Predict the next technology in equity investing after low-fee index ETFs?

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EventHorizon
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Predict the next technology in equity investing after low-fee index ETFs?

Post by EventHorizon »

I’ve been thinking about the investment options available now that were not available to my parents.

Individual stocks led to mutual funds led to index funds which led to ETFs.

Full-commission brokerages led to discount brokerages which led to free trades and ultra-low or no-fee funds.

Diehard Boglehead here, focused on broad indexes and keeping fees as low as possible. Not here to talk about real estate, crypto, etc.

What might the next technology be? How can we get cheaper or broader?

How will the next generation of Bogleheads be investing?
Last edited by EventHorizon on Fri Nov 26, 2021 7:26 pm, edited 1 time in total.
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anon_investor
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by anon_investor »

EventHorizon wrote: Fri Nov 26, 2021 7:22 pm I’ve been thinking about the investment options available now that were not available to my parents.

Individual stocks led to mutual funds led to index funds which led to ETFs.

Full-commission brokerages led to discount brokerages which led to free trades and ultra-low or no-fee funds.

Diehard Boglehead here, focused on broad indexes and keeping fees as low as possible. Not here to talk about real estate, crypto, etc.

What might the next technology be? How can we get cheaper or broader?
Maybe not next, but broader support for fractional ETF share purchasing and selling. Fidelity has this but none of the other big brokerages.
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EventHorizon
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by EventHorizon »

YES. Like all great ideas, after you mentioned it, It seems so obvious.

What else am I missing and what should I be looking forward to?
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by anon_investor »

EventHorizon wrote: Fri Nov 26, 2021 7:28 pm YES. Like all great ideas, after you mentioned it, It seems so obvious.

What else am I missing and what should I be looking forward to?
Being able to schedule regular ETF purchases, but I think you need the ability for fractional share purchases for that to really work. But even Fidelity doesn’t offer this yet.

Another would be reduced or even no settlement time for ETFs instead of 2 business days.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by Makefile »

EventHorizon wrote: Fri Nov 26, 2021 7:22 pm Individual stocks led to mutual funds led to index funds which led to ETFs.
Perhaps it will be full circle with direct indexing and fractional shares of individual stocks.

My understanding is that on the actual stock exchanges, you still can't trade fractions of shares. I'd be interested in hearing more about how it works then. Are Fidelity, Schwab, Robinhood, etc. effectively running a proprietary mini-mutual fund for each stock for which they allow fractional shares? For example, if they allow fractional purchases of BRK-A, wouldn't they need to match up fractional purchases from other buyers to get to 1 share?
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by WoodSpinner »

OP,

Wondering if a reduction in Settlement Times to hours will be in the cards?

Good thought question!

WoodSpinner
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by anon_investor »

WoodSpinner wrote: Fri Nov 26, 2021 7:40 pm OP,

Wondering if a reduction in Settlement Times to hours will be in the cards?

Good thought question!

WoodSpinner
Why does ETFs need to take 2 days to settle anyway? Fidelity usually pulls the money from my bank account the same day I make a purchase.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by Bama12 »

I wish we could make our on ETF.

I guess M1 is close.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by KlangFool »

OP,

ETF version of balanced fund and Vanguard Life Strategy Funds. Then, they would be available to all investors all over the world.

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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by Nate79 »

I agree with the answers so far and would very much look forward to them. More access for fractional shares of ETFs (I'm looking at you Schwab), direct indexing, and faster settle times.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by Northern Flicker »

Vanguard supports fractional shares in their ETFs that are share classes of funds that have mutual fund share classes (most of their index ETFs).
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by 000 »

I think we are going to see pushback on index funds due to their negative externalities, especially on corporate oversight.

Imagine a new kind of stock that is disallowed to be included in index funds, perhaps due to a corporate charter prohibiting it, with the blessing of exchanges and regulators.

Or, semi-public equities with which you will interface like a brokerage platform, but be subject to various restrictions like the above.

