Tagged Questions

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

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2
votes
1answer
37 views

Do US mutual funds and ETFs pay taxes on dividends?

If I am a US citizen and want to invest in a US fund (e.g. a mutual fund or an index fund), which also invest in a number of US stocks, what happens when the fund I invest in receives dividends? Is ...
2
votes
2answers
47 views

Why buying an inverse ETF does not give same results as shorting the ETF

I was reading on the pros and cons of shorting an ETF vs buying an inverse ETF on yahoo I do not understnad this explanation why over hte logner term, shorting is not equivalent to buying an inverse ...
3
votes
1answer
40 views

When does an indexing company have to announce its re-balance/reconstitution dates?

Every year indexes like the Russell cause huge volume days when they change the composition of their highly followed indexes. Is there regulation that dictates the timing of when they announce what ...
0
votes
0answers
34 views

Alternative on Plus500 for SHY

I want to try out stock trading, I have assembled a portfolio and I've found Plus500 where I could find most of the ETFs I want to trade. I just could not find SHY. So I started to look for an ETF ...
1
vote
1answer
99 views

Which is better: Guaranteed 7% or projected/historical 8%

In deciding between maxing out 7% interest rate student loan repayment on the other hand, and investing in a SPY ETF on the other there are essentially two factors: 1) Is a projected/historical 8% ...
4
votes
3answers
125 views

Bonds vs equities: crash theory

Let's presume a market crash is coming sometime within 6 months to a year. Theoretically speaking, would it be wise to reallocate my index fund, which is presently about 80 % stocks and 20% bonds, to ...
2
votes
3answers
116 views

Vanguard ETF vs mutual fund

I was looking at Vanguards (VOO) ETF which aims to mimic the S&P 500 and noticed you do not pay any commission fees and it has an expanse ratio of just .05%.Then I looked at the mutual fund ...
0
votes
0answers
36 views

What's Deal with “Pure Style” ETFs/Funds?

I was initially going to find one large-cap growth ETF but then changed my mind to split evenly between a large-cap growth and a large-cap value fund. As I studied returns of various ETFs, my eyes lit ...
0
votes
1answer
73 views

Ticker symbols differences between Yahoo Finance and BestInvest

I expected Yahoo to have all existing tickers, yet when I grab the list of ETF tickers available through BestInvest, I see tickers like "EUN iShares STOXX Europe 50 UCITS ETF" however Yahoo shows ...
1
vote
2answers
107 views

Why would Two ETFs tracking Identical Indexes Produce different Returns?

-- Edit -- It turns out that the RPG fund creates an index of "pure-style growth" from the S&P 500/Citigroup PURE growth index, where the IVW ETF creates an index from the S&P 500/Citigroup ...
1
vote
2answers
51 views

How to Compare Two ETFs, accounting for Dividends?

(This is a follow up to my expense ratio question, here). Today I am attempting to study and compare the various Large Cap ETFs but realize I don't know how to even do the comparison, namely in ...
1
vote
1answer
49 views

How to Compare Two ETFs, Accounting for Expense Ratio?

I'm attempting to compare ETFs but am not understanding how to account for expense ratios. (I'm assuming that the annual returns do not account for expense ratios already -- is this correct?) For ...
2
votes
1answer
78 views

Empirical performance data of ETFs and Mutual Funds tracking identical Indexes?

This is somewhat of a follow up to my other question on ETFs vs Mutual funds for the long term investor, but appropriately a different question. From the basic research I have done, it seems that ...
10
votes
3answers
327 views

Why would a long-term investor ever chose a Mutual Fund over an ETF?

(I read this previous question but would like to differentiate my question by having it focus exclusively on long term, buy and hold investing). From my understanding, it is conventional wisdom that ...
2
votes
2answers
55 views

Physical replication ETFs that do not pay out dividends

I am searching for physical replication ETFs that do not pay out dividends at all. I am interest in ETFs that tracks major indices for example , S&P 500, DJIA, REIT, banking, Emerging market, or ...
2
votes
1answer
51 views

Same fund in ETF and investor share, different expense ratio?

