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Questions tagged [etf]

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

0
votes
1answer
55 views

Is my approach to evaluating real estate investment vs. ETF investment correct?

Someone asked me how well a property investment performs relative to ETFs over the course of 10+ years. My financial literacy is extremely low, and I just became aware of the concept of ETF last week....
-1
votes
0answers
30 views

commodity ETF and tax filing (software vs in-person) [on hold]

From my understanding, owning commodity ETFs has the potential to invoke headache when it comes to filing tax in the US. I wonder if anyone here has the experience of comparing tax-filing software and ...
1
vote
2answers
64 views

How are ETF prices calculated after the market is closed

For example: Because the NASDAQ: DAX is tracking the index INDEXDB: DAX should its trading value be completely flat when the market the markets are open in the US, but closed in Germany? I'm not ...
11
votes
2answers
2k views

Why is an ETF, which is tracking foreign equities, ticking in my local time zone?

I have recently bought the N100 ETF, which tracks the Nasdaq 100. This is an Indian ETF. So, if it is tracking the Nasdaq 100, then why and how is it ticking in my (Indian) timezone?
1
vote
0answers
69 views

How can this ETF's cost basis be lower than the money I put in?

I invest in a long term treasury ETF. I have only been buying this and never sold any shares. I looked into the entire transaction history. There are three categories of transactions: Buy: These are ...
0
votes
1answer
39 views

Short duration corp bond ETF

I am considering a short duration corp bond ETF to get some interest on my money which is starting pile on on my zero interest account. I am however concerned about the fact that we have had low ...
1
vote
1answer
32 views

Characterising risks of an corporate/goverment bond ETF's

I have been looking at different conservative investment strategies such as 50/50 "interest fund", "global stock fund" and "the permanent portfolio". As an alternative, I was looking for corporate ...
0
votes
3answers
67 views

Tax loss harvesting with ETFs

With the big market drops, I'm thinking of doing some tax loss harvesting. I've never done this before, so want to make sure I do it right... I'm on Fidelity if it matters. I have a self managed ...
1
vote
0answers
24 views

How does a typical bond ETF provide tax information to the investor in Canada?

Before deciding whether to use registered or unregistered (taxable in Canada) account, I'd like to understand the complexity of tax reporting as a result of holding bond ETF, for example BMO ZFL (long ...
1
vote
1answer
89 views

How can an EU citizen best hedge NASDAQ?

Background: I have a NASDAQ-heavy portfolio, and wanted to use the SQQQ ETF (Short leveraged Nasdaq-100 ETF) as a way to hedge on days when I expect the whole index to go down (one sub-question here ...
7
votes
1answer
177 views

When a stock is replaced in an index, does the ETF incur a net loss?

Suppose I have invested in ETF VOO. This Vanguard ETF tracks the S&P 500. If a stock such as Goodyear (GT) that is contained in the S&P500 gets removed and replaced with another stock such ...
1
vote
3answers
74 views

Understanding bond ETFs

I am failing to understand the bond ETFs. I somewhat understand stock ETFs: ETFs own stocks, I buy a part of ETF, therefore, I also indirectly own stocks. When I sell my share of ETF, the ETF gets ...
0
votes
1answer
39 views

ETF annual expense ratio: how to calculate on a portfolio?

I'm building a portfolio on Excel that includes the following data: price at purchase number of shares commission/fees current price How should I calculate the impact of the Annual Expense Ratio to ...
1
vote
0answers
22 views

Dividend tax for Non Resident Alien owning US domiciled international stocks ETF

What is the US dividend tax rate for a non-resident alien owning a US domiciled ETF holding non-US companies? Assume no tax treaty so the tax rate for the SPY ETF would be 30%. An example would be a ...
2
votes
2answers
191 views

Am I confused about how to diversify into bonds?

I held several Vanguard equity ETFs (VFIAX, etc.) I wanted to diversify into bonds (as discussed in "A Random Walk Down Wall Street"), so I sold some of them and bought BLV. As stocks have declined, ...
0
votes
2answers
127 views

Allocation basics not so basic [closed]

I've been trying to put together a long-term (15-20 years) ETF portfolio (stocks only, no bonds). As I read about the investment and allocation basics, I realized it's far from simple. I would like my ...
1
vote
1answer
32 views

Calculating the decrease in effective yield from turnover rate of ETF

I want to invest in a high dividend ETF. Two ETF's that I'm comparing are: SCHD Distribution Yield TTM: 2.57% SEC Yield (30 day): 2.92% Portfolio Turnover: 15% Net Expense Ratio: 0.07% 1 Year tax ...
0
votes
2answers
245 views

why does a 5% dividend-paying etf gets only 1-star on Morningstar?

