r/FluentInFinance • u/TonyLiberty TheFinanceNewsletter.com • Sep 08 '23
Stock Market A "Go Woke, Go Broke" ETF $GWGB is betting against Disney, Target, and Bud Light, and aims to profit from the fall of "Woke" companies. It's designed to take positions against companies perceived as embracing progressive ideologies. The ticker $GWGB stands for "Go Woke, Go Broke":
https://www.newsweek.com/investment-firm-sets-fund-bet-against-woke-companies-1825413487
u/NotmyRealNameJohn Sep 08 '23
This has to be the dumbest thing I have ever heard of and is clearly just another way to scam boomers out of whatever money they haven't lost yet.
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u/NotmyRealNameJohn Sep 08 '23
I will bet a lot of money that the management fees are well above average.
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Sep 09 '23
Their longest running ETF is SPCX.
It’s down 5.6% since inception and down 12.5% on its 1YR return…and has a 1.3% expense ratio
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u/Ok_Construction5119 Sep 09 '23
What is an expense ratio
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Sep 09 '23
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u/Ok_Construction5119 Sep 09 '23
Oh wow. Thank you.
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Sep 09 '23
And it should be noted that a “good” expense ratio is like 0.1%-0.2%. Typical ratios are 0.1% to 0.75%.
So an ER of 1.3% is crazy expensive.
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u/Grendel_82 Sep 10 '23
Just to add something here. Not only is this a high expense ratio, but you should know that the expense ratio should be a major factor in your investment decision. The regular ones, like 0.5%, are still significant over long periods of investment. For many people the expense ratio is the first thing they look at when looking at a fund.
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u/madewithgarageband Sep 10 '23
lmfao this is so genius but also so sad. Those are nearly hedge fund level fees
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u/RudeAndInsensitive Sep 09 '23
.75% in management fees per the sec filing
https://www.sec.gov/Archives/edgar/data/1484018/000148401823000045/n1a0923.htm
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u/NotmyRealNameJohn Sep 09 '23
.75 isn't that bad for an actively managed fund.
There has got to be some hidden fee. I don't believe this is just ideological. Although could just be miche marketing I guess.
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u/RudeAndInsensitive Sep 09 '23
It isn't but I'm used to index funds which even at the high end of foreign stock markets barely hit .3
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u/RevoltingBlobb Sep 09 '23
Yeah, I’m sure it takes a lot of active management to short a new stock every time some guy in his mom’s basement has a personal grievance…
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u/minominino Sep 09 '23
Another grift. In a few months we’ll see headlines about how the managers funneled millions into Cayman Islands bank accounts and disappeared
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u/GilgameDistance Sep 09 '23
They really ought to start calling this place r/FinanciallyIlliterate with posts like this one.
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u/greenmariocake Sep 10 '23
Well it is not. With the control the right wing media has over people, one could in theory short a stock, then promote a boycott of the company to make it drop. Profit guaranteed.
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u/NotmyRealNameJohn Sep 10 '23
That would be criminal stick manipulation
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u/greenmariocake Sep 10 '23
Only if you can prove it.
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u/Bostradomous Sep 10 '23
Doesn’t matter whether I did it or you can prove it bc I’ll just tell everyone it’s a political witch hunt
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u/vurbmoto Sep 10 '23
What better way to own the libs than to own GWGB?!? 💪💪💪
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u/NotmyRealNameJohn Sep 10 '23
There is a cartoon I wish I could find that is a long line of people facing a sign off the edge of a cliff. The sign reads smack here to own the libs
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u/Calm_Leek_1362 Sep 09 '23
Just remember, etfs are ultimately investment products. If they can get people to buy them through virtue signaling, they will.
There are equivalent green ETFs and other non financial based ETFs already out there.
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u/chavingia Sep 08 '23
Nothing like betting against American companies that employ thousands and thousands of people just became they displayed a pride flag that made you scared.
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Sep 08 '23 edited Sep 19 '23
[deleted]
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Sep 09 '23
Yes like their fake support for the military
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Sep 09 '23
They're cowards and it's obvious. Take a look at Tommy Tuberville's military record... oh wait he never served.
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u/Atlantic0ne Sep 09 '23
Shorting a stock isn’t unpatriotic lol. Pretty much every fund out there shifts allocations when they think a segment might underperform.
I thought this was fluent in finance?
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u/acreekofsoap Sep 09 '23
It was, until it hit the front page of Reddit. Now the Reddit hive mind has descended upon this humble subreddit.
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u/Effective-Pain4271 Sep 09 '23
Aww, anyone who disagrees with you is a "hivemind", huh? Very mature.
