Quote:
Originally Posted by Slava
I get what you're saying and don't entirely disagree. The problem is that running a mandate like that will make zero dollars at 0.5% and end up costing money. The only way you could make that profitable at this point is to have enough volume to make it that high (which would be hundreds of millions of dollars).
I should add that there are fund of fund mandates just like you describe available for a little more than 0.5% right now. They don't have the housing angle and such that you're throwing in there, but if you just want the ETF investment you can buy that for sure.
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The ETF that tracks the index only charges 0.15% or less.
You don't build the whole thing at once, you build the direct debit piece first and it's a complete pass through. Set up the legal/tax reporting and run it like an app that you download yourself and it makes contributions to the selected 4x ETFs based on the user profile you select. A minimal and transparent volume fee to cover expenses, no trail fees, no lock ins, no incentives to pick certain funds, just a mandate to put people in a passive strategy that over the last 9yrs has returned 80%+.
There are obviously challenges, but it can be done and there are some smart folks with the right backgrounds on this board.