An ETF that distributes dividend at 5% is rated only 1-star by Morningstar and considered low return on a historical level (by a different matrix). However, when looking at the chart in 2017, the NAV ...
1
vote
1answer
43 views

How can I effortlessly see if an ETF listed in Canada contains equities that require withholding tax to be paid?

My Canadian grandpa fancies avoiding withholding taxes. I quote Moneysense: Another advantage of U.S.-listed ETFs is that they may be more tax-efficient in RRSPs. A full explanation is complicated, ...
6
votes
1answer
445 views

Why buy mutual funds when equivalent ETFs exist?

Vanguard has ETF versions of several of its mutual funds. I don't know if they are are 100% equivalent but the Vanguard site itself to them from the mutual fund pages. Why would someone chose to ...
3
votes
4answers
247 views

Are Robo-advisors a Good Idea?

I like the idea of a Robovisor like the Schwab Intelligent Portfolio, Wealthfront, etc. But recently, my own experiences have been...a little worrisome. Despite the market being fairly bullish, and my ...
3
votes
3answers
1k views

Help getting started (I've just opened a trading account) [closed]

I'm new to online trading and to investing. I also don't have a lot of money. I want to start by investing maybe $200 to learn the ropes. I know it's not a lot but it makes me less nervous about ...
2
votes
2answers
106 views

What happens to ETF distributions during a market crash'?

Every month I invest a percentage of my income in three ETF's. Two provide distributions and income to me every three months. My thoughts are: The distributions come from dividends from the ...
1
vote
2answers
74 views

How to chart what a mutual fund or ETF will return if dividends are reinvested?

When looking at financial charts like bigcharts.com, the chart shows closing price (or OHLC) for each day. This shows growth (or decline) of the equity if dividends are not reinvested. But what if ...
1
vote
6answers
178 views

Leveraged Etfs vs s&p500 in bull market

I read everywhere online that leveraged ETFs shouldn't be bought for the long term. Here is a comparison between TECL (Technology Bull 3x) and the S&P 500. As you can see, the CAGR is 32% in the ...
3
votes
4answers
349 views

Are there corporations in which I can invest with a clear conscience? [closed]

Are there corporations in which I can invest with a clear conscience? I would like to save money for the pension and invest in the stock market, but I am not sure which companies act sustainably, ...
3
votes
4answers
193 views

Why is there a market for high dividend ETFs?

The ETF paying the highest dividend is around 4%. However, the growth is low, maybe 70% for past 5 years. On the other hand, some tech ETFs pay only a 2% dividend but they have a 150% growth rate ...
2
votes
1answer
268 views

How can Vanguard sell ETFs for no fee?

One can trade Vanguard's ETF with no fee for buying or selling. I have made several trades ( on the internet - no agent) over the last year for no fee. How do they make money ?
0
votes
0answers
42 views

Are ETF creation units required to be similar to the existing holdings?

An authorized participant offers an actively managed ETF manager a basket of securities which are eligible to be held by the fund, but are not currently held. The manager thinks the price is ...
2
votes
2answers
100 views

What limits the number of authorized participants for an ETF?

It is my understanding that authorized participants are typically market makers. Is there a legal reason that prevents an ETF operator from allowing anyone to submit a basket? Or is it driven by ...
0
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2answers
59 views

how to estimate bond ETF price once interest rate changes?

I'm looking at an example bond ETF which track bonds that expire on 2027 which means its for almost 10 years to its intermediate-term bond tracking. I understand that if interest rate would go up, ...
2
votes
1answer
108 views

What are the fees for selling ETFs from a savings plan in Germany?

When I create a savings plan for ETFs in Germany at a german bank, I collect securities, ETFs in this context, over time. After the end of my savings plan's duration, I do not exactly understand what ...
3
votes
2answers
212 views

Criteria for selecting Bond ETFs

My investments are split between 4 ETFs (US, International, REIT, and bonds). Until recently, bonds were a relatively small part of the portfolio so I didn't put much thought into it and selected a ...
3
votes
1answer
149 views

Does Yahoo finance adjust ETF's historical data for splits and dividends? (not stocks or shares)

On the ETF's graphs I see there are steep falls. There is a legend indicating the ETF was split 1:10. However like Stocks or Shares, I don't see the price being adjusted for splits. Is this correct, ...
1
vote
0answers
40 views

How can I determine what a fund is composed of

I have money in some ETFs / mutual funds, such as xme, vtiax, vyml, and vgt. Until now I have considered them 100% stock, when balancing my portfolio. It is occurred to me that maybe these are ...
0
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0answers
103 views

Are there speculative ETFs analogous to investment funds?

