Timeline for Why would anyone ever invest in a cash-only etf?
Current License: CC BY-SA 4.0
11 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Aug 1, 2019 at 11:45 | comment | added | Navin | @ChrisCirefice 1% is a huge fee. It only sounds low because alternatives can be even worse. | |
| Jul 31, 2019 at 14:22 | comment | added | Martin Bonner supports Monica | @Acccumulation Transferwise doesn't have a bid-ask spread. They use the mid-market rate (and charge a separate fee). | |
| Jul 31, 2019 at 13:52 | comment | added | Acccumulation | @MarcoDemaio Currency exchanges have BA spreads, too. That's one of the points of a cash ETF. It's creating a security that represents cash, but can make use of the tools of a stock exchange, reducing friction and therefore the bid ask spread. If you're claiming that the BA spread on cash ETFs are higher than the BA spread on a currency exchange, do you have a cite for that? | |
| Jul 31, 2019 at 10:31 | comment | added | Marco Demaio | Whatever you think to save in currency exchange fees you pay it back because of the bid/ask spread on the book of the ETF itself. Hence I would say it's useless to buy/sell a cash ETF to save on currency exchange fees. | |
| Jul 31, 2019 at 4:09 | vote | accept | Juan Antonio Gomez Moriano | ||
| Jul 30, 2019 at 19:56 | comment | added | Acccumulation | @ChrisCirefice This is more for investors with a large portfolio. 1% on $100k is $1000, Brokerage fees are generally much lower. | |
| Jul 30, 2019 at 18:43 | comment | added | mbrig | @ChrisCirefice the usual fee structure I've seen for buying and selling stocks is a flat fee per transaction. So I could pay $5 to buy a single $50 share, but I could also pay $5 to buy 10k shares. Assuming you can get your brokerage to move your shares between indexes ("journal them") for free, it could save a lot of money on higher transfer amounts. | |
| Jul 30, 2019 at 16:26 | comment | added | Chris Cirefice | Is exchanging money really that expensive nowadays? You can for example set up an online bank account with a company like Revolut, transfer money to it using Transferwise (generally less than 1% fees), then use that account for investing? I don't know how much brokerage fees are, but wouldn't they be less than Transferwise fees? And if you already have a bank account in Europe (like I do), then you can just transfer. I think I've transferred about 7,000€ total with maybe 60€ in fees over the past 2 years. I'm not sure how that stacks up against brokerage fees. | |
| Jul 30, 2019 at 12:18 | comment | added | MSalters | @Mast: There's no law that mandates currency exchange fees. You're just paying different parties (ETF broker) | |
| Jul 30, 2019 at 11:30 | comment | added | Mast | Norbert's Gambit, that's legal? Must be a downside to it somewhere, surely? | |
| Jul 29, 2019 at 17:58 | history | answered | Acccumulation | CC BY-SA 4.0 |