Your Survival Guy gets a lot of emails from vendors looking for my business. Take Vanguard, for example. I received an email yesterday offering all types of “strategies” that they offer, ranging from direct indexing, ESG, and factor investing just to name a few.
Direct indexing is basically buying individual stocks in amounts that mirror an index. You know about ESG. Factor investing can be different factors like leaning into a certain style such as growth over value etc. All three speak to the “emotion” of the investor to entice him to “predict” what will be best for his needs and desires using a better mouse trap. Unfortunately, he doesn’t realize he’s the mouse.
What is so mind-boggling (not really because it’s how the business works) is how these major firms jumped headfirst into ESG, not to save the world but to save their bottom lines. It’s about the fees.
And after being proven so wrong, it’s as if nothing ever happened, and they still beat the ESG drum. Is that the type of leadership you want guiding your money? It’s embarrassing.
Action Line: When you’re ready to talk, let’s talk. But only if you’re serious. Email me at ejsmith@yoursurvivalguy.com.
Originally posted on Your Survival Guy.
