<img src="https://static-ssl.businessinsider.com/image/57bc652edb5ce963008b8527-1024/4850859370_78016edb41_b.jpg" alt="scale" /><p class="source"><span><a href="https://www.flickr.com/photos/magnus_d/4850859370/in/photolist-8oDVuo-eDX7iL-58WpQD-d9FhP4-buvY1j-d7NnwY-5jc42m-8v4zdq-eDX6cw-9C4Uzg-7wVfNx-d9FhSq-nR1NAy-d9FhRe-bwXqiB-km1opc-N8wjn-dyUadH-8DN1m6-dJnVJS-7wZ2zG-dUwjQr-9ZkKBt-ays8bP-58bYSj-eDX8VN-8v4zaL-qEfv7b-cDbb7N-9C4NCP-fc3s3L-rn8LXU-d9Fi2u-bwXp7F-j6sQhj-6VPvzd-eiqZdm-9M8hXC-4T1GQ6-cs6dHh-qMP6u3-4CNf8N-eDXeSW-cKnGGC-citxxC-oC4vxQ-j6quj8-9QsneP-eDX6d5-89M7iT">Magnus D/flickr</a></span></p>You've probably heard that once you hit 40, it's all downhill when it comes to your weight.<p>That inexplicable force we call our metabolism does begin to grind a bit slower every year from age 30 onward.</p><p>Here's the good news: The rate at which your metabolism slows down is actually rather minimal. In reality, most weight gain that happens in midlife <a href="https://medlineplus.gov/ency/patientinstructions/000893.htm">isn't the result of a slower metabolism at all</a>.</p><p>Instead, it comes down to a simple but changeable truth: As we get older, we get less and less active.</p><p>While this might sound depressing, it's actually great news. There's plenty we can do to counteract the slow, seemingly inevitable onset of poundage. But first, here are some basics about what metabolism is - and what it isn't.</p><h2>How your body burns energy</h2><p>Our resting metabolic rate is a measure of <a href="http://cdaar.tufts.edu/protocols/REE-protocol-edited.pdf">how much energy we expend - or "burn" - when we're at rest</a>. It's determined by a combination of factors, including your height, sex, and the genes you got from your parents, and it <a href="https://medlineplus.gov/ency/patientinstructions/000893.htm">can't be altered much</a>, no matter what you do.</p><p>Beyond that, our bodies appear to enter into three more distinct phases of calorie burning, depending on what we're doing. These three are the types of metabolism that most people are referring to when they say doing certain things, like eating spicy food or working out, can "boost" your metabolism.</p><h2>Most of the things that people say will boost your metabolism won't</h2><p>When we're eating, we burn a small number of calories (roughly 10% of our total calories burned for the day). This is called the <a href="http://ajcn.nutrition.org/content/63/2/164.abstract">thermic effect of food</a>, and it's the first of those three phases I mentioned earlier. We can turn up the heat on this process a <em>tiny</em> bit (but not by a whole lot) by doing things like <a href="http://www.ncbi.nlm.nih.gov/pubmed/7369170">drinking stimulant beverages like coffee</a> and <a href="http://www.ncbi.nlm.nih.gov/pubmed/9683329">eating large amounts of protein</a>.</p><img src="https://static-ssl.businessinsider.com/image/57bc8b1ace38f298008b864a-1420/healthy eating.jpg" alt="healthy eating" /><p class="source"><span><a href="https://www.flickr.com/photos/ricephotos/9266528442">Flickr/IRRI Photos</a></span></p>"Eating foods like green tea, caffeine, or hot chili peppers will not help you shed excess pounds," notes <a href="https://medlineplus.gov/ency/patientinstructions/000893.htm">an entry in the ADAM Medical Encyclopedia</a>, hosted by the National Institutes of Health. "Some may provide a small boost in your metabolism, but not enough to make a difference in your weight."<h2>Instead, get active</h2><p>Unsurprisingly, the most important calorie-burning activity we engage in is just that - activity.</p><p>Whether we're taking the stairs, stepping away from our desks for a coffee, or sweating it out in a hot yoga class, we're expending energy. Researchers call this second phase <a href="http://www.ncbi.nlm.nih.gov/pubmed/10610070">physical-activity expenditure</a>.