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I like the idea. Am I correctly understanding that you don't actually create any ETFs, it's just a tool for constructing a portfolio of individual stocks? Assu

• whitej125 5y ago
  Correct... we're not actually creating an ETF... but we have found that using the term "ETF" makes more sense to more people than "portfolio" or "index". What we are doing under the hood is... 1) you pick the index 2) kick out companies you don't want 3) we'll construct a portfolio of companies at the new index weights of the rest. Wrt/ tax efficiency... it's going to depend on if/when you want to rebalance. We are not an RIA (yet) so we are not going to do that automatically today (but make it single click easy and we'll prompt you if/when it makes sense). In comparison to an ETF... if you buy and hold an ETF for 10 years... you'll have a big tax liability at the end from the capital appreciation over 10 years. Practicully speaking... if you direct index through us and rebalance once a year you'll pay smaller/incremental taxes on some things each year (net of gains minus and losses in the index). But no big liability later and you have lots of flexibility over the 10 years. 401k here's are the dream, but not an easy nut to crack. We are looking at supporting TD and IBKR as brokers too and those have IRAs. We currently support Alpaca Markets and their account is taxable (they also have a paper trading account you can use too!).