Exclusive: Vanguard is doubling-down on its "no-crypto" stance in investing, saying it will not only sit out the rush into spot bitcoin ETFs, but also yank existing bitcoin futures products from its brokerage offerings. t.co/4RphJILnLX

@axios

This is surprisingly dumb from the perspective of the Efficient Frontier Theory that Vanguard has based their entire existence on. A mix of all assets are part of the theoretical market portfolio, the only reason not to include an asset would be from outsized transaction, holding, or other cost inefficiencies.

A small proportion of cryptocurrency indexing is appropriate for a well diversified portfolio.

@ericjmorey @axios Utter horseshit, it has zero expected return, probably negative given the costs to hold the assets in custodian accounts (with high-risk businesses, i.e.crypto exchanges).

This is a good decision by Vanguard.

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@neffo

Sounds like you don't know what I'm talking about. Vanguard allows for gold and silver ETFs to be traded bmvia their brokerage. They suffer from the same concerns you've raised.

@axios

@ericjmorey @axios

Do they fit in efficient portfolio theory? I would argue no, but they are traditionally hedges (and very low cost, like 0.15%). Bitcoin is no hedge.

@wollman

That's irrelevant to the concerns raised or the make up of the market portfolio.

@neffo @axios

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