37

A couple of possible reasons: A disproportionate amount of stock-market risk (e.g., scheduled economic and earnings releases) happens outside market hours, with the goal of avoiding destabilization of the market. (Extended-hours and futures trading are typically occurring, and show the immediate impact, but the regular-hours SPY does not.) Thus, overnight ...


35

The ETFs are designed to replicate the return. Don't get hung up on the price. Illustrative Example: Say you have two ETFs both designed to replicate the return of an index. Call these ETFs A and B. Whether you buy 1 share of ETF A for $100 or 2 shares of ETF B for $50, you have invested $100. Each ETF manager will take your money along with the ...


24

Per the request above: The market reacts to overnight news which includes after hours earnings announcements, economic reports, overseas trading, etc. (very, very few companies announce earnings during regular hours trading). Because of these, the market tends to gap up or down in the morning. In a long term bull market, those gaps are net positive


22

Summary When you invest in an S&P500 index fund that is priced in USD, the only major risk you bear is the risk associated with the equity that comprises the index, since both the equities and the index fund are priced in USD. The fund in your question, however, is priced in EUR. For a fund like this to match the performance of the S&P500, which is ...


18

The unit is arbitrary. It doesn't mean anything. I buy these special paint can liners. Some stores sell 4 for $4.00, others sell 5 for $5.00 and others sell 6 for $6.00. It's exactly the same thing as that. In any of the funds, your $1.00 buys, say, 0.0000316 shares of GE stock, as well as 499 other stocks in principle totaling up to $1.00 value. Just ...


12

The following items could play a factor: Intraday margin is higher (e.g. 4x leverage for intraday but 2 x for overnight), causing people to buy at the open (push the price up) and sell at the close (push the price down). While people could also use intraday margin to create short positions, in general there are more long buyers than short sellers. Many ...


10

It depends which 3 years (and which 15). If you had bought the S&P500 index fund in the 2004-2005 time range, your 3 year returns would be small, nothing, or even negative, depending on how exactly you timed it, whereas waiting 15 year (until about now) would have more than doubled (nearly tripled, again depending on exact timing) your investment. See ...


8

"the average return for 3, 5, 10, 15 years is 9%, 8%, 13% and 7.6% respectively" I suspect this really means that the returns using the S&P average over the previous 3, 5, 10, 15 years is … . The answer you are quoting from seems to be simply giving examples of how the market has performed recently in order to give an idea of what is a reasonable ...


7

First approach The formula for standard deviation is fairly simple in both the discrete and continuous cases. It's mostly safe to use the discrete case when working with adjusted closing prices. Once you've calculated the standard deviation for a given time period, the next task (in the simplest case) is to calculate the mean of that same period. This ...


6

I found a good article about how Standards & Poors decides which companies are included in the S&P 500 index. It's from quite a while ago (year 2000), but it's somewhat definitive as it was written by David Blitzer himself. See ETF.com - Here, At The S&P 500 (archive copy). While the article focuses on the criteria for company inclusion in the ...


6

There is no money, and it doesn’t go anywhere. A company’s market cap is just the market’s opinion of what it’s worth. That opinion changes all the time, but no actual money is involved. Money only comes into it when shares (or derivatives) are actually bought and sold.


6

The S&P 500 constituents are rebalanced on a quarterly basis on the third Friday of March, June, September and December on the basis of their weighting and other relevant factors. Intra-quarter changes can also occur, typically because a company becomes ineligible to remain in the index, such as takeover/merger, removal from major exchanges due to ...


5

There are numerous companies offering ETFs that conform to EU regulations (UCITS); among the largest active in Germany are iShares, Lyxor, db x-trackers, ComStage, and Vanguard. (Note that some of these are active in the US, too, but their ETFs differ between jurisdictions.) Every single of these companies has at least one ETF tracking the S&P 500 in ...


4

ETFs are traded as stocks, and you can buy any amount. The minimum amount limitation is for initial purchases from SPDR itself, which is not what you're going to do. The direct purchase from SPDR is for financial institutions that buy ETFs in chunks of 100000 units and then sell them on secondary market, which is where you're buying.