</p><p>After a strenuous workout, we continue to burn more calories than we would while at rest - and that's the third phase, or what's called <a href="http://www.ncbi.nlm.nih.gov/pubmed/17101527">excess post-exercise oxygen consumption</a>.</p><p>When it comes to counteracting weight gain, these two phases - the ones related to physical activity - are the most important. Your best bet for burning more calories throughout the day is to increase your levels of <em>any kind</em> of activity, be it running or walking.</p><img src="https://static-ssl.businessinsider.com/image/593a904bbf76bb94008b48a1-900/shutterstock212629813.jpg" alt="woman running stretching fitness exercise jogging" /><p class="source"><span>Shutterstock</span></p>Many people think strength training or weight lifting fits into this category, but the evidence suggests otherwise.<p>Weight lifting can only do so much for your metabolism. Why? Because muscles don't burn a whole lot of calories, <a href="https://medlineplus.gov/ency/patientinstructions/000893.htm">as the NIH points out</a>. As far as calorie-melting organs go, your brain is actually far more efficient than your bicep.</p><p>"Brain function makes up close to 20% of" resting metabolic rate, <a href="https://www.pbrc.edu/research-and-faculty/faculty/?faculty=20">Dr. </a><a href="https://www.pbrc.edu/research-and-faculty/faculty/?faculty=20">Claude Bouchard</a>, a professor of genetics and nutrition at the Pennington Biomedical Research Center of Louisiana State University, <a href="http://articles.latimes.com/2011/may/16/health/la-he-fitness-muscle-myth-20110516">told The Los Angeles Times</a>.</p><p>"Next is the heart, which is beating all the time and accounts for another 15-20%. The liver, which also functions at rest, contributes another 15-20%. Then you have the kidneys and lungs and other tissues, so what remains is muscle, contributing only 20-25% of total resting metabolism," Bouchard said.</p><p>So while strength training is <a href="http://www.techinsider.io/why-everyone-should-be-lifting-weights-2015-8">a healthy habit</a> that will certainly have <a href="https://www.cdc.gov/physicalactivity/downloads/growing_stronger.pdf">a helpful effect on things like agility and balance</a>, it won't change your metabolism a great deal.</p><p>"This idea that one pound of muscle burns hundreds of extra calories per day is a myth," <a href="http://www.med.upenn.edu/weight/gfoster.html">Gary Foster</a>, Weight Watchers' chief scientific officer and an adjunct professor of psychology at the Perelman School of Medicine at the University of Pennsylvania, told Business Insider.</p><h2>And be mindful about eating</h2><p>According to the NIH, in addition to getting less active as we get older, we also appear to become <a href="https://medlineplus.gov/ency/patientinstructions/000893.htm">less perceptive about our body's nutritional needs</a> over time.</p><p>Our natural appetite-control mechanism seems to dull. A good way to be more mindful of how full you're getting is to eat smaller meals and get more only when you're still hungry, rather than sitting down with a large plate of food, which might encourage you to overeat.</p><p>"By staying active and sticking with smaller portions of healthy foods, you can ward off weight gain as you age," the NIH website says.</p>            <h3>NOW WATCH: <a href="http://www.businessinsider.com/what-tom-brady-eats-nfl-diet-patriots-nutrition-2016-1">This is what Tom Brady eats to play pro football at 38 years old</a></h3>                                    Please enable Javascript to watch this video                    