Something to stop the beta suck.
Last edited by 000 on Fri Nov 26, 2021 8:02 pm, edited 1 time in total.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by TomatoTomahto »

WoodSpinner wrote: Fri Nov 26, 2021 7:40 pm OP,

Wondering if a reduction in Settlement Times to hours will be in the cards?

Good thought question!

WoodSpinner
Decentralized finance (DeFi) is instantaneous. No need to take hours. Of course, regulators will not be happy, but overly restricting it will move it offshore. No regulator wants to have a smaller remit, so they’ll find a way to keep it onshore by compromising.

That’s all I’ve got. My crystal ball is getting cloudy.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by Northern Flicker »

The biggest potential improvements I see are regulatory in nature to improve fund transparency.

Funds should have to report all costs in expense ratios instead of having loopholes that let fund companies game the system with their ER reporting. Costs should be reported without securities lending offsets to the amounts.

Soft dollar arrangements with brokers should be banned. Funds loaning cash to other funds also should be banned. Both of these things undermine transparency.

We should have a cost metric that lets us unequivocally compare costs across different funds, but we are not fully there yet.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by dukeblue219 »

Surely it's robo investing, right?

Whether it's good or not is another matter...
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by sunnywindy »

I could see in the (distant) future, investors from all countries can buy ETFs from all countries. There would have to be a harmonization of regulations and protections (a tall order), but digitization makes possible access to everything.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by willthrill81 »

000 wrote: Fri Nov 26, 2021 7:55 pm I think we are going to see pushback on index funds due to their negative externalities, especially on corporate oversight.

Imagine a new kind of stock that is disallowed to be included in index funds, perhaps due to a corporate charter prohibiting it, with the blessing of exchanges and regulators.

Or, semi-public equities with which you will interface like a brokerage platform, but be subject to various restrictions like the above.

Something to stop the beta suck.
I won't be surprised if you're correct.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by Nate79 »

Northern Flicker wrote: Fri Nov 26, 2021 7:52 pm Vanguard supports fractional shares in their ETFs that are share classes of funds that have mutual fund share classes (most of their index ETFs).
I was not aware that Vanguard allows buying fractional shares of ETFs. Are you sure? Or are you referring to something else like conversions of mutual funds to ETFs (results in fractional shares)?
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by lazynovice »

Agree with everything so far (fractional trades everywhere, faster settlement, ETFs for balanced funds, cheap direct indexing, etc.)

Hopefully in 2023 when Vanguard’s patent expires, we’ll see Schwab, Fidelity and others allow conversion of mutual fund shares to an equivalent ETF.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by FoundingFather »

EventHorizon wrote: Fri Nov 26, 2021 7:22 pm I’ve been thinking about the investment options available now that were not available to my parents.

Individual stocks led to mutual funds led to index funds which led to ETFs.

Full-commission brokerages led to discount brokerages which led to free trades and ultra-low or no-fee funds.

Diehard Boglehead here, focused on broad indexes and keeping fees as low as possible. Not here to talk about real estate, crypto, etc.

What might the next technology be? How can we get cheaper or broader?

How will the next generation of Bogleheads be investing?
We've started to see the first few hints of "personalized" index funds, but few use them - I think this will go full force in the next few years. Something like a menu that allows you to pick and choose what is included, based on your views on environmentalism, morality, desire for direct indexing for tax efficiency, etc. This will probably require fractional shares as a pre-requisite, but I don't think it will be long from now.

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EventHorizon
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by EventHorizon »

OP again. Long delays for ETF trades really do need to change.

