5 ms·
I'm usually a Boglehead, with some exceptions, and one exception I'd love is some sort of trade that would eliminate my exposure to SpaceX for the next few year
by epistasis 5mo ago
I'm usually a Boglehead, with some exceptions, and one exception I'd love is some sort of trade that would eliminate my exposure to SpaceX for the next few years. I'm sure there's some combo of options that would do it.
Probably finding an ESG-focused ETF would do it. ESG basically meant "good governance, we follow laws" which translated into better governed public companies that therefore had better returns, as one would expect. Really weird how it was politicized into something entirely different...
- xenospn 5mo agoStock markets are ruled by hype and fomo. Good corporate governance has little to do with returns, unfortunately.
- epistasis 5mo agoShort term gains are hype and fomo, but if you're holding index funds long like I am, then returns have a lot more to do with performance. And given the lack of hype around ESG, it seems like an exceptional time to buy in to it.
- JumpinJack_Cash 5mo agoBro the index is about riding the hype and fomo and when the phenomenon progressively loses track it gets less and less quota
- epistasis 5mo agoI don't understand the lingo in your comment but my best possible guess is that I disagree vehemently with it. Long term dollar cost averaging is not about hype and fomo. Overall pricing in equities does vary according to alternative investment routes, which is why I'm diversified into those as well. Stonks go up. Stonks go down. Averaging over decades, ownership is about owning a share of productive output of a large portion of our entire economy, an amazing restructuring of social relations that presents an amazing opportunity for the common person, unseen throughout the history of humanity.
- wolvoleo 5mo agoThat's also the kind of thing that pension funds should be investing in. They shouldn't invest in hypes as they're by definition in for the long haul and eventually hypes always blow. Sure you can make a lot of money but only if you know when to get out before the crash. And that's something that doesn't gel well with long term investment.
- Galanwe 5mo ago> I'd love is some sort of trade that would eliminate my exposure to SpaceX You can just short SpaceX of an amount equivalent to its share of your SP500 holdings. You will have to pay borrowing costs though, but on something that liquid it will be very small.
- parliament32 5mo agoShorts have unlimited risk. Buying a put is risk-defined and probably a better strategy.
- BJones12 5mo agoNo, because the unlimited risk of shorting is balanced (hedged) by the unlimited upside of holding the same number of shares via the ETF.
- jocaal 5mo agoYou cannot however sell only SpaceX shares from your ETF to cover your short's losses. So due to liquidity issues I wouldn't recommend your strategy.
- Galanwe 5mo agoWhat are you talking about? You don't need to touch anything about your ETF. You just have to short a single name on the side. Also there is no liquidity issue, we're talking SP500 names here, you'll pay GC, which should be around 25bps as the other comment mentions.
- BobaFloutist 5mo agoThey're saying if the stock goes up and you get margin-called on the short, you have to sell index shares, you can't just annihilate the Tesla shares with the anti-Tesla shares and walk away.
- jakub_g 5mo agoOne annoying thing is that those "non-standard" ETF variants have much higher management costs than basic S&P500 / All World ETFs.
- nothercastle 5mo agoDimension funds aren’t bad
- parliament32 5mo ago> some sort of trade that would eliminate my exposure to SpaceX I think it's less complicated than you'd think.. just buy LEAPS puts proportional to your exposure.
- daft_pink 5mo agoLEAPS are very expensive.
- parliament32 5mo agoBecause they're long-term, yes. It'll really come down to how much you're willing to pay for monthly Elon-shenanigans-insurance. I'm very interested in seeing how the market prices these options after the IPO.
- bryanlarsen 5mo agoThere's an ETF for everything out there. (There are more ETF's than stocks). There'll be a large market for "S&P500 without SpaceX" et al, so it's seems likely somebody will fill it. It probably will have to use a worse name because of the S&P trademark. P.S. Here's an example of S&P500 without the magnificent 7 https://www.defianceetfs.com/xmag/ https://www.defianceetfs.com/xmag/
- addandsubtract 5mo agoA&W 500 (because it only lists companies A-W)
- joelthelion 5mo agoI've sold all my stocks. My reasoning is that if AI stocks go bust, they will take the global stock market with them.