The newest types of ETF have the potential to revolutionize the industry. They eliminate the worst part about investing in an ETF: buying a separate entity rather than the stocks you actually want to invest in. And, they are still the best way to invest in a group of stocks within a certain theme or sector in one-click at a fraction of the cost.

The best thing about ETFs

ETFs turn investments that are complicated and difficult into investments that are simple and inexpensive, with just one equity and one ticker. There are many types of ETFs, that allow you to turn complicated investments such as leveraged stocks, bonds, and much more, into one-click investments. Until recently, ETFs were also the only way to invest in a large number of companies without buying the full shares of companies within the theme. You could either buy an ETF, or buy each company’s stock separately, spending hundreds or thousands of dollars, not to mention a significant amount of time, in the process. ETFs solved a huge problem with an easy, inexpensive investment product. But add to the list of types of ETF one more, and it’s a game-changer.

Read more about: What are ETFs and how do they work?

Add iBTFs to the list of Types of ETFs

Introducing: iBillionaire Theme Funds (iBTFs) These new types of ETFs available on iBillionaire can effectively make simple stock ETFs, such as the S&P 500 and RUSSELL 2000 obsolete. They solve the worst thing about ETFs, and turn it into the best thing about iBTFs.

The worst thing about ETFs

When you invest in an ETF, you buy something other than the stocks themselves, so ultimately, the price to buy and sell the ETF moves up and down independently from the stocks itself. But you’re buying the ETF because you want to invest in companies within a certain sector or theme, right? Here’s where iBTFs provide the best answer, they solve the worst thing about ETFs, and turn it into the best thing about iBTFs.

ETFs: quick look - Click to View
Exchange Traded Funds 

  1. Management fee varies
  2. Trading Fees
  3. Expense ratio varies, can be >1.0%
  4. Investor must buy a separate entity, the ETF
  5. Investor has no way to buy actual holdings
  6. Highly diversified holdings
  7. Cost varies, from very low to hundreds of dollars
  8. Inflexible number of holdings: minimum 16 holdings
  9. Inflexible concentrations of holdings: top 10 holdings must be < 50% ETF
  10. Must wait until end of month to rebalance or change holdings
iBTFs: quick look - Click to view
iBillionaire Theme Funds

  1. $1 per month under $3,000
  2. No Trading Fees, ever
  3. 0.65% flat rate for accounts over $3,000
  4. Investor buys small fractions of the actual holdings, instead of separate entity
  5. Investor buys actual shares, in fractions, of stocks
  6. Can concentrate holdings among best companies
  7. Buy all stocks with $5 to $10
  8. Between 3 and 30 holdings, or more
  9. Flexible holding concentrations
  10. Flexible re-balancing: can add a company the day it IPOs
ETFs Are A Middle Man & iBTFs Eliminate Him (Click To See Why)

The companies that create ETFs can buy and sell the actual holdings of the ETF, the shares, from banks. The investor buys a package of the shares, instead of the actual shares. iBillionaire Theme Funds allow the investor to actually buy the shares, in fractions. Good-bye, middle man! The investor chooses the price they pay. For example, $10 of the FAANG iBTF purchases $2 worth of each stock: Facebook, Apple, Amazon, Netflix, Google. You could think of iBTFs as in-kind ETFs, that are available for purchase at as little as $5 to $10 each.

Here’s a comparison of the differences

Check out the improvements that iBillionaire made on ETFs. The comparison uses two of iBillionaire’s most popular iBTFs, FAANG and Marijuana, versus their largest competitors. Use the tabs to tab back and forth and compare iBillionaire’s strategies and the ETFs.

Cost To Invest

  • $1 per month or 0.65% over $3,000 for an iBillionaire account
  • Unlimited free trading, every purchase free
  • 0% commission
  • 0% expense ratio
  • $10 to purchase iBillionaire FAANG Strategy iBTF

Characteristics

  • 100% invested in FAANG: Facebook, Amazon, Apple, Netflix, and Google
  • Five holdings (equal-weighted 20% each at purchase, rebalanced quarterly)

Returns: +79.74%

Returns of the last twelve months ending September 24, 2018. Past returns do not indicate future performance.

Click here to invest in FAANG with as little as $10

Cost To Invest

  • 0.20% expense ratio
  • Trading fee of platform for each purchase
  • Commission depends on platform investor is using
  • Approximately $185 to purchase QQQ ETF

Characteristics

  • Approximately 40% invested in Facebook, Apple, Amazon, Netflix, and Google. Percent of each holding varies.
  • In total 104 stock holdings

Returns: +28.16%

Returns of the last twelve months ending September 24, 2018. Past returns are not indicative of future results.

Cost To Invest

  • $1 per month or 0.65% over $3,000 for an iBillionaire account
  • Unlimited free trading, every purchase free
  • 0% commission
  • 0% expense ratio
  • $5 to purchase iBillionaire Marijuana Strategy iBTF

Characteristics

  • 100% invested in 11 companies, all of which are marijuana stocks listed on U.S. stock exchanges: Tilray, Scott’s Miracle Grow, GW Pharmaceuticals, Cronos Group, Cara Therapeutics, INSYS Therapeutics, 22nd Century Group, Corbus Pharmaceuticals, Innovative Industrial Properties, Canopy Growth Corporation, and Zynerba Pharmaceuticals.
  • Eleven holdings (equal-weighted 9.09% each at purchase, and rebalanced every 3 months)

Returns: +89.53%

Returns are of the last 12 months ending September 26, 2018. Past returns do not indicate future returns.

Click here to invest in Marijuana with as little as $5.

Cost To Invest

  • 0.75% expense ratio
  • Trading fee of platform for each purchase
  • Commission depends on platform investor is using
  • Approximately $40 to purchase MJ ETF

Characteristics

  • Thirty eight holdings, each market-cap weighted and rebalanced monthly
  • Includes stocks listed outside of the U.S., including on Canadian exchanges

Returns: +25.51%

Returns of the last twelve months ending September 26, 2018. Past returns do not indicate future performance.

Click here to see all of the investment options on iBillionaire.

Here’s a list of all of iBillionaire’s iBTFs and their last 12 months return ending September 26, 2018.

All Of The New Types Of ETFS Available On iBILLIONAIRE In One List