The biggest reason you gain weight as you age has nothing to do with your metabolism

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57bc652edb5ce963008b8527-1024/4850859370_78016edb41_b.jpg" alt="scale" data-mce-source="Magnus D/flickr" data-link="https://www.flickr.com/photos/magnus_d/4850859370/in/photolist-8oDVuo-eDX7iL-58WpQD-d9FhP4-buvY1j-d7NnwY-5jc42m-8v4zdq-eDX6cw-9C4Uzg-7wVfNx-d9FhSq-nR1NAy-d9FhRe-bwXqiB-km1opc-N8wjn-dyUadH-8DN1m6-dJnVJS-7wZ2zG-dUwjQr-9ZkKBt-ays8bP-58bYSj-eDX8VN-8v4zaL-qEfv7b-cDbb7N-9C4NCP-fc3s3L-rn8LXU-d9Fi2u-bwXp7F-j6sQhj-6VPvzd-eiqZdm-9M8hXC-4T1GQ6-cs6dHh-qMP6u3-4CNf8N-eDXeSW-cKnGGC-citxxC-oC4vxQ-j6quj8-9QsneP-eDX6d5-89M7iT" /><p class="source"><span><a href="https://www.flickr.com/photos/magnus_d/4850859370/in/photolist-8oDVuo-eDX7iL-58WpQD-d9FhP4-buvY1j-d7NnwY-5jc42m-8v4zdq-eDX6cw-9C4Uzg-7wVfNx-d9FhSq-nR1NAy-d9FhRe-bwXqiB-km1opc-N8wjn-dyUadH-8DN1m6-dJnVJS-7wZ2zG-dUwjQr-9ZkKBt-ays8bP-58bYSj-eDX8VN-8v4zaL-qEfv7b-cDbb7N-9C4NCP-fc3s3L-rn8LXU-d9Fi2u-bwXp7F-j6sQhj-6VPvzd-eiqZdm-9M8hXC-4T1GQ6-cs6dHh-qMP6u3-4CNf8N-eDXeSW-cKnGGC-citxxC-oC4vxQ-j6quj8-9QsneP-eDX6d5-89M7iT">Magnus D/flickr</a></span></p></div><p></p></div></div>You've probably heard that once you hit 40, it's all downhill when it comes to your weight.</p><p>That inexplicable force we call our "metabolisms" does begin to grind a bit slower every year from age 30 onwards.</p><p>Here's the good news: The rate at which your metabolism slows down is actually rather minimal. In reality, most weight gain that happens in mid-life <a href="https://medlineplus.gov/ency/patientinstructions/000893.htm">isn't the result of a slower metabolism at all</a>.</p><p>Instead, it comes down to a simple, but changeable truth: <strong>As we get older, we get less and less active.</strong></p><p>While this might sound depressing, it's actually great news. There's plenty we can do to counteract the slow, seemingly inevitable onset of poundage. But first, here are some basics about what metabolism is - and what it isn't.</p><h2>Your metabolism isn't just your metabolism</h2><p>Our resting metabolic rate (RMR) is a measure of <a href="http://cdaar.tufts.edu/protocols/REE-protocol-edited.pdf">how much energy we expend - or "burn" - when we're at rest</a>. It's determined by a combination factors, from your height and gender to the genes you got from your parents, and it <a href="https://medlineplus.gov/ency/patientinstructions/000893.htm">can't be altered much</a>, no matter what you do.</p><p>Beyond that, our bodies appear to enter into three more distinct phases of calorie burning, depending on what we're doing. These three are the types of metabolism that most people are referring to when they say doing certain things, like eating spicy food or working out, can "boost" your metabolism.</p><h2>Most of the things people say will boost your metabolism won't</h2><p>When we're eating, we burn a small amount of calories (roughly 10% of our total calories burned for the day). This is called the <a href="http://ajcn.nutrition.org/content/63/2/164.abstract">"thermic effect of food,"</a> and it's the first of those three phases I mentioned earlier. We can turn up the heat on this process a <em>tiny</em> bit (but remember, not by a whole lot) by doing things like <a href="http://www.ncbi.nlm.nih.gov/pubmed/7369170">drinking stimulant beverages like coffee</a> and <a href="http://www.ncbi.nlm.nih.gov/pubmed/9683329">eating large amounts of protein</a>.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57bc8b1ace38f298008b864a-1420/healthy eating.jpg" alt="healthy eating" data-mce-source="Flickr/IRRI Photos" data-link="https://www.flickr.com/photos/ricephotos/9266528442" /><p class="source"><span><a href="https://www.flickr.com/photos/ricephotos/9266528442">Flickr/IRRI Photos</a></span></p></div><p></p></div></div>"Eating foods like green tea, caffeine, or hot chili peppers will not help you shed excess pounds," notes <a href="https://medlineplus.gov/ency/patientinstructions/000893.htm">an entry in the A.D.A.M. Medical Encyclopedia</a>, hosted by the National Institutes of Health. "Some may provide a small boost in your metabolism, but not enough to make a difference in your weight."</p><h2>Instead, get active</h2><p>Not surprisingly, the most important calorie-burning activity we engage in is just that - activity.