Life Is Nasty, Brutish and Short for a New ETF
The mortality rate for exchange-traded funds is high. A catchy ticker symbol can help.
Bloomberg, February 15, 2019
One of the takeaways from the Inside ETF conference was just how challenging it is to launch a new fund. My pet theory is that for a new ETF to succeed, it needs more than luck, deep-pocketed backers and a rational, defendable methodology for assembling assets into a bundle.
So, with that in mind, here are a few ideas for future ETF’s and their ticker symbols:
BANK: Since the financial crisis, banks, brokers and asset managers have underperformed the broader market, despite being cheaper. Whether that is an opportunity or a warning sign is as yet unknown.
LGBT: Governance (the “G” in ESG) of companies with gay and lesbian friendly corporate policies;
HYPE: An ETF that will invest in companies that promote high-risk/potentially high-return investment ideas.
ELON: See HYPE
RICH: Invest in the companies led by billionaire chief executive officers or the shelters they use for tax avoidance.
TANK: A broad-based inverse ETF that does well when the market falls.
PORN: The industry has driven a huge number of online innovations, from streaming video to micro-payments. One single ticker allows investors to participate without having to clear their browsing history.
GANJ: Another cannabis ETF, but with two share classes, A and B (you want the A shares). And there’s room for more: How about TOKE?
TIME: Time-travel technology ETF — it will (did) launch in 2009, and bought up shares of cheap companies it knew will (did) perform best. I will (did) put all of my capital in this one as soon as it launches (launched).
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I originally published this at Bloomberg, February 15, 2019. All of my Bloomberg columns can be found here and here.
