CLUB targets companies owned by the world's wealthiest individuals, betting that billionaire portfolio holdings outperform the broader market. The fund essentially crowdsources investment ideas from those with the most skin in the game and proven track records of wealth creation.
How It Works
The ETF tracks billionaire holdings through 13F filings and public disclosures, likely focusing on positions where ultra-wealthy individuals have meaningful stakes. Rebalancing probably occurs quarterly as new filings reveal position changes. The methodology presumably weights holdings by factors like conviction level (position size relative to billionaire's portfolio) or aggregates across multiple billionaire owners.
Key Features
- Piggybacks on due diligence of investors with virtually unlimited research resources
- Captures concentrated bets where billionaires have highest conviction
- Zero expense ratio makes it cheaper than hiring your own billionaire
Risks
- 13F filings lag by 45 days — you're buying what billionaires owned last quarter, not today
- Billionaire portfolios often include private deals and hedges you can't access
- Herd mentality risk if multiple billionaires pile into overvalued names together
Who Should Own This
Best for investors who believe in following smart money but can't access hedge funds directly. Works as a satellite holding (5-10% of equity allocation) for those seeking manager skill without manager fees. Particularly appealing if you already own broad market exposure and want to tilt toward high-conviction picks of proven allocators.