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Love this idea. For the folks in the comments so far who are uncomfortable with the combination of "index" and "picking stocks", I think that's unfair. This is
by corry 6y ago
Love this idea. For the folks in the comments so far who are uncomfortable with the combination of "index" and "picking stocks", I think that's unfair. This is obviously a service for relatively sophisticated folks who (1) want ETFs that don't exist, or (2) want to make minor changes to existing ETFs, or (3) don't want to deal with the ETF fees/overheads for whatever reason (although presumably Enombic will have fees too).
Here's an example that came to mind:
If you were convinced psychedelic medicine is going to be huge as a sector, but also feel it's too early to pick winners/losers (and you dislike the expense overhead of PSYK) - great, make your own ETF. You still have sector risk but not 'stock picking risk'.
FYI - this is a great real example, but assumes Enomics can handle the Neo exchange (in Canada, since that's where most of the psych stocks are these days). Like, someone should post this over at /r/shroomstocks for real. :)
- kmckiern 6y agoThanks! You nailed it. We are building for "prosumer" retail investors who have baseline proficiency around these ideas. Over time we'd want to make sure our platform is more generally accessible, wherein we would build out more in-app education. Indeed, higher-risk sector-based indexing is a use case we're seeing a lot on the app (e.g. https://enombic.com/jake/crypto https://enombic.com/jake/crypto). Then, we're seeing folks couple decorrelated sector-based indexes into aggregate indexes (e.g. https://enombic.com/chris/main https://enombic.com/chris/main, this one is actually 50% Vanguard ETFs). No Neo exchange yet, sorry. Do you know if it's possible to get exposure to psychedelic medicine in the US?
- gwd 6y ago> (2) want to make minor changes to existing ETFs This is exactly the use case I've wanted for a long time -- I'd much rather just park most of my money in an S&P 500 index fund. But there are some companies there whose business practices I just find scummy; and if I own stocks in that fund, those companies will be doing those scummy things in my name and for my benefit. I realize there are "ethical" index funds, but somehow their senses of ethics and mine don't match 100%. I'd very much like to be able to say, "The S&P 500, but not X Y or Z." I'll definitely be looking into this.