</p><p>Whether we're taking the stairs, stepping away from our desks for a coffee, or sweating it out in a hot yoga class, we're expending energy. Researchers call this second phase <a href="http://www.ncbi.nlm.nih.gov/pubmed/10610070">"physical-activity expenditure."</a> After a strenuous workout, we continue to burn more calories than we would while at rest - and that's the third phase, or what's called "<a href="http://www.ncbi.nlm.nih.gov/pubmed/17101527">excess post-exercise oxygen consumption</a>."</p><p>When it comes to counteracting weight gain, these two phases - the ones related to physical activity - are the most important. <strong>Your best bet for burning more calories throughout the day is to increase your levels of <em>any kind of</em> activity, be it running or walking.</strong></p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57ab3c74db5ce950008b5cb6-1024/a man running up the valley.jpg" alt="A man running up the valley" data-mce-source="David McNew/Getty Images" /><p class="source"><span>David McNew/Getty Images</span></p></div><p></p></div></div>Many people think strength training or weight lifting fits into this category, but the evidence suggests otherwise.</p><p>Weight lifting can only do so much for your metabolism. Why? Because muscles don't burn a whole lot of calories, <a href="https://medlineplus.gov/ency/patientinstructions/000893.htm">as the NIH points out</a>. As far as calorie-melting organs go, your brain is actually far more efficient than your bicep.</p><p>"Brain function makes up close to 20% of [resting metabolic rate]," <a href="https://www.pbrc.edu/research-and-faculty/faculty/?faculty=20">Dr. </a><a href="https://www.pbrc.edu/research-and-faculty/faculty/?faculty=20">Claude Bouchard</a>, a professor of genetics and nutrition at the Pennington Biomedical Research Center of Louisiana State University, <a href="http://articles.latimes.com/2011/may/16/health/la-he-fitness-muscle-myth-20110516">told the Los Angeles Times</a>. "Next is the heart, which is beating all the time and accounts for another 15-20%. The liver, which also functions at rest, contributes another 15-20%. Then you have the kidneys and lungs and other tissues, so what remains is muscle, contributing only 20-25% of total resting metabolism," said Bouchard.</p><p>So while strength training is <a href="http://www.techinsider.io/why-everyone-should-be-lifting-weights-2015-8">a healthy habit</a> that will certainly have <a href="https://www.cdc.gov/physicalactivity/downloads/growing_stronger.pdf">a helpful impact on things like agility and balance</a>, it won't change your metabolism a great deal.</p><p>"This idea that one pound of muscle burns hundreds of extra calories per day is a myth," <a href="http://www.med.upenn.edu/weight/gfoster.html">Gary Foster</a>, Weight Watchers' chief scientific officer and an adjunct professor of psychology at the Perelman School of Medicine at the University of Pennsylvania, told Business Insider.</p><p>Instead, your best bet for burning more calories throughout the day is to increase your levels of <em>any kind of</em> activity, be it by adding miles to your runs or simply by taking the stairs at work. Better yet, do both.</p><h2>And be mindful about eating</h2><p>According to the NIH, in addition to getting less active as we get older, we also appear to become <a href="https://medlineplus.gov/ency/patientinstructions/000893.htm">less perceptive about our body's nutritional needs</a> over time.</p><p>Our natural appetite control mechanism seems to grow dull. A good way to be more mindful of how full you're getting is to eat smaller meals and get more only when you're still hungry, rather than sitting down with a large plate of food, which might encourage you to overeat.</p><p>"By staying active and sticking with smaller portions of healthy foods, you can ward off weight gain as you age," they write on their website.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/what-tom-brady-eats-nfl-diet-patriots-nutrition-2016-1">This is what Tom Brady eats to play pro football at 38 years old</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="NmZTcyMDE6SmnagiVt-_oQ8agPIHu0Dr" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'NmZTcyMDE6SmnagiVt-_oQ8agPIHu0Dr',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