4

I don't know a free way to get access to this info on a daily basis other than perhaps squinting hard at CNBC's screen when they show their S&P heat map. However, that CBOE list looks accurate to me for the beginning of June. There were in fact 502 components on that date. (Interesting trivia: Here's a histogram of the population size of the S&P "...


4

Is there any ETF / Index Fund that tracks the S&P 500 and that holds both stocks and bonds? No, because the S&P 500 does not contain any bonds, so trying to track that index with both stocks and bonds would be extremely difficult. I assume you want the returns of the S&P 500 but not the risk, hence the addition of bonds. Unfortunately, risk ...


4

Is this because it no longer makes sense to track the DJIA? If so, why? Some reasons come to mind: The DJIA consists of only 30 companies, so it is more risky since one company can make large changes in the index. Other indices have hundreds of companies, making them more diversified and less risky. Th DJIA is not market-cap-weighted like the S&P 500. ...


4

Large companies are multi-nationals such that it really doesn't matter where they are based. But the European banks have large operations in Europe and are currently hurt by zero interest rates. Otherwise, the EUR, with the zero interest rates, tends to support European economic activity. The USD at 1.75% interest rate is more of an income opportunity. In ...


4

The S&P 500 is just an index - a list of specific stocks, it is not an investible instrument. What you are finding are some ETFs that track the S&P 500's returns, as well as ETFs that track other indices (like the Dow Jones US Index) and other variants or segments of the S&P 500 (e.g. XBI is specific to Biotech). Of the ones you list, SPY, IVV, ...


3

Because most of the growth in an index fund is not due to dividends paid by the stocks it holds, but by the increase in the price of the stocks. That increase has no obvious, direct relationship to corporate earnings or to dividends paid. There are plenty of stocks (e.g. Tesla: https://ir.tesla.com/investor-faqs ) that don't pay dividends, but whose share ...


3

The price of U.S. Treasury securities are up in the past month. Gold is up and the Yen is up. The Swiss Franc is not completely at a one month high. There have been ETF inflows into a Treasury fund that has a duration of about 1.9 years. But it appears that an investor could outperform the income of that fund with a three-month bill in their own Treasury ...


3

Is this the more or less direct result of quantitative easing? Yes. (EDIT: and all that 401(k) and IRA money needing somewhere to go.) Is it also a result of low interest rates? That's what QE is. EDIT: https://www.investopedia.com/terms/q/quantitative-easing.asp "Quantitative easing is an unconventional monetary policy in which a central bank ...


3

Vanguard now has a S&P 500 tracking ETF based in Ireland that may meet your needs.


3

The S&P 500 index is maintained by S&P Dow Jones Indices, a division of McGraw Hill Financial. Changes to the index are made periodically, as needed. For Facebook, you'll find it mentioned in this December 11, 2013 press release (PDF). Quote: New York, NY, December 11 , 2013 – S&P Dow Jones Indices will make the following changes to ...


3

I know that my logic is missing something crucial as I always assumed that the longer you leave your money for the closer it approaches to the long term average return. If you can get 9% a year for 3 years, but 7.6% a year for 15 years couldn't you just do the 3 year hold 5 times? The error in this logic? How will you know when to buy and hold for only 3 ...


3

Well it's certainly nothing new. If you look at the chart on that page, longevity is actually higher now that it was in all of the 2000s. They are just predicting that turnover will increase over the next 10 years, though I haven't read the paper in detail to understand why they predict that. I would also posit that turnover is a result of market ...


3

TL;DR: Use raw data to enable apples to apples comparisons The problem with inflation is what definition of inflation you're going to use and whether you (others) think that measurement of inflation is the correct version. It also can "skew" the data since the way inflation is measured changes over the years. If you are using the S&P 500 index return ...


3

The S&P 500 does not include dividends. You should check the S&P 500 Total Return Index. From Wikipedia: The average annual total return of the index, including dividends, since inception in 1926 has been 9.8% This would give you roughly 5.2% annual real return, looking much better. However, this is in USD. Apparently, one GPB was worth ...


3

Self-answer—how awfully embarrassing, I had a bug in how I was handling dividends, in both the Google Sheets spreadsheet and in the webapp, in JavaScript. (I was basically not reinvesting dividends…) With this correction, the result is better: the excess return, investing the CPI every month, over the last forty years has been 5.8%. I noticed that the ...


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