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Questions tagged [etf]

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

1
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1answer
54 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, ...
0
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1answer
104 views

How do ETF dividends work

How do dividends work when being payed by 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 ...
1
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1answer
43 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
65 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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0answers
27 views

ETF: ITOT ticker cost calculation?

Forbes 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 fund says: "...
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1answer
50 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 ...
0
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2answers
68 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. ...
0
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3answers
70 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, ...
0
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1answer
112 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
113 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, ...
4
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1answer
120 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 ...
43
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8answers
15k views

Is this projected return from Wealthify too low?

I am really new to investing and I am so confused. Books, blogs and conferences suggest that investing is the way to multiply wealth. I do not have enough start up money to play with mutual funds, ...
1
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1answer
76 views

Both an ETF and a mutual fund?

I’m a brand new investor. So far I have a small amount of money in the SWPPX fund but I am also learning that ETFs also have their own benefits and drawbacks, so I wondering is it beneficial to have ...
1
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1answer
75 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
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2answers
78 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
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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?
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0answers
75 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
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1answer
43 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
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1answer
42 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
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3answers
76 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
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0answers
25 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
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1answer
107 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 ...
8
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1answer
183 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 ...
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3answers
84 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
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1answer
43 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 ...
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0answers
34 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
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2answers
196 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
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2answers
128 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
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1answer
34 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 ...
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2answers
254 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
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1answer
47 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
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1answer
450 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
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4answers
258 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
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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
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2answers
111 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
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2answers
76 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
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6answers
180 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
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4answers
351 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
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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
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1answer
272 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
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0answers
46 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
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2answers
101 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 ...
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2answers
61 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
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1answer
109 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
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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
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1answer
172 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, ...
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0answers
42 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
122 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
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1answer
431 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
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2answers
153 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 ...