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Questions tagged [etf]

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

0
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1answer
83 views

HYG vs JNK Popularity and Quality

Why is HYG more popular than JNK (respective AUMs are 20B and 13B) even though JNK has a lower expense ratio (0.49% and 0.40%, respectively)? It even seems that JNK's tracking error is lower than HYG'...
1
vote
0answers
81 views

HYG vs JNK Capital Gains

How has HYG gone years without paying a capital gains dividend, whereas JNK has paid several? I know avoiding capital gains dividends is good because it reduces the need to pay capital gains taxes, ...
59
votes
5answers
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 ...
4
votes
1answer
726 views

High Interest Savings Account vs Bond ETF

Which of the following is a better investment for long term investing and why? High interest savings account paying 2.3% interest, no account fees and the funds are protected by the Canada Deposit ...
5
votes
3answers
86 views

Rebalance or just change allocation of next purchase?

My portfolio only has 3 ETF funds (emerging markets, S&P and STOXX 600). I do not pay any commissions on purchases over 500€ and I usually buy 2000€/month. Since I don't have any costs to buy ...
3
votes
1answer
65 views

Bond ETF NAV before dividends

This BlackRock page says that a bond ETF's NAV will fall by an amount equal to the dividend distribution when a dividend is paid out. I assume that means that the bond ETF's NAV rises as interest is ...
3
votes
1answer
98 views

Bond ETF Dividend Timing

Bond ETFs usually make monthly dividend payments. The ETF manager receives quarterly or semiannual coupons on the underlying bonds in the ETF. What is the time delay between the coupons received and ...
7
votes
6answers
3k views

Losing Money with Norbert's Gambit

In attempt to avoid the usual 1.5-2% exchange fees levied by brokers, I perform Norbert's gambit: I purchase DLR.TO in CAD (Canadian dollars) from TSX, journal it over to DLR.U.TO, and then sell the ...
2
votes
2answers
257 views

Buying an ETF vs. The explicit Index

Let's say I want to invest in some Index which contains 30 stocks. I can just buy and ETF which tracks the index, but I guess I can also simply buy the 30 individual stocks of the index with their ...
1
vote
0answers
324 views

Where can I find the European equivalent ETFs from a USD superdiversified 10 ETFs portfolio

I have been using this superdiversified 10 ETFs portfolio. To lower the risk it's composed from stocks and bonds across the globe and includes some commodities. Being in USD currency and the Euro ...
0
votes
1answer
84 views

Total ETF value decreased after underlying stock increased in price

I have no prior experience with ETFs so please forgive me if this is a dumb question but I don't even know what to try googling. Two days ago I purchased 7 shares in VBR, at $119,28 each. I put €711,...
0
votes
1answer
105 views

What determines the price of fixed income ETFs?

I am curious about what determines the value of fixed income ETFs? Is it the prices of bonds? The yields of bonds? Or the coupon of bonds? I know that prices and yields move in inverse directions. So,...
5
votes
1answer
232 views

What happens to ETF options in the event of a fund closure?

In order to hedge an ETF position in a portfolio, one might consider purchasing put options to protect against a decrease in price over some period of time. Some more exotically-structured funds (such ...
-3
votes
1answer
55 views

How does a motif from Motifinvesting work?

I wondering if anyone here have experience with buying motifs that motifinvesting offers. They are like customization etfs up to 30 different stocks. The minimum requirement to buy a motif is $250. ...
3
votes
1answer
163 views

“Reputable” mutual funds vs. same company's ETF

I am reading Bogle's "The Little Book of Common Sense Investing". Here, he spends a lot of time trashing mutual funds, and pumping up Vanguard. I'm comparing Vanguard's offerings using a blog post, ...
0
votes
0answers
42 views

How To Measure REIT ETF [duplicate]

How do I look at previous performance of REIT ETF? Unlike "Regular" stocks, the performance is based on the dividends? Let say I would like to know how much will I have eran if I invest 1000$ in ...
0
votes
1answer
92 views

Pattern in orderbook of rarely traded ETF

I was looking at the orderbook of an ETF (symbol SUAS) which seems to be very rarely traded on SIX exchange. I noticed a surprising pattern in the orders: Bid Volume Price Ask Volume ...
1
vote
2answers
264 views

Are ETFs unaffected by volume of people trading it?

