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Questions tagged [etf]

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

3
votes
1answer
405 views

Difference between Bull and Bear 2X ETF?

I am watching a couple of ETFs and their name looks something like this: xxx Daily yyy Bull 2X ETF xxx Daily yyy Bear 2X ETF I have obscured the names to minimize potential bias in the forth coming ...
0
votes
2answers
92 views

How to find out who manages funds?

So I am interested in a fund. I want to know if I can trust the people running it. I don't know however, how to find out who they are. I have thee name of the company offering the firm but no ...
1
vote
1answer
221 views

What causes a spike in volume at EOD for ETFs?

Most ETFs seem to experience a massive surge in volume in the last 2-3 minutes before the bell 3-5 days a week. Is this activity a symptom of the market makers trades or just a graphical bug? It seems ...
0
votes
4answers
232 views

Should I re-allocate my portfolio now or let it balance out over time?

My grandparents have been buying me shares of Home Depot stock for years, and these shares were transferred to me once I graduated college. Currently I have 62 shares of HD, and 4 shares of JNJ (which ...
0
votes
1answer
82 views

How to evaluate ETF correlations regarding risk? [closed]

I have picked three ETFs, collected 5 year historical data and calculated the correlation of daily end prices. I calculated the following correlations: A B C A 1 B 0.77 1 C 0.49 0.72 ...
2
votes
3answers
143 views

What is meant by “priced in”?

I've been trying to wrap my head around the idea of stocks with future earnings/value "priced in". How does this work exactly, with a fund. Does some manager look at the possible earnings a fund ...
4
votes
3answers
192 views

Portfolio diversification for the long run

I have often heard the phrase "nobody beats the index" which made me wonder why so many people, that invest for the long term (say 20-25 years), diversify their positions so much? Why wouldn't ...
1
vote
2answers
134 views

How to mitigate the risk of Euro Stoxx 50 ETF?

I started building my retirement portfolio with an Euro Stoxx 50 ETF. To minimize the risk a bit I would like to buy another ETF (and have both 50-50 in my portfolio). Is buying a blue chip stocks ETF ...
5
votes
3answers
378 views

What to Look for in ETF

I wish to invest ETF. Sure, I can see what companies it comprise of. Sure, I can open brokerage account in my bank, etc. How do I know the ETF I purchase is legitimate? What if the ETF is fooling ...
2
votes
1answer
72 views

Are index-tracking ETF popular in Japan?

Nikkei index reached its peak in 1990-1991 and never completely recovered. That seems to me a big example against index tracking ETF. Are they still popular in Japan or that example made the point ...
1
vote
1answer
274 views

What is maximum amount or % of paycheck I can give to ETF

I wish to invest part of my paycheck in ETF. Where do I find policy on how much money from paycheck can I contribute to ETF in a year or if it's on %, what % from paycheck can I contribute to ETF in ...
1
vote
2answers
1k views

Where to park money low-risk on interactivebrokers account?

My experience with the stock market is little but I try to minimize fees. So I have a interactivebrokers account with the minimum balance of 10,000 USD made in AUD equivalent and started to make at ...
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 ...
1
vote
1answer
62 views

Difference in price/point drop between SPY and SPX

Usually, the ETF SPY tracks the S&P 500 Index rather closely. At the close of today, 12/16/2016, I noticed two things: 1. Most sites listed SPX down 3.96, and SPY down 1.77. Why such a big ...
5
votes
1answer
118 views

Does the expense ratio of an ETF cover trading costs incurred by tracking the index?

ETFs report annual expense ratios, such as 0.14% for Vanguard Total World ETF. Let's say that I have invested $10,000 in the fund. I suppose that each year $14 is subtracted from my investment and ...
1
vote
1answer
64 views

An ETF of Chinese stocks traded from London - seemingly not volatile?

I own shares in the iShares MSCI China A UCITS ETF. During my day job I keep an eye on my portfolio where I have one other position also traded from London. My other position is quite volatile, rising ...
5
votes
2answers
463 views

Are Exchange-Traded Funds (ETFs) less safe than regular mutual funds?

