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New ETF Tracks the Billionaire Dream Team

If you can't beat 'em, join 'em.

That's the philosophy behind the new Direxion iBillionaire Index ETF (IBLN ). The exchange-traded fund tracks the stock holdings of some of the richest and most successful investors, such as Warren Buffett, David Einhorn and Carl Icahn.

The index uses the billionaires lists produced by both Bloomberg and Forbes to identify 20 or so U.S.-based billionaire investors. (So no Bill Gates or Walton family members.) It then picks the top 10 billionaires by performance. It judges performance by looking at filings called 13Fs that investors overseeing more than $100 million in U.S. equities must file with the Securities and Exchange Commission. The filings, due within 45 days of the end of a quarter, list equity holdings that trade on U.S. exchanges. The 30 stocks where the investors have the most combined money becomes the ETF's index, which is rebalanced quarterly.