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Launch HN: Enombic (YC S20) – Create your own stock indexes

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Re: Launch HN: Enombic (YC S20) – Create your own stock indexes

#191

Post by autoditype »

_eb13 wrote: post #20
Ntrails wrote: post #7

Rebranding stock picking as "index construction" is really quite disingenuous. I guess you're encouraging somewhat diversified stock picking, but honestly I'm dubious this is a 'good' idea for expected outcomes.

Thanks for your feedback! If you want to stick to more traditional indexing approaches, that’s supported. For example, one user has stayed very close to VTI, but made some modifications to customize VTI to her goals and existing portfolio ( https://enombic.com/abby/VTI-15 ). We also have some users who want an easier way to automate their investments into a classic Vanguard basket ( https://enombic.com/aml/lazy ). Ev…

I find that even more disingenous than OP. That first link shows the Top 15 picks of the $VTI, but IIRC the $VTI is an index of 3,000 companies across the whole market. Picking 15 heavy-weight stocks is not even the same realm as an index fund.

She weights APPLE at 18.7% while VTI weights VTI weights the top 10 holdings for a total of 23% of the portfolio.

Re: Launch HN: Enombic (YC S20) – Create your own stock indexes

#192

Post by scott00 »

endisneigh wrote: post #42

If and when you become huge one interesting thing you might consider (if legal) is to become very liquid and actually allow users to trade stocks directly without selling to minimize tax. For example, if AMC is $1 and GME is $1, instead of buying the stocks directly we pay you $1.001 for both and you basically hold the stock for us. If we sell you sell the stock on our behalf and give us the cash and handle the tax f…

RenTech had the same idea and it made the IRS pretty mad: https://www.bloomberg.com/opinion/newsletters/2019-11-13/mon...

I believe it's still being litigated, so the legality hasn't been firmly established yet.

Re: Launch HN: Enombic (YC S20) – Create your own stock indexes

#193

Post by Ntrails »

YuriNiyazov wrote: post #60
Ntrails wrote: post #7

Rebranding stock picking as "index construction" is really quite disingenuous. I guess you're encouraging somewhat diversified stock picking, but honestly I'm dubious this is a 'good' idea for expected outcomes.

If you read Matt Levine's money stuff: a new favorite thing amongst financial products (currently only available to hedge funds, but on its way to becoming retail) is the following: The default investment should be "the diversified market portfolio", e.g. S&P500. Then, if you have opinions (especially negative ones) about companies (e.g. if you are a perennial Tesla bear), you want to invest against those companies.…

To be clear, that is active investment 101. You start by taking a portfolio matching your benchmark, then you apply an "overlay" which expresses your view.

If you have no views, you match the benchmark (a good start- that's what you get judged by!), if your views are good (more x, less y) you make your alpha. Excellent. If your views are bad, said alpha is negative. Sad. But you probably retain a high Beta to the benchmark index.

My view remains that stock picking is bad for the average retail investor. Custom indexes are just stock picking with bells on.

Re: Launch HN: Enombic (YC S20) – Create your own stock indexes

#196

Post by atlasunshrugged »

aliquotchris wrote: post #16
atlasunshrugged wrote: post #9

I love this idea and really dug Motif Investing back in the day (although charging for trades made it hard when weighing that vs. Robinhood)

Thanks! Yeah we were recently pointed to Motif by some of our early users. Have loved seeing their enthusiasm for it, hoping we can provide a great experience as well.

Awesome, I signed up to be a user and can't wait to check it out!

Re: Launch HN: Enombic (YC S20) – Create your own stock indexes

#199

Post by late2part »

mcgin wrote: post #155
_eb13 wrote: post #119

Earlier quoted context omitted.

Thanks, would be curious to get your thoughts given your experience in this problem space. Since we lean DIY / prosumer, our thought is to provide options to the user. Around rebalancing, we're exploring a few options: calendar rebalancing, constant-proportion rebalancing, and rebalancing with only new contributions. Then, analytics to make it clear what is a short vs long-term holding. Right now we're non custodial,…

Always happy to chat with people about this space, contact info is in my profile if you want to reach out

VTI has an expense ratio of 0.03% or 0.00003.

With free trading I can recreate the VTI portfolio for free. Do taxes and time cost more than 0.00003?

At $10M it costs $300. Depends on your portfolio?

Re: Launch HN: Enombic (YC S20) – Create your own stock indexes

#200

Post by searchableguy »

Jommi wrote: post #132
wheybags wrote: post #103

Oh man, this is actually exactly something I want. I want to invest in the s&p 500, like an index etf, but I want to filter out companies which I don't agree with ethically. I also want to look at my custom index's performance historically so I can see how well it tracks the overall market. It is extremely hard to actually do this. There's a plethora of hurdles in the way - you need to get data (I bought some histori…

There is a product that already does this https://passiv.com

For India, there is smallcase.

https://www.smallcase.com/

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