I have read this question on the differences between both vehicles, but one the points was, perhaps, a bit under-emphasized: the relative risk. I understand there are technical differences between ...
20
votes
2answers
2k views

How to know if two ETFs are 'substantially identical' according to wash sale rules?

Wash sale rules are pretty straight forward when you're trading stocks directly. However, how are these rules applied to ETFs? Right now I own shares of CMF and want to do some tax-harvesting on some ...
1
vote
1answer
113 views

How to find ETFs or mutual funds that limit leverage levels of their constituent shares?

Can anyone explain how to find ETFs or mutual funds that limit the amount of leverage their holdings can have? I am interested in funds that specifically limit the debt:equity ratios but limits on ...
6
votes
1answer
197 views

How can Index ETFs gain more than the index they are following?

The ETF I have in mind is an S&P500 index in Canada called "vfv.to. It started in Nov. 2012 and has gone up over 100% in value up until today while the actual S&P has only gone up a little ...
3
votes
1answer
213 views

What's the benefit of paying more fees on wealthfront?

I recently become interested in wealthfront, and plan to make the first real investment in my life. However, as I read more about mutual funds and ETFs, I realize that wealthfront is actually built ...
3
votes
3answers
708 views

When the market crashes, should I sell bonds and buy equities for the inevitable recovery? [closed]

I'm told that for my age, I should have about 1/3 of my portfolio in bonds and 2/3 in equities. Suppose I implement that with this portfolio: 100k of SPY 100k of IWM 100k of TLT Now suppose that ...
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 ...
3
votes
1answer
421 views

When looking at a mutual fund, how can you tell if it is a traditional fund or an ETF?

From this question here I understand what a mutual fund is. From the best answer selected, I can understand what a mutual fund is. Having read this, I can understand the definition of a ETF. ...
4
votes
2answers
72 views

Why does BlackRock's XIN page show XIN as having only 1 holding?

On BlackRock's XIN page under Key Facts it says the number of holdings as 1. Looking at the top 10 holdings shows EFA as the number 1 holding with a 101% weighting. How is it possible to hold over 100%...
0
votes
1answer
64 views

How to invest in Japan's stock market from the UK

I live in the UK. I would like to invest in an Asian stock market, say Japan's, ideally in the main index, in order to have exposure to the currency rate change in addition to the index exposure. How ...
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 ...
5
votes
1answer
63 views

How is an ETF's NAV determined?

I am a little confused with the concept of an ETF. Let’s take EDEN as an example. It is an ETF that aims to track the performance of entities based in Denmark. It would appear that EDEN’s NAV would be ...
0
votes
2answers
89 views

Estimating monthly contributions required to save up to a sum within a year using index funds and bond funds

I'm saving up to pay off a sum of money ($86,000) in about the next year using some index and bond funds through Vanguard in a taxable account. The portfolio for this account is balanced at 40% VFTSX, ...
2
votes
1answer
308 views

Building a Taxable Portfolio Properly

I'm currently maxing my 401(k) and a Roth IRA. I have emergency savings, savings for a house down payment, and savings for vehicle maintenance. I'm looking for advice on how to properly build a ...
1
vote
1answer
340 views

VIX and XIV moved in same direction?

Both VIX (S&P 500 volatility index) and XIV (the inverse) decreased price today. Aren't they supposed to have the exact opposite percentage gain/loss intra-day?
4
votes
1answer
108 views

Are thematic ETFs also good investments?

There are ETFs out there that track everything from women in leadership to environmental responsibility. And if you don't like social responsibility, there's always VICEX. I reckon people invest in ...
1
vote
2answers
112 views

Tax implications of holding EWU (or other such UK ETFs) as a US citizen?

What with the Brexit completely murdering UK stocks right now, and having taken to heart the motto "buy when there's blood in the streets", I was thinking of investing some money in the UK, via ETF. ...
3
votes
3answers
671 views

$1000 a month to invest. Index is the way to go?

No credit card debts, no student loans, nada. I have a modest house with a small fixed mortgage, a nice year cushion of savings (in a high-yield account), contribute 15% of my income towards ...
3
votes
1answer
165 views

Would this be short or long term?