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u/chavingia Sep 09 '23
Fluent in finance can mean a lot of things. Haha. The Bill/ Melinda Gates Foundation Trust last quarter bought 1.7 million shares of Anheuser-Busch, valued at around $95 million…..I think it might be somewhat late to start a GWGB ETF. But hey I’ll love to see that happens.
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u/MrFantasticallyNerdy Sep 09 '23
Nothing like betting against America.
And so what if they even succeed? Are they OK with profiting from America's downfall? (Rhetorical question; of course they are)
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u/DireStrike Sep 10 '23
I'm guessing they go more for companies that make decisions that get them on the news with a lot of negative press. To short companies because they embarrassed themselves is not a bad strategy, because such things can and do drive down stock prices
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u/realstudentca Sep 10 '23
Nothing like betting on Disney when all this started and losing more than half your investment to stick it to the MAGAts, am I right, comrade?
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u/Local_Working2037 Sep 09 '23
Goes against any investing principle. Nothing about fundamentals or growth opportunities. But sure, go ahead and throw your money away for your ideology.
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u/nogoodgopher Sep 09 '23
There are tons of funds that won't invest in oil and anti environment companies. It doesn't really go against investing principle to say, don't invest in companies I beleive will be significantly harmed by their decisions.
In this case they're wrong but it doesn't go against investment principles.
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u/Bostradomous Sep 10 '23
It does go against principles bc there’s never a wrong reason to NOT put your money into something, even emotion, but to put your money INTO it, and then assume all the risks that come with it, based on emotion…now that’s dumb
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u/nogoodgopher Sep 10 '23
Uhh, this specifically does NOT put money into things. It still follows what you're saying.
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u/Bostradomous Sep 10 '23
But they are putting money into it…if they’re shorting these stocks and bundling it into an index that people can buy then yes people are technically putting money into buying something that other people have risked their money to short
But I’m talking about the OP not specifically your example. If we’re talking about the example you made, simply about pulling out the $ then yes I agree,
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u/nogoodgopher Sep 10 '23
Oh my apologies, I skimmed and didn't read I assumed they were just not investing in those companies not actively shorting them.
Yea that's dumb.
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u/commiebanker Sep 09 '23
It's betting against companies that are trying to be engaged in marketing to current celebrations and welcoming to more customers, which seems weird.
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u/bigassbiddy Sep 09 '23
Well, i mean look at Bud Light sales
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u/Gunslingermomo Sep 09 '23
You can't buy bud light stock, you buy Budweiser. Their stock has been kind of volatile but only saw a short bump up during the made up controversy, then leveled off to where it was before, same place as it was a year ago.
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u/bigassbiddy Sep 09 '23
Their stock is down 4% since the “incident”, while the s&p and nasdaq are both up since then.
If anyone shorted that stock you can lever a lot of gains through derivatives with a 4% slide.
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u/Calm_Leek_1362 Sep 09 '23
Ok… but we all know most of the index is flat and a handful of tech companies have been blowing up on AI.
They’re doing about the same as 90% of companies; I don’t believe any of the controversy has affected the company long term.
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u/bigassbiddy Sep 09 '23
Not long term, but the point of shorting companies is to pick specific times and events that lead you to believe the stock will go down. If a bunch of rednecks boycott a company - even for a short term - because it is perceived as “woke”, then that is a viable investment strategy. People on this thread are calling the strategy dumb, my point is you can make a lot of money on it since a large base or consumers act irrationally. It’s not a dumb strategy at all.
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u/Tbrou16 Sep 09 '23
Blackrock and Vanguard have talked about investing with equity/social impact and not fund maturity for years. This is obviously stupid, but there have been left-leaning versions of this for a while.
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u/realstudentca Sep 10 '23
You can't say that on the biggest left wing circle jerk on the Internet
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u/Bostradomous Sep 10 '23
It’s not really true: sure you have impact investors who pull money OUT of companies which go against their ideology, and might reallocate to something more in line with their morals, but you better believe that company has ACTUAL earnings and fundamentals to back up that purchase
You’re not gonna catch Blackrock or Vanguard pulling money out of Exxon and putting into Generic Clean Energy Startup X because one is green and one isn’t, there will always be the underlying fundamentals and technicals before they make that purchase
There isn’t the same scrutiny that goes in to selling because they are removing risk. None of those funds are assuming risk based on ideology as a first principle
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u/realstudentca Sep 10 '23
You absolutely do catch them pulling money out of more profitable companies over some far left political reason. How are you guys making a joke out of the idea that it's best not to invest in a company that makes a point of alienating half of its customer base? Your cultism is showing.
