Why not just buy the basket of stocks?
This gives you knobs to turn, which gives users shots of dopamine (at the cost of lower long run expected return) and helps retention.
Show HN: Double – Design and invest in your own stock index
81–90 of 103 posts
Re: Show HN: Double – Design and invest in your own stock index
#82I'm JJ's brother and an investor in Double so I'm a little bit biased but I believe reducing/eliminating AUM fees is a huge net positive for the world. The performance drag over long term that money managers charge is a tax on people's retirement savings. What Vanguard/Bogle did with Index funds was massive, and I think Double can be this generation's Vanguard. Professional and powerful money management tools with ro…
If Double doesn't charge management fees nor commissions for trades, how does it get paid? Flat fee or payment for order flow?
Re: Show HN: Double – Design and invest in your own stock index
#83A product that I've wanted for a long time is "broad market index fund , minus the individual stocks I am overweight in due to current or previous employment equity" (e.g. VTSAX - MSFT, GOOG/GOOGL), any chance you can handle this today/build it out in the near future? Sounds like you might be able to handle this already?
From a functional perspective, you can already do that using options, look at market neutral strategies for an example of how to construct a position like this. From a practical point of view, I doubt you want to get your nose into complex financial instruments just for that.
Re: Show HN: Double – Design and invest in your own stock index
#84Is there any resources on how one should go about doing this “make your own index fund” manually?
I live in the EU, and of course, I cannot just use this tool. I’m happy to have a passive tool that tracks my portfolio and spits out the instructions to me for example: “sell 10 AAPL and buy 4 AMD to balance your portfolio”.
I’m more looking for education around operating such a fund, when to rebalance, when to make a stop loss limit etc.
Of course, my money I cannot live without is in High yield savings account and Vanguard ETFs. I will only play with ^ ideas with the money I gamble on stock picking.
Re: Show HN: Double – Design and invest in your own stock index
#85In the feature comparison table, I find it deceptive or at least a dark pattern to mark the competitors with a simple check and yourself with a big green check when a feature is present.
Re: Show HN: Double – Design and invest in your own stock index
#86Hi JJ and Mark, I'm a quant on an index desk at a hedge fund. I had a look around your app, it's interesting - I have a few comments, I'd be happy to share them if you hit me up at: reedf1@gmail.com
Re: Show HN: Double – Design and invest in your own stock index
#87So ... where's the edge? "Create your own portfolio" doesn't sound at all like you're taking any responsibility in making sure Average Joe gets any competitive advantage to stay above the market.
Seems yet another tool like Robinhood and a trillion alike that offers you the possibility to gamble some money, with absolutely no advantage over a blindfolded monkey throwing darts at a newspaper's financial pages.
By the way, do you want an edge? Or at least understand what an edge is and how it's supposed to feel like? Take a look at my quantitative finance tutorials, good stuff will be coming soon, until now I only got to cover a rigorous introduction: https://www.aquarianz.com/ (Another QUAntitative RIsk ANalysis Zoftware)
Re: Show HN: Double – Design and invest in your own stock index
#88If you would trading daily and randomly, trading cost alone can kill your capital after a few years. Hence my biggest concern would be the percentage charged for trading.
Re: Show HN: Double – Design and invest in your own stock index
#89Can someone ELI5 this vs all of the other options? Say I have a $300k in RSUs and a handful of stocks and a 401k w/ fidelity. What does this do? Also is this similar to the etrade portfolio things?
Re: Show HN: Double – Design and invest in your own stock index
#90The way actual index funds vs individual balancing works is different.
For individuals if you buy a stock and sell it at loss within 30 days, that’s considered a wash sale. AFAIK doing trades like that are penalized and not considered losses from tax perspective.
So if you’re balancing the portfolio everyday like FNILX and VOO with 500 trades, you’d be racking up tons of wash sales.
IRS will come knocking if you fraudulently claim losses.