My understanding of ETF is that they contain a basket of various stocks, and they usually track pretty closely to an index. So their share price depends on how well the basket of stocks are doing. In ...
2
votes
2answers
252 views

Try to invest ETF with my wife, should we open individual account or joint account?

Recently, my wife and I are looking at ETFs and hope we could invest some. While we were opening accounts, there are two options, one is individual and the other one is joint account. We thought ...
0
votes
1answer
82 views

Is there an ETF which tracks BSE or NSE among ELSS funds eligible for tax deductions under 80C? [closed]

Is there an ETF which tracks BSE or NSE among ELSS funds eligible for tax deductions under 80C? I see a list of ELSS funds here, but do not see consolidated listing of expense ratios or fund types..
4
votes
1answer
38 views

Consider pre-tax status of retirement accounts in determining portfolio allocation?

I have a mix of accounts for my investments including brokerage, 401k and Roth IRA. I handle all my own investments and my current target allocation is 48% US stocks, 24% international stocks, 8% ...
5
votes
2answers
261 views

How does Norbert's gambit work?

Norbert's gambit allows you to trade US dollars for Canadian dollars with a tiny spread. It is implemented using cross-listed ETFs like TSE:DLR and TSE:DLR.U, which are traded in different currencies,...
1
vote
1answer
78 views

Difference between ETF value and baseline index value

I have been researching about ETFs, and have been looking a bit into different ones for the MSCI world index. I realized that there sometimes is a substantial difference in the development of the ETF ...
6
votes
1answer
120 views

How does an ETF extract its MER fee from my investment?

From Investopedia: Assume an ETF has a stated annual expense ratio of 0.75%. On an investment of $50,000, the expected expense to be paid over the course of the year is $375. If the ETF ...
1
vote
3answers
73 views

What are the gains from more liquidity in ETF for small investors?

One of the often cited advantages of ETFs is that they have a higher liquidity and that they can be traded at any time during the trading hours. On the other hand they are often proposed as a simple ...
9
votes
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% ...
6
votes
2answers
406 views

Investing / Options idiot - how can I get out of this position?

Long story short, I'm stuck about what to do with puts on an ETF I bought last Friday. I had a feeling a certain gold mining ETF would dip this week so I took a gamble and bought 175 puts at the ...
0
votes
1answer
34 views

Any extra fees charged by passive stock and bond ETFs on top of the standard fees?

Passive stock and bond ETFs charge a management fee which is quoted on their website. Are there hidden charges on top of this standard management fee that is not transparent? For example, are ...
6
votes
1answer
74 views

How does contango actually affect the price of an ETF?

How does contango actually affect the price an ETF trades at? For example, take the Unites States Oil Fund (USO) that is supposed to track the price for West Texas Intermediate (WTI) crude. It is ...
3
votes
1answer
155 views

Reasons to add an REIT to portfolio

I am wondering if someone can point out the advantages/disadvantages of adding an REIT to a basic ETF portfolio that will be cashed out in 3-5 years(or the next good bull mrkt) as down payment for a ...
0
votes
1answer
80 views

Diversification for large bond investments

I do all my investments with four index funds, and I currently have a fairly aggressive approach with 20% in a bond ETF (AGG) and 80% in three equity ETFs. As I get older, I'll put more money in ...
-3
votes
1answer
112 views

Investment fund or ETF sanity check / ideas

I'm interested in moving some of my savings to either a managed fund or ETFs. Around 50k AUD in total + ongoing additions. Now I'm trying to decide whether to find a managed fund, or use Vanguard ...
0
votes
1answer
45 views

Which field should I use for getting the income yield of this bond ETF?

I am looking at "iShares Global Corp Bond UCITS ETF" listed on the London Stock Exchange. On the website for this bond ETF, there are fields like; "distribution yield" "flat yield" "Weighted Avg ...
3
votes
1answer
392 views

What does DIST refer to in this equity ETF?