ACH delays in general are completely antiquated (but that’s getting off my own topic)
Last edited by EventHorizon on Fri Nov 26, 2021 9:43 pm, edited 1 time in total.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by anon_investor »

Nate79 wrote: Fri Nov 26, 2021 8:25 pm
Northern Flicker wrote: Fri Nov 26, 2021 7:52 pm Vanguard supports fractional shares in their ETFs that are share classes of funds that have mutual fund share classes (most of their index ETFs).
I was not aware that Vanguard allows buying fractional shares of ETFs. Are you sure? Or are you referring to something else like conversions of mutual funds to ETFs (results in fractional shares)?
Vanguard definitely does NOT support purchasing or selling fractional ETF shares. They do allow for dividend reinvestment of ETFs, which results in fractional shares. If you sell all of your holding in an ETF, Vanguard will sell the fractional shares along with the whole ones. If you convert a Vanguard mutual fund to an ETF, then you will also end up with fractional shares. So Vanguard can handle the bookeeping for fractional ETF shares (as do many other brokerages that allow for ETF dividend reinvestment). So far Fidelity is the only big brokerage that I am aware of that allows for direct purchasing/selling of fractional ETF shares.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by anon_investor »

EventHorizon wrote: Fri Nov 26, 2021 9:22 pm OP again. Long delays for ETF trades really do need to change.

ACH delays in general are antiquated, but that’s getting off-topic.
No idea how Fidelity does it, but if requested early enough in the day the ACH seems to process same day.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by alpine_boglehead »

KlangFool wrote: Fri Nov 26, 2021 7:46 pm OP,

ETF version of balanced fund and Vanguard Life Strategy Funds. Then, they would be available to all investors all over the world.

KlangFool
Part of that prediction is already in existence - there's the Ireland-domiciled Vanguard LifeStrategy ETFs, here's a link to the

Vanguard LifeStrategy 60/40 ETF description

As for the OP topic - I predict Wall Street will create tons of products and schemes "better than ETFs" that are designed to make them more money. :twisted:
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by Northern Flicker »

Nate79 wrote: Fri Nov 26, 2021 8:25 pm
Northern Flicker wrote: Fri Nov 26, 2021 7:52 pm Vanguard supports fractional shares in their ETFs that are share classes of funds that have mutual fund share classes (most of their index ETFs).
I was not aware that Vanguard allows buying fractional shares of ETFs. Are you sure? Or are you referring to something else like conversions of mutual funds to ETFs (results in fractional shares)?
Conversions of shares and reinvestment of dividends can generate fractional shares so that the full amount is invested. For ETFs that are share classes of funds that have mutual fund share classes (most, but not all of Vanguard's index ETFs) that covers all the functionality you need to "buy" ETF shares and reinvest dividends.
Last edited by Northern Flicker on Sat Nov 27, 2021 1:11 am, edited 1 time in total.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by shess »

000 wrote: Fri Nov 26, 2021 7:55 pm I think we are going to see pushback on index funds due to their negative externalities, especially on corporate oversight.
I think it would be interesting to have a proxy layer where you can elect your shares to be voted by a third party. The obvious level would be with individual stocks, but once implemented you could reasonably extend this to vote the shares within an ETF or mutual fund.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by 000 »

shess wrote: Fri Nov 26, 2021 11:25 pm
000 wrote: Fri Nov 26, 2021 7:55 pm I think we are going to see pushback on index funds due to their negative externalities, especially on corporate oversight.
I think it would be interesting to have a proxy layer where you can elect your shares to be voted by a third party. The obvious level would be with individual stocks, but once implemented you could reasonably extend this to vote the shares within an ETF or mutual fund.
Agreed.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by Nathan Drake »

000 wrote: Fri Nov 26, 2021 7:55 pm I think we are going to see pushback on index funds due to their negative externalities, especially on corporate oversight.

Imagine a new kind of stock that is disallowed to be included in index funds, perhaps due to a corporate charter prohibiting it, with the blessing of exchanges and regulators.

Or, semi-public equities with which you will interface like a brokerage platform, but be subject to various restrictions like the above.

Something to stop the beta suck.
There’s too much pressure to be included in the indexes due to an automatic premium assigned to that
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by livesoft »

I don't know what the next technology will look like, but it be called "Whole Life Growth Index Investing"
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by bgf »

FoundingFather wrote: Fri Nov 26, 2021 9:01 pm
EventHorizon wrote: Fri Nov 26, 2021 7:22 pm I’ve been thinking about the investment options available now that were not available to my parents.

