Shrek Royalties To T-Bills: Disruptive Diversification Of New Breed Of Retail Platforms
Portfolio Pulse from Neil Dennis
Public.com, a retail investing app, is diversifying its offerings by introducing royalty-based products and direct Treasury investing. The company's first royalty-based product was based on the score of the Shrek movies, which quickly became oversubscribed. Public.com has also responded to client demand for lower-risk investments by using fractionalization techniques to offer Treasury products, making it easier for investors to access fixed income investments. This shift reflects a broader trend in retail investing towards more conservative, income-focused allocations amid higher inflation and interest rates.

November 15, 2023 | 6:06 pm
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NEUTRAL IMPACT
The shift in retail investor preferences towards more conservative investments, as seen with Public.com, may reflect a broader trend that could affect platforms like RobinHood.
While the article does not directly link Public.com's strategy to RobinHood, the industry trend towards conservative investing could influence RobinHood's business if their user base adopts similar preferences.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 40
NEGATIVE IMPACT
Public.com's move towards offering direct Treasury investing could potentially reduce interest in ETFs like CMDY, which tracks commodities, as investors seek lower-risk options.
Public.com's introduction of direct Treasury investing provides an alternative to ETFs like CMDY for investors seeking lower-risk assets, which could lead to a decrease in demand for CMDY in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Public.com's new Treasury products could compete with Treasury ETFs like GOVT, potentially impacting its attractiveness to investors looking for direct exposure to Treasuries.
With Public.com offering a direct way to invest in Treasuries, investors might prefer this over ETFs like GOVT, which could negatively impact GOVT's demand and price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60