Questions tagged [etf]

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

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1answer
67 views

How to determine date that an ETF must be owned to be eligible for the dividend payment?

According to Investopedia.com: Similar to an individual company's stock, an ETF sets an ex-dividend date, a record date, and a payment date. These dates determine who receives the dividend and when ...
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2answers
114 views

Trying to understand what happens with a brokerage firm's customers when it goes bankrupt (case of study: Lehman Brothers)

I'm trying to understand how secure it is to own mutual funds/ETFs, not in terms of market volatility etc., but in terms of judicial security (i.e. what happens to your holdings if the firm goes ...
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1answer
108 views

Is it important to read the entire prospectus before investing in an ETF?

One must understand what one is buying when making an investment. When investing in an ETF, must one always read the entire prospectus? If not, what are the boilerplate sections of ETF prospectuses ...
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1answer
35 views

Vanguard Digital Advisor Service Question

Vanguard Digital Advisor is an all-digital service that targets an annual net advisory fee of 0.15% across your enrolled accounts. From my research, your portfolio will consist of the following four ...
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1answer
21 views

Wash-sale Cost Basis Adjustment question

I wonder about the Adjustments to Cost Basis after a wash sale occur. Considering this Example 1 ( from marketwatch.com) where someone: On 1 Dec, 2018 used an amount of money in his account to buy 100 ...
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1answer
93 views

What happens with ETF if underlying index changes rapidly in a short period of time? [duplicate]

Since public interest in ETF is growing rapidly, and any novice investor looking where to put their money would probably see recommendations to invest in ETF literally within the first page of the ...
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2answers
777 views

Does wash-sale rule apply to my case?

I put like $14,000 in a Fidelity account, and $5,000 in a TD ameritrade account.I used all the money in 2 accounts to buy shares of UGL Etf on 8-18-20 (this Proshares leveraged ETF tracks the gold ...
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1answer
43 views

Can an ETF structured as a UIT be “restructured” to “new style ETF”, whatever this is?

As we learn from several questions such as "Why will SPY terminate in 2118?" and "Do all ETFs have an expiry date similar to SPY?", SPY is structured as a Unit Investment Trust (...
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1answer
30 views

What's the relationship between SPDR S&P 500 ETF listings in different countries?

SPDR S&P 500 ETF Trust is listed on four stock exchanges: NYSE Arca — Symbol: SPY ISIN: US78462F1030 Currency: USD Listing date: 1993-01-22. (source) Singapore Exchange — Symbol: S27 ISIN: ...
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1answer
102 views

Do all ETFs have an expiry date similar to SPY?

Quote from The Fate of the World's Largest ETF Is Tied to 11 Random Millennials: SPY as we know it will cease to be on Jan. 22, 2118 Also chaikinanalytics says that SPY "has an official ...
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1answer
42 views

Why do the paid prices for an accumulating ETF share follow the current net asset value per share?

It is pretty clear; if you hold a share of a distributing ETF, which is replicating a stock market index like S&P 500 for example, then you can count on regular dividends paid by the the ...
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414 views

How can I lever up my index fund returns?

Suppose I am very confident that the 1 year and 5 year returns of an index-tracking ETF will be positive. How can I lever up the returns? For example, when the ETF increases by 5%, how can I achieve ...
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1answer
44 views

How exactly do Authorized Participants determine the securities to exchange?

Inspired by "How are active ETFs possible?", I wonder about the following: As part of the regular creation process, Authorized Participants (APs) are supposed to hand in a basket of ...
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2answers
94 views

ETF of 2000 or more stocks but excludes stocks from the S&P 500?

I believe the S&P 500 is overvalued and small-cap stocks are less overvalued. So I would like to buy market index (like 2000 or 5000 companies) but without the S&P 500 companies. Are there ...
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Trying to sell an ETF only traded in Berlin and AMEX

I use Flatex for trading stocks and I bought 16 shares of SPDR S&P Internet ETF on the Berlin stock exchange. It gained in value (~22%) and I'd like to sell it. For 2 months nobody wants to buy it ...
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44 views

Is an issuer risk free financial product secure if the bank holding it goes under?

When purchasing ETFs or other financial products, I only choose finance products that are "issuer risk free", which means that in case the institution that sells these products goes broke I ...
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1answer
80 views

I've heard ETFs have issues for Americans living in the UK - what should I do if I'm looking for similar long-term growth & flexibility?

