Motif Investing, the Silicon Valley-based online brokerage firm that pioneered ideas-based investing, launched a new class of products that will allow RIAs to construct their own collection of stocks or ETFs online, and receive a royalty whenever people buy them, according to a statement.
Expanding on their concept of a motif, a basket of securities with a common theme, the company is allowing financial advisors to monetize on the platform, while offering low-fee investing options to their clients.
Tom Nowak, a financial planner, has already tested the new offering launched Thursday.
He put together a motif called Socially Responsible that includes shares of companies that are advocates of the environment, consumer protection, human rights, and diversity.
Nowak says the new build-your-own tool would help him align his clients investments with their particular world views, and also give them the benefits of low-fee investing, according to a statement.
It also doesnt hurt that hell be getting paid for the ideas he shares.
Motif also announced Thursday that former SEC chairman, Arthur Levitt, has joined the companys board.
Ive been advising Motif and its enterprising leader, Hardeep Walia, for a year now, and Im persuaded this company is providing individuals with a powerful array of tools to manage their investments creatively and transparently, Levitt said in a statement Thursday. Motifs productsboth equity and debtprovide new and unique mechanisms that greatly simplify the investing process at a very low cost.
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