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

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17
votes
7answers
739 views

Why is the dominant investing advice for individuals to use mutual funds, exchanged traded funds (ETFs), etc

The dominant advice on this site (including that which I give to novices) regarding investing is to only invest in fund vehicles (mutual funds, ETFs, etc), rather than in individual stocks. Why is ...
16
votes
3answers
497 views

What differentiates index funds and ETFs?

Many companies offer index funds and ETFs. If two funds or ETFs track the same fund, what differentiates the two? Is it common for one index fund to outperform another? How can this happen if the ...
14
votes
3answers
780 views

Regular contribution threshold for ETF vs Index Mutual Fund?

I've seen enough info out there comparing lump-sum investments into ETFs vs mutual funds with respect to broker commissions in the case of ETFs, and the discrepancy between MERs between the two. In ...
14
votes
1answer
387 views

What are the important differences between mutual funds and Exchange Traded Funds (ETFs)?

I've been considering, but haven't committed myself yet to investing in Exchange Traded Funds (ETFs), but have to admit that I don't yet fully understand the use-case for them. What factors are ...
11
votes
3answers
780 views

No transaction fee ETF trades - what's the catch?

I just noticed TD Ameritrade has program where you can trade from a list of ETFs with zero fees. Sounds like it could save me a bit of money, but my cynical side wonders how they make money off such ...
11
votes
2answers
296 views

What's an Exchange-Traded Fund (ETF)?

I've been hearing a lot about exchange-traded funds, or ETFs. What exactly are they, and how would I use them?
11
votes
1answer
563 views

How does a synthetic ETF work?

A comment on my recent ETF-related question mentioned swap/synthetic ETFs. Most of what I can find on the web glosses over the mechanics. Can someone walk through what is happening behind the scenes? ...
11
votes
1answer
121 views

For higher returns, put money in fewer or more ETFs? w/rebalancing in the equation

I'm evaluating my long-term investing strategy. I am somewhat aggressive and want to stick with ETFs. Scenario A 60% Vanguard S&P 500 Index ETF (VOO) 40% Vanguard FTSE All-World Ex-U.S. ETF ...
10
votes
4answers
600 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 ...
10
votes
3answers
313 views

Investing in a leveraged index ETF for retirement. Risky?

I'm 23, and in addition to my 401k at work, I have a few thousand saved in an IRA. Right now I have it sitting in Treasurys earning around 3%. Over the past 50 years the S&P has averaged around ...
10
votes
1answer
476 views

Understanding differences between S&P500 index-tracking ETFs

I'm trying to understand the difference between S&P 500 trackers. Example: SPY IVV VOO They all have different prices (IVV being $1 more, on average than SPY, and VOO being about 50% ...
9
votes
3answers
579 views

What low-fee & liquid exchange-traded index funds / ETFs should I consider holding in a retirement portfolio?

I'm still (one year later) going through an exercise to restructure my retirement portfolio. To date, I've been using a mix of exchange-traded index funds. Some trade on the TSX, and others trade in ...
9
votes
3answers
210 views

What kinds of exchange-traded funds (ETFs) should specifically be avoided?

This is related to my other question. There, I was asking what exchange traded funds I should consider for inclusion in my retirement portfolio. That got me thinking: What kinds of exchange-traded ...
8
votes
2answers
189 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 ...
8
votes
1answer
90 views

What are the differences in taxes rules for specialty ETFs such as GLD (Gold ETF) and general ETFs?

I am on 15% tax bracket. In terms of shot term hold and long term hold, I want to know what the differences in taxes rules for specialty ETFs such as GLD (Gold ETF) and general ETFs as are?
8
votes
2answers
104 views

Is there a website which shows indexes and their corresponding ETFs?

I am looking for a website which shows a list of indexes and their corresponding ETFs. Specifically, I'm looking for a list where the first column lists indexes from around the world and the second ...
7
votes
3answers
398 views

Should I buy individual bonds for my retirement portfolio, or stick to funds/ETFs?

To avoid the fees on bond mutual funds or exchange traded funds I have been thinking of buying actual bonds inside of my retirement portfolio. Does that make sense or are there drawbacks to consider?
7
votes
3answers
2k views

Where to find out conversion ratio between General Motors bonds and new GM stock?

I bought some General Motors bonds (ETF-traded under "XGM" symbol) when they were at depressed prices, before GM declared bankruptcy. GM is supposed to be having an IPO sometime in November, and ...
7
votes
3answers
295 views

What to do with small dividends in brokerage account?

I just got paid some dividends from an ETF that I own. It is only $4, which is sitting as cash in my brokerage account. I'm aware that this is a very tiny amount of money in the grand scheme of ...
7
votes
2answers
419 views

Should you diversify your ETF investments between companies?

I've found a number of interesting index funds, of which a lot are run by Vanguard. However, since I'm diversifying my investments between index funds, it seems sensible that I'd want to make sure all ...
7
votes
3answers
123 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?
7
votes
1answer
75 views

FTSE exposure in US Exchanges

Is there a FTSE 100 index futures contract that trades on the US exchanges? Thanks I think there is an ETF but I am looking for futures, mainly for charting purposes.
7
votes
2answers
310 views

What types of ETFs are taxed differently by the IRS?

How does the IRS calculate taxes for ETFs? Until recently, I thought they were taxed the same as stocks, but I recently purchased a gold ETF (IAU) and have to pay a small capital gains tax even though ...
7
votes
1answer
1k views

Which US market indexes (Dow/DJIA, S&P500, NASDAQ) include reinvested dividends?