<p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/53b2e613eab8ea1c40d61a19-1200-924/commute-traffic-3.jpg" border="0" alt="commute traffic" /><p class="source"><span>Scott Olson/Getty</span></p></div><p></p></div></div>In a letter Tuesday, <span>Transportation Secretary Anthony Foxx warned t</span>he Obama administration will begin delaying reimbursements to states for infrastructure projects on Aug. 1 if Congress cannot come up with a solution to <a href="http://www.businessinsider.com/highway-trust-fund-expiration-when-infrastructure-spending-2014-5" target="_blank">replenish the diminishing Highway Trust Fund</a>. This move could create problems for highway and road construction profits at the height of the summer travel season. </p>
<p><span>Foxx's letter, which was directed to state transportation officials, said <span>checks to states will only be sent twice a month and will only be partial reimbursements. <span>States typically receive "same day" reimbursements for many construction projects.</span></span></span></p>
<p><span style="line-height: 1.5em;">The Department of Transportation is undertaking the new procedures to keep a positive balance in the Highway Trust Fund, in which the department expects a shortfall beginning sometime in August. </span><span style="line-height: 1.5em;">The fund is financed through gasoline taxes, which have not been raised in decades and currently provide inadequate revenue. Both parties in Congress disagree on how to solve the problem. In his letter, Foxx said states will experience cuts in federal funding </span><span style="line-height: 1.5em;">until Congress finds a long-term solution to the crisis.</span></p>
<p><span style="line-height: 1.5em;">"<span>The Department will continue to take every possible measure to fully reimburse your State for as long as we can.  However, as we approach insolvency, the Department will be forced to limit payments to manage the reduced levels of cash available in the Trust Fund," Foxx wrote in the letter. </span></span><span style="line-height: 1.5em;">"This means, among other things, that the Federal Highway Administration will no longer make 'same-day' payments to reimburse States."</span></p>
<p><span style="line-height: 1.5em;"><span>The Department of Transportation said, on average, states should expect a 28% cut in federal funds for construction projects. This dire warning comes as President Barack Obama <a href="http://www.businessinsider.com/highway-trust-fund-expiration-when-infrastructure-spending-2014-5" target="_blank">is set to ramp up pressure on Congress to find a solution to the shortfall</a>. Obama is set to speak about the issue Tuesday on the<span> Georgetown waterfront with the Key Bridge in the background. The bridge <span>connects Rosslyn, Virginia, with the Georgetown neighborhood of Washington.</span></span></span></span></p>
<p><span style="line-height: 1.5em;"><span><span><span>The Highway Trust Fund is a transportation and infrastructure fund financed by gasoline taxes. Howeverm the government now spends more money on those projects than it collects from the gas tax, which has not been raised in over 20 years. </span></span></span></span></p>
<p><span style="line-height: 1.5em;"><span><span>Republicans and Democrats in Congress are still divided on both a short-term solution to finance projects through the rest of the year and a long-term fix for the shortfall. Two senators introduced a bipartisan <a href="http://www.businessinsider.com/highway-trust-fund-solution-gas-tax-hike-corker-murphy-2014-6" target="_blank">plan to incrementally raise the 18.4 cents-per-gallon gas tax</a>, but there is little political inclination to make such a move in an election year.</span></span></span></p>
<p><span style="line-height: 1.5em;"><span><span><span>Sen. Patty Murray (D-WA), who has taken the lead on the issue among Democratic leadership, has said Congress should </span><a href="http://www.businessinsider.com/construction-shutdown-highway-trust-fund-shortfall-2014-6" target="_blank">get rid of "wasteful" tax loopholes</a><span> to offset more funding for the Highway Trust Fund. House Republicans rallied around a proposal to offset the fund's expenditures by scaling back U.S. Postal Service deliveries on Saturdays, but that proposal has been largely abandoned.</span><span><br /><br /></span></span></span></span><span style="line-height: 1.5em;">"The clock is winding down for Congress to avoid lurching toward another unnecessary crisis - this time with a construction shutdown," Murray said in a statement on Tuesday. "States and businesses need certainty to create jobs and grow local economies, and as today's announcement shows, failing to solve the shortfall would mean the exact opposite. Workers and businesses shouldn't have to pay the price for another manufactured crisis out of Washington, D.C. - so I hope Republicans find a way to push the Tea Party aside and avoid this crisis."</span></p>
<p><span style="line-height: 1.5em;">Here's a chart from the Department of Transportation projecting how the fund will run dry near the end of August: </span></p>
<p><span style="line-height: 1.5em;"><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="Department of Transportation" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/53b2e6b1ecad048d7648e9ec-960/htf-cash-flow-summary-through-05-30-14-end-of-month-cash-balances-graph.jpg"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/53b2e6b1ecad048d7648e9ec-1200-924/htf-cash-flow-summary-through-05-30-14-end-of-month-cash-balances-graph.jpg" border="0" alt="Highway Trust Fund cash flow" /></a><p class="source"><span>Department of Transportation</span></p></div><p></p></div></div><br /></span></p>

