Not every problem is obvious. Almost every innovation you can think of came about because someone recognized a problem when others weren’t yet looking.
Before 1915, nobody had a tunnel-style mailbox because postal carriers just waited until you answered the front door to hand off your mail.
Before 1958, nobody had thought of installing a three-point seat belt in automobiles to prevent the upper body from being thrown forward during an accident.
Before 1975, almost nobody had an answering machine—even AT&T once claimed, "there is no need for the device."
Before 2001, nobody realized “1,000 songs in your pocket” was a vastly improved user-experience for consuming digital media in the shape of an iPod.
And before 2018, nobody thought ETF search should be less complex for everyday investors.
A brief history of captive financial information
The largest, smartest financial institutions in the world were at one time clearly innovating: financial products, trading platforms, investment strategies, online brokerages, and more, contributing something new to investors and the investment world. At the time, they were able to justify premium fees for providing it all.
Throughout those years, one of the primary reasons they reached “institutional status” was their ability to obtain an information advantage, keep it captive, and often protect it from discovery.
But protecting an information advantage in today’s fully connected, info-driven world is tantamount to patching a leaking dam with a band-aid.
And most investors won’t stand for it, especially while watching sources of information becoming readily available in every other sector. When investors feel they can’t find or understand the information they want, they are less likely to invest. For example, where two companies are similar in terms of leverage, market capitalization, risk exposure, and earnings, but one company’s financials are overly complicated, investors are more likely to choose the company whose fundamentals are easier to understand.
To everyday investors, this shift in the information advantage begs the question:
“If the information is out there, why are the fees we’re paying still so high?”
The other side of the coin: information overload
The first ETF launched in 1993, and now, the industry has more than $4 trillion of assets under management (AUM) and is expected to grow to $25 trillion AUM by 2025. ETFs are already the go-to index vehicle for 78% of institutional investors.
According to BlackRock, the next stage of growth for this market will be driven by investors who realize the range benefits ETFs provide, such as low costs, liquidity, diversification, tax efficiency, flexibility, accessibility, and, of course, transparency.
But with 150+ providers offering more than 2,000 different ETFs, how can investors find the best ETFs for their financial goals?
The search tools currently provided by big institutions are little more than glorified spreadsheets. They force inquisitive investors down multiple rabbit holes, offering mixed messages and bad advice—and, ultimately, failing to connect them with the right ETFs.
For these search tools to be even marginally helpful, investors must already possess extensive market knowledge to answer the 50 or more data points required to use the tools.
Then, the average search result is just a list of 150+ ETF products investors can choose from, with no discernible relationship to their goals.
Investors are left with too many options and are no closer to investing than when they started.
Information overload = Inaction
When people are exposed to too much information, they also tend to withdraw from the decision-making process.
Investors lose on potential investment opportunities. Asset managers lose on retail client AUM. Brokerages lose potential trading revenues.
ETF Miner breaks the information barrier
In the world of ETFs, Threadvest offers investors an information advantage without information overload.
This is how easy we’ve made it:
Step 1: Go to the ETF Miner and enter a keyword, stock symbol, or ETF name or symbol. Or, simply choose a trending category.
Step 2: Rank the 4 investment priorities in their order of importance to you: The Tenure of the fund, the bid-ask Spread, the Size of assets under management, and the annual Fee to invest in the fund.
Step 3: Enter your email address and click Search.
ETF Miner uses natural language processing to search more than 2,000 funds and around a hundred data points per ETF to determine potential matches. Your results are returned with up to three actionable ETF selections based on those choices.
Simple. Easy. Actionable. And it takes seconds.
The incumbent’s advantage
According to research, the average investor needs to be informed sufficiently—no more, no less—on what will help them make suitable investment decisions. When they are informed, they decide.
Harvard Business Review points out that CEOs of incumbent institutions often assume that in order to thrive, they need to seek out new markets, territories, or acquisitions and aggressively protect their product offerings from disruptors.
In fact, these institutions are already in the enviable position of having a captive audience to whom they may provide information and ensure it is simple to understand and easy for them to take action.
Threadvest realized some time ago that developers would eventually write and run the models that rule the financial world. As the pace of change quickens, big companies and regulatory bodies will ultimately change their ways and make innovation their top priority.
Threadvest has broken the ground with ETF Miner.
Try the most revolutionary ETF search experience now. You won't believe how you ever did it before the ETF Miner.