I'm looking at Vanguard 500 Index fund. There are three different options. Admiral share (VFIAX) for people who has $10,000+, and the expense ratio is 0.05%. Investor share (VFINX) with minimal ...
3
votes
1answer
53 views

Superficial loss, converting mutual fund to ETF in Canada

My question is almost identical to this one, only I am interested in the Canadian version. If I own a mutual fund (for example, TDB900 from TD Bank) and wish to replace it with an equivalent ETF (for ...
1
vote
2answers
116 views

Online broker available in Europe - to buy index funds or ETF with small investments

So i am trying to start investing periodically some small amounts. I am particularly interested in index funds or ETF. I would like to be able buy, track, sell them, and etc online. There are a lot ...
1
vote
1answer
119 views

Can I use stop limit orders on vanguard orders to prevent loss?

Vanguard has commission fee ETFs which allow vanguard customers to purchase or sell any of their ETFs at any time. I'm looking to create a strategy that would minimize my downside in the eventuality ...
2
votes
2answers
89 views

Convention for adding ishares (ETFs) into personal accounts

I use GNUcash to manage my personal accounts. Please advise me on how I should enter ETFs, specifically ishares which are Blackrock's brand of ETF, into my personal accounts. The default set of ...
-3
votes
1answer
54 views

If an index goes up because an underlying company issues more shares, what happens to the ETF

If a stock that makes up a big part of the Dow Jones Industrial Average decided to issue a huge number of additional shares, that will make the index go up. At least this is what should happen, since ...
1
vote
1answer
44 views

Expense ratio of an ETF included in the price or calculated separately

If an expense ratio of an ETF is 0.15% and the ETF is trading at 100, then when I buy the ETF, do I pay 100? Or do I pay 100.0015?
1
vote
2answers
110 views

Can an ETF's expense ratio (fees) change after I buy it?

In researching ETFs I've found a lot of dire warnings about expense ratios. Evidently, they can really eat up your money. Ok, so look for funds with low expense ratios. But, if I understand this ...
2
votes
1answer
84 views

Is ETN risk something to worry about?

I have been looking to invest in the stock market and while there are plenty of options to invest as long as the market keeps going up, my options to cover or even make up for my losses in the event ...
4
votes
2answers
227 views

Long-term capital gain taxes on ETFs?

Sorry if this is a very novice question. I couldn't find it by searching here or Bogleheads (I'm not really a 100% Boglehead either). Let's say I hold $30,000 in an ETF called BMT (Big Mike's Tech). ...
0
votes
0answers
41 views

Is there a way to find out what investment funds have a given stock?

Funds usually list their top stock holdings. Is there a way to do a reverse search so I could find out what mutual funds or ETFs have GOOG, for example, among their top holdings?
4
votes
3answers
111 views

Is there any evidence that “growth”-style indexes and growth ETFs outperform their respective base indexes?

For example Vanguard has the Vanguard S&P 500 ETF and the Vanguard S&P 500 Growth ETF. Just looking at the returns, it looks like the growth ETF has outperformed the S&P 500 ETF: ... ...
8
votes
3answers
167 views

ETF vs Mutual Fund: How to decide which to use for investing in a popular index?

How do you decide between investing in an ETF, vs. in a mutual fund, for the popular stock indexes? Trading costs, tax efficiency, capital gains?
10
votes
4answers
994 views

Is it a viable/good long term investment strategy to buy only index ETFs?

I'm in my late 30s living in the EU and for some time now, I've put the vast majority of my savings into a number of index ETFs. This is based on the philosophy that trying to beat the market is a ...
8
votes
2answers
208 views

Assessing the value of an ETF

I recently read through Graham's The Intelligent Investor and am looking at what index ETFs or Index Mutual Funds it makes sense for me to invest in. As I was considering this I realized that, at ...
1
vote
1answer
67 views

How important is volume when choosing an exchange?

I'm investing some money in ETFs; buy and hold. My local currency is CHF. I have an account in Interactive Brokers. So far I've operated on the London Stock Exchange, which means I have to do a forex ...
3
votes
2answers
183 views

Geared ETFs - Do they offer more than 3x leverage?

I'm very interested in geared ETFs. It appears that the highest available gear ratio is 3x the underlying security (or index). Is this due to regulation, mathematics, or market demand?
1
vote
1answer
71 views

How to select a service to use to begin making investments?

I'm looking to make a small investment in stocks. I like the idea of ETF's and since I'm based in Ireland I'm considering using Davy : http://www.davyselect.ie/our-services/self-invest.html Is this ...
3
votes
2answers
333 views

What's a recommended minimum amount for buying an index ETF, to minimize fees/commissions?

