New investment site lets you create/share targeted “funds” of stocks
The investment world is on the cusp of many disruptive changes, just like the world as a whole. New online tech, artificial intelligence, and sharing platforms will all shake up the status quo—and the livelihoods of investment advisors like us—far more than the emergence of online brokerages did a generation ago. There’s no telling which innovations will deliver on their promise, but this article on a new outfit called Motif caught our eye this week. The idea is that you can put together a group of stocks that target a market segment you’re interested in being invested in:
Walia gave the example of the mobile Internet: How do you invest in that trend? Jim Cramer proposed a mobile Internet index in 2009, but no one seems to have done anything with the idea. Or, say, Facebook. So far, buying actual shares of Facebook doesn’t seem to be paying off as a way to play social networking. Walia’s alternative: Buy the companies with the most likes on Facebook. (Hey, it’s outperformed the S&P.)…Notice how much money you and your friends spend at Starbucks? Buy into a motif called Caffeine Fix. See iPads everywhere? There’s a motif for that: Tablet Takeover.
Motif users will be able to create their own motifs and share them with friends—either small groups of trusted fellow investors or one’s entire Facebook friends list.
The interface is simple (see image above), and of course you can track your results to see if your bright new “fund” is a winner. Former top executives at eTrade and Bank of America are on board and they are emphasizing keeping trading costs very low, making it an appealing platform for bringing your own values, passions, and interests to bear in your investment approach. But remember, the past pleasure of your particular passions is not a guarantee of future results!