I've sold all my ETFs at Ameritrade last year and decided to build my own moderately conservative "ETF" with Robinhood.
Goodbye trading fees. Goodbye ETF yearly maintenance fee.
$200k split between 50 small/mid cap companies of my choosing.
Criteria:
>3% dividend yield
<20 PE ratio
<3B market cap
examples: Cal-Maine, Douglas Dynamics, DSW, Gannett, Hillenbrand, Petmed, Rent-A-Center, Seadrill
I haven't bought anything yet. What are the negatives of this plan? Why doesn't everyone do this?
>>1046525
You are not building an ETF you're building a portfolio.
>>1046530
True, highly diversified portfolio. That's why I put ETF in quotes.
>>1046525
>What are the negatives of this plan? Why doesn't everyone do this?
because not everyone has the time and motivation to manage 50+ product in their portfolio.
Although OP had no idea what ETF means, how would one start an ETF others can buy into? Let's say you want to start your own asset management business. How do you get an ETF listed with discount brokerages?
>>1046525
What?
>>1046548
Yep, time spent is definitely one negative. Saving a few hundred bucks a year by not buying an ETF offsets that somewhat.
Nigga just open up a schwab account. They have 200 free ETFS. You can create whatever portfolio you can imagine.
>>1046525
>200k in a meme startup trading app
big risk/negative is if they go under and say sorry you only get 85% of your money back after freezing your accounts for three months. don't know the likelyhood of this, but if I was giving 200k to anybody I would at least talk to them and ask them a few hard questions first.
you are being a little naive.
How are you enjoying the current market collapse, OP?
>>1046551
Why the fuck would any of us know that?
>>1046551
yeah I don't really know but I know it involves getting registered with the SEC and having a bunch of cash ready to go. /biz/ is def not the place to find out, but if you're thinking about starting some little entrepreneurial project think again. Beyond the huge sums of cash it's extremely saturated, established firms have to delist failing ETFs all the time.
>>1046779
>you only get 85% of your money back
SIPC gets 100% of your money back, up to 500k
>>1046760
This.
>>1046551
>how would one start an ETF others can buy into?
In short, have $250k-1M of your own money invested in a portfolio. Repeatedly demonstrate a strategy of year-over-year gains(or outperform the market at a minimum). Convince friends and family to let you manage their accounts, roll their funds into your portfolio. Congrats, now you have a private fund. Network with investment managers and high network clients, solicit additional contributions to fund.Now you become a hedge fund. Register with SEC and FINRA, and other governing agencies. Once your hedge fund has sufficient market capitalization, you can raise equity and issue shares for a closed ended portfolio that's listed publicly(ETF).
>>1046700
>Saving a few hundred bucks a year by not buying an ETF offsets that somewhat.
still not worth most people's time, not to mention trade fees. The expense ratio on the S&P500 SPY tracker is 0.09%. that's like 90 cents to manage 1k of assets.
All in on GUSH
