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Questions tagged [etf]

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

1
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2answers
418 views

Highstreet bank fund, custom ETF or Nutmeg?

I want to start investing a regular monthly amount to a fund, and by choosing a highstreet bank fund I'm wondering if I'm not making a mistake. Basically, the fund they are trying to sell has, in ...
6
votes
1answer
200 views

How do ETF fees get applied?

I'm reading the prospectus for an ETF I've recently purchased. It states: fees paid directly from your investment I understand how this works for the OCF. However, there are 3 further fees for ...
0
votes
1answer
224 views

What's the folly with this stock selection strategy

I am very leery of investing in Stocks over here. I have tested some other Asian markets and gotten some returns. Rather than have my money depreciate (less interest than Current Inflation ), I'd ...
3
votes
1answer
109 views

Tax consequences of commodity ETF

I have my investments in a mix of 4 ETFs (US, Intl, REIT, and bonds) and I'm thinking about shifting about 5-10% into a commodity ETF. In particular, I'm looking at GSG. I've heard that commodity ...
2
votes
1answer
645 views

What is Inflow and Outflow of money in the context of ETFs [duplicate]

There are several articles and other such references that talk about cash flowing in and out of ETFs. The last link also hints at what that might mean, but I want to know more in detail. If they are ...
1
vote
0answers
491 views

How do you calculate ETF yield when accounting for expense ratio?

I am not sure how to wrap my head around how to calculate the real yield of an ETF using it's distribution yield and gross expense ratio. What I really want to know is, given both ETF A and ETF B are ...
0
votes
1answer
110 views

ETF holding shares in itself

Why would an ETF hold shares in itself and what are the implications?
1
vote
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&...
1
vote
1answer
53 views

Does MER of a given product (say ETF) ever go down?

If I buy a new product with relatively high Management Expense Ratio (MER), can that MER be theoretically/technically reduced in the future, for example when the product gains more and more popularity?...
0
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0answers
1k views

Is there any way to do Automatic investment in ETF?

My Goal is simple: Contribute X amount every month to some Y Vanguard ETF Put it on autopilot (Automatic investment) without having any transaction fees. Since Vanguard does not charge any money for ...
4
votes
3answers
309 views

Are wash sale rules different for stocks and ETFs / Mutual Funds?

In this answer to this question, JoeTaxpayer writes: To take the loss this year, he'd have to sell soon, and can't buy it back for 30 days. If, for whatever reason, the stock comes back a bit, he's ...
8
votes
1answer
142 views

Do ETF owners buy and liquidate units from the market when gap between market value and value of underlying shares is large?

Due to various reasons, an ETF, even an index ETF might trade at a value lower that the value of its underlying securities. In such a situation, can the company managing the ETF actually buy from the ...
3
votes
2answers
739 views

Compounded Interest on Mutual Funds

I may be missing or misunderstanding something regarding how compound interest works with mutual funds and ETFs. Let's say I have $10,000, and I invest said monies in mutual fund XXXXX at $100/share, ...
3
votes
1answer
155 views

What is special about an ETF that is “not an investment company” under the 1940 Act, and what is important to keep in mind when buying such an ETF?

I am very interested in trading UVXY and would like to know a little bit more about it. I read the document on the ProShare website but it does not make much sense to me, and I just hope someone can ...
2
votes
1answer
126 views

Investing in ETF/Index-Fund Twice [401(k) and Individual investor Account]

I'm young, new to investing, and have the following nagging question. Let's assume I have $1000 of disposable income that I'm willing to throw into the market. I've read with small amounts such as ...
0
votes
0answers
49 views

Yuan USD Option

Are there any possibilities for a retail investor to buy a USD/Yuan option other than the ones on the CYB ETF and those from Goldman Sachs? The idea is to bet on a lagre depreciation of the Yuan.
-2
votes
3answers
179 views

Are there “buy and hold” passively managed funds?

A "buy and hold" passively managed fund would be like an index fund when it comes to buying stocks, but the fund would never sell a stock, say if it's removed from the index. If there's a significant ...
6
votes
2answers
1k views

Do index tracker funds (ETFs) typically pay dividends?