Individual stocks led to mutual funds led to index funds which led to ETFs.

Full-commission brokerages led to discount brokerages which led to free trades and ultra-low or no-fee funds.

Diehard Boglehead here, focused on broad indexes and keeping fees as low as possible. Not here to talk about real estate, crypto, etc.

What might the next technology be? How can we get cheaper or broader?

How will the next generation of Bogleheads be investing?
We've started to see the first few hints of "personalized" index funds, but few use them - I think this will go full force in the next few years. Something like a menu that allows you to pick and choose what is included, based on your views on environmentalism, morality, desire for direct indexing for tax efficiency, etc. This will probably require fractional shares as a pre-requisite, but I don't think it will be long from now.

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This already exists through certain asset managers. I believe the software they use to execute it is called Canvas.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by dukeblue219 »

Honestly a lot of these suggestions are incremental improvements. I'll throw one out there - blockchain-based ETFs.

Not ETFs of cryptocurrency, but using block chain tech to actually trade assets in a decentralized and tamper proof manner, 24/7/365. I'm not the guy to explain why or how, but it's coming...
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by firebirdparts »

We are already seeing ETFs made of derivatives or partly derivatives that are not simply 2x 3x, and so I think that is the “new” item. Maybe not the next item because it’s already here, plus I’m not sure this will become popular.

I think it’s more likely to become popular that everybody becomes his own mutual fund manager now that everything is free and we can have fractional shares.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by KlangFool »

dukeblue219 wrote: Sat Nov 27, 2021 6:13 am Honestly a lot of these suggestions are incremental improvements. I'll throw one out there - blockchain-based ETFs.

Not ETFs of cryptocurrency, but using block chain tech to actually trade assets in a decentralized and tamper proof manner, 24/7/365. I'm not the guy to explain why or how, but it's coming...
Why would this be better when it will be slower in execution of trades?

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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by donaldfair71 »

KlangFool wrote: Sat Nov 27, 2021 6:48 am
dukeblue219 wrote: Sat Nov 27, 2021 6:13 am Honestly a lot of these suggestions are incremental improvements. I'll throw one out there - blockchain-based ETFs.

Not ETFs of cryptocurrency, but using block chain tech to actually trade assets in a decentralized and tamper proof manner, 24/7/365. I'm not the guy to explain why or how, but it's coming...
Why would this be better when it will be slower in execution of trades?

KlangFool
Yeah seems like a solution looking for a problem.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by anon_investor »

donaldfair71 wrote: Sat Nov 27, 2021 7:16 am
KlangFool wrote: Sat Nov 27, 2021 6:48 am
dukeblue219 wrote: Sat Nov 27, 2021 6:13 am Honestly a lot of these suggestions are incremental improvements. I'll throw one out there - blockchain-based ETFs.

Not ETFs of cryptocurrency, but using block chain tech to actually trade assets in a decentralized and tamper proof manner, 24/7/365. I'm not the guy to explain why or how, but it's coming...
Why would this be better when it will be slower in execution of trades?

KlangFool
Yeah seems like a solution looking for a problem.
Like most of the ETFs on the market...
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by blueberrypi »

Tokenized assets for all asset classes. Liquid markets that trade at all hours.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by RubyTuesday »

Ability to proxy vote shares held as part of mutual or exchange traded funds.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by dukeblue219 »

KlangFool wrote: Sat Nov 27, 2021 6:48 am
dukeblue219 wrote: Sat Nov 27, 2021 6:13 am Honestly a lot of these suggestions are incremental improvements. I'll throw one out there - blockchain-based ETFs.

Not ETFs of cryptocurrency, but using block chain tech to actually trade assets in a decentralized and tamper proof manner, 24/7/365. I'm not the guy to explain why or how, but it's coming...
Why would this be better when it will be slower in execution of trades?