Congress' Next Big Economic Crisis Is About To Cause Huge Cuts In Federal Funding For Highway Construction

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img style="display: block; margin-left: auto; margin-right: auto;" src="https://static-ssl.businessinsider.com/image/59fa27394d05ac1f008b5227-1348/trump.jpg" alt="trump" data-mce-source="Alex Brandon/AP" /><p class="source"><span>Alex Brandon/AP</span></p></div><p></p></div></div></p><ul><li><strong>The EventShares US Tax Reform Fund was launched last week; its methodology can shed crucial light on how to trade Trump's tax plan.</strong></li><li><strong>EventShares CIO Ben Phillips says that, from an investment standpoint, the biggest focus should be on the corporate tax cuts.</strong></li></ul><hr /><p><br />If you're going to create an <a href="http://www.businessinsider.com/category/etfs" target="_blank" rel="noopener noreferrer">exchange-traded fund</a> around a specific policy proposal - such as tax reform - you'd better be able to identify the companies that will be most affected by it.</p><p>That much should be self-evident. Actually nailing it, though, isn't so simple, because tax reform has so many different aspects to it, and certain facets of it are proving to be much more exciting to investors than others.</p><p>EventShares just launched the <a href="http://www.businessinsider.com/trump-tax-reform-plan-new-etf-taxr-2017-10" target="_blank" rel="noopener noreferrer">first policy-driven ETF</a>. It's called the <a href="https://finance.yahoo.com/quote/taxr?p=taxr" target="_blank" rel="noopener noreferrer">EventShares US Tax Reform Fund</a>, and in a recent interview its chief investment officer, <a href="https://www.eventshares.com/eventshares-hires-ben-phillips-cio/" target="_blank" rel="noopener noreferrer">Ben Phillips</a>, told Business Insider how to wade through investor sentiment and political action to pick the most likely beneficiaries of the Republican effort to cut taxes.</p><p>Pulling less weight will be major exporters - or those most likely to benefit from a repatriation tax holiday - and companies poised to be positively affected by capital-expenditure deductions. Instead, focus on the companies paying the highest effective tax rate because they're the ones with the most to gain.</p><p>With this in mind, two-thirds of the tax reform ETF is made up of more domestically focused small-cap stocks with $1 billion to $10 billion in market cap, since they're poised to benefit most from a lower US tax rate, Phillips says.</p><p>Beyond the methodology for the tax reform ETF - outlined in more detail below, along with single stock picks - Phillips and I also talked about how the fund came about in the first place, as well as what other ETFs EventShares might have up its sleeve in the future.</p><p><em>This interview has been edited for clarity and length.</em></p><p><strong>Joe Ciolli: </strong>Can you walk through the methodology for the tax reform ETF?</p><p><strong>Ben Phillips: </strong>Right now, the fund is 100% equity, equal-weighted, and thoughtfully active. We want to rebalance quarterly, like most traditional ETFs, but we still reserve the right to change the portfolio intra-quarter if we need to, or if it's valuable to fund holders.</p><p>Tax reform really focuses on three key buckets: tax cuts (largest, with about half), exporters, and capex deductions. Of course a lot of companies can fit into multiple buckets. We drill down on securities. We expect to move the most on the policy initiatives.</p><p>Roughly two-thirds of the portfolio is small-cap stocks, with $1 billion to $10 billion of market cap. The rest of the companies are bigger.</p><p>One of the tax-cut beneficiaries, in our opinion, is <a href="http://markets.businessinsider.com/stock/CAL-Quote" target="_blank" rel="noopener noreferrer">Caleres</a>. They benefit from a shift to a territorial tax system. They make shoes in the US. They're one of the few US-centric retailers that actually makes its products here. They're not like many other retailers. The fact that they make them here puts them at a competitive advantage.</p><p><a href="http://markets.businessinsider.com/stock/FISV-Quote" target="_blank" rel="noopener noreferrer">Fiserv</a> is a large-cap high taxpayer, and they stand to benefit pretty significantly from tax reform, just because of their high rate.</p><p>We have <a href="http://markets.businessinsider.com/stock/PSX-Quote" target="_blank" rel="noopener noreferrer">Phillips 66</a> in there, and the idea there is that they pay high taxes, and also would benefit from the fact that lower taxes would make US oil and gas exporters more profitable relative to the rest of the world.</p><p>Within exporters, you have <a href="http://markets.businessinsider.com/stock/F-Quote" target="_blank" rel="noopener noreferrer">Ford</a>, which has the largest amount of local production out of any car company in the world, which gives them the potential to see the biggest benefit from tax reform.