When you invest in a fund, such as a FTSE 100 tracker, do you get the benefit of dividends? I understand the FTSE 100 index does not include dividends. Of course, if you held the share basket yourself,...
7
votes
2answers
814 views

What is cheaper annually — buying shares in a Vanguard index fund or buying shares of an ETF?

I’m having some difficulty figuring out which route would minimize the annual fees I pay. Vanguard offers an index fund that tracks the S&P 500 with an expense ratio of 0.25%. Then, there’s this ...
0
votes
4answers
378 views

Is CLM a stock or an ETF?

Have an argument with my trading site, Cornerstone Strategic Value Fund, Inc. ( CLM ) is registered as a Common Stock, Nasdaq dot com. My trading site says it is an ETF. How to solve the dispute? ...
3
votes
1answer
91 views

Does exposure to financials in corporate bond funds make sense?

While examining different corporate bond ETFs, I noticed that many bond funds seem substantially exposed to the finance sector. I see percentages of up to 60% of all positions in financial businesses. ...
0
votes
3answers
279 views

ETF's for early retirement strategy

This question is a follow up question to this " Is my "retire young" strategy a sensible one? " I am attempting to structure a early retirement strategy. It involves dumping into a 401k (...
8
votes
2answers
899 views

Is my “retire young” strategy a sensible one?

My goal is to have enough to retire at 40. I have 11 years to go (I'm 29) as of the past 15th. To be clear, I don't plan on retiring, maybe ever, but I want to have enough to just quit one day if I ...
2
votes
1answer
246 views

Finding Return Of Capital distributions on BlackRock's site

Why is it impossible to discover the Return of Capital for iShares on BlackRock's own site? What am I not understanding? For example, BlackRock's XSP Page shows every possible statistic and ...
1
vote
2answers
196 views

How do currency ETFs track the spot prices? And which amount one has to invest for full hedge?

I've got a couple of doubts about how currency ETFs work. How do they track the spot price? For example, I was checking the FX pair GBPUSD, I've seen: Spot price GBPUSD: $1.5382 ETF long GBP short ...
1
vote
0answers
177 views

Return of Capital and Non-Cash (Phantom) Distributions for U.S. ETFs

I think I finally have a understanding on how to calculate the Adjusted Cost Base (ACB) for my taxable Canadian securities. (Keep track of all buys and sells, use CDS Innovations to determine if there ...
3
votes
2answers
118 views

Is there an ETF/index fund respecting my individual ethical preferences?

The product I am looking for is a diversified ETF like MSCI World, excluding sectors that I do not want my money to be invested in. Ideally, I would be able to choose a basis ETF (like MSCI World), ...
11
votes
6answers
5k views

Should I continue to invest in an S&P 500 index fund?

I am saving to buy a house in 5-8 years. This year I invested $40,000 in a prominent ETF which tracks with the S&P 500. So far, I've lost $3,250, that is the stocks are now worth $36,750. I save $...
18
votes
5answers
13k views

Why don't SPY, SPX, and the e-mini s&p 500 track perfectly with each other?

These tickers (SPY, SPX, /ES) are all based off the S&P 500 yet the relative lows and highs diverge. Can someone provide a basic explanation what causes this to happen? I feel like it may stem ...
0
votes
1answer
213 views

Do buyers of bond ETFs need to pay for accrued interest?

When buying normal bonds, the buyer needs to take note of accrued interest. He should take note whether the price quoted is a clean (excludes accrued interest) or dirty price (includes accrued ...
11
votes
1answer
409 views

Is it possible to dispute a wash sale?

I recently sold some short term VTI shares at a loss (specific shares, not FIFO). With the proceeds, I purchased SCHB. My brokerage firm has adjusted my cost basis on the VTI shares due to a wash ...
1
vote
3answers
140 views

Does an owner of a bond etf get an income even if he sells before the day of distribution?

Suppose an investor owns a bond ETF for 1 month and sells without waiting for the date of income distribution, will he still get paid an income for owning the bond ETF for 1 month? This does not work ...
0
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2answers
301 views

How much do laddered bond ETFs differ from bond ETFs that bound maturity?

Abbreviate LD BETF as laddered bond ETFs. 'BETFs that bound maturity' are UNladdered but impose a maximum limit on maturity of bonds, which I denote Bound BETF, and abbreviate as BD BETF. This ...
2
votes
1answer
60 views

In Canada, why have inflation-protected bond ETFs underperformed short-term federal government bond ETFs?

