Questions tagged [etf]

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

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132 views

What happens if too many investors want to purchase a given ETF? [duplicate]

I wonder what happens if too many investors want to purchase a given ETF. On one side, the ETF share price is approximately the sum of the ETF holdings divided by the number of ETF shares, since ...
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1answer
52 views

How can an investor assess the tax efficiency of an ETF?

I read on this answer by mhoran_psprep The tax impacts [resulting from the ETF manager changing the ETF composition by selling + buying stocks] are assigned to the investors. This means that if two ...
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2answers
77 views

How are ETFs, especially actively-managed ETFs, taxed when changing their portfolio?

For example, let's assume some ETF sell their 1k USD position in stock A, purchase 1k USD of stock B, and sell it two months after. How would this ETF be taxed and how does this impact the investors ...
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0answers
74 views

One commodity, 2 ETCs, same specs, different return - why?

Background: I hold silver ETC that charges 0.49% TER. There are cheaper ETCs that haven't been around when I entered the market. I am trying to assess if it makes sense to roll over. Interestingly, ...
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0answers
50 views

BlackRock IVV ownership

As I was looking through BlackRock recent released 13F, how does BlackRock have ownership in IVV which is an S&P 500 ETF they managed? In other words, how could a company have ownership in shares ...
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2answers
166 views

Why do I see two very similar ETFs on my broker?

When I search for an ETF on my broker's interface I see multiple for the same search that seem to be same somehow but also different? Can you explain to me the difference between the two that are ...
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0answers
39 views

Does TQQQ get wiped out if it QQQ drops 34%? But what if after I purchase, it first went up 50% and then down 34%? (100 to 150 and then back to 100) [duplicate]

Since TQQQ is 3x the leverage of QQQ, so the conventional wisdom is: When TQQQ drops 34%, then it is all "wiped out" (meaning a $100 investment will go to $0 now). And TQQQ itself is also ...
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0answers
72 views

Trying to sell an ETF only traded in Berlin and AMEX

I use Flatex for trading stocks and I bought 16 shares of SPDR S&P Internet ETF on the Berlin stock exchange. It gained in value (~22%) and I'd like to sell it. For 2 months nobody wants to buy it ...
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1answer
37 views

How to compute a funds TER?

I’m getting started with investing and will be starting with ETFs. When searching for how to pick an ETF, a common term comes up: TER. As I understand it, the formula is total fund cost divided by its ...
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7answers
3k views

Why is the dominant investing advice for individuals to use mutual funds, exchanged traded funds (ETFs), etc

The dominant advice on this site (including that which I give to novices) regarding investing is to only invest in fund vehicles (mutual funds, ETFs, etc), rather than in individual stocks. Why is ...
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3answers
210 views

Trading out of mutual fund, into lower-cost ETF - is it worth it? [duplicate]

I've got a large amount of money (for me) in a US large cap index fund, with a 0.25% expense ratio. I've recently gotten back into investing after a long hiatus, and am now putting most of my money ...
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1answer
94 views

How could i start an ETF or Mutual fund? [closed]

I want to start a mutual fund and an etf. How would i go about doing this? i would want it to be publicly traded on the market. Thanks for any answers!
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27 views

Dividend impact on accumulating inverse ETFs

This is a pretty straightforward clarification question. For inverse ETFs tracking an index which are tagged as "accumulating", what this actually means is that we are not tracking the ...
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0answers
26 views

Earnings per share of gold ETF

I understand how EPS is calculated on an ETF like the S&P500 (such as SPY). However I don't understand how it's calculated on a metal ETF, like gold or silver (thinking about ETFs such as IAU or ...
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1answer
42 views

Is ETF Market Cap Sum of Its Holdings?

When it comes to ETFs, is their Market Cap the exact (or as exact as possible) sum of its holdings or does it somehow have its own intrinsic value that can be different than the sum of its holdings? ...
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2answers
1k views

How much are fees on ETFs on Robinhood? Where are they shown?

Trading stocks on Robinhood is free. That's nice. But Robinhood also provides various funds and ETFs. They usually have an expense ratio which can range from 0.04% for a Vanguard ETF to 1% range for ...
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0answers
33 views

Index ETFs an Ex Divided Dates - Why do ETFs fall on Ex Div date?