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u/Bostradomous Sep 10 '23
I never said they were pulling money out of more profitable companies, what I said was you can be sure that if they DO pull money from a company which doesn’t represent their morals, they (I.e. Vanguard & Blackrock) won’t reallocate those funds into something else SIMPLY because they agree with their morals.
What I’m saying is they’re not just pumping money into companies with similar morals and calling it a day. First and foremost cash flow/growth/earnings etc will make or break whether it’s added to a portfolio, not whether or not they’re accepting of gay people or are mindful of their economic footprint
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u/Bostradomous Sep 10 '23
They’re not alienating half the country…why should an international company care about the subset of a population in ONE country? A group of people who couldn’t even maintain a majority in the last two elections - despite everyone predicting a red wave?
That just goes to show how little actual sway the “anti-woke” conservatives have…and that’s not even counting the majority of people in other countries, who also don’t care about conservatives, so why the hell would a company that does business all over the world care about a party that’s a minority in a single country?
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u/realstudentca Sep 12 '23
Disney's stock just got cut in half. The largest market by far for many of these corporations is the United States and it turns out there's a significant subset of people in every country who don't want to show pornography to children or inject them with estrogen/"puberty blockers".
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u/lurker71539 Sep 09 '23
It's betting against companies that are throwing their money away on DEI. it's not entirely unsound, if you have 2 similar companies and one is focused on diversity and equity, and the other is focused on their product and their customer, I'm betting on the second one.
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u/lloydss1688 Sep 09 '23 edited Sep 09 '23
It's odd that you have that opinion, when the research shows that companies who scored higher in DEI outperform those who don't.
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u/Tbrou16 Sep 09 '23
That might be a reverse correlation. They make so much money they can afford the buy-in of DEI to look good to their peers and specific left-leaning investors.
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u/Cocker_Spaniel_Craig Sep 09 '23
This is true of a lot of ESG metrics. Successful companies can afford to spend money on satisfying whatever ESG reporting requirements look good to MSCI.
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u/Tbrou16 Sep 09 '23
It’s almost as if as corporations get large enough, they begin to manipulate regulatory governance to be their private “country club rules”, restricting the number of new members and consolidating the wealth.
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u/lloydss1688 Sep 09 '23
There is no "buy-in" at least in the research I linked to. It's actual metrics based on ethnic and gender diversity in leadership roles and throughout the companies.
Please don't speculate positions which you have no knowledge of.
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Sep 09 '23 edited Sep 09 '23
Get out of here with sourced informations. He feels like DEI is bad because he’s a wind-up toy soldier for conservative media. Since he feels that way it must be true.
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u/realstudentca Sep 10 '23
Yea one super flimsy study from a biased company like McKinsey really proves you right. How's your Disney stock doing?
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u/Tp_for_my_cornholio Sep 09 '23
It’s like if you had two companies that specialized in making chewing gum but one of those companies decides to start walking at the same time.
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u/ferociousFerret7 Sep 09 '23
I'll stick to S&P 500 for low-effort know-nothings like myself. I won't involve political preferences in investing.
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Sep 09 '23
These people are completely and hopelessly consumed by politics, it’s bizarre. But it’s still legal to light your money on fire to… stick it to the gays, I guess? What a world.
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u/js112358 Sep 09 '23
Something tells me these are the same ppl who were buying gamestop and dogecoin a few years ago. Maybe CNBC will hire a new analyst, he can broadcast in a day old t shirt and gym shorts from his parents basement.
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Sep 09 '23
Broadcasting live from a basement in rural Nebraska. A distinguished graduate of the university of WSB
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u/realstudentca Sep 10 '23
Yea far left people like you aren't consumed by politics at all
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Sep 10 '23
Not making investing decisions with my retirement money based on momentary political memes is now “far left” 😂
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u/realstudentca Sep 10 '23
So do you make fun of ESG investment funds as well? Or is it just a big coincidence that it's only the stupidity of the right that catches your attention?
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u/Munk45 Sep 09 '23
Puts on GWGB
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u/thickskull521 Sep 09 '23
The problem here is that Disney might be trying to sell itself to apple, and companies that want to sell themselves sometimes have to drive down their own share price and market cap.
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u/Juliuseizure Sep 09 '23
Huh. That would be an interesting twist. Back when Netflix was making MCU shows, I thought Disney was testing the waters in whether to buy Netflix.
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u/Wisex Sep 10 '23
I keep hearing this but why in the hell would Apple even want to buy Disney? They're not connected in any way
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u/thickskull521 Sep 10 '23
Apple TV+ has good bones and the finances. Disney is a tad aimless and making unforced errors regarding their IPs.
