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2

I've read many of these articles such as the ones in your links and they are right to a point. But as you noted, many leveraged ETFs have indeed provided the leverage that they advertised and then some. So who's wrong? A small factor in this is the higher Expense Ratio of leveraged funds. They have to rebalance daily. That takes its toll under all ...


0

A day-to-day drop of 33% is rare indeed -- but even much smaller drops can sap the value out of a leveraged fund. How about a 3% day-to-day drop instead? The S&P 500 has done that twice this month. To see the effect of that, consider a hypothetical fund with a capital of $1,000,000 on Monday morning. It's 3× leveraged with respect to an index that ...


1

There are a number of web sites that offer ETF information. One of them that I have used is ETFDB. It has a free screener. For example, it shows that there are 121 Asian ETFs for Developed Asia. There are other screening choices as well. You can select an ETF and click on is holdings. That will provide the major holdings. It requires a subscription if ...


0

Hedging against currency risk is a poor idea when investing in stocks, because a well-diversified stock portfolio is anyway more or less protected against that risk. Want proof? Consider this: the dollar declines in value. U.S. people start purchasing more U.S. made products, and similarly foreign customers will import goods from U.S. Thus, when dollar ...


10

The EQQQ exchange-traded fund tracks the Nasdaq 100 and has US Dollar as its base currency. So you can buy it in GBP but performance will be affected by your GBP essentially being converted to dollars on the way in and way out. This can give you exchange rate downside, or upside, depending on the timing of your transactions. The EQGB is essentially the same ...


2

I have never invested in a cash-only ETF, but I definitely have invested in a cash-only traditional mutual fund, which is called money market fund. Such funds make a lot of sense. At least in Europe, there are systems for supposedly ensuring that if you deposit money to a bank, and the bank goes bankrupt, that as a creditor of the bank, your assets are ...


4

You may have stumbled upon a particularly unattractive ETF because as you say, the yields don't seem to be better than what you could get at your local bank. I'm not sure if is due to the nature of the Australian cash markets at the moment but I do know that there are attractive examples of this in the US. In the US we have "Money Market Funds" which ...


0

If you're an individual investor like me who wants to simplify your investment life, then putting all your not-checking-account cash (like e-fund, etc) in BILL makes sense. (I don't simplify my investment life that much, though...)


43

One benefit of cash ETFs over a bank deposit is if you're interested in diversifying your currency holdings, they are a cheaper method than going to traditional currency exchanges. For instance, if you're in the US, and you want some of your cash holdings to be in EUR to hedge against the possibility of the dollar falling, you could exchange your dollars to ...


5

If you are a retail investor with a bank account, and the bank goes bust, you lose your money unless your country has some guaranteed government-operated protection scheme. Even if such a scheme exists, it only protects a limited amount - e.g. the UK guarantee scheme protects a maximum of £85,000 for all your accounts with one bank. And since 2008, the ...


7

Someone who would invest part of their assets in a term deposit might hold a cash ETF instead because it presents a similar risk/return profile, but superior liquidity. A term deposit requires your invested capital to remain locked up until the term expires. A cash ETF can be sold at any time, assuming sufficient liquidity. This is less important for a ...


6

Essentially, if your are an institutional investor you may want to keep a certain percentage of your holdings in cash to reach a balanced asset allocation, in the same way as an individual investor (you & I) would to. But as your asset holdings are in the millions and billions, you naturally will have a need for broader diversification among different ...


9

It can be part of an investment portfolio. If somebody has several investments at a broker, they may have ETFs/mutual funds that invest in various sectors or indexes, they can own various individual stocks, but at this moment in time are accumulating cash because they think that is the best choice for new money. Or maybe they recently sold some or part of ...


1

The German capital gains tax is flat for all kinds of capital gains. Capital gains are just one kind of income that you might have, besides other kinds of income such as employment, trade, forestry, and so on. However, the flat capital gains tax replaces the progressive income tax. Capital gains tax is usually due when value gains are realized, e.g. by ...


3

AFAIK, the Kapitalertragsteuer doesn't distinguish different types of capital gains, so, yes, all the same. That being said, there may be differences with ETFs (you may have to pay withholdings on the capital gains tax if the capital gains are automaticaly reinvested) If your marginal tax rate is below those 26.357 %, you can ask the tax office in your ...


0

Rebalancing of ETF or any Mutual fund would be as per what is declared in the fact sheet. Unless there is Gross misrepresentation, regulations don't apply


1

My suggestion is to use half of your savings ($50k) for your down payment and leave the rest for your emergency fund, without any investment. This assuming your comment about the $100k actually being your savings is true. First off, never assume you are going to be constantly employed for any length of time. Not 15 years, not 15 months. You likely don't ...


0

Depending on questions asked in the comments (regarding PMI) I think your best course of action is: Don't put any money down. Don't invest all of your savings. Keep an emergency fund of 6 months of mortgage payments (more depending on the levels of social safety nets, most importantly how well/badly you'd do on unemployment). Invest the rest into a safe-...


4

Sure it's possible. First of all, the MSCI World Index consists of over 1,600 securities, so it's unlikely that either fund holds all of them in the same proportions as the index. They likely hold a representative sample that is intended to track the index closely. So the funds could have significantly different holdings and could perform differently (better ...


1

Lower levels of liquidity lead to greater bid-ask spreads. Liquidity is affected by: ETF composition The trading volume of the components And to some degree, the trading volume of the ETF The sector that the ETF emulates The risk of the components (narrow versus broad based)


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