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Questions tagged [etf]

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

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0answers
54 views

Why do institutional investors use ETF?

Motivated by this question but at institutional level. To clarify I am not talking about the market making trading firm that arbitrages the price inefficiency of ETF and underlying assets. I am ...
4
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1answer
346 views

Why not just directly invest in the holdings of an ETF?

Consider an actively-managed ETF with a NAV of $23 and an expense ratio of 0.85 that consists of 30 stocks. Is there a point in buying the ETF, despite the stock picks being very good? The expense ...
2
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1answer
156 views

Why is it hard to find a list of individuals currently on the S&P 500 Index Committee?

All I've managed to find is that David Blitzer is the Chairman, but can't seem to be able to know who are the others, how many, from what industries, how they get elected, etc. Just trying to map out ...
5
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3answers
245 views

Why does the iShares EEM ETF have a higher expense ratio than similar ETFs like VWO?

Why is iShares able to charge more for EEM in comparison to VWO (a very similar ETF)? Investors/Traders are mostly institutional and in general, these entities have more insight (though simple ...
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1answer
43 views

Buying stock/ETF and nationality?

I recently tried to setup a Finanzen.net account to start playing with a trading app here in Germany, however only a specific list of nationalities are allowed to do this. Is there a way to buy stock/...
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1answer
42 views

How to improve geographical diversification?

Recently realised on my investments' geo distribution map that they are largely (~83%) in NA/EU. Given this, should I diversify by region further? What kind of ETFs/funds in general avoid NA/EU? ...
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1answer
39 views

How are percentage of investments decided in index fund like VTSAX?

I see that Portfolio composition - has about 20% technology, 19% financials etc - and there is similar composition for companies. This is a general question for index funds - specific example for ...
4
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1answer
242 views

How many ETFs have been closed so far?

I am thinking about investing my money in an ETF as they seem to be a relatively safe way to invest money over a long term (~20 years). However, I don't like the "seem to be". Are there numbers on ...
2
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1answer
78 views

How does ETF price actually track index price?

Imagine S&P goes -5% and so, technically, should VOO. But VOO is a stock itself - subject to supply and demand. The market could just happen to demand many VOOs and push its price up. Why doesn't ...
3
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1answer
85 views

How to find out the list of companies of a fund?

It is possible to find the full list of companies for a fund, like UBS ETF (LU) MSCI World Socially Responsible UCITS ETF (USD) A-dis? In particular, I would like to know if it contains Monsanto, ...
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1answer
61 views

ETFs with 2 ISINs - what's the point?

I noticed that some funds are available under different ISINs. For example the HSBC FTSE EPRA NAREIT DEVELOPED UCITS ETF: IE00B5L01S80 DE000A1JXC78 When looking them up I can't identify real ...
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1answer
65 views

Can I invest using the All Weather Portfolio strategy buying US stocks but on the London Stock Exchange?

I really like Ray Dalio’s ‘All Weather Portfolio strategy’ and I would like to follow this, but I’m struggling to find relatable USA ETF’s that I can buy into on the LSE. Even if I did manage to find ...
3
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1answer
125 views

How to select ETFs on to invest on?

In the last couple of years I have been trying to educate myself in what concerns finance. I have put some money on some financial products (shares and ETFs) but I feel like I am playing the roulette ...
2
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1answer
93 views

Ishares Portfolios for EU investor

I am 29 at the moment at looking to start investing as much as I can and build a long term portfolio (aiming at around 2000 USD/month). Since I am based in the EU, I have no access to US based ETF ...
1
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1answer
41 views

Cash Component in Index

In one of the office discussions today, it came up that index, for example, can have cash also. This information was new to me and I couldn't understand why an Index will have cash? Could someone ...
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0answers
52 views

Are there advantages to buying an ETF directly through a brokerage?

I'm looking to purchase shares of an ETF (e.g. one of the Vanguard growth funds) but I'm wondering if there's any advantage to setting up an account directly with vanguard vs my current brokerage? For ...
1
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1answer
69 views

How to estimate the average cost-per-share of a not-very-liquid ETF purchased with a market order?

I'm a Canadian resident and a few months ago I bought a US-listed Vanguard ETF of European stocks (VGK). There was a Canadian-listed version of this ETF (VE), but I chose the US-listed one because the ...
3
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3answers
160 views

Are bond index funds a safe way to save for a mortgage down payment?

