August 7, 2014

How to Make a Billion Dollars...

...or at least copy people who already have. The new iBillionaire Index ETF (IBLN) tracks the investments of up to 10 billionaires, selected from a pool of 50 potential billionaires.

Slick old timey investorIt sounds like a great marketing ploy, and you can tell people you invest like big ballers including Buffet, Icahn, and Soros. But most of the fund's 30 holdings look pretty much like vanilla blue chip fare.

The net expense ratio is 0.65%, which isn't terrible. Without much of a track record to go on, I'd take SPY at 0.09% any day. Returns look great so far, but the index's site shows performance back to October 2013. 9-10 months of history seems pretty meaningless unless you like hopping from fund to fund.

To top things off, holdings are based on publicly available information in 13F filings, released roughly 45 days after the end of each quarter. Investors far smarter than me probably have better ways to catch wind of these guys moving into a big position far ahead of that. So it's kind of like a time machine where you can invest like the big guys were a few months ago?

No my cup of tea.

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