We have said that there seems to be an exchange traded fund (ETF) strategy for just about every sort of index or investment philosophy that you can think of. So, how does an ETF tracking the investments of billionaires sound to you? Friday marked the launch of the Direxion iBillionaire ETF (NYSEMKT: IBLN).
The ETF looks to beat the S&P 500 Index by following the investments of billionaires. It will give investors access to an index that isolates the leading 30 large-cap equities that have large investments by the world’s financial billionaires.
The iBillionaire Index screens holdings from multiple 13F filings and is comprised of the 30 large-cap U.S. equities in which a select pool of investment billionaires has allocated the most assets. These billionaires are selected from a group of U.S. investment billionaires based on net worth, source of wealth and portfolio size.
Of the 30 mid and large cap stocks, up to 10 billionaires will be selected from a pool of 50. Those people will then be selected based on personal net worth, source of wealth, portfolio concentration, turnover and performance over time. Then the stocks are selected based on highest allocations by five to 10 billionaires. These stocks then have to be NYSE or Nasdaq listed, and they must have a market cap of at least $1 billion. Lastly, each of the 30 stocks in the index will be given a fixed equal weight of 3.33% at the inclusion period, and the index is to be rebalanced quarterly.
Tracking billionaires investing is nothing new. Still, investors flock to do what billionaires do. After all, they must have had some insight to be a billionaire. There will be some overlap here with this Direxion iBillionaire ETF. After all, the index has names such as Carl Icahn and Warren Buffett in there. One such overlap will potentially be in the Global X Guru Index ETF (NYSEMKT: GURU).
ALSO READ: How to Crash-Proof Your Portfolio, While Still Staying in the Market
The iBillionaire ETF top 10 holdings has been corrected. Its holdings description originally included Apple, Wells Fargo, Micron, Priceline, IBM and others. The new corrected list is as follows:
- Williams Companies 4.13%
- Micron 3.92%
- Apple 3.77%
- Halliburton 3.67%
- Google 3.63%
- Priceline Group 3.63%
- Microsoft 3.62%
- Anadarko Petroleum 3.56%
- FedEx 3.51%
- Citigroup 3.49%
Top Gaining Stocks
Top Losing Stocks