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Questions tagged [etf]

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

3
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2answers
2k views

Long term bond index prices before 2000?

When comparing TLT (Barclays 20 year bond index) with the S&P 500 (e.g. VFINX) it looks too good to be true - almost perfect negative correlation. When the stock market crashes, TLT skyrockets in ...
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0answers
27 views

Top Indian ETFs (BSE/NSE)

I would like to find popular ETFs that are similar to QQQ and SPY but are based on the top 50/100/500 Indian companies and are traded in BSE/NSE. Results from Google were mostly ETFS that trade in ...
15
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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
votes
2answers
322 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 ...
1
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1answer
49 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 ...
0
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3answers
276 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 ...
1
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1answer
48 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 ...
4
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4answers
343 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. ...
0
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0answers
54 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
160 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 ...
1
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2answers
50 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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8answers
1k views

No transaction fee ETF trades - what's the catch?

I just noticed TD Ameritrade has program where you can trade from a list of ETFs with zero fees. Sounds like it could save me a bit of money, but my cynical side wonders how they make money off such ...
1
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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 ?
1
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1answer
31 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 ...
0
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1answer
21 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: ...
3
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3answers
366 views

Identifying “Dividend Stocks”

Can anyone point me towards some information on investing in dividend stocks, and how to identify good companies? Are there any metrics? I am fairly illiterate when it comes to finance and stocks, but ...
3
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0answers
43 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
18 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 ...
5
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3answers
329 views

Why would someone pick iShare's Russell 2000 ETF over Vanguard's?

There are two ETFs that both track the Russell 2000 (at least according to everything I've read), which are IWM (iShares) VTWO (Vanguard) The Vanguard ETF has a lower expense ratio. As such, could ...
2
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3answers
140 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 ...
3
votes
3answers
6k views

What are Fidelity's equivalent ETFs of QQQ and SPY?

I am interested in purchasing QQQ and SPY but trying to find equivalent of those from Fidelity since there are some fees removed. I think SPY equivalent is Core S&P 500 (IVV) but not sure about ...
10
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3answers
2k views

What happens to investors' money in SPY ETF if State Street becomes bankrupt?

SPY is one of the most popular ETF tracking S&P500 index. If the ETF issuer State Street Global Advisors becomes bankrupt in a black swan event, what happens to investors' money? Is the money 100% ...
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2answers
110 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
197 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
114 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 ...
31
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2answers
1k views

What are the important differences between mutual funds and Exchange Traded Funds (ETFs)?

I've been considering, but haven't committed myself yet to investing in Exchange Traded Funds (ETFs), but have to admit that I don't yet fully understand the use-case for them. What factors are ...
4
votes
1answer
566 views

What is the difference between shares and ETF?

For example, I see that this: Vanguard FTSE All-World ex-US Index Fund Investor Shares (VFWIX) is Also available as an ETF and at a lower cost as an Admiral™ Shares mutual fund What is the ...
1
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1answer
90 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
votes
1answer
304 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
38 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 ...
1
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1answer
53 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 ...
7
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1answer
1k views

“Cap gains exposure” of an ETF — what does it mean?

Morningstar provides an ETF data point called potential cap gains exposure. For example, here is Vanguard's Europe ETF (VGK): This value is negative 78% for VGK. I understand that this is a good ...
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0answers
29 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 ...
62
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6answers
7k views

At what point do index funds become unreliable?

Passively investing in exchange-traded funds that track some broad index is often recommended for private investors that don't have the time or expertise for active investment. In particular, index ...
1
vote
2answers
66 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.
5
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2answers
2k views

What's a recommended minimum amount for buying an index ETF, to minimize fees/commissions?

Let's say every month I transfer $559, which is about 3 shares of VOO. The commission from Fidelity is $7.95, which is about 1.42%. Is it worth doing that, or better, every other month buy worth of $...
0
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2answers
75 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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2answers
74 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. ...
2
votes
1answer
77 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
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0answers
133 views

Why online brokerages sometimes allow free ETF buying [duplicate]

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
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3answers
93 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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2answers
120 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
124 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, ...
44
votes
8answers
16k 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
948 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
134 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
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1answer
80 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
82 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?
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2answers
86 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 ...