KlangFool
It wouldn't be better for us, or at least not as the tech stands today.

The Robinhood/WSB types would love it, though.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by runninginvestor »

000 wrote: Fri Nov 26, 2021 11:27 pm
shess wrote: Fri Nov 26, 2021 11:25 pm
000 wrote: Fri Nov 26, 2021 7:55 pm I think we are going to see pushback on index funds due to their negative externalities, especially on corporate oversight.
I think it would be interesting to have a proxy layer where you can elect your shares to be voted by a third party. The obvious level would be with individual stocks, but once implemented you could reasonably extend this to vote the shares within an ETF or mutual fund.
Agreed.
How much cost do you think this would add? (Ie 1 basis point, none, more?)

Id be curious how this would ever be implemented for fractional shares. And what are the odds that I hold 10 shares of AAPL but they are actually 20 half shares that the company pieces together from other fractional traders? Would I not get a vote since I don't actually hold a single share in the company?
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by anon_investor »

runninginvestor wrote: Sat Nov 27, 2021 8:00 am
000 wrote: Fri Nov 26, 2021 11:27 pm
shess wrote: Fri Nov 26, 2021 11:25 pm
000 wrote: Fri Nov 26, 2021 7:55 pm I think we are going to see pushback on index funds due to their negative externalities, especially on corporate oversight.
I think it would be interesting to have a proxy layer where you can elect your shares to be voted by a third party. The obvious level would be with individual stocks, but once implemented you could reasonably extend this to vote the shares within an ETF or mutual fund.
Agreed.
How much cost do you think this would add? (Ie 1 basis point, none, more?)

Id be curious how this would ever be implemented for fractional shares. And what are the odds that I hold 10 shares of AAPL but they are actually 20 half shares that the company pieces together from other fractional traders? Would I not get a vote since I don't actually hold a single share in the company?
Don't you still own whole share, it is just fractional for tax lot purposes?
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by runninginvestor »

anon_investor wrote: Sat Nov 27, 2021 8:27 am
runninginvestor wrote: Sat Nov 27, 2021 8:00 am
000 wrote: Fri Nov 26, 2021 11:27 pm
shess wrote: Fri Nov 26, 2021 11:25 pm
000 wrote: Fri Nov 26, 2021 7:55 pm I think we are going to see pushback on index funds due to their negative externalities, especially on corporate oversight.
I think it would be interesting to have a proxy layer where you can elect your shares to be voted by a third party. The obvious level would be with individual stocks, but once implemented you could reasonably extend this to vote the shares within an ETF or mutual fund.
Agreed.
How much cost do you think this would add? (Ie 1 basis point, none, more?)

Id be curious how this would ever be implemented for fractional shares. And what are the odds that I hold 10 shares of AAPL but they are actually 20 half shares that the company pieces together from other fractional traders? Would I not get a vote since I don't actually hold a single share in the company?
Don't you still own whole share, it is just fractional for tax lot purposes?
That's what I don't know how it works for voting. I'm actually curious, not trying to be contrarian or anything. If cumulatively I own intX shares but they are all individually a fractional share, are you allowed to vote as if you owned 1 share outright? I know generally fractional shares don't allow you to vote, but that's when they come by splits/dividends where you presumably initially bought in whole shares.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by sycamore »

anon_investor wrote: Fri Nov 26, 2021 7:42 pm
WoodSpinner wrote: Fri Nov 26, 2021 7:40 pm OP,

Wondering if a reduction in Settlement Times to hours will be in the cards?

Good thought question!

WoodSpinner
Why does ETFs need to take 2 days to settle anyway? Fidelity usually pulls the money from my bank account the same day I make a purchase.
Because SEC regulation and industry standards say so.

