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

learn more… | top users | synonyms

1
vote
2answers
43 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
48 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
184 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
37 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?
3
votes
2answers
71 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: ... ...
7
votes
3answers
121 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
592 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
187 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
48 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
69 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
63 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 ...
2
votes
2answers
149 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
37 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
65 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 ...
0
votes
2answers
39 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
71 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
37 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
37 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
80 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
145 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
156 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
79 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
113 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
34 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
83 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
56 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
40 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
163 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 ...
4
votes
1answer
115 views

Which index fund or ETF should I buy, assuming my money is at a specific company?

If you aren't familiar with the 3 fund portfolio, the summary is that when investing in stocks, you should only be buying total market index funds. The 3 index funds represent: total US, total non-us ...
3
votes
2answers
139 views

How to sell option with no volume

If there is no volume on options you want to buy/sell, should you do any transactions with those options? Here is my scenario: I recently bought two puts of an industry ETF. A few days later it ...
3
votes
3answers
198 views

Identifying “Dividend Stocks”

Can anyone point me towards some information on investing in dividend stocks, and how to identify good companies? Are there any metrics? I am fairly illiterate when it comes to finance and stocks, but ...
4
votes
3answers
189 views

What can I do when the trading price of a stock or ETF I want to buy is too high?

This question pertains to other ETFs and stocks, but I'll start with the S&P500 like this one. I'd like to invest in an ETF predicated on the S&P 500 index, but the funds I am interested in ...
4
votes
1answer
104 views

Mutual fund invests in mostly the same stuff as ETF, but has much higher expense ratio? (biotech sector)

Looking at two funds, FBIOX and IBB, it seems that they mostly invest in the same things (at least the top 10 holdings are roughly similar), but the expense ratio for FBIOX is .81% vs. .48% for IBB. ...
6
votes
1answer
151 views

Is there any public data available to determine an ETF's holdings?

I have some shares of an ETF, and I'm curious whether the ETF's holdings overlap with any of the individual stocks that I own. Since it varies so frequently, I don't think this is information that ...
4
votes
1answer
122 views

It is ok if I under-report my cost basis for certain securities?

Yes, I would like to say that my cost basis is lower than it actually was (and thus pay more taxes). Quick story, which I think is mostly correct (but I can't remember all details): I own shares ...
6
votes
1answer
247 views

How does it work when the same ETF is listed on several stock exchanges?

I'm trying to understand how do ETFs listed in several exchanges work. Take VUSA, for example. It's listed in London, Zürich and Amsterdam. Same ISIN, so I assume it's exactly the same thing. If I ...
3
votes
2answers
102 views

Do dividend quotes for U.S. stocks include witheld taxes?

Consider, for example, the following dividend distribution table for SPY: http://finance.yahoo.com/q/hp?s=SPY&a=00&b=29&c=1993&d=08&e=19&f=2013&g=v When an entry in the ...
0
votes
1answer
63 views

How much principal do I get back with a target-maturity ETF?

Can you someone please explain how much principal (or final distribution) I get back when this target-maturity ETF "matures" and makes final distributions (assuming no default)? Assume I own 1 share. ...
1
vote
2answers
1k views

Concerning ETF that do dividend reinvestment for you. Is that taxable?

My understanding that when you purchase an ETF, you technically own your portion of the underlying holdings. (This is the reason commodity ETFs are taxed like commodities.) Per the below an ETF may ...
2
votes
1answer
234 views

Are coupons from bond ETFs reinvested?

I am trying to determine if all of the coupons of a bond ETF are paid out to investors as dividends, or if some of the income is used to purchase more bonds. I am guessing that this is somewhat ...
3
votes
1answer
363 views

Why do mutual funds and ETFs in the U.S. not capitalize dividends?

I am from Europe/Belgium and in Europe it is common to have funds and ETFs which capitalize/re-invest instead of distribute the dividends. I have been looking to the Vanguard ETFs and funds lately, ...
4
votes
1answer
753 views

Where is “Cash Credit from Unsettled Activity” coming from?

It's only been a month and few days since I started investing in my Roth IRA with Fidelity. Today, when I checked Portfolio Positions page, there was this thing called, "Cash Credit from Unsettled ...
2
votes
2answers
71 views

Which expenses eat up investments the most: sales charge (front / back-end load), foreign exchange spread, or expense ratio?

I am a bit confused as to which expenses eat up most of the investment. Some brokers have low sales commission but the foreign exchange spread is high. Some have higher sales commission but lower ...
4
votes
3answers
2k views

Retirement Funds: Betterment vs Vanguard Life strategy vs Target Retirement

I'm a 20 something grad student and would like to open a hands off retirement account with beta exposure to the market and would make monthly contributions. I'm fairly illiterate wen it comes to ...
4
votes
2answers
294 views

What happens to your investment if the broker (which acts as a custodian) goes bankrupt?

For instance, you purchased ETFs using a broker that also acts as a custodian, what will happen to your investment in case the broker / custodian goes bankrupt? Will you lose all your investments? ...
2
votes
1answer
68 views

How can I estimate the sensitivity of a bond ETF's price to interest rate changes?

Is there a standard method for estimating the sensitivity of a bond ETF's price to interest rate changes? Some of the information I have includes the average duration and the SEC yield.
6
votes
1answer
272 views

Couch Potato Portfolio for Europeans?

I recently came across the Couch Potato Portfolio concept and was happy to find an investment strategy that made sense to me. Its origin seems to be the Canadian version, and it has been translated ...
3
votes
2answers
63 views

How can I know if the ETF stock is bought by stock participant (change) or the fund (vs. outflow)?

Consider an ETF with tick symbol TIP and a customer clicking 'Sell' to sell one share via Fidelity brokerage. How can the customer know if that single stock will be bought by another person on the ...
3
votes
1answer
75 views

What are the risks with ETFs with relatively low market caps?

I have an account at Fidelity where I purchase ETFs every few weeks with contributions from myself and my employer. I have been buying ITOT, IXUS, and AGG (total stock market, total international ...
4
votes
1answer
938 views

Buy US ETF as foreigner — a bad idea?

I'm considering to buy index ETFs from US through TD Ameritrade, but as a non-resident alien (foreigner), my main concern is the 30% withholding tax on: all dividend (especially the bond ETFs) ...