To be used for any questions relating to Exchange Traded Funds.

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2
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2answers
50 views

Bond ETFs vs actual bonds

If the goal is to diversify a portfolio and add bond investments in a manner like that described in Intelligent Investor, would owning a bond ETF provide the required diversity or does it need to be ...
2
votes
2answers
72 views

Should you diversify your bond investments across many foreign countries?

I already know, and so ask not, about the benefits and need of bond diversification across different kinds, maturities, and ratings (eg Short- vs Long-term, AAA to corporate). Global diversification ...
-2
votes
0answers
33 views

Should you invest in the same country's bond and stock markets concurrently?

Suppose that you: 1. allocate 30% of your portfolio to only bonds, and the remaining 70% to stocks. 2. invest the 30% into a ETF of only Canadian bonds. Then should you also invest any of the 70%, ...
-2
votes
0answers
29 views

Advantages and disadvantages of 'total-return swap' in ETFs?

[Moneysense.ca:] For taxable accounts, the Horizons S&P/TSX 60 Index ETF (HXT) is back from last year and should appeal to investors who focus on large-cap stocks. But the main reason for ...
-1
votes
1answer
23 views

Why would an ETF rebate part of its management fee, rather than reduce it before?

[Moneysense.ca:] For taxable accounts, the Horizons S&P/TSX 60 Index ETF (HXT) is back from last year and should appeal to investors who focus on large-cap stocks. But the main reason for ...
0
votes
0answers
40 views

Transfer shares to avoid brokerage fees

I like Fidelity better than Vanguard in regards to web interface and customer service. Vanguard has better funds for the way I wish to invest. Since I plan to invest in a dollar/cost averaging manner ...
0
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0answers
50 views

Learning to calculate my total operating costs for ETFs with my provider

I just spoke to my bank who provides an etf trading platform. I am learning to do this and trying to determine the pricing structure of the bank I am dealing with from a transaction I had made: ETF ...
-2
votes
1answer
57 views

How to reduce or avoid currency exchange costs when buying and holding etfs

I am living in the UAE and I have opened a trading account to buy and hold etfs. However, the etfs are mainly in U.S. Dollars, euros and Canadian dollars and I am using a dollar cost averaging ...
5
votes
3answers
114 views

Etf currency risk - avoiding it by changing denomination or selling it in a different currency

I am about to purchase international stock and bond ETFs as part of my retirement portfolio. I am concerned re the currency denomination - e.g. I purchase the ETF in Euro and when I start selling it ...
1
vote
0answers
101 views

For long-term savings: Short-term Bond ETFs vs High-interest Savings Accounts

In the Summer 2015 edition of MoneySense magazine, the article Value Hunter (Cash cows for your portfolio) by Norm Rothery, recommends replacing High-interest Savings Accounts (HISAs) with Short-term ...
0
votes
1answer
194 views

Shorting the Shenzen or ChiNext Index

is there any possibility to short the Shenzhen or ChiNext Index as an individual Investor? It seems as there are no options but two ETFs, namely the CSOP SZSE CHINEXT ETF-HKD and the ChinaAMC ...
2
votes
1answer
104 views

Purchasing ETFs when (pretty much) everything else is maxed out

I'm sure we've heard it all before, but I wanna retire early!!!! I've maxed out my 401k at work (pretax) and get close to maxing out a Roth IRA through my bank. I have only student loans as debt ...
1
vote
3answers
171 views

Is it smarter to buy a small amount of an ETF every 2 or 3 months, instead of monthly?

Hereafter, all money is in Canadian Dollars. My relative in Canada buys and holds for the long run. She plans to invest around $2000 of only ETFs monthly. Market timing is hard; so she refuses it. ...
1
vote
1answer
48 views

Is there an ETF or Mutual Fund which tracks James O'Shaugnessy's Trending 25 stock strategy?

The strategy is described here: http://www.valuestockscreener.com/Screens/Details/OShaughnessy_Trending_Value I've found 5 mutual funds at O'Shaugnessy's asset management website (www.osfunds.com) ...
0
votes
2answers
51 views

Is it possible to improve stock purchase with limit orders accounting for volatility?

As a retail investor that puts a certain monthly amount into equity, I was wondering which is the best way to proceed when purchasing stocks. By best I mean the one that would allow me to purchase the ...
0
votes
0answers
28 views

ETF: Does change in underlying positions imply a flow?

