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Wealthfront should compete not just on trying to execute the same old indices, but on creating new indices on the fly. For example, REIT Index Sans Illinois,

Wealthfront should compete not just on trying to execute the same old indices, but on creating new indices on the fly. For example, REIT Index Sans Illinois, Emerging Markets Sans Russia, etc. Infinite number of possible index portfolios. Anyone want to build that? send me a message

thisisit 11y ago
While the idea is interesting, I am curious what would be the market for a newer index? This combined with creating and maintaining a market to run this index, it will be an expensive proposition.
- vasilipupkin 11y ago
  Why does it have to be expensive ? Imagine you live in Texas and already have high exposure to Texas real estate. It's reasonable to be able to construct a index fund ex texas real estate, as an example. Better tailor your investment options to your actual risks
  - thisisit 11y ago
    Not from the customer front but on the operations front. To clarify, even if you have an index, there must be enough liquidity to run a market where your index is trading. In the early days with less liquidity the company will need to pick up some of the orders. This at the end depending on the value proposition might turn out to be costly.
    - vasilipupkin 11y ago
      US REIT index Sans Texas would be less costly because you would have fewer stocks to trade
      - thisisit 11y ago
        Ah ok. I see what you meant when Folio was mentioned. I was thinking something else. I was building something like that but don't have the tech capabilities so had stopped.
robbiemitchell 11y ago
I believe that's what Motif is doing.
- deleted 11y ago
  [deleted]
- vasilipupkin 11y ago
  Yes. But with absolutely insane commission levels. I would like a Vanguard like product that lets me do it
WalkerCodeRangr 11y ago
Check out https://www.folioinvesting.com https://www.folioinvesting.com They allow you to create your own "index funds" as well as select from a list of existing folios. Flat monthly fee.
inthewoods 11y ago
That exists (at least if I understand your ask): https://www.folioinvesting.com https://www.folioinvesting.com

thisisit 11y ago

While the idea is interesting, I am curious what would be the market for a newer index? This combined with creating and maintaining a market to run this index, it will be an expensive proposition.

vasilipupkin 11y ago
Why does it have to be expensive ? Imagine you live in Texas and already have high exposure to Texas real estate. It's reasonable to be able to construct a index fund ex texas real estate, as an example. Better tailor your investment options to your actual risks
- thisisit 11y ago
  Not from the customer front but on the operations front. To clarify, even if you have an index, there must be enough liquidity to run a market where your index is trading. In the early days with less liquidity the company will need to pick up some of the orders. This at the end depending on the value proposition might turn out to be costly.
  - vasilipupkin 11y ago
    US REIT index Sans Texas would be less costly because you would have fewer stocks to trade
    - thisisit 11y ago
      Ah ok. I see what you meant when Folio was mentioned. I was thinking something else. I was building something like that but don't have the tech capabilities so had stopped.

robbiemitchell 11y ago

I believe that's what Motif is doing.

deleted 11y ago
[deleted]
vasilipupkin 11y ago
Yes. But with absolutely insane commission levels. I would like a Vanguard like product that lets me do it

WalkerCodeRangr 11y ago

Check out https://www.folioinvesting.com https://www.folioinvesting.com They allow you to create your own "index funds" as well as select from a list of existing folios. Flat monthly fee.

inthewoods 11y ago

That exists (at least if I understand your ask): https://www.folioinvesting.com https://www.folioinvesting.com