I am a U.S. citizen living and working in the UK and want to invest some of the income that I currently have sitting in savings. However, my U.S. based income is 0 (I take the Foreign Earned Income ...
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1answer
47 views

Index Options + Options calculator [closed]

I noticed that even though SPX and SPY track the S&P Index (I realize latter is an ETF and 10x lower), the options prices for a particular chain that I observed today are not exact. They're ...
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4answers
3k views

Why don't index ETFs use leverage to offset their fees and eliminate tracking errors?

If a hypothetical stock index returns 100%, an ETF tracking the index might only return 99% because of ETF fees. This introduces tracking errors. Why don't index ETFs use leverage to offset the fees ...
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2answers
98 views

Lifecycle Investing through index options

I'm a young DIY investor who is looking for ways to consistently implement the approach outlined in the Lifecycle Investing book by Barry Nalebuff and Ian Ayres. In short, they suggest using moderate ...
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2answers
408 views

I just sold my house and now have 200k+ in the bank. Should I invest it all in an ETF?

I just sold my house and now have 200k+ in the bank. I don't want the stress of owning a property right now, but I know it would be a bad idea to just let this sit in my bank account while inflation ...
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1answer
37 views

If the UVXY and SVXY ETFs both track the same VIX futures, why are they so different?

Both UVXY (https://www.etf.com/UVXY) and SVXY (https://www.etf.com/SVXY) track the first- and second-month VIX futures positions. SVXY, however, is an inverse tracker while UVXY is not. What I don't ...
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40 views

What are the implications of ETFs lending out their holdings?

I've noticed some ETFs describing how they can lend out their holdings, usually for some amount of collateral (cash, U.S. government securities, stand-by letters of credit, etc). If we take GDX, for ...
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42 views

Buying Options on non tradable ETFs

Let's assume retail investor A is based in Europe and is therefore not eligible to buy non-PRIIPs regulation compliant ETFs (i.e. ETFs with missing KIID), however, he can buy options on these ETFs (I ...
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100 views

Can you make money by predicting the average house price in the UK?

It feels like this should be possible, much like how you are rewarded for predicting the value of stocks. I'd like to find the best way to do this that's as accessible as buying & shorting stocks (...
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1answer
81 views

How can I buy an ETF on Stock Exchange of Hong Kong as an investor in the USA? [closed]

I want to buy shares in 9169.HK Vanguard Total China Index ETF in USD. Their How To Invest page says "You can buy Vanguard ETFs through a brokerage firm during normal trading hours." But ...
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1answer
58 views

ETFs/Index Fund vs Superannuation

newbie here. My understanding says index fund and superannuation products are both funds that invest in stocks, commodities, bonds etc etc For Index funds, an investor gets units for regular ...
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2answers
89 views

When commodity prices rise, do commodity production companies produce lower returns than the commodities?

Suppose I alone know that the price of a commodity will double next month, and will then stay at that level for years. There are two simple ways I could exploit this knowledge: Buy the physical ...
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0answers
28 views

After moving out of the US, should I wait until I'm no longer a resident for tax purposes before investing in EU-domiciled accumulating ETFs?

I'm a EU citizen (and US non-citizen) who recently moved back to EU from the US. I liquidated my US investments and my plan is to invest in EU-domiciled accumulating index fund ETFs (such as VUAA). I'...
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1answer
74 views

Important details about exchange trade fund? [closed]

I am a non-expert who's thinking of putting his money into stocks, and ETFs look like an attractive option. What are some important things I should know about ETFs before buying into any?
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69 views

Core-Satellite Portfolio Building Strategy

I recently heard of the Core Satellite investment strategy and found it very interesting and smart. However, I failed to find other comparable portfolio building strategies and subsequently, a ...
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2answers
75 views

Index fund question regarding Vanguard 500 Index Fund Admiral Shares - compound interest

I created an account with TDAmeritrade and started investing in VFIAX(Vanguard 500 Index Fund Admiral Shares) three years ago. At the time, I thought that I am investing in an index fund. However I ...
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53 views

Are paper gold ETFs a scam? [duplicate]

Recently I found this website that has a lot of interesting statistics and among them I noticed something that astonished me : the paper to gold ratio. I am really surprised that there is such a huge ...
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1answer
81 views

When does the tax occur when selling ETF in Germany?

