. A reason why that’s so important is that large goals can often be broken down into small, daily, executable parts. You can start by saying today I will work on being patient. And the next day, I will work on it. And so on. As it relates to the stock market, there are a number of examples of patience works for you. Patience helps you mitigate the risk of large, market moving events occurring. These could be events that range from COVID-19 to terrorist attacks to corporate scandals. These events can force the stock market to live with those events for quite some time. If you’re patient with your time horizon, then you should be able to get past those events and you would reasonably expect a recovery in your investment portfolio. Your time horizon is the time frame that you intend to remain invested in an asset. It could be hours or days (if you’re day trading) or it may be decades. Think Warren Buffet’s investment style.

Additionally, patience helps with price volatility through the concept of dollar cost averaging. This concept works because you don’t know what will happen with the price of an asset with absolute certainty. So rather than buying your entire position at once, you consistently invests the same amount of money over a stretch of time. The same concept works when selling stocks as well. In short, patience, through dollar cost averaging, patience spreads the risk of buying/selling too late or too early out to better manage your portfolio. Because money can be very emotional, patience can help keep your emotions in check. By doing that, it gives you a clearer sense of control rather than always being beholden emotionally to what happens with your money. Having that separation between money and emotions helps you to be a more productive investor because it allows you to better capitalize and subsequently profit from your investments. Consequently, I recommend people first start investing with a relatively long time horizon. This allows you to not worry about the up and down movement of stocks on the daily. You probably know people in your circle that day trade and there’s nothing wrong with that. I just wouldn’t recommend it when starting off investing in the stock market. It’ll take time on a daily basis to achieve patience as a regular practice. Remain diligent and take your time. Read as much as you can, when you can. Investing is as much about the journey as it is about the destination.

KIE

SPDR S&P Insurance ETF 1. ETF was created to track the KBW Insurance Index.

2. Defensive industries weather economic downturns pretty well relative to other industries. The caveat is that you may not get true out-performance compared to the broader market during positive economic conditions.

3. The expense ratio of 0.35 percent which is in line with the average expense ratio of all ETFs.

4. Notable names in the fund are Met Life, Primerica, and Progressive. 5. ETF is centered around U.S. based companies.

6. Similar ETFs would be the IAK (iShares U.S. Insurance ETF) and the KBWP (Invesco KBW Property and Casualty Insurance ETF).

XLV

Health Care Select Sector SPDR Fund 1. Investing in the broader health care space was a top priority. 2. The ETF tracks the Health Care Select Sector Index. 3. XLV is one of the largest healthcare ETFs in America. 4. Expense ratio is 0.13 percent. 5. Liked the fact that among the biggest holdings are well-established pharmaceutical companies such as, Pfizer, Merck, and Bristol-Myers Squibb. 6. Similar ETFs would be the VHT (Vanguard Healthcare ETF), IHI (iShares U.S. Medical Devices ETF), IXJ (iShares Global Healthcare ETF), and the IBB (iShares NASDAQ Biotechnology ETF).

In Our Lifetimes Black Americans have been investors and business owners for generations. We’ve all read about the Black Wall Street in Tulsa, Oklahoma. But we need more than that in this day and age in order to better achieve wealth When people often times talk of success, they associate it with wealth. For me, that wealth is derived from the concept of ownership. And the two most valuable assets are yourself and time. A prime example of this is tennis star Serena Williams. Her mind, focus, experience, and ultimately her performance is her product. The championships are a byproduct of that lifetime of focus. It goes a similar way with Bob Johnson (Black Entertainment Television) and Oprah Winfrey (Harpo Productions). A wise woman once said that a huge part of investing in yourself is your education. That’s because nobody can ever take your education from you. She usually referred to me needing to go to college but the same principle applies to more broadly to learning in general. When you add in the skill-sets you feel you need to take things to the next level, you’ll see a magnified impact. With that, sometimes great advice can come from people you can’t stand. Don’t shy away from a sense of humility because God can give you a gift in the middle of despair or a situation you thought didn’t go your way. Sometimes you have to see the world not just through your eyes but through your faith. Consequently, it’s imperative that Black America never stops learning. Whether it’s outside or inside the classroom, people watching you or not; never stop learning. Additionally, owning assets that appreciate over time is always a good look your finances. There are the usual suspects like gold or real estate. Not only is property a store of value but also it provides a practical use in the sense that you could live in said property if all else fails. There is though one distinction that I want to make it when comes to residential property. A house that a person lives in is counted towards their net worth; yes. But when you live the property yourself, you’re not getting what I think is the best part of investing in real estate which is the income. If you want to live in a property that you own but you want to receive income from real estate investing, I recommend investing in real estate investment trusts (REITs).

Owning a stake (equity) in a business is another great way of building wealth. The name of the game these days is passive income. Passive income can be easily described as the money you receive without having to actively work for it. That income can take care of bills, pad your savings account, etc. But money can also beget more money. The more money you have, the more opportunities you can double up on. As well as the more prudent risks you can take. Because there’s very few things worth going after that don’t involve assuming some degree of risk. Income is a huge part of building wealth, but it isn’t just about that. Black America needs more people starting companies. For the longest time my friends had always wanted to be entertainers and athletes. And there’s nothing wrong with either of those things. I’m a firm believer of pursuing your dreams but it also requires keeping things in context. If you wind up not staring in Hollywood films, produce your own films. If you can’t play in the NFL, start a business in sports. One of the best business decisions Oprah Winfrey had made a long time ago was to start the company that would continue to produce her show. Not only would it produce her show, it would go on to produce additional shows as well. Ownership gives you a seat at the table when it comes to decision making. And we have to do better as a people of getting to the table where decisions are being made. A clutch notion about business ownership is having a company go public. Simply put, going public is a process of opening your company up for other investors (the public). What makes initial public offerings (IPO) clutch is that it allows other people to build wealth off of the company you sent public. A perfect example of this is Google. The owners had taken their wealth to another level when Google went public, but a large number of their employees and investors did as well.

Subsequently, those situations of wealth creation have characterized the stock market as the most efficient wealth creator ever devised. But aside from the wealth creation, what you don’t see is a lot of Black representation. We should be real with ourselves. There’s not that many Black companies going public nor is there that many Black Chief Executives either. That goes back to my point of needing more Black business owners. Everyone wants to enjoy the rewards of success, but one of the biggest problems I often see in our community is not consistently supporting each other. I see that issue with respect to my own business venture. Friends cheer me on at a distance but when it comes down to: hey can I ask for seeking help, those messages get left on read. What winds up happening is that no one got the assistance they needed from the very people that cheered for them to begin with. If you want to see Black businesses grow in our neighborhoods; help when you can. Because if you want to go fast; go alone. But if you want to go far; go together.

A Special Thank to the People Who Made This Happen Adrianna Craig-Lopez Denise Craig Jessica Jaral Shane Watson Derrick Rosenbaum Karina Ramirez Jeremiah Valentine

The Spring edition of Adrianna will debut March 2021.

XLU Utilities Sector SPDR Fund 1. The ETF tracks the Utilities Select Sector Index.

2. Power and water utility companies, to include the associated industries can be defensive against poor economic conditions.

3. This keeps in line with the stocks I wanted that provide a level defense in times of economic uncertainty.

4. Expense ratio is 0.13 percent.

5. This ETF competes with other ETFs like the IDU (iShares U.S. Utilities ETF), FUTY (Fidelity MSCI Utilities ETF), and the VPU (Vanguard Utilities ETF).