</p><p><a href="http://markets.businessinsider.com/stock/Lyondellbasell_Industries-Quote">LyondelBasell</a> is a triple whammy - it has a high tax rate, it's a major potential beneficiary from capex deductibility, and US-produced plastic pellets would be more competitive on a global basis.</p><p><strong>Ciolli: </strong>What about repatriation specifically?</p><p><strong>Phillips: </strong>We don't have any in there just for cash repatriation, although a lot of our components have that embedded. It's really a one-time event, and it doesn't have a huge multiplier effect on corporate market valuations. We thought it was much more beneficial for a company that receives tax cuts, which would help it improve its earnings stream into perpetuity.</p><p><strong>Ciolli: </strong>In terms of the Trump tax plan being released this week, what are you watching most closely?</p><p><strong>Phillips: </strong>The TAXR portfolio is built specifically around the tax reform framework announced by congressional leadership on September 27. It's largely focused on the corporate beneficiaries.</p><p>A lot of the changes being discussed and debated after that announcement in late December are on the individual tax rates. We think the corporate tax cuts are most likely to stand. The exporters are still likely to benefit from a lower tax regime, and we think the capex reduction will stay. We don't see much changing on the corporate side. It's really important how the Senate receives it, more so than just the House announcement.</p><p><strong>Ciolli: </strong>Does some of the opposition we've seen affect the corporate side of things? Or does it not matter to you because your ETF is a way to play either side of the trade?</p><p><strong>Phillips: </strong>People can express a view on the short side if they don't think tax reform is going to go through. Our internal view, however, is that there's enough impetus in DC to get some form of tax reform done.</p><blockquote class="pullquote">People can express a view on the short side if they don't think tax reform is going to go through. Our internal view, however, is that there's enough impetus in DC to get some form of tax reform done.</blockquote><p>Whether that includes the full package, that's to be determined. But I think there is enough momentum behind tax reform to get something done, and the corporate side specifically is highly likely.</p><p><strong>Ciolli: </strong>Given their composition, do you think your funds can be used as a proxy for investor sentiment around tax reform?</p><p><strong>Phillips: </strong>You can definitely get some view into what those that are investing in ETFs or public stocks are saying, and you can read the tea leaves around sentiment shifts that are going on.</p><p>In mid-August, there was more of a focus on tax reform, and we saw a lot of activity in those stocks in our portfolio. They give you really interesting indicators.</p><p>More important, the most value for investors is if some tax-reform legislation goes through, and then the expected performance of that fund ends up being very strong. The goal is to have a really strong fund in and of itself with this embedded tax-reform catalyst. But leading up to the Senate vote, it might be an important indicator to watch.</p><blockquote class="pullquote float_right">Tax reform has implications for almost every company that does business in the US, as well as for every person who lives in the US.</blockquote><p><strong>Ciolli:</strong> What was the genesis for the tax-reform fund? How long ago did you start working on it?</p><p><strong>Phillips: </strong>Two of the three cofounders are Goldman alums. While we were at Goldman, we saw these institutional products being offered to institutional clients. We saw these high-tax baskets offered by various large banks. Our thought was that these products were out there, but only the big banks offered them, and they were often expensive and illiquid. The thought of bringing a product and an ETF wrapper to anyone with a brokerage account was appealing.</p><p><strong>Ciolli: </strong>The launch seems very well timed. How did you anticipate the need for a fund like this?</p><p><strong>Phillips: </strong>Tax reform has implications for almost every company that does business in the US, as well as for every person who lives in the US.</p><p>We thought that if there really is major tax reform, this deserves a stand-alone product.</p><p><strong>Ciolli: </strong>Do you have any other similar ETFs planned for the future?</p><p><strong>Phillips: </strong>The European Union Breakup Fund (ticker: EXIT) is expected to be our fourth fund. Brexit was the genesis of the idea. When we saw it occur, it made us think that Europe has some geopolitical questions that we should be asking, namely, what happens if companies start to leave the EU, and what are investors supposed to do about that? There's no product out there like that. I would say stay tuned for 2018.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/bitcoin-price-how-to-value-fundstrat-tom-lee-2017-10">TOP STRATEGIST: Bitcoin will soar to $25,000 in 5 years</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/r9HTffam-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