I know that interest rates negatively correlate with bond yields-to-maturity, but does the lowness of interest rates (for the past several years) fully explain the underperformance of the inflation-...
3
votes
0answers
71 views

Are foreigners who buy UK ETFs subjected to a withholding tax?

Currently, when a foreigner buys U.S ETFs, the dividends or income (in the case of bond ETF) will be taxed at 30%. Suppose a foreigner, say an American or Singaporean, buys a UK bond ETF. Is there a ...
6
votes
3answers
19k views

What are the tradeoffs with the small scale managed fund Wealthsimple?

I recently encountered a targeted ad about Wealthsimple. From what I have read it is an investing tool for mobile devices that helps you passively invest. I understand that it is for people who are ...
0
votes
3answers
94 views

Must ETF companies match an investor's amount invested in an ETF?

1Source: p 147, Investing For Canadians For Dummies, 3 Ed (2009) by Tony Martin, Eric Tyson The lack of CDIC insurance on a money market fund shouldn’t trouble you. Mutual fund companies can’t ...
1
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3answers
284 views

Does the P/E ratio not apply to bond ETFs?

I cannot seem to find them on any website, but I have seen their existence for stock ETFs. If the answer to the question entitled is 'no', then why not? I exemplify with 2 ETFs: Blackrock (Canada)'s ...
4
votes
1answer
101 views

Funds supermarkets transaction time frames - are all so vague?

When I was buying funds through fund supermarket time frames given were very vague. Trade was supposed to be executed at next "transaction point", without much description when is it. I am guessing ...
3
votes
1answer
177 views

Can I invest RRSP funds in ETFs myself in Canada?

I've just realized that the funds I have much of my RRSP money in has about 2.25% annual fees. All of the funds available to Desjardins RRSP personal accounts have these high fees. I've found VFV.TO, ...
2
votes
1answer
187 views

Index Fund Style: Blend or Value and Growth

I am trying to put together a portfolio and I am looking at ETF index funds. As i cover the different sectors, in the past I have had small, mid cap and large cap funds/etfs with both Growth and value ...
0
votes
1answer
330 views

How to calculate a leveraged ETF's annual return

If a "triple leveraged" ETF which returns are compounded daily is to be calculated for annual return. Will the annual return be three times the annual return of a unlevered S&P 500 index?
5
votes
4answers
2k views

Understanding downside of triple-leveraged ETF

What happens to the price of the triple-leveraged ETF if the S&P 500 loses more than one-third of its value (i.e., the return is below -33 1/3%)? Does it mean the value is equal to zero?
0
votes
1answer
94 views

Are bond ETFs considered low risk in this market?

I'm thinking about moving my money to an automated management service. I've set my risk profile to 3.5 (low) which means they would invest around 35% in bond ETFs. With today's interest rates being ...
1
vote
1answer
121 views

Avoiding tax complexities of REITs

I would like to invest in REITs for their high yield, but would like to avoid their tax complexities. If I buy exposure to REITs through an ETF or mutual fund, will that abstract away the need to do ...
3
votes
0answers
51 views

Avoiding tax complexities of MLPs

I would like to invest in master limited partnerships (MLPs) for their high yield, but would like to avoid their tax complexities. If I buy exposure to MLPs through an ETF or mutual fund, will that ...
1
vote
1answer
61 views

ETL Liquidation and Price of the Security

If an ETL debates liquidating its fund, meaning its board says yes but the shareholders must still vote, and the ETF's price reflects the underlying value of the securities that it holds, what would ...
9
votes
1answer
237 views

What happens when your Canadian ETF shuts down?

I just got a notice that an ETF I own will termiate in 2 months if the shareholders don't vote for an extension. I understand that if I kept the shares until the termination date, I would get a ...
5
votes
3answers
889 views

What are the tax benefits of dividends vs selling stock

When people need to live off there investments they often say to go for funds that pay high dividends, but I'm having trouble understanding what the difference between getting dividends, and selling a ...
1
vote
1answer
474 views

How can I compare the performance of a high dividend funds with other funds and or an index

I've been trying to do some investment due diligence. I'm looking at funds for a family member that needs some dividend income. Some of the high dividend funds that were recommended to me seem to have ...