I came across Betterment's "Smart Saver" account today, which is a savings-account alternative that invests in U.S. Treasury bonds and low-volatility corporate bonds. The APY is almost exactly the ...
2
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1answer
92 views

Does the price per share matter for otherwise similar ETFs?

For example looking at IE00B5BMR087 and IE0031442068 (both links in German), they seem to be very similar. Both try to track the S&P 500 in the same ways, the main difference seems to be that one ...
2
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1answer
49 views

Do USD-denominated ETFs offer the same protection than EUR-denominated ETFs against a weakening USD->EUR exchange rate?

Do USD-denominated ETFs offer the same/similar protection than EUR-denominated ETFs against a weakening USD->EUR exchange rate? Assume that these ETFs solely contains European holdings (e.g., firms ...
16
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9answers
2k views

Are ETF trackers fundamentally better than individual stocks?

My situation: I am mostly interested in long-term dividend-paying investments. My philosophy is "only sell if the company becomes fundamentally worse", so I only pick stocks of companies I feel ...
3
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2answers
335 views

ETF asterisk clause meaning

I'm choosing an ETF, and reading this KII document, I'm not sure what this sentence means. Can anybody expand this language with an example? Is this typical for an ETF? To the extent the Fund ...
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3answers
322 views

Are there any non-decreasing securities on the stock market?

Are there any securities traded on the stock market (i.e. ETPs) that never decrease in value? As an aside (in case anyone mentions bonds): I'm aware there's ETFs for AAA-rated government bonds, but ...
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4answers
373 views

Is every active fund bad?

My father (who actually is in banking) recommended me an active fond (https://www.finanzen.net/fonds/deka-globalchampions) in which I invest since some quite some time monthly as long-term investment. ...
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0answers
56 views

Bond ETFs slowing down after 2015. - why?

I see a lot of bond ETFs have very low gain, or even stay flat during 2015. - today. For example Eurozone Government Bond or US Treasuries. What is the reason for this?
3
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1answer
164 views

What kinds of ETFs weathered well the 2008-2009 financial crisis?

I started to do research on which ETFs kept or increased their value over a recession in 2008-2009. I saw a lot of articles which says "invest in X, because X is always in demand (even in crisis)." X ...
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2answers
59 views

What is the difference between “unités de compte” and ETFs?

What is the difference between "unités de compte" (often proposed in assurance-vies) and ETFs? I don't see the difference when I read the definition on https://www.journaldunet.fr/patrimoine/guide-...
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0answers
65 views

What's the point of commission free ETFs for the brokers? [duplicate]

Fidelity, Ameritrade, Vanguard and now Schwab offer no transaction fees ETFs. how do they make money by selling these ETFs ? what's the catch ?
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1answer
28 views

Question about Emerging Market index - EEM ETF

I read that the EEM ETF replicates the Emerging Market index. Which leads me to ask, is there an official Emerging Market index? Or what exactly does it replicate? I've found the following index: ...
1
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1answer
36 views

ETF currency confusion: EUR vs GBP

Currency confusion. Looking at the ETF: Stoxx Europe 600 UCITS ETF 1C, it says: "Share Class Currency: EUR". Listed on the London Stock Exchange, this fund has the price listed in GBP. I need to ...
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1answer
80 views

Did Schwab's Emerging Market ETF really pay no foreign tax related to the final distribution in 2018?

According to the 1099 from my broker, the Schwab Emerging Market ETF (SCHE) did not pay any foreign taxes associated with its final dividend for 2018, declared 12/28/2018. I'm quite skeptical as ...
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0answers
47 views

What does negative holdings in ETF mean?

For example in this ETF, the full list of holdings as of today is: TD International Equity Index ETF (TPE) 99.88% Cash and Cash Equivalents 88.88% JPY Currency 23.53% CHF Currency 3.37% SGD ...
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0answers
19 views

Are there any possible complications when calculating capital gain while trading gold ETR, compared to regular ETFs?

In particular, is MNT.TO ETR treated any different from ETFs when calculating ACB? I assume that it pays no dividends, and thus buy/sell would be the only taxable events, or am I missing anything? I ...
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1answer
91 views

Is the issuer of an ETF a risk to consider?

