IBLN: Invest like a Billionaire

You may not have a billion dollars; only a few men and women do.

But you can now still invest like one.

On Friday the Direxion iBillionaire Index ETF (IBLN) debuted Friday, tracking an index made of 30 large-cap stocks that — when viewed through the lens of filings made with the Securities and Exchange Commission — appear to be the favorites of guys like Warren Buffett, Carl Icahn, David Einhorn and George Soros.

All 30 index constituents are members of the S&P 500. The fund equal-weights the stocks, meaning each of the 30 holdings accounts for 3.33% of the overall portfolio. That means it’s making high-conviction bets not only on Micron Technology (MU)— which amounts to 0.17% of the Standard & Poor’s 500 (SPX)— but on big names like Apple Inc. (AAPL), which represents 3.14% of the S&P.

Since its inception in October of last year, the iBillionaire Index has enjoyed returns of 16% compared to 11.8% for the S&P 500. According to iBillionaire, a back-tested version of their index would have roughly doubled the returns of the S&P 500 over the past 8 years.

We'll keenly observe how it fares as compared to the broader market in months to come.