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Questions tagged [etf]

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

3
votes
1answer
181 views

S&P 500 VFAIX (Mutual Fund) vs VOO (ETF)?

I currently have just under $10,000 in a Vanguard Roth IRA brokerage account. So far I have purchased VOO ETFs since they have a lower expense ratio than VFINX. My next contribution will put me over $...
1
vote
1answer
106 views

Bond ETF's: why isn't the nominal value of the underlying asset mentioned anywhere?

I am wondering why you never see the (weighted) nominal value of the underlying assets of a bond ETF mentioned anywhere. It seems to me this information is needed to determine whether a bond ETF is ...
3
votes
2answers
166 views

When you buy an ETF, do you give cash to the fund manager?

When you buy a stock from the market, you exchange it with someone. When you buy an ETF, do you give the fund manager money so that he can buy more of the assets that the ETF is supposed to mirror, or ...
0
votes
4answers
84 views

Why does the price of the basic (Bull 1x) index ETF fluctuate intra-day?

Why does the price of the ETF fluctuate so much during the day? I'm looking at SPDR S&P 500 ETF (NYSEARCA:SPY) candle stick chart for the period March-April. Isn't the ETF manager supposed to ...
0
votes
1answer
56 views

Risk of basic (Bull 1x) ETF

Is there any risk associated risk to holding the ETF for short term or for an extended period, apart from the risk that the underlying assets go to zero? In other words, is it more risky than owning a ...
2
votes
1answer
118 views

How do you compare two ETF's that follow the same index

Firstly, sorry if the terminology of my question is not correct, I'm quite new to investing. I am having trouble understanding the differences between two ETF's that follow the same index (a ...
0
votes
1answer
30 views

Explicit margin requirement for RPUT ETF?

I read RPUT ETF prospectus and there is this paragraph: The number of RUT Puts sold by the Fund varies month to month but is limited by the amount held by the Fund in Treasury bills, the value of ...
2
votes
1answer
116 views

Is Nasdaq stock an ETF?

Newb here. Is https://robinhood.com/stocks/NDAQ an ETF, aka if I buy this, is it a composite index (like QTEC)? Meaning if I buy NDAQ am I really buying a composite index, or am I just investing in ...
2
votes
3answers
82 views

Given a tax-advantaged account with commission-free funds, is there any disadvantage to frequent rebalancing?

In my retirement accounts, I have lazy portfolios consisting of a few index fund ETFs that my broker offers commission-free trades on. I would like to rebalance these funds not only to keep my ...
1
vote
0answers
72 views

US ETF as EU investor (Ireland)

At the start of this year the EU made it so we are unable to buy US domesticated ETFs in Europe. I'm located in Ireland and domiciled there for tax purposes. We have to pay a 41% exit tax every 8 ...
0
votes
0answers
86 views

ETF - Why are the fees so different?

I'm doing some research to set up my ETF portfolio. I've noticed that some ETF's seem almost perfectly similar, the management fees are sometimes not in line. Let's look at Europe for example. I ...
13
votes
7answers
2k views

How can so many ETFs tracking the same index coexist?

I understand that different ETFs may cost different amounts of money per share, as you are buying a proportional amount of each company on the index, but why can two ETFs that cost roughly the same ...
3
votes
1answer
325 views

Building an ETF portfolio: Is it even possible to diversify?

I want to start investing my money. I've decided to invest a monthly fixed amount by buying ETFs. I am currently investigating different ETFs to decide on what my portfolio allocation will look like. ...
4
votes
1answer
200 views

How can I calculate the difference between investing cash in a mutual fund versus using it to install solar?

I am a moderately experienced investor, but I have this one question that I have had a really hard time answering. What would be more profitable: invest in solar electricity, which I have calculated ...
5
votes
3answers
244 views

Buying less shares more frequently [closed]

I'm going to university in a few months and was looking to invest any weekly surplus (£50-75) from my student loan into an index fund. Most funds appreciate in value by about 7% a year on average ...
1
vote
1answer
75 views

Does one pay tax for “Betrag der ausschüttungsgleichen Erträge” of an accumulating ETF in Germany?

