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

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0
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2answers
40 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
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0answers
24 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
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0answers
27 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 ...
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1answer
61 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
171 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
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1answer
29 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
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1answer
38 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
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1answer
34 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
55 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
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1answer
92 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
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2answers
58 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
42 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
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4answers
91 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
69 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
55 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
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0answers
23 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
64 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
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1answer
78 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
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1answer
47 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
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2answers
81 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
45 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
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1answer
161 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
45 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 ...
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0answers
53 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
93 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
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1answer
39 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
260 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
131 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
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1answer
57 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
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1answer
54 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
49 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
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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
65 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
72 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
80 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 ...
4
votes
1answer
135 views

Are there disadvantages to day trading ETFs?

I bought an ETF a few months ago and I was thinking of selling it, however, I was wondering if there were disadvantages or additional fees if I treated ETFs like short term stocks.
2
votes
1answer
284 views

If I can invest $100 a month, is it better to choose Vanguard S&P 500 ETF or Betterment

If I can invest $100 a month, is it better to choose Vanguard S&P 500 ETF or Betterment? I can put down a max initial investment of $1000, and may pull out the investments when the market looks ...
1
vote
1answer
98 views

Why is Morningstar reporting a bid/ask spread of $2.31 (2.19%) when Vanguard reports a 30-day average of $0.02 (0.02%)

Vanguard, on their page which lists the 30 day average bid/ask spread for their various ETFs, currently has 0.02% and $0.02 as the spread for VTI: However, if I lookup VTI on Morningstar, it has a ...
-1
votes
1answer
53 views

How can I find a list of all North American ETF's including symbols?

I was hoping to find a list of all North American ETF's. Unfortunately https://www.quandl.com/resources/useful-lists just returns an error when the corresponding list is clicked. I'd really prefer ...
3
votes
1answer
73 views

What prevents an ETF from performing differently than the sum of its holdings?

A mutual fund by definition performs as well as the sum of its holdings [minus various fees, at least based on my understanding of how mutual funds work]. However, an exchange traded fund (ETF) ...
2
votes
3answers
279 views

Vanguard Target Retirement Fund vs. Similar ETF Distribution (w/ REIT)

I currently have a Roth IRA with 10k invested in the Vanguard Target Retirement Fund 2050 (VFIFX). The Target Retirement Fund consists of the following: 63.0% - Vanguard Total Stock Market Index ...
1
vote
3answers
151 views

Why would I pick a specific ETF over an equivalent Mutual Fund?

At the risk of beating a dead horse, I am still confused about the benefits of an ETF over a mutual fund. I understand the general premise (lower expense ratio, liquidity, paying taxes for other ...
1
vote
1answer
509 views

Is there a risk of abuse in ETFs?

As far as I understand, the issuer of an ETF following S&P 500 should hold shares of the 500 companies included in that index. So, when company A goes out of the index and company B goes into it, ...
3
votes
1answer
103 views

How to compare goverment bonds to generic money market position?

I know that the bonds are higher risk investment so I'd like to compare the bond funds/ETFs with the market sweep offered by account to decide on proper mix. However I'm confused of how to read ETF ...
3
votes
2answers
91 views

Can I request to change 401k offerings from my employer, e.g. to invest in ETFs?

My wife and I have 401k accounts, but they only offer mutual funds. I do not want to invest in mutual funds and pay their large fees. What are my options to invest 401k money into ETFs, bonds, and ...
2
votes
2answers
71 views

Best Way to Allocate Invest Dollars Using a Market Timing Investment Approach

I was wondering if anyone knows of a way to best allocate my investment funds when using a Market Timing approach. For example, I have a market timing system I developed and tested since 2005. Every ...
3
votes
1answer
238 views

Here's my plan for saving up for a house - What can I do to improve?

I'm 20 and I'm from Australia, have about $8000 saved up for my mortgage fund, hoping to get a hefty sum for my downpayment when I plan to buy a house in the future. The $8000~ savings came from my 6 ...
0
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2answers
61 views

Where to find fund total assets?

Is there a site that charts total assets of a fund/ETF (GLD, UCO, etc)? I'd like to see total assets plotted over periods of time to get an idea if assets are increasing or decreasing.
1
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1answer
62 views

how is weight in fund calculated for an ETF

When I look at an ETF, I often see the weight in fund compared to a benchmark. For instance: [Source] ...