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Questions tagged [etf]

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

0
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1answer
90 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
41 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 ...
0
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2answers
58 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 ...
0
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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: "...
0
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2answers
67 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. ...
1
vote
1answer
49 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 ...
4
votes
2answers
126 views

Why online brokerages sometimes allow free ETF buying

ETFs trade just like stocks, so I wonder how come questrade lets customers trade ETFs for free whereas they charge commission on stock trading? Any guesses? Furthermore, only buying is free but ...
0
votes
3answers
66 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, ...
1
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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, ...
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, ...
43
votes
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, ...
3
votes
3answers
874 views

Convention for adding ishares (ETFs) into personal accounts

I use GNUcash to manage my personal accounts. Please advise me on how I should enter ETFs, specifically ishares which are Blackrock's brand of ETF, into my personal accounts. The default set of ...
4
votes
1answer
119 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 ...
1
vote
1answer
75 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
vote
1answer
74 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....
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?
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 ...
1
vote
1answer
114 views

When are bond ETF dividends taxed?

From what I've read, the dividends of bond ETFs (like HYG or JNK) are taxed at the ordinary income tax rate (up to 39.6%). Is this tax withheld before the dividend is paid out to the investor? Or is ...
8
votes
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 ...
1
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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 ...
7
votes
4answers
860 views

Ways to get individual securities from ETF's

Is there a easy way to automatically (ie. through an API or something, not through just reading a prospectus) get information about an ETF's underlying securities? I'd like to write an application ...
0
votes
1answer
42 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 ...
4
votes
2answers
82 views

How to hedge against specific asset classes at low cost

I only do passive investment on index ETFs etc. I'm quite happy with that, but sometimes I want to hedge against specific asset classes in the mix. For example, let's say I do want to keep buying ...
1
vote
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 ...
0
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2answers
81 views

How do I get a list of the top performing funds between two given dates?

Between dates X and Y return a list of the top performing funds, indexes, ETFs, etc for that date range. i.e. if a lump sum had been invested at date X, a list of which funds had the top performance ...
1
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1answer
95 views

How can I find a list of all North American ETF's including symbols?

I was hoping to find a list of all North American ETF's. Unfortunately https://www.quandl.com/resources/useful-lists just returns an error when the corresponding list is clicked. I'd really prefer ...
1
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1answer
387 views

How do leveraged ETFs (index tracking) set intraday pricing?

I'm curious specifically about the pricing mechanism of leveraged ETFs, and specifically 3x - let's take SPXL as an example (3x S&P500 bull etf). I know that this fund is designed to track the S&...
5
votes
1answer
433 views

Why do passive ETFs require so much trading (and incur costs)?

As far as I've understood, the idea of passive ETFs is to track an index. Typically, the index is a value-weighted stock market index, such as the S&P500. Now, if I'm not mistaken, tracking a ...
18
votes
4answers
4k views

Why are daily rebalanced inverse/leveraged ETFs bad for long term investing?

I was reading this article about S&P 500 short ETFs: https://www.zacks.com/stock/news/176217/4-ways-to-short-the-sampp-500-with-etfs and I was confused when it said: "investors should note that ...
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; ...
-4
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1answer
839 views

What is the daily rebalanced leverage ratio that is ideal for the S&P 500 based on past performance?

This question assumes an investor with a very low risk-aversion coefficient. The risk-aversion coefficient is basically the 2nd-derivative of an investor's utility function as a function of money. An ...
6
votes
3answers
724 views

Fund or ETF that simulates the investment goals of an options “straddle” strategy?

With all the market volatility of late, I was thinking that it might be a good short term strategy to employ a straddle approach. For those not familiar with Options trading: This is a strategy ...
1
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2answers
1k views

How to understand a volatility based ETF like VXX

The ETF VXX is based on the volatility index VIX. If volatility goes up, VIX goes up and VXX goes up. Similar thing for the downside. Now when I buy an ETF like SPY, I can conceptually understand that ...
1
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2answers
60 views

Can I withdraw proceeds from covered call selling?

Suppose I have the funds to buy exactly 100 shares of SPY in a regular, taxable (i.e. not 401K or IRA) account. I then sell at or in the money covered calls one year out, say Jan 2019 calls. This ...
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
vote
1answer
106 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 ...
1
vote
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
votes
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 ...
1
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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
votes
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, ...
1
vote
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, ...
0
votes
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 ...
0
votes
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
vote
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 ...
3
votes
1answer
207 views

Given how much price decay there is in inverse (short) ETF's, are the inverse ETF's profitable even in a prolonged bear market?

To me some of these products look like they are designed in a the-house-always-wins manner, especially when one looks at their 1yr or 5yr charts. This observation applies for general ones bearish on ...
3
votes
4answers
257 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 ...
6
votes
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
votes
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
votes
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 ...