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Comment by vasilipupkin | Hacker News Reader

Wealthfront should compete not just on trying to execute the same old indices, but on creating new indices on the fly. For example, REIT Index Sans Illinois, Emerging Markets Sans Russia, etc. Infinite number of possible index portfolios. Anyone want to build that? send me a message

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Check out https://www.folioinvesting.com They allow you to create your own "index funds" as well as select from a list of existing folios. Flat monthly fee.

While the idea is interesting, I am curious what would be the market for a newer index? This combined with creating and maintaining a market to run this index, it will be an expensive proposition.

Why does it have to be expensive ? Imagine you live in Texas and already have high exposure to Texas real estate. It's reasonable to be able to construct a index fund ex texas real estate, as an example. Better tailor your investment options to your actual risks

Not from the customer front but on the operations front.

To clarify, even if you have an index, there must be enough liquidity to run a market where your index is trading. In the early days with less liquidity the company will need to pick up some of the orders. This at the end depending on the value proposition might turn out to be costly.

US REIT index Sans Texas would be less costly because you would have fewer stocks to trade

Ah ok. I see what you meant when Folio was mentioned. I was thinking something else. I was building something like that but don't have the tech capabilities so had stopped.

That exists (at least if I understand your ask):

https://www.folioinvesting.com

I believe that's what Motif is doing.

Yes. But with absolutely insane commission levels. I would like a Vanguard like product that lets me do it

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