Questions tagged [etf]

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

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71 views

European Etfs following sp500 while European markets are closed [duplicate]

The are ETFS that are traded on the EU stock exchanges that follow the SP500. My question is if for example at 3pm New York time (when European markets are closed) the Sp500 crashes 15% how this will ...
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1answer
103 views

What are the specific vulnerabilities of large-index tracking ETFs to sudden market moves such as crashes?

For instance, are tracking errors likely to increase during a financial/market crash and thus pose a risk to ETF investors who count on effective replication of the underlying index at all times ?
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53 views

How does an ETF that tracks a foreign stock index work? - Potential arbitrage opportunities because of time-zone? [duplicate]

Suppose I live in the US and want to buy an ETF share traded in the US. I would already know how Chinese stock market performed by the time the US market is open because of the 12-hour difference. ...
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1answer
77 views

Consequences with liquidity issues for an index fund or ETF?

In the media in recent months, there were mentions of liquidity risk of index funds and ETFs (sparked by some statements by Michael Burry). My question is if there is a mass sell off by the public of ...
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3answers
52 views

Price difference between Acc and Dist ETFs

There can be huge differences between the prices of the accumulating and distributing versions of ETFs following the same index. For instance, as of 17 Jan 2020, the NAV of the accumulating version ...
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1answer
189 views

Are there Bond ETF’s that don’t go down? [duplicate]

I would like to put some percentage of my money in an investment that only goes up, even if it goes up only by a small amount. One way to do this would be to put my money in a bank account, but I’d ...
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2answers
101 views

All-in-one international ETF vs weighted region-based ETFs performance

If you only consider returns (and not trading fees or total expense ratios or tracking errors as mentioned by D Stanley below), what would be the difference between a single ETF and several ones ...
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39 views

Is Trading 212 fair and legitimate broker for buying ETFs?

I am looking for a way to make an investment into an ETF. Many of the low cost international brokers are unavailable in my country while the local banks have fairly high commissions. I got a ...
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0answers
39 views

Accumulating or Distributing ETFs?

I am 32 years old and have started to invest passively in low-fee stock ETFs: one global (VT) and one local Swiss ETF (CHSPI). However I was not sure whether to buy accumulating (dividends auto-...
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1answer
43 views

Do you know any broker in Europe that has american ETFs available in their offer? [closed]

Due to some new law from 2018 you can't buy in Europe american etfs like SDPR S&P 500, iShares Core S&P 500 or others. Do you know ANY European broker who allows i? I found only DIF Brokers ...
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1answer
98 views

How the fee of ETF VTI is calculated?

For the ETF VTI, I tried to calculate the fee, but my number doesn't match that $71. Here is my calculation: Am I missing anything? The total fee the way I calculated is $45.57. The formulas I ...
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2answers
63 views

Why does CAD-hedged S&P 500 ETF suddenly not track to actual index

At the time of posting this question, the BlackRock ETF XSP is down approximately 1.3% during the period Dec 24 9:30 am - Dec 31 10:30 am, while the actual index is down approximately 0.3% during the ...
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2answers
3k views

Why there is difference between performance of Vanguard S&P500 (VUSA) and S&P500 index

I have been recently reviewing my Vanguard S&P500 (VUSA) performance and I have noticed that it does not correlate with the performance of the same ETF on their website. Inside Vangurad ...
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1answer
82 views

IVV, how much did it really go up? [duplicate]

I am invested in IVV and was surprised today when I saw the S&P500 and VOO shoot up 0.7% in the morning, while my IVV shares only went up ~0.02%. The day ended with the S&P 500 up 0.71% and ...
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121 views

How might ETFs accelerate a “crash” [closed]

I am editing my question to pose the inquiries first in order to hopefully emphasize their objective, rather than subjective nature upfront. Here is my question: Am I correctly understanding the ...
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88 views

Invest in stock, ETF etc. for a minimum amount of time?

Is there any financial product that would allow someone to invest a sum X (once or maybe periodically) in a single stock, an ETF or similar for a minimum of say 25, 50 or even 100 years? I'm not ...
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12answers
16k views

“Don't invest now because the market is high”

I have heard many people in my life say things like The market is low so it's a good time to invest or The market is high so don't invest It makes me wonder if mean-reversion is actually a ...
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1answer
78 views

Fractional-Cent Dividends & Official Sources

How do fractional cent dividends work? In ETFs such as SPY, which represents a group of stocks, the dividends come from pooling the underlying dividends and comes to a long decimal (such as $1.383619 ...
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1answer
90 views

How to find equivalent US or Worldwide ETFs that are compliant with European PRIIPS regulations?