If we see that holdings of an ETF had a change on the day, and market cap changed, does that imply that number of outstanding shares has changed as well? Does flow equal to change in number of ...
0
votes
0answers
29 views

Is a single-asset ETF's holdings derivable from its market cap?

Let's consider USO Oil ETF. They track WTI Crude Oil contract. At the close 30/04/2015: they held 46,485 WTI futures their closing price was 20.51 their market capitalisation was 2,772.95m USD front ...
0
votes
1answer
67 views

Why don't commodity ETFs pay dividends?

Is there any obvious reason why commodity ETFs such as GLD, SLV, USO never pay dividends? Is it because the commodity market attracts a lot of speculator/traders/hedgers and not exactly long term ...
2
votes
1answer
183 views

Why buy SPY when there is S&P500?

I don't quite understand the purpose of SPY (SPDR S&P 500 ETF Trust) and other S&P500 ETF. If SPY is designed to track the performance of S&P500, why not just buy S&P500(like index ...
0
votes
1answer
32 views

What duration bonds are held by the ETF XBB

I am looking at the bond etf XBB. This ETF mostly holds Canada govt bonds. What I don't understand is what is the duration of these bonds held by the fund?
0
votes
1answer
50 views

Other ETFs of world bonds and stocks (Alternatives to VT and BND)?

For simpler investing, my grandfather wants to buy only 2 ETFs: one that holds only stocks worldwide and one that holds only bonds worldwide. To avoid commission fees, he doesn't want to buy a group ...
1
vote
1answer
35 views

What is the difference between issuing company and holding company in a convertible bond

I am researching convertible bonds in Canada. While looking at the index etf that tracks convertible bonds, CVD What I don't understand is how come the list of Top 10 issuers is different from teh ...
2
votes
1answer
65 views

How does a stock price chart compare to a performance chart?

I'm new to stocks, and trying to determine the historic behaviour of a particular ETF. However, I find that the stock price chart viewable on my investing site and the stock performance listed in the ...
1
vote
1answer
122 views

Why do deep in the money options trade below their intrinsic value?

I have an investment account where I'm currently holding about $200K in SPY shares (S&P 500 index). I'm a bit worried that we are in a bubble, so I'm looking into strategies to hedge my downside. ...
1
vote
2answers
62 views

For an ETF, do different methods of weighting securities improve returns?

[Source:] The S&P 500 is an index that weights 500 companies in order of their market capitalizations – if the market values company A more than company B, then company A is weighted more ...
0
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0answers
45 views

How to hedge volatility decreases

My particular options positions are typically a long delta, and long vega. Decreases in implied volatility, or specifically the VIX, can drastically alter the profitability of my position. Is there a ...
1
vote
4answers
96 views

Higher returns from international markets?

I've heard that part of your portfolio should be invested in international markets. One argument for it is higher returns. However, browsing through some funds (FOSFX, FIEUX, FWWFX), all I can see is ...
0
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0answers
107 views

Get historical list of companies in Russell 3000 index?

How do I get historical list of Russell 3000 companies. I can get the current list here https://www.russell.com/documents/indexes/membership/membership-russell-3000.pdf since the companies in the ...
-1
votes
1answer
56 views

ETFs mirroring consistently outperforming companies?

I read about (mostly the risks of) ETFs that try to replicate hedge funds, such as http://www.etf.com/etf-education-center/21043-article-46-alternatives-etfs-can-an-etf-replicate-a-hedge-fund.html ...
1
vote
0answers
25 views

Exchange rate $ ETF,s

I'm confused by the recent conversation on exchange rates $ ETF's listed on multiple exchanges. Say I buy an ETF that mirrors the S&P 500 (say IUSA) in GBP rather than the same fund in $US (IDUS). ...
2
votes
2answers
68 views

Can expense ratios for certain ETFs differ between brokerages?

I have an account with two different online brokers. I've noticed when comparing the two sites, that one of them seems to have lower expense ratios for ETFs than the other. Is this possible or am I ...
1
vote
1answer
85 views

How does shorting ETFs work? What are the costs and tax implications?

If I short an ETF stock, how does it work from the cost and tax perspective? Do I get charged ETF expense ratio? (does not make sense to me) If underlying stocks issue dividends, am I charged them? ...
1
vote
1answer
50 views

Is there a way to avoid short-term capital gains taxes on bond funds?