I am looking at this bond ETF "iShares MSCI Japan UCITS ETF USD (Dist)" which is listed on the London stock exchange. What does DIST refer to in this equity ETF? I cannot find the answer from the ...
-2
votes
2answers
136 views

ETFs are a type of mutual fund, correct?

Many different sources I've seen refer to ETF as distinct from mutual funds, while others say ETFs are a type of mutual fund. (I understand that the main difference between a (I suppose, typical?) ...
2
votes
4answers
226 views

Are all ETFs index-based passive portfolios, or are there other kinds?

While studying ETFs, I have read several times that they track a specific index. So they are basically index funds on steroids. I'm wondering why all ETFs work like that. In other words: what are the ...
5
votes
2answers
766 views

How can I find out which ETFs has holdings in a particular stock?

Instead of (or in addition to) investing in a particular stock, I'd like to research ETFs that has holdings in a particular stock, and possibly invest in those instead. Is there a central place or ...
2
votes
2answers
113 views

Can ETF's change the weighting of the assets they track

I am not very well versed in terms of ETF regulations, but I was wondering if ETF's can reweigh the assets of which they are composed of. Lets say an ETF tracks 5 stocks and when the ETF is launched ...
1
vote
2answers
441 views

European ETF with dividends reinvested? [closed]

Is anyone aware of an ETF that invests in the European market according to some index and that reinvests its dividends automatically? I can't seem to find it. I am aware of DRIP that some brokers ...
2
votes
1answer
202 views

What is this discrepency between Fidelity's and Google's stock price chart; large price spike?

I generally use Google throughout the day to track the price of stocks. I understand there can be minor discrepancies between sources based on the time the data is collected and how it is displayed ...
3
votes
2answers
101 views

Can an ETF, open at a price other than what the pre-market was at?

I've recently noticed that the pre-market price is sometimes quite far off from the open price. How is this? I feel as if I have seen a pre-market price change almost 5% in regards to the reported ...
2
votes
2answers
232 views

ETF with seemingly guaranteed return in dividends

I'm new to ETFs and such and am trying to learn as much as possible quickly. I came across this fund today that seems like magic to me: DGS.PR.A (TSE) The fund seems to maintain a $10 value (except ...
0
votes
2answers
244 views

What accounted for DXJR's huge drop in stock price?

On December 27, 2016 the Japan ETF DXJR (WisdomTree Japan Hedged Real Estate Fund) closing price was $26.49. The very next day it opened at $14.05! The 28th was also the same day of dividends of $12....
3
votes
3answers
478 views

Beginner dividend investor - first steps

first post here. It will probably be quite long, but I hope to provide all the relevant details to get specific answers. Introduction: I have never been active in investing: on one hand, I never ...
3
votes
1answer
113 views

Bond ETFs as a means to achieve risk parity

Background One of the investors that I really look up to is Ray Dalio. He has stated that a 50/50 stock to bonds allocation does not acheive risk parity because 80% of your risk is still in your ...
1
vote
1answer
31 views

Online resource to get expense ratios for mutual funds, index funds & ETFs? [closed]

Every article that deals with purchasing ETFs and index funds talks about expense ratio, but they usually don't show how to get it for an arbitrary fund. So I'm curious, is there an online resource (...
0
votes
2answers
56 views

How does the market adjust for fees in ETPs?

I'm trying to understand how the market accounts for fees charged on exchange traded products. For example, my understanding is that fees will cause an ETF to systematically underperform the ...
4
votes
1answer
88 views

Money-market or cash-type ETFs for foreigners with U.S brokerage account

Non-US investors who have cash in their U.S brokerage accounts, say Interactive Brokers, will be subjected to U.S estate tax. What are some securities, ETFs that are close to cash that these foreign ...
2
votes
2answers
116 views

Why the volume disparity between NUGT and DUST?

The volume of NUGT at ~47m is much higher than DUST at ~7m. Why do traders favor one ETF so overwhelmingly? Is this typical of ETF pairs or just a quirk of NUGT/DUST?
4
votes
1answer
193 views

Are the investments of account holders of wealthsimple insured by CIPF?

Wealthsimple informed in their FAQ that the investments of account holders are insured by CIPF. As per CIPF, only the account holders of member firms are insured. Wealthsimple is not listed as a ...