When it comes the price of an ETF, I understand that it reflects the value of the underlying assets. What happens where a company that issues ETF comes into play on the decision of people whether to ...
2
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1answer
315 views

How is a mutual fund and ETF priced?

Is a mutual fund and ETF priced the same way? regardsless of what it contains and if it pays didivends? Is it basically the price of all the assets? or is the demand in the market(as with a stock) ...
1
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1answer
40 views

Tax on Irish ETF as US tax resident

I am moving to the U.S on a H1B visa. I have a portfolio of accumulating ETFs domiciled in Ireland. What will be the tax implications of this in the U.S if I plan to rebalance this portfolio every ...
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1answer
57 views

MSCI Total Return Net USA Index?

Looking at Xtrackers MSCI USA UCITS ETF fund. Under "Index Description" it says: "The MSCI Total Return Net USA Index which is designed to reflect the performance of the shares of certain companies ...
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0answers
30 views

ETF and Underlying Index Arbitrage

if an ETF has a slight tracking error with regards to the index it is tracking, shouldn't that be easy to arbitrage? What Arbitrage strategy could be used, and why isn't the tracking error already ...
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2answers
70 views

Bid/Ask when trading ETFs?

Let's say it's an index tracking ETF. Isn't the ETF price determined by the index value? Why does it have bid/ask spread then? Could someone explain the bid/ask concept when trading ETFs.
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2answers
131 views

How to efficiently invest in ETFs with a monthly contribution?

I am confused when it comes to ETFs. Many state that their main advantage is that they are low cost. I understand that they are traded as stocks. I want to invest my money in 3 index ETFs (USA, ...
2
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2answers
203 views

How do ETF dividends work

How do dividends work when being paid via an ETF? A dividend is a share of the profit, paid to the shareholders. Whilst that is understandable when owning a stock of an individual business, how does ...
2
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2answers
118 views

Shouldn't the rebalancing of an ETF result in profit/loss

My understanding is that an ETF is a basket of a variety of stocks. When that basket is rebalanced and some stocks are sold and others are bought, won't that result in a profit/loss in the same way ...
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2answers
79 views

How exactly does a broad-market ETF work?

So it's obvious that a broad-market ETF attempts to imitate the performance of the whole stock market, but what I still don't understand is how it works and exactly what you are investing in when you ...
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1answer
50 views

ETF: ITOT ticker cost calculation?

This Forbes article says: "The iShares fund from BlackRock ticker ITOT will over the course of a decade chip only $6 out of a $10,000 investment." How is this $6 calculated? The web page for the ...
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1answer
78 views

The value/price of an ETF

From my understanding an ETF has the advantages of a managed fund with the advantages of a stock. Advantages of a managed fund: a) An ETF is a collection of stocks that are packaged into a single ...
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2answers
77 views

Calculating the ETF cost?

Let's say I invest 1000 USD in an ETF. Over the 10 year period, the shares had 5% annualized gain, meaning the value of my investment would be 1630 USD. However, I didn't take into account ETF fees. ...
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3answers
98 views

European citizen investing in MSCI USA index ETF: to hedge or not to hedge?

Located in Europe, I am thinking about a long-term (~20 yrs) investment into an ETF that follows MSCI USA Index. I am stuck: should I pick an euro hedged fund or a normal one. My salary is in Euros, ...
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1answer
143 views

Difference between investing in BRK.B and the stocks that Berkshire Hathaway invest in

For those that don't know, Berkshire Hathaway is the company owned by the legendary investor Warren Buffet. He invests in a bunch of stocks that he thinks can beat the market. As a normal investor, ...
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2answers
122 views

Why does a ETF returns does not properly reflect the underlying index?

I am looking at the following ETF : NDQ (in ASX exchange). It is an ETF that tracks the Nasdaq and is traded in the ASX (Australia). It is NOT currency hedged against the USD. On the 9 Jan 2019, ...
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1answer
147 views

Entry/exit fees for ETFs, do I need to care?

I'm saving for my retirement, partly by buying ETFs. One of these ETFs is Amundi Msci Eastern Europe EX Russia. At the corresponding Bloomberg site, I found some information that confused me: Front ...