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Billionaires ETF Nears Launch


iBillionaire Inc., an investment firm that offers products based on the holdings of some of the world’s most noteworthy investors, will launch an exchange traded fund in the next several months that will supposedly help regular investors invest like billionaires.

iBillionaire “launched an index that uses regulatory filings to track the stocks that billionaires own,” reports Stuart Pfeifer for the Los Angeles Times. iBillionaire has landed $1 billion in start up funding and hired an unidentified ETF sponsor, the Times reported.

“The iBillionaire Index (BILLION) is designed to track and measure the performance those who have, over time, reaped the biggest rewards on Wall Street: financial billionaires. The index monitors the portfolios of leading billionaire investors, such as Warren Buffett, Carl Icahn, Daniel Loeb, David Tepper and David Einhorn,” according to iBillionaire.

Top-10 holdings in the index include Apple (AAPL), Wells Fargo (WFC), American Express (AXP) and Priceline.com (PCLN). Financials and technology dominate the iBillionaire index at the sector level, combining for almost 55% of the index’s weight.

The iBillionaire ETF will compete with the Global X Guru Index ETF (GURU) and the AlphaClone Alternative Alpha ETF (ALFA) , which use 13F filings as the basis for their index holdings.

While ALFA and GURU have criticized for being too exotic and too “nichey,” there is not much to complain about when it comes to their returns.  Last year, GURU gained 47.3% while ALFA was higher by 36.4%.

iBillionaire Index Data

Chart Courtesy: iBillionaire

ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of Apple and American Express.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.