Exclude stock exposure to ETF holdings
Author wants a broker feature to automatically hedge out specific overvalued stocks like TSLA and PLTR from their ETF holdings.
- The author believes stocks like TSLA, PLTR, and SPCX are overvalued based on their earnings.
- The author actively seeks ways to remove exposure to these specific companies from their portfolio.
I hate that my ETFs (VOO and VT) have exposure to PLTR, TSLA, and might soon have exposure to SPCX and OpenAI. I don't want to debate with you whether Tesla, Palantir and SpaceX are over-valued, I feel like they are based on their earnings. A friend said that there are ways of removing exposure to these holdings through direct investing, but the minimums for this are quite high ($100K+). Why isn't there a broker where you can say what ETFs you own (ie '30 shares VT') and what exposure you want to get rid of 'ie 'TSLA') and it will automatically set up what is effectively a CFD position to remove your TSLA exposure, automatically increasing you're hedge position as the underlying ETFs increase their own exposure to TSLA and vice versa. It would work by you putting in some capital into the account and if TSLA/SPCX go down in price they would pay cash into your account to perfectly offset the loss from your SPCX inside your ETF going down in value, and would take cash out of your account if SPCX went up in value (offsetting the profits from SPCX going up in your own ETF holdings). This way you have effectively stripped out TSLA/SPCX or whatever stock you don't want exposure to, while still being able to own your normal ETFs. Would people even want this? Would you use this personally? Let me know if this already exists!

r/investing