If you're handling rebalancing and holding stocks individually, how does the tax efficiency compare to ETFs?
Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
131–140 of 434 posts
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#132Are you paying yourself with securities lending revenue?
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#133Earlier quoted context omitted.
You are correct in your understanding. Apex Clearing's website is here: https://apexfintechsolutions.com/ They have 19M brokerage accounts and a lot of brands you've heard of got their start with Apex (Robinhood, Wealthfront) We're US based and regulated a RIA by the SEC.
I've never heard of Wealthfront, and I know Robinhood mostly for exploiting low-info customers & trying to make investing even more like gambling than it already is[1]. Pretty gross company to be keeping IMO. [1] https://www.velaw.com/insights/game-over-robinhood-pays-7-5-...
Investing is not the same as trading, which is what Robinhood primarily caters too.
Also Apex is a big name in the brokerage world. They are a business to business company though, so most consumers never would have heard of them.
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#134Your site touts that you're "Technologists, not bankers". People entrusting you with thousands of dollars of their savings might want some actual bankers involved in the operation. Something like "Security first" might get the point across without raising as many red flags.
Appreciate that and its good feedback.
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#1351) are you going to sell your trade flow to Citadel / market makers like Robinhood and your competitors do? That's the dirty secret way of making money that you seem to have completely excluded. The reality is that adds up to substantial "invisible" fees that the investor has no transparency over because you sell your trade flows to them and they make a higher than normal spread. And the whole "doesn't matter if we s…
> If the answer is no, you don't sell trade flows and yes, you will rebate your borrow fees, can you make a lifetime commitment that you won't go back on your word?
To be honest, why would you even ask that? "Lifetime commitments" are ridiculous. It's simply not a promise that any founder or business owner could ever make. Businesses get sold, circumstances change, etc. It's better to just accept that as a risk factor and decide whether or not you'd be comfortable taking on that risk.
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#136much hate here; but mostly it is transparent jealousy arising from frustration about the great global money game being unfair and many educated and deserving ppl having no hope of ever making it off the bottom rung. But jjmaxwell4 don't let any of that distract you 1. This problem (solid, simple, inexpensive) direct indexing is totally real 2. Congrats on identifying this and getting going on it 3. All your best cust…
I mean, $12/yr is not a lot, but if the platform is geared for long term investing and not trading, I'd imagine that in any given month 95%+ of accounts are doing nothing but sitting static and handing over $1.
They still have to rebalance all the time.
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#137>> Over a 30-year period on a $500k portfolio, the money lost to those fees would be $1.30M for the financial advisor and $244k for the average ETF and even $42,951 for the low fee VOO.
How do you calculate $42,951 for VOO? Seems too high on 500k, or at very best you are conflating FV and PV and comparing apples to oranges.
First year is going to be $150. Last year is going to be maybe 2^3 * 500k * 0.03 = $1200? I'm sure you are then FVing all those but even then it seems like you must be assuming pretty high returns. If that's what you are doing, surely calculate the FV compared to the FV of the portfolio (like $4 million or so). Or, do the PV of the fees which is going to be... $4500 or something.
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#138Earlier quoted context omitted.
>This is why Citadel has $60+ billion dollars of "securities sold not yet purchased" on their financial statements. 1. source? 2. supposing this is true, what's their daily turnover? "60+ billion" sounds like a lot, but if that's their daily turnover that shouldn't be anything out of the ordinary.
1. Just look at their financial statements they , nobody is allowed this naked shorting but Cidatel is because they are a market manipu ahhh sorry maker. Not that others won't naked short also, it is just they do not do it openly.
>nobody is allowed this naked shorting but Cidatel is because they are a market manipu ahhh sorry maker.
That's... working as intended?
> market makers provide a required amount of liquidity to the security's market, and take the other side of trades when there are short-term buy-and-sell-side imbalances in customer orders. In return, the specialist is granted various informational and trade execution advantages.
You can argue such a system is inegalitarian or whatever, but if you want a reliable provider of liquidity that won't instantly vanish when there's market turmoil (ie. when you need it the most), there has to be some mechanism to compensate market makers.
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#139[deleted]
Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios
#140I'm actually pretty interested in what you're building. Sure, Vanguard and Fidelity are well-established giants, but they've barely moved beyond standard ETFs for decades. Having the option to tweak weightings at a more granular level and do daily tax-loss harvesting at scale seems like a genuine step forward. I also like that you're transparent about how you might eventually introduce additional revenue streams like…
Fidelity has innovated a ton and they have this exact product, though I don’t know the fees. Fidelity is very much into new fintech ideas and products.. they were mining crypto very early on.
Appreciate the info; I'll double-check Fidelity again!