For example, I'm living in Germany and want to buy ETFs from Ing bank. If I buy an ETF for 10 Euro, then later I sell it for 15 Euro (but didn't withdraw the money out of the bank). At that time, does ...
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0answers
35 views

Global risk parity ETF for European investors? [closed]

I recently learned about https://rparetf.com/rpar and risk parity funds in general, however, I cannot invest in it as a European investor since this particular product is not UCITS compliant. The ...
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2answers
88 views

Price movements in ETFs

How much money would it take to move the S&P 500 +1% or -1%? How would this be estimated?
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1answer
366 views

How exactly does MSCI earn money?

When I buy an ETF like the "iShares MSCI World", as I understand I buy a share from a fund that is managed by BlackRock (under the name of iShares). I can also buy an edition of the MSCI ...
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4answers
265 views

If everyone expects index funds to increase in value in the future, wouldn't future returns be zero? [duplicate]

Suppose everyone expects Apple to increase its earnings by 20% next year. Due to the general expectation, the current stock price will incorporate this information. For example, if subsequently Apple ...
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0answers
53 views

Is there a way to automatically get the underlying assets of an ETF? [closed]

One can check the underlying assets of an ETF through the manager's website. For example, scrolling down in the Porfolio Data tab here for the FTSE North America UCITS ETF. Since the underlying assets ...
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0answers
103 views

Why do Vanguard Mutual funds have slightly better performance than their ETF counterparts?

I'm trying to understand why in general mutual funds tend to very slightly outperform their ETF counterparts. I've put an example here but it seems to be true for the majority of mutual fund / ETFs I'...
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2answers
89 views

Why do Grayscale's cryptocurrency trusts sell with large premiums to net asset value (NAV)?

Consider the Grayscale Bitcoin Trust (OTCQX: GBTC), which had a share price of $9.31 with $8.75 worth of Bitcoins per share on 2020-07-16: For a more extreme example, consider the Grayscale Ethereum ...
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3answers
138 views

If an ETF directly reinvests its money back in to itself, does the “compound interest” approach to shares still apply?

The idea of investing in ETFs was given to me as follows, I'll call this the "compound interest approach": Historically speaking, unless you can time the market very well or have a very ...
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10answers
8k views

Why do people claim that it's hard to outperform the S&P 500? It has only increased in value by ~1.5x in the past 5 years

Whereas companies like Google, Facebook, Netflix, Amazon, Apple have all increased anywhere from 3x-6x in value in the past 5 years. If you just stuck with those companies, you would have easily ...
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0answers
21 views

How does an Investment bank benefit from Synthetic ETF Swap?

Let's say ETF A is offering Synthetic ETF's to the public. They could do this by entering into a total swap return agreement with an investment bank who then obliged to pay the ETF provider the return ...
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1answer
75 views

Why is there a such a big difference between UGL ETF and DGP ETN?

Both are gold 2X products, but the fluctuation of each product seems quite different from each other. For example, UGL is increased by about 0.02% currently, while DGP is increased by about 2%. I ...
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0answers
64 views

US domiciled ETFs in the EU - some brokers actually offer them - anyone know how?

I am aware of the 1-Jan-2018 EU regulation prohibiting EU brokers from trading US domiciled ETFs to retail investors. I am also aware that some brokers can help you waive the EU "protections"...
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1answer
98 views

Is there a particular day of the month that has been shown not to be adequate for buying ETFs?

This question refers specifically to buying ETFs. When performing dollar-cost-averaging, one typically chooses a day of the month to rebalance. The question is pretty simple: Are there any specific ...
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0answers
44 views

What are the implications of an Australian-domiciled S&P 500 ETF?

So I'm considering investing in the Australian IVV S&P 500 ETF. In 2018 it was converted from a US-domiciled fund listed on the ASX using depository receipts to an Australian-domiciled fund. I ...
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1answer
52 views

Is there a criterion for the different % allocation values in ETF or funds diversified portfolios?

This question does a good job covering the basics of asset allocation. My question concerns the asset allocation of stocks, so we leave the bonds out of the question. All the recommended portfolios ...
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1answer
87 views

How can I find the asset allocation of the FTSE All-World Index?

I am trying to find the asset allocation of Vanguard's FTSE All-World ETF. Even though Vanguard's documents preciselly state ETFs holdings in percentage, I have not found the asset allocation in terms ...

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