There are some accumulating ETFs which may create taxable events. Previously they were considered "tax-ugly", because it was possible to double-pay some tax. After tax reform in 2018 there is a tax-...
1
vote
1answer
91 views

NAV Deviations in 2x ETFs

The funds in question are YCL/YCS. I was looking at the price fluctuations in these funds and noticed they are not priced accurately on an intraday basis. There is decent enough liquidity in these ...
0
votes
1answer
60 views

Fine-tuning index fund positions

In general, passive mutual funds (as well as ETFs) provide a good way to diversify without keeping track of and/or a large number of separate securities or paying high additional expenses. However, ...
2
votes
2answers
154 views

Why Can't I Invest in a Tax-Loss Harvesting ETF/Fund as an Individual Investor?

The advantages of tax-loss harvesting in index replication are becoming more and more clear. The benefits are small but both significant and consistent and would make a fund that has returns larger ...
23
votes
4answers
4k views

What is the difference between these two S&P 500 ETF?

I wanted to invest in the Vanguard S&P 500 ETF which has the ISIN code US9229083632 However I just discovered it is not available in my country. As an alternative I am considering investing in ...
1
vote
3answers
137 views

How do expense ratios work for etfs without dividends?

My understanding is that if an ETF pays dividends, then the money I will get from the ETF will be dividend*(1 - expense ratio). What about an ETF of stocks whose only value comes from capital gains, ...
1
vote
1answer
114 views

Why invest in bond ETF if its trading value decreases?

Looking at bonds ETF like ZCS. It generates ~3% interest yearly. However when looking at ZCS trading value, it decreased about 3% this year. Question: If I had bought shares of ZCS a year ago and ...
5
votes
2answers
257 views

How are Vanguard's ETF's returns higher than the index's growth?

I tried comparing Vanguard's ETF returns to the index the ETF is tracking and it looks like their ETF highly outperformed the index? The S&P/ASX 300 index only grew less than 29% total in 5 years,...
3
votes
1answer
209 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 ...
0
votes
1answer
83 views

What forces affect the value of my ETF?

I hold a position in CSPX, an ETF tied to the S&P 500 traded on the LSE. The closing price of CSPX was 262.68USD at a gain of 0.2%. The S&P 500 itself closed higher at at 1.6%. There are a ...
3
votes
2answers
480 views

When are short-term US Treasury funds (ETF or mutual) a good investment?

I want to understand the rationale behind buying into a short-term Treasury ETF (or mutual fund). In particular, I want to understand how it compares to buying short-term Treasury bonds/bills directly ...
3
votes
1answer
165 views

Why use dividend-paying ETFs, given that dividend tax is higher than capital gains tax?

Say a UK tax-payer is in the higher tax brackets for taxes. They will pay 20% on their capital gains, and 38% on their dividend gains. It seems to me that it is strictly worse to use dividend paying ...
1
vote
2answers
208 views

What should I put the remainder of my cash in? [closed]

I currently have 7 shares of CSPX.L and 150 shares of IWDG.L. I believe these to be sound investments but this is a belief backed up by little financial understanding. I think these ETFs are good ...
2
votes
1answer
133 views

Questions about Sampling Strategy ETFs (index funds)

1) If I understand correctly, a Sampling Strategy ETF is an index fund in which: 100% of assets are allocated in <100% of the companies composing the index. <100% of assets are allocated in <...
0
votes
1answer
103 views

Strategy for investing in ETFs with high brokerage fee

I've been investing in ETFs according to my strategy for almost a year; everything looks good but one thing bothers me. My local stock exchange offers only three ETFs (tracking S&P, DAX and WIG20)....
1
vote
1answer
194 views

Why are SPY options available at certain half-dollar (50 cent) strike prices but not others?