Today this ETF went Ex -Div: HSBC FTSE 100 ETF HUKX.L It dropped by the amount of the FTSE decline (tracking), plus it's own ex-div amount. So far, so good. However - The instrument is designed to ...
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1answer
114 views

Suggestion for my ETF portfolio to invest in Germany?

Below are my 3 ETFs to invest in Germany via Trade Republic as I will need to pay tax here (first 800 Euro is tax exemption). This is my first time ever to invest in stocks and I will hold it for 5+ ...
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1answer
48 views

Bid/Ask spead for an ETF

I have been looking here for the information on the Bid/Ask spread of the Vanguard Ftse All-World Units Etf A on the Italian market. Here it is reported "Ask: n.d. X n.d" and "Bid: 84,...
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1answer
72 views

Liquidity of ETFs and Authorized Participants

I will buy the Vanguard Ftse All-World Units Etf A through my bank on Borsa di Milano (the Italian Stock Exchange). I have been told by the financial advisor of my bank that these assets have a small ...
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2answers
489 views

Why doesn't the GBTC premium get arbitraged away?

My understanding of how GBTC works is that all of the following are true: Accredited investors may provide BTC to Grayscale and receive shares of GBTC in exchange. After a six month lockup, the ...
2
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1answer
90 views

Should I be concerned with the low volume of trade for Franklin Templeton's international ETFs?

They have an attractive suite of foreign ETFs, ranging from Taiwan, India to Germany: https://www.franklintempleton.com/investor/investments-and-solutions/investment-options/etfs/franklin-...
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2answers
2k views

Why is the expense ratio of an index fund sometimes higher than its equivalent ETF?

Vanguard Total Stock Market Index Fund Investor Shares (VTSMX)'s expense ratio is 0.14% whereas VTI, its equivalent ETF, has an expense ratio of 0.03%. Why is the expense ratio of an index fund ...
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2answers
470 views

Do the rebalancing costs of leveraged ETFs really outweigh the leverage?

I read the answers from the following two posts describing why daily leveraged ETFs are a bad idea to hold in the long term: Investing in a leveraged index ETF for retirement. Risky? Why are daily ...
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2answers
185 views

How to pick online broker

I'm looking for the way to pick online broker. I suppose to buy ETFs and rarely some other securities. There are a lot of online brokers ratings. Mostly it consist of 5-7 same items like TD Ameritrade,...
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2answers
6k views

Is it insider trading when I already own stock in an ETF and then the ETF adds the company I work for?

Let's say I own shares in the MSCI World ETF. Company X, where I am an employee, is currently not part of it. What happens when in ie a year Company X gets added to the ETF - Is my owning stock in it ...
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9answers
9k views

Is my back-of-the-envelope calculation about taking out a loan to invest into the markets flawed?

With the recent economic struggles due to the Covid-19 pandemic the stock market seems to be even more interesting for personal investments. Taking out a loan might be one of the ways to gather or ...
3
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1answer
722 views

If TIPS yields are negative, why do TIPS ETFs have a positive yield?

I've heard that TIPs currently have a negative yield. But the VTIP ETF from Vanguard has a positive yield of about 1.2% right now. Why is that?
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1answer
53 views

What is the difference between the SPDR GLD listed on multiple exchanges?

It looks like SPDR GLD (a gold-backed ETF) can be purchased on 5 different exchanges: US, Mexico, Singapore, Japan, Hong Kong. What is the difference between these? Are they just 5 different ETFs that ...
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10answers
10k views

Why do people claim that it's hard to outperform the S&P 500? It has only increased in value by ~1.5x in the past 5 years

Whereas companies like Google, Facebook, Netflix, Amazon, Apple have all increased anywhere from 3x-6x in value in the past 5 years. If you just stuck with those companies, you would have easily ...
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0answers
39 views

Has Sharesight calculated my dividend's foreign source income correctly?

I recently received my first dividend from the ASX:IVV S&P 500 ETF. In the Components of Distributions announcement it says that the Foreign Sourced Income is 99.9998% of the cash distribution. I ...
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2answers
55 views

Do ETFs issue their own 1099 forms?