Are there ETFs that bundle up highly speculative investments with high risk/reward profiles? For instance, they might currently include Zambian, Nigerian, Brazilian and Venezuelan bonds; ...
2
votes
1answer
403 views

Why did VOO (Vanguard S&P 500 ETF) diverge from the index (and SPY) on June 28, 2018?

The question just about says it all. See the attached chart, in which VOO is darker blue, the index is light blue, and SPY is violet - leading up to June 28th, the 3 moved more or less in lockstep, ...
3
votes
2answers
152 views

How can I tell if an ETF is expensive?

For stocks, I can easily look at the price/earnings ratio, and, according to The Intelligent Investor, stand clear of those with a ratio higher than 20. How can I tell if the current price of an ETF ...
1
vote
1answer
118 views

Do the holders of an inverse ETF bear “unlimited” risk

We all know these two things: Inverse ETFs bet against a pool of stocks. This might include short selling the stocks and buying puts. Short selling has a limited upside but an unlimited downside. In ...
3
votes
1answer
151 views

S&P 500 VFAIX (Mutual Fund) vs VOO (ETF)?

I currently have just under $10,000 in a Vanguard Roth IRA brokerage account. So far I have purchased VOO ETFs since they have a lower expense ratio than VFINX. My next contribution will put me over $...
1
vote
1answer
97 views

Bond ETF's: why isn't the nominal value of the underlying asset mentioned anywhere?

I am wondering why you never see the (weighted) nominal value of the underlying assets of a bond ETF mentioned anywhere. It seems to me this information is needed to determine whether a bond ETF is ...
3
votes
2answers
166 views

When you buy an ETF, do you give cash to the fund manager?

When you buy a stock from the market, you exchange it with someone. When you buy an ETF, do you give the fund manager money so that he can buy more of the assets that the ETF is supposed to mirror, or ...
0
votes
4answers
81 views

Why does the price of the basic (Bull 1x) index ETF fluctuate intra-day?

Why does the price of the ETF fluctuate so much during the day? I'm looking at SPDR S&P 500 ETF (NYSEARCA:SPY) candle stick chart for the period March-April. Isn't the ETF manager supposed to ...
0
votes
1answer
55 views

Risk of basic (Bull 1x) ETF

Is there any risk associated risk to holding the ETF for short term or for an extended period, apart from the risk that the underlying assets go to zero? In other words, is it more risky than owning a ...
2
votes
1answer
117 views

How do you compare two ETF's that follow the same index

Firstly, sorry if the terminology of my question is not correct, I'm quite new to investing. I am having trouble understanding the differences between two ETF's that follow the same index (a ...
0
votes
1answer
29 views

Explicit margin requirement for RPUT ETF?

I read RPUT ETF prospectus and there is this paragraph: The number of RUT Puts sold by the Fund varies month to month but is limited by the amount held by the Fund in Treasury bills, the value of ...
2
votes
1answer
112 views

Is Nasdaq stock an ETF?

Newb here. Is https://robinhood.com/stocks/NDAQ an ETF, aka if I buy this, is it a composite index (like QTEC)? Meaning if I buy NDAQ am I really buying a composite index, or am I just investing in ...
2
votes
3answers
80 views

Given a tax-advantaged account with commission-free funds, is there any disadvantage to frequent rebalancing?

In my retirement accounts, I have lazy portfolios consisting of a few index fund ETFs that my broker offers commission-free trades on. I would like to rebalance these funds not only to keep my ...
1
vote
0answers
70 views

US ETF as EU investor (Ireland)

At the start of this year the EU made it so we are unable to buy US domesticated ETFs in Europe. I'm located in Ireland and domiciled there for tax purposes. We have to pay a 41% exit tax every 8 ...
0
votes
0answers
82 views

ETF - Why are the fees so different?

I'm doing some research to set up my ETF portfolio. I've noticed that some ETF's seem almost perfectly similar, the management fees are sometimes not in line. Let's look at Europe for example. I ...