Let's say every month I transfer $559, which is about 3 shares of VOO. The commission from Fidelity is $7.95, which is about 1.42%. Is it worth doing that, or better, every other month buy worth of ...
-5
votes
1answer
48 views

Will an ETF immediately reflect a reconstitution of underlying index

The fact sheet for QQQ etf says: The fund and the index are rebalanced quarterly and reconstituted annually So, if QQQ is just tracking the index, and tomorrow AAPL drops out of nasdaq100, the ...
1
vote
2answers
240 views

What are Fidelity's equivalent ETFs of QQQ and SPY?

I am interested in purchasing QQQ and SPY but trying to find equivalent of those from Fidelity since there are some fees removed. I think SPY equivalent is Core S&P 500 (IVV) but not sure about ...
-1
votes
3answers
68 views

Who gets the margin call when a bear ETF goes down

When I short the SPY, if it goes up, then I get a margin call based on broker's margin requirements. (Not sure if margin requirements are specified by SEC or individual broker, but that is another ...
1
vote
2answers
228 views

How to understand a volatility based ETF like VXX

The ETF VXX is based on the volatility index VIX. If volatility goes up, VIX goes up and VXX goes up. Similar thing for the downside. Now when I buy an ETF like SPY, I can conceptually understand that ...
2
votes
1answer
48 views

Why online brokerages sometimes allow free ETF buying

ETFs trade just like stocks, so I wonder how come questrade lets customers trade ETFs for free whereas they charge commission on stock trading? Any guesses? Furthermore, only buying is free but ...
2
votes
1answer
63 views

Inverse Relationship between Volatility and Beta

From P78 in ETF for Dummies, 2nd Ed, by Russell Wild : Beta’s usefulness is greater for individual stocks than it is for ETFs, but nonetheless it can be helpful, especially when gauging the ...
3
votes
3answers
124 views

Will an ETF increase in price if an underlying stock increases in price

If there is an ETF that is made up of 5 stocks and let us say one day, one of these stocks shoot up by 10%, will the underlying ETF also shoot up, even if there was no additional buying activity for ...
4
votes
3answers
168 views

How do I bet one stock will outperform another stock?

How can I bet that company (a) will outperform company (b)? It seems like the simplest way would be to buy long company (a) and short company (b). However, this strategy seems crude since I will still ...
2
votes
3answers
266 views

How an ETF pays dividend to shareholders if a holding company issues dividend

If I hold 100 shares of SPY ETF, and one of the participating companies (A) pays out a dividend of 1$ per share. Will I get any dividend? If yes, I guess I will not get 1$ per share of SPY. It seems ...
5
votes
2answers
92 views

What variety of hedges are there against index funds of U.S. based stocks?

I am a 25 year old investor and I want to build long-term wealth. Right now, I am trying to be tax efficient and am using a buy and hold approach. (My 401k contributions are maxed out each year and ...
6
votes
2answers
120 views

If the housing market is recovering, why would a REIT index ETF (e.g. VNQ) not be performing well?

As you can see below, the Vanguard REIT ETF fund hasn't been doing very well for the last 6 months, but the housing market seems to be improving every month. Why do we have this difference? VNQ ...
1
vote
0answers
38 views

ETF's Market Cap Inconsistency

I'm interested in buying NASDAQ:KWEB - which is a Chinese internet based ETF. However, I'm puzzled by the fact that different sources report very different market cap for this ETF: NASDAQ website ...
2
votes
2answers
260 views

Who determines, and how, the composition of the S&P 500 index?

I thought S&P 500 would contain the top 500 U.S. companies by market cap, but apparently that is not the case? e.g., Facebook (FB) was only recently added and has market cap of $100B whereas ...
2
votes
1answer
63 views

Fees aside, what factors could account for performance differences between U.S. large-cap index ETFs?

I'm regardful of the effects of Expense Ratios, but they range from 0.07% to 1.00% for the stocks therein. What other factors/reasons might explain and account for the prodigious difference in rates ...
3
votes
1answer
53 views

How to automate the tracking of ratios and other values for a set of stocks or ETFs?

I'm interested in monitoring a set of financial products (say ETFs WLOG) continually (but not continuously). My current plan is the following. Say I want to survey the top ten Large Cap Growth ...
4
votes
1answer
370 views

Are there any consequences for investing in Vanguard's Admiral Shares funds instead of ETF's in a Roth IRA?

I have a Roth IRA with Vanguard, and I saw this question: What is the difference between shares and ETF? about the differences between Admiral Share funds and ETFs. I've also seen stuff talking about ...