The investment chief at the world's first tax-reform ETF tells us how to trade Trump's plan

<p>Coca-cola will purchase a 10 percent minority stake in Green Mountain Coffee Roasters, according to a press release. </p>
<p id="yui_3_9_1_1_1391635882910_1998">Here's the release:</p>
<p style="padding-left: 30px;">The Coca-Cola Company (<a href="http://finance.yahoo.com/q?s=ko" data-rapid_p="8">KO</a>) and Green Mountain Coffee Roasters, Inc. (GMCR) (<a href="http://finance.yahoo.com/q?s=gmcr" data-rapid_p="9">GMCR</a>) announced today that the companies have signed a 10-year agreement to collaborate on the development and introduction of The Coca-Cola Company's global brand portfolio for use in GMCR's forthcoming Keurig Cold™ at-home beverage system. Under the global strategic agreement, GMCR and The Coca-Cola Company will cooperate to bring the Keurig Cold™ beverage system to consumers around the world. In an effort to align long-term interests, the companies also entered into a Common Stock Purchase Agreement whereby The Coca-Cola Company will purchase a 10% minority equity position in GMCR.</p>
<p id="yui_3_9_1_1_1391635882910_2016" style="padding-left: 30px;">Under the terms of the equity agreement, The Coca-Cola Company will acquire 16,684,139 newly issued shares in GMCR for approximately $1.25 billion, which represents an approximate 10% ownership in GMCR (after giving effect to the issuance). The newly issued shares have been priced at $74.98, which represents the trailing 50-trading-day volume weighted average price ("VWAP") as of market close today.</p>
<p id="yui_3_9_1_1_1391635882910_2064" style="padding-left: 30px;">As part of the strategic collaboration, GMCR will be The Coca-Cola Company's exclusive partner for the production and sale of The Coca-Cola Company-branded single-serve, pod-based cold beverages. The two companies also will explore other future opportunities to collaborate on the Keurig® platform.</p>
<p id="yui_3_9_1_1_1391635882910_2070" style="padding-left: 30px;">"With The Coca-Cola Company as a global strategic partner in our multi-brand at-home Keurig Cold beverage system, we believe there is significant opportunity to premiumize and accelerate growth in the cold beverage category by empowering consumers with an innovative, convenient way to freshly prepare their favorite cold beverages at the push of a button," said Brian P. Kelley, President and CEO of GMCR. "This global relationship combines The Coca-Cola Company's unparalleled brand, distribution and marketing strengths with GMCR's innovative technology and beverage system expertise."</p>
<p id="yui_3_9_1_1_1391635882910_2081" style="padding-left: 30px;">"Our 2020 Vision calls for decisive and timely action to continuously improve and evolve our global system to best serve our customers and consumers around the world," said Muhtar Kent, Chairman and Chief Executive Officer, The Coca-Cola Company. "This agreement demonstrates our creative approach to partnerships and ability to identify and stay at the forefront of consumer trends driving the industry. By pairing The Coca-Cola Company's brand leadership and global footprint with GMCR's innovative technology, together we will be able to capitalize on the many exciting growth opportunities in the single-serve, pod-based segment of the cold beverage industry. Importantly, this partnership provides our consumers with a convenient way to enjoy the brands they love through in-home preparation."</p>
<p style="padding-left: 30px;">The investment is expected to close in March 2014, subject to customary closing conditions, including receipt of required regulatory approvals.</p>
<p style="padding-left: 30px;">GMCR's Keurig Cold™ single-serve beverage system is currently under development with expected availability in GMCR's fiscal year 2015. Keurig Cold™ will use precisely formulated single-serve pods to dispense freshly-made cold beverages including carbonated drinks, enhanced waters, juice drinks, sports drinks and teas in consumers' homes with the one-touch simplicity, quality and variety that North American consumers love about the Keurig® brand hot system platform. The cold system is expected to be a similarly open-architecture platform like the Keurig® hot system.</p>
<p id="yui_3_9_1_1_1391635882910_2124" style="padding-left: 30px;"><strong>GMCR's Use of Proceeds</strong><br />GMCR intends to execute a meaningful share repurchase program to reduce dilution from the transaction. This will be executed under the Company's existing $1.1 billion share repurchase authorization. In addition, GMCR intends to use a portion of the proceeds from the new equity issuance to fund anticipated capital expenditures for its Keurig Cold™ beverage system over the next several years.</p>
<p id="yui_3_9_1_1_1391635882910_2118" style="padding-left: 30px;">BofA Merrill Lynch served as financial advisor to GMCR and Baker &amp; McKenzie LLP is acting as legal advisor.</p>

You Searched For "Tea Expenditure" and got 8 results

The biggest reason you gain weight as you age has nothing to do with your metabolism

Erin Brodwin

The biggest reason you gain weight as you age has nothing to do with your metabolism

Erin Brodwin

Congress' Next Big Economic Crisis Is About To Cause Huge Cuts In Federal Funding For Highway Construction

Brett LoGiurato

The investment chief at the world's first tax-reform ETF tells us how to trade Trump's plan

Joe Ciolli

Coca-Cola Is Buying 10% Of Green Mountain

Julia La Roche

Starbucks Reports Earnings Right In Line With Expectations

Matthew Boesler

The head of the biggest exchange group in the world on Trump, China and handling $1 quadrillion in trading

Matt Turner

CHANDELIERS AND UNPAID WAGES: How Crowdmix blew through £14 million before going bankrupt

James Cook

You Searched For "Tea Expenditure" and got 8 results

The biggest reason you gain weight as you age has nothing to do with your metabolism

Erin Brodwin

The biggest reason you gain weight as you age has nothing to do with your metabolism

Erin Brodwin

Congress' Next Big Economic Crisis Is About To Cause Huge Cuts In Federal Funding For Highway Construction

Brett LoGiurato

The investment chief at the world's first tax-reform ETF tells us how to trade Trump's plan

Joe Ciolli

Coca-Cola Is Buying 10% Of Green Mountain

Julia La Roche

Starbucks Reports Earnings Right In Line With Expectations

Matthew Boesler

The head of the biggest exchange group in the world on Trump, China and handling $1 quadrillion in trading

Matt Turner

CHANDELIERS AND UNPAID WAGES: How Crowdmix blew through &#163;14 million before going bankrupt

James Cook

CHANDELIERS AND UNPAID WAGES: How Crowdmix blew through £14 million before going bankrupt