I used to invest in the following hyper-diversified portfolio : +--------+--------------------------------------------------+-------------+ | ticker | Exchange-traded Fund ...
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1answer
83 views

Does a high turnover rate of ETFs matter now when online traders offer zero commission for trading?

In the US, a high turnover rate of ETF underlying assets generally passes the cost to the investors who purchase those ETFs. Now multiple online traders such as Schwab and TD Ameritrade offer zero fee ...
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1answer
208 views

Why does this ETF appear to have price drops that are (virtually) infinite over the last 5 years?

According to Yahoo Finance, the Vanguard ETF VERX.AS has several (almost) infinite drops if you look at it over the last 5 years (I don't provide the link because it is extremely long, but below there ...
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2answers
99 views

Clarification about ETFs and Index Funds with regards to sell operations [duplicate]

I'm trying to understand the difference ETFs and index funds in terms of selling them (if you want to get rid off them quickly for any reason). As far as I understand, if you want to sell an index ...
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1answer
108 views

Why'd it cost too much to start Canadian-listed ETFs that directly hold developing markets' stocks?

To wit, why isn't there an analogue of XEF (that holds developED markets' stocks) for developING markets? Foreign Withholding Taxes by Justin Bender and Bortolotti don't list this category. I'm not ...
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2answers
59 views

Why does ETF creation and redemption involve longing and shorting?

These diagrams never moot shorting or longing for ETF creaption and redemption. Top to bottom: ETF.com, JustETF, Vaneck. So why does Paige Kyle (nee Corson) moot longing and shorting? She has ...
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0answers
70 views

Leveraged NASDAQ ETF outperforms 3x non leveraged NASDAQ ETF?

I was reading article an about leveraged ETFs on seekingalpha and found this: High-beta strategies have the potential to help you achieve your goals. Of particular interest is the fact that having ...
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2answers
80 views

MER of an ETF that holds another ETF?

I have an ETF: VFV (VANGUARD S&P 500 INDEX ETF) that has a fee of 0.08%. This ETF is traded in Canada and holds the U.S.-domiciled Vanguard S&P 500 ETF: VOO. This fund has a fee of 0.03%. ...
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2answers
142 views

How do ETF commissions work?

Let's suppose that I live in the UK, and that I have £10000 invested in Vanguard's VUSA. This ETF has an ongoing charge of 0.07%. This, added to the 0.15% account fee, it's a 0.22% total. That means ...
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2answers
48 views

Is the UK ISA's tax relief applied to ETFs that hold stocks of non British companies?

Is the ISA's tax relief applied to ETFs like VUSA (S&P 500 index tracker), which holds stocks of countries other than the UK?
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77 views

Any ETF composed of high volatility stocks? [closed]

Question I am looking for American stocks showing high price variance (volatility) Rather than calculating historical price change to check the individual stock's variance, I would like to find a "...
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1answer
112 views

Why have treasury prices risen despite increasing interest rates since the Great Recession?

ETFs that track treasuries have risen despite the fact that the global economy has stabilized since 2008 and interest rates have risen (from near 0 to ~1.5%) My (very simplistic) understanding of ...
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1answer
140 views

What is the layman's explanation of ETFs and how does one trade U.S ETFs?

I'm new to the field of investment and would like to understand ETFs, they have not been clear to me even though I tried a bunch of YouTube tutorials. Also, how is it possible for a European resident ...
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2answers
71 views

Online portfolio return calculator [closed]

Is there a online calculator where I can punch in ETFs that I want in my portfolio and it shows the return over time? I want to add GLD, VOO, VGT to see what my return would have been and then ...
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1answer
75 views

Are options on popular ETF considered section 1256 contracts?