I have the following situation (all numbers and dates are for illustrational purposes): On Jan 1, 2015, I bought $100 worth of an Exchange Traded Fund (ETF). On Jan 1, 2016, I bought $100 more of the ...
2
votes
1answer
221 views

Variation in international ETF pricing during non trading hours

I noticed that Prices of etfs that invest in international markets are fluctuating during US trading hours. How is that possible given that the international markets are closed during that time and ...
0
votes
2answers
121 views

How can I buy shares of oil? I'm told it's done through ETFs. How's that related to oil prices per barrel?

I'm new to investing in the stock market. I'm completely confused about how I can invest in oil. There's no ticker on the stock market as such. I've read online that I can invest in ETFs or ETN. Is ...
3
votes
2answers
210 views

Why invest in ETF's with high fees?

I live in New Zealand and I was looking at investing in one or more of the ETF's provided on the NZX (e.g SmartShares). But the management fees for many of their offered ETF's are greater than 0.5%. ...
2
votes
1answer
133 views

Is there any guarantee that index ETF will follow reference index?

As I understand: index ETF attempts to track value of some specific index. It may be done by either really buying index (physical ETF) or by creating some arcane financial instrument that is supposed ...
6
votes
4answers
730 views

How should I begin investing real money as a student?

(Skip to the 3rd paragraph for the basics.) Alright, so for starters, I'm in high school. I'm 17 and have two jobs: one is for fun, basically, and the other is a job that I can live off of. I go to ...
2
votes
2answers
104 views

Allocating ETFs with different risk/return between accounts with different tax rates

Let's say, I hold three ETFs: E1, E2, E3, with E1 has the lowest risk/return and E3 has the highest risk/return. I also have three accounts: A_reg is the regular savings account, A_ira is retirement ...
0
votes
1answer
74 views

Vanguard Hypothetical Growth and Dividends

I have a question on the two pictures below. Here it states that Vanguard REIT ETF has high potential for investment income and some growth. The dividend payments this year so far have been $0.919 ...
2
votes
2answers
280 views

How can I buy these ETFs?

I'm looking to purchase some specific ETFs: iShares MSCI World Islamic ETF (ISWD) db X-trackers DJ Islamic Market Titans 100 UCITS ETF (XMIT) iShares MSCI USA Islamic ETF (ISUS) db X-trackers S&...
1
vote
1answer
87 views

Consider dividends in timing of rebalancing ETFs?

Most of my investments are in ETFs that I rebalance occasionally or purchase additional shares when I have cash. Currently, when I do a rebalance or an additional purchase, I don't look at the ...
0
votes
2answers
160 views

How do I find an ETF that is similar in investment goals to a given Mutual Fund?

I have some mutual funds that have a high expense ratio. I am looking to move that money to a low cost EFT but can't find a resource that will map a mutual fund to an ETF. Once I have that ...
3
votes
3answers
625 views

High expense ratio funds - are they worth it?

I have a mix of high expense (1.5%) mutual funds and low expense (0.2%) index funds. Everyone talks about getting out of high expense funds because it eats into your gains (which is true). However, ...
2
votes
1answer
209 views

Is there a way to see how much leverage a mutual fund or ETF is using to generate a return

I am taking over some of my IRA and 401K money and I want to move towards a more value based approach with an emphasis on dividends. One thing I have learned on this quest is that most options have ...
2
votes
2answers
583 views

Good/Bad idea to have an ETF that encompasses another

In my free time I'm trying to decide what/how/where I'm going to diversify my Roth IRA portfolio. I'm saving right not but haven't actually opened the account. My question is, is it a bad idea to buy, ...
4
votes
4answers
9k views

ETF S&P 500 with Reinvested Dividend

All ETFs tracking the S&P 500 Index I know (SPY, VOO, IVV) pay dividends several times per years. Is there any ETF that tracks the S&P 500 Index but instead of paying dividends they reinvest ...
0
votes
4answers
2k views

Is it better to buy put options or buy an inverse leveraged ETF?

Let's say you think the market is heading down in the next 6 months. Is it better to buy put options of an ETF (e.g., SPY) or buy an inverse ETF (e.g., SH)? or a leveraged inverse ETF (e.g., SPXU) to ...