Which major US market indexes (Dow/DJIA, S&P 500, NASDAQ) include returns from reinvested dividends, and which don't? Where can "total return" information be found for each index that doesn't ...
7
votes
2answers
286 views

What are these fees attached to mutual fund FSEMX?

Could somebody please explain these fees attached to FSEMX? Annual Report Expense Ratio (net) Prospectus Net Expense Ratio Prospectus Gross Expense Ratio Finance.yahoo.com indicates that they are ...
7
votes
1answer
175 views

What is the least-bad way to invest a Simple IRA with heavy fees around every corner?

Given the following situation: an employer-offered "Simple IRA" run by a major brokerage with 1% gross pay matching; No near-future feasible opportunity to invest the Simple IRA contribution in a ...
6
votes
3answers
491 views

Where are Bogleheadian World ETFs or Index funds?

The term bogleheadian is a bit ambiguous term but its simplification means low-cost, diversified, tax-efficient -- solutions. The slant is ETFs or index funds. William Bernstein wrote in some of his ...
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 ...
6
votes
1answer
155 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 ...
6
votes
2answers
136 views

Investments backed by physical Diamonds?

I understand people can invest in Gold via ETF's which are investments backed by physical gold. My question is, do investments exist which are physically backed by Diamonds?
6
votes
3answers
223 views

How do I calculate the current risk involved with US Bond Index Funds?

For months I have been trying to wrap my head around the concept of risk involved with the US Bond Index Funds in my portfolio. My initial conclusion is that the risk of long-term damage to my ...
6
votes
3answers
377 views

Do ETF managers charge management fees on top of transaction fees?

I see that ETFs do work very similar to diversification of individual stocks following either an industry or an index. I am thinking of changing my strategy to reduce my cost of investing which at ...
6
votes
7answers
757 views

Are there any Social Responsibility Index funds or ETFs?

Are there any Index Funds or ETFs that focus on Socially Responsible Investing, or will I have to choose my own basket of stocks?
6
votes
1answer
157 views

Starting off as an investor

For 2 years I am alternating between 4 months of work and 4 months of school, so for the first time in my life, I have a lot more money than I need. I will be graduating in 15 months and am looking ...
6
votes
3answers
310 views

What factors affect the yield and “trade value” on an exchange of a junk bond ETF?

In an effort to further my grasp of financial derivatives available for speculation and losing money, I realize I need further understanding of how "high-yield corporate", aka junk bond ETF's, "work" ...
6
votes
1answer
275 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 ...
6
votes
2answers
106 views

How are active ETFs possible?

I'm having trouble wrapping my head around how it's possible to have these new active ETFs. How do they operate, realistically? I mean, the point of ETFs (as a structure) is that arbitrageurs can ...
6
votes
1answer
255 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, Z├╝rich and Amsterdam. Same ISIN, so I assume it's exactly the same thing. If I ...
5
votes
5answers
948 views

Roth IRA = Emergency Fund. Any Safe Investments?

I've been building my emergency fund through automatic deposits into a Roth IRA at TDAmeritrade. This has been working well, since the money is out of sight, out of mind, and I can easily withdraw it ...
5
votes
8answers
542 views

Should I sell when my stocks are growing?

I have a collection of stock that on average have grown 8% in the last few months. Should I sell now? This is a normal account, meaning tax is of no help. I never understand why people sell while ...
5
votes
5answers
501 views

Can you beat the market by investing in double long ETFs?

Certain ETFs double the daily rate of return of certain indices. Can you use such ETFs to beat the market (not on a risk-adjusted basis, just in terms of pure returns)? I have read that When ...
5
votes
3answers
247 views

What ETF best tracks the price of gasoline, or else crude oil?

Is there an ETF that very closely tracks the price of gasoline? In lieu of that, which ETF best tracks the price of crude oil?
5
votes
3answers
176 views

Why are ETF MERs lower than mutual fund MERs?

Why are exchange traded fund (ETF) management expense ratios (MERs) lower than mutual fund MERs?
5
votes
2answers
81 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 ...
5
votes
2answers
477 views

Using P/E Ratio of an ETF to decide on asset mix

I am a conservative investor with an asset mix of around 50% bonds/cash and 50% stock via large index ETFs. Recently I've been thinking about settling down on a non-emotional way to decide whether ...
5
votes
1answer
606 views

I would like to publicly share the details of my investment portfolio. What websites add value in this regard?

I want to have the ability to share the details of my holdings and have a website track the return over time while making this information 100% public to anyone who may be interested. What websites ...
5
votes
1answer
1k views

Where can you find historical PEs of US indices?

Indices tracking ETFs * DIAMONDS Trust I (ticker: DIA) tracks DJIA * SPDRs (ticker: SPY) tracks S&P 500 * NASDAQ 100 Trust (ticker: QQQQ) tracks NASDAQ 100 * iShares Russell 2000 (ticker: IWM) ...
5
votes
3answers
242 views

Fund or ETF that simulates the investment goals of an options “straddle” strategy?

With all the market volatility of late, I was thinking that it might be a good short term strategy to employ a straddle approach. For those not familiar with Options trading: This is a strategy ...
5
votes
2answers
122 views

Does it make sense to talk about an ETF or index in terms of technical indicators?

For example, a story today talked about SPY approaching support levels. Given that the price of the ETF is essentially determined by the price of its constituents, does this even make sense? Do ...
5
votes
1answer
143 views

Are there any funds tracking INDEXDJX:REIT?

I'm looking to get into real estate, and topic index seems promising on a 5-10 year scale. Are there any ETFs, or mutual fund products offering to track this index?