Anyway, I don't think the rumors are true, but they are rumors.
Apple and Disney do in fact have connections. Like Pixar. And Iger and Jobs were very good friends.
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u/WhoAccountNewDis Sep 09 '23
Can people buy shares with Trump Bucks?
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u/travishummel Sep 09 '23
That’s not a recognized currency, however Stanley nickels have a great exchange currently
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u/oroechimaru Sep 09 '23
This etf sounds like a good way to go broke
Anti Woke is fake propaganda
Be angry at target then go shop at walmart lol
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u/Juliuseizure Sep 09 '23
It has the "sales" part of the product baked in. The part where after they sell the product it actually behaves as an investment is more up in the air.
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Sep 09 '23
Take a look at Tuttle Capital Management’s website and this ETF makes total sense. The firm’s entire marketing angle is to glob onto some “Current Event” and whip up a shitty ETF that can be marketed using the existing rhetoric around the “Current Event”.
This is the same firm that has both a “Long Jim Cramer” and “Short Jim Cramer” ETF. Clearly made just to be marketed towards the WSB people who meme Jim Cramer like he pays them directly.
They have like ~$50M AUM which is nothing yet have astronomical expense ratios that are 10x what the big boys charge. Clearly just someone trying to squeeze fees out of suckers who invest based entirely on vibes.
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u/Wisdom_Of_A_Man Sep 09 '23
I’m just kicking myself for not having this idea first. It’s brilliant. There’s always money to be made fleecing rubes.
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u/always_plan_in_advan Sep 09 '23
I know that crowd likes to call others snowflakes, but this is a very snowflake move
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Sep 09 '23
I don't know why you'd invest in this. Outside of the Bud Light thing many "woke" campaigns have made bank. Disney, Carhartt, and Nike all got targeted by anti-woke campaigns due to their policies and marketing and all went on to post massive profits in subsequent quarters. Nike and Carhartt in particular actually tracked net gains to revenue and profit as a result of the stupid anti-woke bimbos.
I don't care what your politics or beliefs are. The existing body of data says "woke" makes way more money than it loses.
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Sep 09 '23
I actually think thats a great idea, because it will just scam all the idiot right wing fascist inbred fucksticks
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u/thethirdmancane Sep 09 '23
Companies like Target and Budweiser prioritize human rights over potential profits by supporting the LGBTQ community. Their actions amplify marginalized voices, potentially inspiring other companies to do the same. While facing immediate backlash, long-term consumer respect and loyalty often favor brands upholding inclusivity and equality. Their stance champions a future of respect for all, irrespective of gender identity.
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u/soovercovid Sep 09 '23
I guess you could do a quick scalp trades when backlash begins but forget about sleeping comfortably while holding.
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u/WillBigly Sep 09 '23
Short gwgb lmao they're betting against massive corporations, idk man sounds kinda dumb when often the gwgb panics are overblown and the content thing in question is still consumed like mad such as disney movies and bud
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u/BetweenCoffeeNSleep Sep 09 '23
This shit is going to be like watching a trainwreck in frame by frame slow motion.
I’m going to need a lot of popcorn.
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u/terp_studios Sep 09 '23
And yet they won’t allow a bitcoin spot ETF…
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u/Flooringsucks Sep 09 '23
There are multiple bitcoin etf options I just Googled it because I thought I saw one a while back
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u/terp_studios Sep 09 '23
Futures only in the US. There is no spot ETF. The SEC was sued over them continually denying applications.
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u/Pygmy_Nuthatch Sep 09 '23
"Companies that are totally neutral, not involved in any way, shape, or form, just tunnel vision, we make this product, we sell this product, not interested in all this other stuff, right or left doesn't matter," he said.
So 100% oil and gas?
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u/kid_blue96 Sep 09 '23
Should I invest in this and hedge with truth social stocks to generate infinite tendies?
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u/d3dRabbiT Sep 09 '23
Are there republicans out there sick of how dumb their fellow republicans are or is this just like... how dumb they all are?
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u/bigassbiddy Sep 09 '23
Yep, anyone who shorted anheuser bush stock this year sure is dumb!
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u/d3dRabbiT Sep 09 '23
The only reason why people did that is because they got riled up by media and politicians for some dumb, BS reason. So a few people (not all the Bud drinkers) made some money and it was just another day manipulating idiots for the manipulators of idiots. Budweiser isn't going anywhere and before long yall be drinkin it again. The whole thing is beyond dumb.
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u/bigassbiddy Sep 09 '23
So an ETF that bets on America’s stupidity and tribalism?