It appears that most bond ETFs pay out monthly distributions from interest earnings. Is there a way to directly reinvesting the earnings on the fund without triggering a taxable event? Are there any ...
0
votes
2answers
89 views

Does it make sense to invest in bonds when interest rates are likely to rise? [closed]

Thinking about a possible increase in interest rates in the future, does it make sense to invest in bonds? Would the price of a bond fund holding mostly AAA rated Fannie/Freddie issues, and medium ...
-1
votes
2answers
46 views

understanding percentage logic for an ETF holdings

I am looking into some ETF's and i came across something which I didn't understand. Some of the information that I am looking into are Total Holdings, Top 10 holdings and percent assets in Top 10. ...
0
votes
1answer
183 views

Determine if my foreign taxes resulted from ordinary or qualified dividends?

My 1099-DIV lists an amount in box 6 for 'foreign tax paid'. These are a result of an emerging markets ETF I own. However, TaxAct is asking whether these are Foreign source ordinary dividends or ...
-1
votes
1answer
47 views

Automatic personal investment service suggestion

I recently did some research on automatic personal investment. Previously I did some stock and also consulted with personal investment company like Edwards Jones. I kind of found online automated ...
0
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0answers
55 views

A liquid ETF that tracks the us dollar

Are there any liquid ETFs that track US dollar. I can only find this one, but this has very low daily volume (~70k shares) http://www.horizonsetfs.com/pub/en/etfs/?etf=DLR&
2
votes
2answers
514 views

How can I buy an ETF?

I know an ETF that I would like to buy, but how do I actually invest in it? E.g. what are the steps I need to go through, which organisation to contact? Can I buy through a bank or do I need to ...
4
votes
2answers
99 views

How to bet on a falling USD without inverse ETF

The US dollar has been rallying quite a bit. If i want to bet on a short term correction, what can I do? I dont want to buy inverse ETF since they track the underlying on a daily basis. I want ...
1
vote
1answer
40 views

Does the ETF ticker price include its expense ratio?

When I look at an ETF ticker price, does the price already include the management expense ratio? Or will I get hit by the ratio when I try to sell? a.k.a if ETF X has a 100$ price with expense ratio= ...
3
votes
3answers
284 views

What is the relation between the price of crude and the corresponding ETF

Currently the price of crude oil is hovering around 50$/barrel and the corresponding ETF like USO is around 20$/share. What is the relationship between the price of crude and the price of USO? For a ...
2
votes
3answers
136 views

How an ETF reinvests dividends

When a company gives dividends, the share price drops by the dividend amount. Now, if all the shareholders choose to reinvest their dividends, will the share price go back up to what it was prior to ...
0
votes
1answer
59 views

What do mutual funds gain by being different from ETFs

This is what I understand on how ETS work vis-a-vis mutual funds: If I buy an ETF (SPY), then the ETF trust fund does not take my money and go out and buy the underlying stocks. I buy one share of SPY ...
0
votes
1answer
58 views

Why an ETF mirrors the underlying index on a day to day basis but not on a long term basis

Some ETFS like NUGT,DUST say that they replicate the performance of the underlying index on a daily basis. My first question is, do all ETFS do this, or only some? Also, why does it say that "not ...
2
votes
1answer
50 views

Can we use ETF instead of individual stocks to perform an index arbitrage

In Index arbitrage, people usually buy(sell) a future against the basket of stocks that form the index. Why they don't just use the index etf like SPY instead of buying individual stocks? Is it not ...
13
votes
5answers
1k views

Why might a robo-advisor service like Betterment be preferable to just buying a single well-performing index fund like SPY?

Edit: I think it would be beneficial for any answers to include whether the answerer uses a diversified portfolio or not in their own finances, and whether they have any affiliation with Betterment or ...
1
vote
2answers
71 views

Investments beyond RRSP and TFSA, in non-registered accounts?

I am Canadian, with income just below marginal higher rate. My RRSP contributions were always filled, and the rest went to extra mortgage payments. I just finished paying off the mortgage and will ...
4
votes
1answer
77 views

How does an inverse ETF work

How does an inverse ETF work? Does the underwriting company issuing the ETF just short the shares of the underlying(s)? Or do they purchase(sell) the near month put(call) options and keep rolling them ...
1
vote
1answer
95 views

Vanguard limit order vs stop order in a buy scenerio

I just opened an account on Vanguard and am learning about the different order types. I am having trouble finding the difference between a limit and stop order in a buying situation. Looking at their ...