Freetrade ETF

Wondering if there is a possibility to accumulate all FT user holdings that are 7% up into an ETF/fund which we could then invest into.

Would be fascinating to have a decentralised fund managed by the community

Not sure I understand. So you want to invest in a fund with hundreds of stocks? Why?

Isn’t that what, eg, a physical S&P 500 ETF is?

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Sounds a bit similar to how on etoro you can set your portfolio to copy the activity of other people on the platform (past performance is not a guarantee for the future :wink:) but I guess this way it will crowd source freetrades activities for the platform users to follow an etf. Trouble is as the portfolio expands we will basically have people invested in every share out there so will essentially come down to being just shares that have increased in value by 7% but on that criteria at what point would a share get sold?

Ahh, that makes it clearer. Thanks. So essentially a momentum fund that is passive.
Return-wise I don’t see a value in this.
What’s the timeframe to determine the 7%? When do they get kicked if they don’t perform 7% anymore? In a downswing, if only weird pennystocks make more than 7%. Should everything be invested in those 2-3 stocks.

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I think there is merit in having some sort of passive collective fund of ETFs for those who don’t want to be an active trader but at the same time don’t want to pay platform fees with another company.

I think if FT did this they could attract more customers because some people aren’t prepared to make their own investment choices but are happy to make an investment decision based on their risk appetite. Hence the likes of Wealthify, Nutmeg etc.

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Agree on this. I’m sure there’s been alot of comments from others on the forum over time about asking for a type of freetrade etf for different risk levels and automatic investing. Definitely would prefer to be freetrade fees for that than another provider

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Would it not be easier to try and offer the Consensus and Lifestrategy funds and put a simple risk calculator in the app?

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The 7% was just a suggestion, as it beats most funds.

The ideas focus is to consolidate all Freetrade users portfolio allocation/stock picks/sentiment to make a community driven fund.

The buying/selling is not something I fully considered but I’m sure there is enough tech talent at FT to figure this out. IE >50% of users selling a stock activates a sell. Or even some sort of voting mechanism

It’s just an idea and suggestions on how this could work are welcome

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It’s not just penny stocks

I’m currently up:

Draper Espirit 8%
AMD 6.78%
GCP Student Living 6.75%
Square 7.8%
Snap 22%
Beyond Meat 48.26%

Freetrade would have to manage the ETF and produce KIID and all the other admin tasks that come with an ETF. Maybe there’s another way but a public ETF would have some ongoing costs and they’d have to slap a large enough TER on it. Good idea but can’t see this happening. Their also might be some financial services rules against FT doing this.

You can already buy on Freetrade etfs that try ride on the aggregate activity of investors on various stock markets and of various investment theses already: there are a few index trackers to choose from.

If you believe the market looks reasonably efficient to the average retail investor, then it should outperform a smaller segment of investors - Freetrade users. If you believe Freetrade users have an edge on the market, they should outperform VWRL or whatever. (Of course we’ll only clearly see which is better in hindsight, but you know.)

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Bit confused rod can you explain this? Thanks

Edit: My bad thought you said Freetrade ETF’s

no my mistake, I should have written it more clearly :wink: