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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,
by 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 agoWhy 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 agoNot 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 agoUS REIT index Sans Texas would be less costly because you would have fewer stocks to trade
- thisisit 11y agoAh 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.