A walkthrough of a free tool that lets you build a custom fund from S&P 500 stocks, reweighted by dividend yield, ROIC, or equal weight. It generates a broker-ready order for fractional shares and compares your custom bundle against SPY to show the difference in risk and return.
Chapters
You can go in and find the funds that have good performance. You understand the performance and their risk reward, and you can build, you could call it a super ETF, and you get to be the one in the driver's seat with the best data.
So that's the next step, right? Where people just put together their own fund and not pay for basically bundling. That's no longer necessary given that trading costs are free or super low and individuals can now buy fractional shares. Why not just put your own bundle of stocks together? And we've got a tool for that. If you go into the do-it-yourself fund tool and you hit create order form, and that order form could in turn go to Schwab and they could execute that order form for you because there's going to be fractional shares in that order form. You don't have to do round lots of 100 shares anymore. So big difference. Yeah.
On that topic, put the S&P 500 into a portfolio. And what David's talking about is you can do this create fund, make it better SPY. It'll pull all the results here. We can change the weighting. What David was talking about was downloading an order form right up here. Once this pulls up, it takes a second with 500 companies. Maybe I should have started a little smaller, but you can see equal weighting, or we can drop it down with market cap, dividend yield, ROIC, and it'll reweight according to ROIC. You can scroll down to the very bottom, which will take a second, to see how the breakdown would be of our custom fund here versus the original S&P.
A lot more on the very attractive side and a fair amount less on very unattractive and unattractive.
If you owned 2 shares of something already, you can put that in. It'll actually put the order form to get rid of 1.79 shares. You can really customize it to exactly what you've already got.
The point is cost of this work with our research is super low. This is like a supercomputer analysis. Immediately re-rate the entire 500 holdings in the S&P 500 according to a superior methodology. It's a great feature.
