SelfWealth ETF - ASX:SELF

It might be time to review the strategy around having their own ETF product.

It costs more than it is making.

It routinely underperforms the market.

The tech is not there yet for them to build an algorithm that models their high performing clients into market-beating predictions.

If this was the case, there are other, better funded and more tech savy businesses that would have done this already.

If I were to provide some unsolicited advice for SWF it would be to double down on the commoditisation of the broker space. Read up on Schumpeters Gale and use the momentum of price commoditisation (or race to the bottom) to attract a sizeable enough market share that they can operate profitably. This means reducing your overheads for non-essential things. No one is joining SWF because of the ETF product.

They have done a great job of attracting a serious market share away from some players that are many times their size. This market share play should be the key focus of the business. The ETF is an expensive feature that would not be paying its way and it doesn't look likely to attract the FUM that would make it profitable.

I also need to make it perfectly clear, despite the autistic bleating from poopy and the likes, they should not price match stake. 3$ trades places an unrealistic expectation of what the value of a trade can be in Australia. The only people who are providing trades at these rates (or lower) are hoping to attract enough users that they will be able to sell deal flow data to make up the money. I can't get behind that. I might change my tune if it proves to be lucrative enough but it feels like the wrong thing to do when you are trying to build customer trust.

Everyone (except you Poopy, you can bugger off), discuss.