Here were the takeaways from a discussion I had with a friend about this.<p><pre><code> Initial setup is likely cumbersome but straightforward.
Marketing is where all the effort is.
The sector you choose has to outperform, which you have little control over.</code></pre>
This guy is awesome. We should have more that kind of funds. 0.75% yearly expense ratio:
<a href="http://www.etf.com/HACK" rel="nofollow">http://www.etf.com/HACK</a><p>The whole finance could be disrupted if funds will charge less and less for commission. I believe anything over 1%/year is ridiculous high. Fundamentally there is little reason why we couldn't have active funds for the price of ETFs.<p>Self index ETF seems to me like low cost active funds with open-source public investment thesis.
<i>... because ETF shares are created and redeemed in kind and thus almost never produce capital gains for shareholders.</i><p>Could someone explain this to me? What kind of 'kind' are we talking about?
Looks like active managers are finally figuring out what to do: behave like passive managers. Pick a bucket of stocks, publish it, invest in it, calm down.
I see a parallel here between tickers, which are extremely important given a fledgling ETF's reliance on marketing, and domain names.<p>Could an ETF company hypothetically squat on valuable tickers such as HACK, DATA, BDAT, GEMS, etc.? Not sure it would be worth the costs to do so, but I'm curious nonetheless.
There was just recently a Business Insider post on a one-man billion dollar startup.[1] Here it is!<p>[1] <a href="http://www.businessinsider.com/is-a-one-man-billion-dollar-startup-on-the-horizon-2015-5" rel="nofollow">http://www.businessinsider.com/is-a-one-man-billion-dollar-s...</a>