Do you mean why don't they change it from T+2 to T+1 (mutual fund settlement is already T+1).
I'm no expert but it requires effort & cooperation among various industry participants to make it happen. I'm sure an industry insider could share the gory details.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by vanbogle59 »

000 wrote: Fri Nov 26, 2021 7:55 pm I think we are going to see pushback on index funds due to their negative externalities, especially on corporate oversight.
I saw a discussion of this a while back.
They were advocating for the creation of berkshire-hathaway-like vehicles that just tracked the passive indexes.
Then, those corporations could differentiate themselves by their corporate activism (and still offer low-fee access to index tracking).
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by stan1 »

RubyTuesday wrote: Sat Nov 27, 2021 7:48 am Ability to proxy vote shares held as part of mutual or exchange traded funds.
Direct indexing should give you that ability. I don't think direct indexing will be cheaper than a 3 basis point ETF for a number of reasons, administration of proxy voting would be one.
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by anon_investor »

sycamore wrote: Sat Nov 27, 2021 8:58 am
anon_investor wrote: Fri Nov 26, 2021 7:42 pm
WoodSpinner wrote: Fri Nov 26, 2021 7:40 pm OP,

Wondering if a reduction in Settlement Times to hours will be in the cards?

Good thought question!

WoodSpinner
Why does ETFs need to take 2 days to settle anyway? Fidelity usually pulls the money from my bank account the same day I make a purchase.
Because SEC regulation and industry standards say so.

Do you mean why don't they change it from T+2 to T+1 (mutual fund settlement is already T+1).
I'm no expert but it requires effort & cooperation among various industry participants to make it happen. I'm sure an industry insider could share the gory details.
I know the regs require this, but they did change it from T+3 to T+2 a while back; and they have to technical ability to handle T+1, and maybe even just T (EoD settlement?). So maybe just a wish list item, but maybe in the future.
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vanbogle59
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by vanbogle59 »

dukeblue219 wrote: Sat Nov 27, 2021 7:51 am
KlangFool wrote: Sat Nov 27, 2021 6:48 am
dukeblue219 wrote: Sat Nov 27, 2021 6:13 am Honestly a lot of these suggestions are incremental improvements. I'll throw one out there - blockchain-based ETFs.

Not ETFs of cryptocurrency, but using block chain tech to actually trade assets in a decentralized and tamper proof manner, 24/7/365. I'm not the guy to explain why or how, but it's coming...
Why would this be better when it will be slower in execution of trades?

KlangFool
It wouldn't be better for us, or at least not as the tech stands today.

The Robinhood/WSB types would love it, though.
"Better"? IDK. The promise is that it would eliminate the need for an exchange or brokers. True peer to peer trading.
"24/7/365" - you betcha!
"decentralized" - well maybe. I think you might see siloed implementations
"tamper proof" - it has NOT been so far. Maybe it will be someday :confused
Dontsell1
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by Dontsell1 »

DeFi is going after this, among other issues. If we have CBDCs, there will be even more pressure for near-instantaneous settlements and remittances. Two days for an ACH? Is that because it goes to the bank via a horse?
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vanbogle59
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by vanbogle59 »

Dontsell1 wrote: Sat Nov 27, 2021 9:27 am DeFi is going after this, among other issues. If we have CBDCs, there will be even more pressure for near-instantaneous settlements and remittances. Two days for an ACH? Is that because it goes to the bank via a horse?
You don't need block chain to settle "instantly".
Coinbase (as an example of a recently-built platform, not necessarily what it's selling) is "instant" in USD if you just use PayPal. ACH takes much longer.

https://help.coinbase.com/en/coinbase/t ... ke-so-long

Sell your digital currency instantly
For eligible customers, when digital currency is sold using a linked PayPal account as the Payout Method, the funds are credited instantly. You'll wait seconds instead of days to receive your money.

US Customers
For US customers, Coinbase uses the ACH bank transfer system for transfers to your bank account. The ACH bank transfer system typically takes 3-5 business days to complete after initiating a sell or withdrawal. Coinbase will deduct the balance from your source of funds and begin the bank transfer immediately.
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Nate79
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Re: Predict the next technology in equity investing after low-fee index ETFs?

Post by Nate79 »

Same day ACH is already possible.
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