Here is a screenshot showing some call options available for the SPY ETF: As you can see, strike prices are available for every dollar increment (281.00, 282.00, 283.00, etc). Strike prices are also ...
6
votes
2answers
136 views

Countries considered “emerging markets”

I recently realised that, for example, Blackrock's emerging market ETF includes Chinese and South Korean stocks. South Korea has a higher GDP per capita than Spain, and the Chinese shares in the ETF ...
0
votes
1answer
139 views

Reason for drop in REIT ETFs over last couple weeks

Since the beginning of the year, it seems that most REIT ETFs have dropped around 5% (e.g., IYR) while stocks have done really well. Were there any market/economic/political events recently that ...
2
votes
1answer
110 views

Diversify your ETF portfolio from your job in the financial industry

I currently have 50% ZAG.TO, 35% XAW.TO, 15% VCN.TO. My current compensation at work is highly correlated to the performance of the financial industry in Canada (i.e. the top 5 banks). XAW holds 10% ...
2
votes
0answers
63 views

What does “No Sweep” Mean in Citibank Context

I am in the process of opening Traditional IRA account with Citibank (currently have checking and saving account at Citibank) Purpose is to purchase ETF for long-term. Form has section to determine ...
5
votes
1answer
891 views

How to pay taxes for ETFs in Germany?

When I invest in ETFs and I generate profit, do I have to pay taxes for the distribution or the appreciation of value of my ETF positions? If yes, how to pay these taxes and where? Is this ...
2
votes
1answer
125 views

Does GOP tax reform bill require selling earliest shares first?

An early draft of the GOP tax reform bill contained this provision, as reported by taxfoundation.org: The Senate draft of the Tax Cuts and Jobs Act would require sellers of stock in any one company ...
0
votes
3answers
162 views

How to start ETF trading with 50€?

I heard that the trading with ETF is the best for people without much money to invest because the provision for the depot is low or free. Furthermore, it is not very risky. What if I would like to ...
9
votes
2answers
781 views

What are the “capital gains” my ETF is distributing to me alongside its dividends?

Today I noticed several ETFs I own, including SLYG, opened at a significantly lower value than they closed at yesterday (SLYG was $7.975 lower to be exact). Apparently yesterday a dividend was ...
1
vote
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 ...
5
votes
2answers
266 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 ...
1
vote
1answer
113 views

Does the demand for an index ETF make its stock price go up?

There are ETFs that follow an index. Let's say the classic S&P 500. We have two different ETFs following the same index. Let's say Vanguard and Schwab. Let's say Vanguard has much higher demand ...
1
vote
1answer
64 views

Buy small-cap ETF when you already have large-cap of the same market

Diversification wise, does it make sense to buy a small cap ETF of the US market when I already have a large cap ETF of the same market? I am asking this question thinking about a possible recession, ...
3
votes
1answer
206 views

Comparing ETFs following the same index

If I want to choose between two ETFs of different issuers following the same index, what are the factors should I consider? For example I want to decide between SCHD of Schwab and Vanguard High ...
0
votes
1answer
66 views

Does it make any sense to have individual stocks, bonds, preferred shares

I have a self-directed trading / investment account that has only ETFs in it. Each trade is $10. Does it make any sense to have individual stocks, bonds, preferred shares and if yes, what is the ...
1
vote
2answers
180 views

What does it really mean to buy a share?

When I buy a smartphone in a store, I buy it and it is mine. From that point on, apart from the guarantee they may offer, the store has nothing to do with it, the buy is finished and it is over. Is it ...
1
vote
1answer
89 views

Does Blackrock iShares know that I have bought their product?

Let's say I buy an iShares ETF, does Blackrock have this information or only my broker has this information? Is there a "customer service" or something that I can contact to ask a question? Are they ...
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 ...
4
votes
1answer
112 views

Why might a brokerage firm stop offering a particular ETF commission free?

I have been happily buying units of IVV commission free via TD Ameritrade. They just revised their list of free ETFs and sadly IVV is not one of them. Most of the other institutions don't offer it ...
2
votes
1answer
80 views

How do Authorized Participants prevent index fund tracking error, including tracking error due to an expense ratio?

When I search for explanations of how index-tracking ETFs avoid tracking error, the following explanation is normally given: ETFs allow certain Authorized Participants to trade the underlying assets ...