Topic: How To Invest

Hi Pat: Would the new Direxion iBillionaire Index ETF be a good investment? Thanks as always.

Article Excerpt

The Direxion iBillionaire Index ETF, $25.40, symbol IBLN on New York (Units outstanding: 1.4 million; Market cap: $35.6 million;, is designed to profit from copying the moves of billionaire investors, such as Warren Buffett, Carl Icahn, Daniel Loeb and David Tepper. The ETF began trading on August 1, 2014. Its MER is 0.65%—lower than most mutual funds, but high for an ETF. The Direxion iBillionaire Index ETF selects up to 10 billionaire investors from a pool of 50, based on their personal net worth, source of wealth, stock turnover and performance over time. It then selects stocks from their investment firms or hedge funds. Each of the companies in the index is equally weighted (3.33% each) and rebalanced quarterly. That’s because the ETF’s managers aim to ensure that each stock’s contribution to the fund’s performance is identical. The fund’s managers select stocks by looking at Form 13F, a publicly available document that institutions, such as banks, hedge funds and investment firms, must file…