Coming Soon: TBTF ETF

I am putting together a new ETF that consists entirely of companies that have become so large and systemically important that they are guaranteed survival regardless of their own incompetency.

It is a market cap weighted index (naturally) so that those names that represent the greatest threat to the overall economy have the highest weighting. Full universe of potential holdings are here:

Ticker symbol: TBTF

Top 10 Holdings
AIG*
Citigroup
Bank of America
Morgan Stanley
Goldman Sachs
Wells Fargo
Fannie Mae
JPMorgan
US Bancorp
Ally

…We expect trading to begin May 1. Full disclosures and documentation available on request…**

We will be following the domestic ETF with an international version: TBTFi (not to be confused with the BlackRock’s offering, iTBTF). It will be filled with ECB notes, Japanese banks, Sovereign debt from Greece and Cyprus, etc. For diversification purposes, it is important to own TBTF banks in various geographic regions in case of local central bank collapse or nuclear accident.

* AIG is really in there as a sentimental favorite, but they are no longer truly TBTF.

** No, not really, as this is sarcasm.

Barry Ritholtz has a background in math & sciences and a law school degree…He left Law for Finance, working as a trader, researcher and strategist before graduating to asset management…and sarcastic blogging.

He considers himself an independent voter and describes himself as a recovering Republican.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s