Questions tagged [etf]

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

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2answers
26 views

How to pick online broker

I'm looking for the way to pick online broker. I suppose to buy ETFs and rarely some other securities. There are a lot of online brokers ratings. Mostly it consist of 5-7 same items like TD Ameritrade,...
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32 views

European exchanges with largest array of index fund passive ETFs? (low fees / not actively manged) [closed]

Seems to me that most banks and exchanges at least in Europe have very few ETFs and most have big fees. So I'm not sure how to dig for passive / low fee index funds, since as far as I can see there's ...
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26 views

How to access “exotic” foreign ETFs from mainland Europe? Like African AFK or Asian ETFs etc

It seems to me like 99% of the good stuff is available only in New York and Hong Kong or Singapore. In europe all the banks and exchanges either only have like 3 ETFs, or have insane fees (and also ...
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2answers
5k views

Is it insider trading when I already own stock in an ETF and then the ETF adds the company I work for?

Let's say I own shares in the MSCI World ETF. Company X, where I am an employee, is currently not part of it. What happens when in ie a year Company X gets added to the ETF - Is my owning stock in it ...
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49 views

Does the SEC have the list or definition of indexes that an ETF is allowed to track to be classified as an Index-Based ETF?

The SEC Investor Bulletin on Exchange-Traded Funds (ETFs) (mirror) divides ETFs into two classes: Index-Based ETFs and Actively Managed ETFs. As its name indicates, index-Based ETFs track some indexes....
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9answers
9k views

Is my back-of-the-envelope calculation about taking out a loan to invest into the markets flawed?

With the recent economic struggles due to the Covid-19 pandemic the stock market seems to be even more interesting for personal investments. Taking out a loan might be one of the ways to gather or ...
3
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1answer
69 views

If TIPS yields are negative, why do TIPS ETFs have a positive yield?

I've heard that TIPs currently have a negative yield. But the VTIP ETF from Vanguard has a positive yield of about 1.2% right now. Why is that?
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1answer
46 views

What is the difference between the SPDR GLD listed on multiple exchanges?

It looks like SPDR GLD (a gold-backed ETF) can be purchased on 5 different exchanges: US, Mexico, Singapore, Japan, Hong Kong. What is the difference between these? Are they just 5 different ETFs that ...
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0answers
28 views

Has Sharesight calculated my dividend's foreign source income correctly?

I recently received my first dividend from the ASX:IVV S&P 500 ETF. In the Components of Distributions announcement it says that the Foreign Sourced Income is 99.9998% of the cash distribution. I ...
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2answers
44 views

Do ETFs issue their own 1099 forms?

I, this year, traded some ETFs that track US stock market indices; like SPY, QQQ, DIA. Do these ETFs issue their own 1099 forms for reporting Gains/Losses, or are those ETF transactions just reported ...
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1answer
166 views

Buying QQQ vs QQQM

Recently there is a new ETF to track the Nasdaq 100. Its symbol is QQQM. It is very similar to QQQ and it has lower expense ratio. I understand that QQQ is better known and has a smaller spread ...
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158 views

Why doesn't the GBTC premium get arbitraged away?

My understanding of how GBTC works is that all of the following are true: Accredited investors may provide BTC to Grayscale and receive shares of GBTC in exchange. After a six month lockup, the ...
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1answer
86 views

What's more important, broad diversification or Dollar Cost Averaging?

The fee structure of my online broker would make a broadly diversified portfolio consisting of up to 8 ETFs very expensive in transaction fees if I decided to make monthly purchases for the purpose of ...
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1answer
83 views

How can one lose money with VTI? [duplicate]

I am 26 and beginning to learn about investing. I currently have no investments other than some schemes through my employer, which I've already maxed-out. I've read that VTI is a long-term, low-risk ...
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2answers
75 views

WisdomTree ETFs

I have come across WisdomTree. I am quoting, as they define their line of work: WisdomTree is an ETF sponsor and index developer that uses a rules-based methodology to select and weight companies... ...
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2answers
343 views

Invest in Vanguard Index Funds (from Germany)

I am planning to invest in Vanguard Index Funds while living/working in Germany, but only interested in specific ones (see below). But I cannot seem to find them via brokers that I usually do my ...
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2answers
86 views

Will a massive sell off of the SPY ETF affect stock prices?

What will happen if there is a massive sell off in the SPY ETF? Will this affect the stock prices of its components? For example, will the price of Apple (APPL) shares drop? Or will it only affect the ...
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1answer
35 views

Do income/distributing index funds (Vanguard specifically) invest their dividends until they are being paid out

Take those two for instance: https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-developed-world-ex-uk-equity-index-fund-gbp-inc/distributions https://www.vanguardinvestor.co.uk/investments/...
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1answer
57 views

How can small cap index funds grow in value if the ones that grow are turned over?

Is it a good idea to invest in a small cap index fund / ETF? I don't understand how the fund can possibly grow due to the constraints of its definition. Definition: A small cap is generally a company ...
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3answers
3k views

Do ETFs move on their own? Or only on aggregate from the individual holdings?

Of course every security moves due to supply/demand from sellers and buyers. More people wanting to buy drives price up, etc... How does this work with ETFs? If I have ETF X composed of companies A,B, ...
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1answer
92 views

Why can't we arbitrage ETFs?

I invest in a couple of ETFs in Europe and regularly I observe results such as: VUSA (Vanguard's European S&P500 ETF) went up 0.41% today; the S&P500 went down 0.68%; the EUR/DOL went down 0....
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1answer
70 views

Avoiding capital gains tax when exchanging one stock for another

From observation, it seems like an ETF fund manager can buy and sell assets while avoiding a capital gains tax. However, if I were to do that, I would be taxed each time I sold (and thus missing out ...
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0answers
25 views

How many schedule K-1 's would I receive If i trade the ETF on 2 different brokers?

This year, I have traded several Commodity ETFs, such as USO, BNO, OILK ( crude oil funds), UGL (Proshares Gold Fund). These ETFs are structured as Limited Partnership. I know that around mid-March ...
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66 views

If a sector is projected to well in the future, does it make sense to invest in an ETF of that sector?

For example solar energy and uranium seems to be projected to grow a lot in the future. Would it make sense to find index funds that track solar energy companies or uranium mining companies and invest ...
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2answers
126 views

Is there a way to backtest the following strategy (kind of buy low, sell high)? [closed]

I thought of the following strategy: Choose some good ETF (doesn't really matter how I choose it for my question) - let's call it E. While price of E is higher than 90% of its peak historical price (...
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1answer
131 views

Cannot understand the 10 year VTI growth chart on Vanguard

The image below shows the performance of Vanguard Total Stock Market ETF (NYSE Arca: VTI). I cannot understand how $10,000 becomes $34,070 after 10 years with a 10-year return of 12.80%. Shouldn't it ...
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2answers
86 views

Index ETF share cost and annual income

I want to figure out how ETF works and index ETF particularly. The aspect I can't find explanation for is the following: Investing into ETF means that I buy ETF stocks which price is based on market ...
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0answers
28 views

Is the Exchange Traded Fund XQQ (iShares NASDAQ 100) only traded in Canadian dollars?

I am looking to invest in Canadian dollars via my Canadian bank, and I found the ETF XQQ. If it says 91.87 CAD, does that mean it is traded in Canadian dollars at $91.87 CAD per share? I'm curious ...
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1answer
81 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
129 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
116 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
41 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
23 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
102 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 ...
3
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2answers
827 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
44 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
49 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
123 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
53 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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2answers
451 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
46 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
98 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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0answers
59 views

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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0answers
45 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
85 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
48 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
116 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
418 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
38 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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