3 replies to this topic

[viccarter]

I think I have a good idea for one that captures a segment of the market that is unaddressed.  And yet why is this unaddressed?  There is literally an ETF for everything.  No.  There are 3 or 4 ETF's for everything.  Technically, there is an ETF for this too.  It has everything that you could want: decent volume, a leader in its field, etc.  Mine would be a leveraged ETF, long and short, that trades off the index the current ETF is based on, for which there is no product right now, but I think there would be some demand for it now, and maybe more in the future.

 

I don't have any securities licenses, and I suppose you would need one to do this.  I would definitely need some help.  Should I just do a write up and pitch it to the some local "money manager" with lots of AUM?  I am not in the financial industry, as I work in oil and gas with a legal background.  I still work, as I have a good job, but with the flexability to trade and do whatever I want during the day (including working from home) which is why I still have it.  That and the fact I don't make like 300K a year trading.  Any advice or direction?

Edited by viccarter, 19 March 2018 - 07:22 PM.

[pedro]

No leveraged long or short IYT either.

Puzzling.

 

Nor the DAX. or FTSE.

But there are or were for Korea and Brazil.

 

PS ...  back in the day, there were dozens of mutual funds replicating each other too.

So multiple ETFs don't bother me.     They are often different from each other in constituents, weighting etc.

[libertas]

I'm no expert but the process would be daunting. To start with, you would need a sponsor that is already "hooked in" to the industry infrastructure and has the financial resources to fund the development of the product, which would include SEC registration and approval, a lengthy and costly process in itself. Then you would need an underwriter, a brokerage house which would market and distribute your IPO. Once in operation, the sponsor would establish a trading desk with the operational responsibility for the fund, in addition to providing the functions required by the SEC such as financial reporting, compliance with applicable exchange rules and securities laws and so forth. Starting from scratch would not be feasible unless you had a few million$ of capital to invest in startup expenses.

[viccarter]

I'm no expert but the process would be daunting. To start with, you would need a sponsor that is already "hooked in" to the industry infrastructure and has the financial resources to fund the development of the product, which would include SEC registration and approval, a lengthy and costly process in itself. Then you would need an underwriter, a brokerage house which would market and distribute your IPO. Once in operation, the sponsor would establish a trading desk with the operational responsibility for the fund, in addition to providing the functions required by the SEC such as financial reporting, compliance with applicable exchange rules and securities laws and so forth. Starting from scratch would not be feasible unless you had a few million$ of capital to invest in startup expenses.

Thanks for the advice.  Your thoughts are kind of what I was thinking.