BBRG: Life Is Nasty, Brutish and Short for a New ETF

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).

 

 

Continues here . . . 

 

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I originally published this at Bloomberg, February 15, 2019. All of my Bloomberg columns can be found here and here

 

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