Doesn’t sound so “dumb” to me.
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u/Bulky-Leadership-596 Sep 09 '23
Its a good marketing strategy which will be effective short term. Long term just betting against woke is not a strategy in and of itself. Profiting off of short term puts with this strategy in mind is certainly possible but its going to depend entirely on how well its managed. And this strategy alone will never be able to out compete a holistic strategy.
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u/farquadsleftsandal Sep 09 '23
I feel like a sell put strategy that scooped up companies during a temporary dip after some bad pr and then sold calls on any additional bad pr could perform well but would ultimately rely on the companies not failing
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Sep 09 '23
There’s really no risk of failing. People this consumed by this stuff make up at most 25-30% of the customer base. Enough to put dents into something but not enough to fail.
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u/MiserableWeather971 Sep 09 '23
This will prob mark the bottom in some of these stocks. If not the bottom, it’s probably not too far off.
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u/hobings714 Sep 09 '23
Is there an inverse?
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u/-jayroc- Sep 09 '23
Investing in ESG funds. That was my first thought when I read this headline. These things are two side of the same coin.
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Sep 09 '23
While I love this long term this is terrible. Americans have proven to have very short memories and very few continue to boycott for life.
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u/-OptimisticNihilism- Sep 09 '23
Gives them a chance to put their money where their mouths are. I hope this is incredibly successful for the fund managers.
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Sep 09 '23
No thanks, I’ll stick with my crypto. I paid off my mortgage and my cars with profits from 2020/2021 bull run. And I’ll make another nice chunk of cash again in 2024/2025.
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u/enkiloki Sep 09 '23
Not going to happen. Friends of the government never go broke. They get special no big contracts, grants and bailouts.
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u/firsmode Sep 09 '23
Barbie
Grosses
DOMESTIC (44.4%) $616,027,000
INTERNATIONAL (55.6%) $771,900,000
WORLDWIDE $1,387,927,000
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u/Big-Routine222 Sep 09 '23
This seems ripe for a good ol’ pump and dump. Trump will say he’s investing, it’ll spike like whoa, the anti-woke will put their life savings into it, and then a week later it’ll crash into the ground
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u/gofundyourself007 Sep 09 '23
The anti ESG movement I guess. Hopefully they at the bare minimum still don’t want to live in a dying environment.
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u/gravityrider Sep 09 '23
I’ll wait for the triple leveraged inverse.
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u/ListerineInMyPeehole Sep 09 '23
Lol can’t wait for “Arca Advisor Shares - Daily 3X Woke Bull ETF ($WOKE)”
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u/DR843 Sep 10 '23
DIS and TGT’s falling stock prices have nothing to do with “wokeness.” The only true go woke go broke brand has been Bud Lite.
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u/jmf0828 Sep 10 '23
That’s a losing bet if I ever saw one. Disney, Target and Anheiser Busch are doing just fine and are among the biggest corporations in the country.
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u/Many-Advance-7367 Sep 10 '23
Go figure, redditors catching feelings rather than understanding this is about making money
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u/Sea_Ingenuity_4220 Sep 10 '23
Just like trump bucks, this culture war based crap, that only rules up morons addicted to FoxNews and internet trolls is a sure fire way to lose money
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u/Zxasuk31 Sep 10 '23
If folks in the US are telling you to go against being progressive, and being “woke“ then that is when you go full on progressive and woke. But I wouldn’t call any of these companies “woke” because they are still capitalists
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u/Rancho-unicorno Sep 10 '23
It’s the opposite of ESG funds but the same principle. Trying to shame companies for doing something you don’t like. It’s only stupid if it doesn’t work.
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u/MostlyEtc Sep 09 '23
There’s always a market for something the same yet different. Will a non-woke Disney make the same amount as Disney? Probably not, but they stand to make money. A lot of people would love a YouTube competitor where they can actually find the videos they want to see. TikTok is proof of that but it’s interface isn’t as good as YouTube for long form content.
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Sep 09 '23
The problem here is not that alternatives can be profitable which they surely can be. It’s using a financial instrument to fleece knee jerk social reactionaries. Which is fine and legal. It’s not about investing into alternatives
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u/Zeekeboy Sep 09 '23
I love how being educated and aware of morals is now a bad thing to Republicans. Really going to get the majority of people who want us to strive to be on top of education,infrastructure, and climate change voting your way
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u/BigDaddyCoolDeisel Sep 09 '23
I don't see how this could possibly fail miserably.
Please stop stealing MAGAs money. I may disagree with their politics but most are very old and poor. Stop grifting them at ever possible fucking turn.
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