I, this year, traded some ETFs that track US stock market indices; like SPY, QQQ, DIA. Do these ETFs issue their own 1099 forms for reporting Gains/Losses, or are those ETF transactions just reported ...
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3answers
297 views

Does the price per share matter for otherwise similar ETFs?

For example looking at IE00B5BMR087 and IE0031442068 (both links in German), they seem to be very similar. Both try to track the S&P 500 in the same ways, the main difference seems to be that one ...
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1answer
93 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 ...
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1answer
98 views

What's more important, broad diversification or Dollar Cost Averaging?

The fee structure of my online broker would make a broadly diversified portfolio consisting of up to 8 ETFs very expensive in transaction fees if I decided to make monthly purchases for the purpose of ...
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1answer
191 views

How can one lose money with VTI? [duplicate]

I am 26 and beginning to learn about investing. I currently have no investments other than some schemes through my employer, which I've already maxed-out. I've read that VTI is a long-term, low-risk ...
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2answers
753 views

Invest in Vanguard Index Funds (from Germany)

I am planning to invest in Vanguard Index Funds while living/working in Germany, but only interested in specific ones (see below). But I cannot seem to find them via brokers that I usually do my ...
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2answers
111 views

WisdomTree ETFs

I have come across WisdomTree. I am quoting, as they define their line of work: WisdomTree is an ETF sponsor and index developer that uses a rules-based methodology to select and weight companies... ...
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4answers
14k views

How often do the S&P 500 components change?

And do index funds such as SPY and VOO usually rebalance immediately to reflect the change?
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2answers
357 views

Will a massive sell off of the SPY ETF affect stock prices?

What will happen if there is a massive sell off in the SPY ETF? Will this affect the stock prices of its components? For example, will the price of Apple (APPL) shares drop? Or will it only affect the ...
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1answer
43 views

Do income/distributing index funds (Vanguard specifically) invest their dividends until they are being paid out

Take those two for instance: https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-developed-world-ex-uk-equity-index-fund-gbp-inc/distributions https://www.vanguardinvestor.co.uk/investments/...
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1answer
227 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 ...
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1answer
63 views

How can small cap index funds grow in value if the ones that grow are turned over?

Is it a good idea to invest in a small cap index fund / ETF? I don't understand how the fund can possibly grow due to the constraints of its definition. Definition: A small cap is generally a company ...
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1answer
312 views

Accumulating or Distributing ETFs?

I am 32 years old and have started to invest passively in low-fee stock ETFs: one global (VT) and one local Swiss ETF (CHSPI). However I was not sure whether to buy accumulating (dividends auto-...
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1answer
177 views

During the 2008 crash/crisis, did ETFs track close to their underlying "holdings"?

Did ETFs drop as much as the indices they were supposed to track? Were there any outliers? Did inverse ETFs perform as expected? I have read that inverse ETFs track a bit off from what is expected ...
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3answers
3k views

Do ETFs move on their own? Or only on aggregate from the individual holdings?

Of course every security moves due to supply/demand from sellers and buyers. More people wanting to buy drives price up, etc... How does this work with ETFs? If I have ETF X composed of companies A,B, ...
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1answer
108 views

Why can't we arbitrage ETFs?

I invest in a couple of ETFs in Europe and regularly I observe results such as: VUSA (Vanguard's European S&P500 ETF) went up 0.41% today; the S&P500 went down 0.68%; the EUR/DOL went down 0....
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1answer
92 views

Avoiding capital gains tax when exchanging one stock for another

From observation, it seems like an ETF fund manager can buy and sell assets while avoiding a capital gains tax. However, if I were to do that, I would be taxed each time I sold (and thus missing out ...
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0answers
30 views

How many schedule K-1 's would I receive If i trade the ETF on 2 different brokers?

This year, I have traded several Commodity ETFs, such as USO, BNO, OILK ( crude oil funds), UGL (Proshares Gold Fund). These ETFs are structured as Limited Partnership. I know that around mid-March ...
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2answers
71 views

If a sector is projected to well in the future, does it make sense to invest in an ETF of that sector?

For example solar energy and uranium seems to be projected to grow a lot in the future. Would it make sense to find index funds that track solar energy companies or uranium mining companies and invest ...

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