The One-Man, $1.2B ETF Shop

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:&#x2F;&#x2F;www.etf.com&#x2F;HACK" rel="nofollow">http:&#x2F;&#x2F;www.etf.com&#x2F;HACK</a><p>The whole finance could be disrupted if funds will charge less and less for commission. I believe anything over 1%&#x2F;year is ridiculous high. Fundamentally there is little reason why we couldn&#x27;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 &#x27;kind&#x27; 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&#x27;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&#x27;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:&#x2F;&#x2F;www.businessinsider.com&#x2F;is-a-one-man-billion-dollar-startup-on-the-horizon-2015-5" rel="nofollow">http:&#x2F;&#x2F;www.businessinsider.com&#x2F;is-a-one-man-billion-dollar-s...</a>

WTF !!!