TBTF ETF Backtest (Red)
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
Bank of America
Note: Because shareholders got wiped out in the GM and Chrysler bankruptcy, they do not qualify.
We expect trading to begin May 1. Full disclosures and documentation available on request.**
We also be rolling out the leveraged version — 200% long, symbol XTBTF, and of course, the Ultra — a triple leveraged ETF, symbol UTBTF.
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.
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.