I want to learn about 1256 contracts and am wondering if options on common ETFs (like QQQ, SPY, DIA) (not futures) are considered section 1256, because these ETF tracks broad market but does not ...
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3answers
150 views

S&P 500 Longevity and ETFs

According to this forecast S&P 500 companies longevity (the time they exist in the index) will reduce from 24 years to just 12 by 2030 mostly due to tech disruptions. For an S&P 500 ETF ...
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1answer
720 views

Is the Fidelity ZERO Large Cap Index Fund (FNILX) a better alternative to the Vanguard S&P 500 ETF (VOO)?

Goal I'm looking for a long term investment vehicle outside of a tax-advantaged account. It's possible I'll be making regular contributions using a dollar-dost averaging strategy. I'd also like to ...
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3answers
180 views

Do I need a brokerage account to invest in ETFs?

I want to start investing in ETFs, but this is my first time doing this and I don't know what do I need to do for buying stocks. I want to buy some ETF that tracks an index such as S&P or FTSE100,...
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2answers
220 views

How often do the S&P 500 components change?

And do index funds such as SPY and VOO usually rebalance immediately to reflect the change?
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44 views

Check benefits lost in currency exchange in an ETF that tracks a foreign index

Given an ETF or index fund that tracks a foreign index but is offered in your country's currency, how can you know how much money is the ETF/Fund management taking when exchanging currencies? For ...
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2answers
145 views

Does trading currency choice in a Gold ETC make a difference when base currency remains same?

The WisdomTree Physical Swiss Gold Exchange Traded Commodity is available in trading currencies of both GBP (SGBX.L) and USD (SGBS.L) on the London Stock Exchange. I believe that the base currency ...
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1answer
51 views

What's the difference between a fund and a security?

I have always used the terms synonymously but I think there is technically a different between the two. For example, given two seemingly similar assets, one is classified a security and the other a ...
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3answers
831 views

Understanding the past growth of an ETF

I'm trying to understand the grow of an ETF (Vanguard VOO) over the past year. I have checked both the Vanguard web page and Google, for the same ETF, and they show massive different growths. In ...
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2answers
188 views

Balanced index fund that tracks S&P 500

I'm looking in Vanguard some balanced (stocks + bonds) index fund / ETF that tracks the S&P 500 but the only thing I've found is: VFINX: https://investor.vanguard.com/mutual-funds/profile/VFINX ...
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3answers
124 views

Diversification in mutual funds and ETFs

I'm trying to undertand deversification in mutual funds, specially in contrast with having your own stocks. Mutual funds and ETFs that track some index (S&P, DJIA...) are diversified by ...
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2answers
275 views

Why some ETFs delay payment of dividends after Ex Date?

I was looking at ETFs and noticed that etf like QQQ, DIA( Ex date is 09/20/2019 but pay date is 10/15/2019) pay dividends about 5 to 6 weeks after the Ex-Dividend date . But other etfs (e.g IVV, VOO) ...
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1answer
191 views

Do low cost ETFs or mutual funds really do well for an investor?

There are many ETFs, Mutual Funds and Unit Trusts in the market. Some ETFs advertise a low Expense Ratio and Total Expense Ratio. There are many examples: IVV, VOO and SPY for S&P 500 VNQ, RWR ...
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1answer
114 views

Stock promotion laws/regulations

Does the SEC have any guidelines regarding companies promoting the purchase of their shares to hedge funds, pension funds or ETF issuers? Is it legal for companies to compensate ETF issuers or mutual ...
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1answer
50 views

Why does XMM's performance differ significantly from its benchmark index?

XMM is a Canadian-listed iShares ETF that tracks the MSCI Emerging Markets Minimum Volatility Index. Its holdings are 99% EEMV, the US-listed version of the same ETF. While EEMV tracks its index ...
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2answers
299 views

Do physical ETFs possess the same problems as CDOs?

Today Michael Burry explained to Bloomberg that ETFs are comparible to subprime CDOs, in that investors are buying securities that aren't backed by any real value: Passive investing has removed ...
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2answers
201 views

Why are some managed funds' fees larger than their ETFs fees

In Australia vanguard offers the LifeStrategy® Balanced Fund (a blend of bonds, shares and so on), it has a management fee of 0.9% per year for the first 50,000$, 0.6% for up to 100,000$ and 0.29% ...
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2answers
2k views

Buying an US ETF from Europe using Interactive Brokers

I am trying to buy an ETF using my account in Interactive Brokers. I am surprised to see that it is not possible. I am living in Europe and trying to buy an ETF in US dollars. Their response to ...