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Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios

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Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios

#61

Post by maerF0x0 »

tschwimmer wrote: post #26

I like the idea behind this business and like the value that you are providing. I'm a target customer because I'm sensitive to investment fees and have done lots of comparison shopping over my investing lifetime. Unfortunately, I won't use your product. While you do appear to be cheaper than Vanguard for a comparable product, I don't think the risk of switching is worth it. The primary risk I'd be worried about is yo…

This can be a real thing when companies are charging $25-$40 for ACH Transfer fees (per account) meaning a switch can cost $100.

One piece I'm curious about is spreading investments around simply for more FDIC / SIPC insurances? Is that something that rich people do?

Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios

#62

Post by short_sells_poo »

jansen wrote: post #13
carbocation wrote: post #6

FZROX gives me 0% fees, can be bought in my retirement accounts, and is attached to a company with something like $1 trillion AUM. The latter gives me faith that it will still be around next year. I appreciate that the 0% fee options are limited, but personally I’d rather deal with 0.03% fees than entrust my money to a small shop. Especially when the reason to do so is not some trading edge, but saving a small amount…

Every shop is a small shop when it starts out. Maybe give these guys a break?

I am going to give zero break to anyone who proposes to manage people's money. This is not the area where "move fast and break things" is an acceptable approach. You have to be on top of your game from day one, otherwise you need to stay away from people's life savings.

Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios

#63

Post by short_sells_poo »

otherjason wrote: post #40

If your roboadvisor is buying the individual stocks that make up the index in my personal account for me, do you have data that compares the slippage (bid/ask spread) paid across all of these transactions versus a single purchase of very liquid ETFs like SPY?

You can likely purchase the stocks in the closing auction which should give you the official settlement price that ETFs get benchmarked on.

Stocks are not my area of expertise so I gloss over a lot of details... maybe and equity trading specialist can chime in?

Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios

#64

Post by chasebank »

hn_throwaway_99 wrote: post #16

I saw the "Your Money is Secure" section, but after things like the Synapse fiasco, I would like to get confirmation from you. It says my money would be SIPC insured, which means if anything goes missing (obviously not through loss of equity value, but through missing funds or a ledger bug), I get my money back, up to the SIPC limit, right? I just want to ensure this isn't the same situation with fintechs that say yo…

IIRC, FDIC only covers the deposits if the underlying bank fails, not the fintec layer built on top of it. Please correct me if I’m wrong.

Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios

#65

Post by taway789aaa6 »

ramon156 wrote: post #50
taway789aaa6 wrote: post #41

Earlier quoted context omitted.

Ah yes, the old "we'll buy stocks for you and then turn around and lend them out to short sellers that actively want you to lose money. Promise we care about you!" I do not trust any institution that makes money off of lending MY shares out to predatory short-sellers who's sole purpose is to decrease the value of MY shares.

Sorry if this sounds uninformed, but what is the alternative? Even the bank and pensions gamble with your money, its how they move. I wish it wasn't the case either

The alternative is to not fall for the "its basically free!" schtick.

If its free, then you're the product.

If its $1/month, then you're still probably the product. In the case of my investments, I do not want the firm that I invest with -- to whom I trust my assets -- to turn around and lend out my assets to other organizations that have no obligation to me to act in my best interest. Share lending is almost always to lend to short-sellers that are trying to decrease the price of the asset being borrowed.

> Even the bank and pensions gamble with your money, its how they move

I guess its not worth having an opinion that this is not a good thing then? Bring back Glass-Steagall to separate out banks and gamblers.

Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios

#66

Post by vincefutr23 »

For the PFOF skeptics, there isn’t that much money in pfof on liquid large cap stocks.

For the founder, have you thought about doing away with the 1$ for friction reduction while you scale given how tough the switching decision can be?

For the founder, have you considered using ACAT in incentives as a differentiated acquisition tool?

For the founder, are their “moments” people often switch their brokerage you could target aggressively? Ie I imagine Johnny software, 28 , is a hard sell to sit down and port their holding over from fidelity to save a couple of BPS, but maybe people starting their first job? Setting up a retirement plan? What’s your target “moment”?

Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios

#67

Post by koolba »

How do you intend to make enough money to stay a going concern? Charging $1/mo adds up to peanuts and peanuts will not paying the salaries needed for running a highly regulated industry like this.

What are some examples for real world tax loss harvesting of this versus just rotating between things like VTI, SCHB, and ITOT?

I can’t imagine it’s going to be meaningfully more tax savings versus the monumental pain in the ass of dealing with hundreds of lots of many different stocks.

Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios

#68

Post by taway789aaa6 »

mitthrowaway2 wrote: post #54

Who controls the voting rights to the shares purchased through these investments?

Great question! Keep in mind that ETFs in general are designed to NOT give you the rights to the underlying shares, or to vote as a shareholder. An ETF is a derivative, not an asset unto itself. It sounds like this product is mainly to allow people to invest in ETFs not into single tickers?

Re: Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios

#70

Post by jjmaxwell4 »

burkaman wrote: post #56

I'd consider this if you had some kind of "green" fund that excludes oil companies and other polluters. I don't want to invest in the oil industry, but funds like that tend to have pretty high fees and expense ratios.

You can do this quite easily with Double. If you pick the US 500, you and completely remove the Energy Sector.

We are working on getting some more ESG focused portfolios directly live but it's very very do-able right now.

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