Answers
I am 21 and i ma looking to put my money back to work for me this year. I was told that my best bet is to invest in a index fund that track the S&P 500. However i am also being told that Exchange traded funds (EFT) are the way to go. I would like to know what is the main differences between the two. Any help at all would be greatly appreciated.
An ETF is an index fund as it holds a basket of stocks reflecting a particular index or sector. It can be bought or sold at any time during the day on the open market, and typically charges a fairly low amount for the management. Typically you might buy shares in an ETF, and 100 is the round lot multiple which is most easily traded, although many ETFs trade enough shares that you can get lower multiples traded as well. (eg. 83 shares at $12 for about $996). You'll pay a commission for each transaction, the amount varying with the brokerage you do business with.
If you're referring to index fund as a mutual fund which tracks an index, it its price is typically set at the end of the day, and can only be sold or bought at the end of day price. Depending on the company that manages this fund, the expense for doing so are typically higher than that of ETFs. The advantage of a mutual fund is that you may just decide to put, say $1000 into it and they'll divide up the number of shares that represents and you'd get the exact amount. The expenses are hidden and subtracted from the returns the fund generates (as with the ETF).
Nick Perry of Schaeffer's Investment Research offers a introduction to Exchange Traded Funds (ETFs). If you are new to the investing arena and ...
I have recently become interested in Exchange Traded Funds. I was wondering how one might go about calculating the underlying value of the assets held by the fund and where the information needed to do so would be acquired.
I am not talking about the assets I hold but the assets held by the fund.
I know basically how to do it but don't know where to get the information.
This is called the Net Asset Value (NAV) and can usually be found on the funds web site. For exchange-traded funds, NAV should be almost identical to the market price. For closed end funds, it can fluctuate by a fair amount.
Even in this financial crisis, I want to open UTI Gold Exchange Traded Fund. Is it safe to open now? There should be no risk.
I heard that once demat is opened, there will be difficult to close the account in future. Is it true?
दो साल पहले हर व्यक्ति यही कह रहा था कि अब भारतिय शेयर बाज़ार टुटने वाले नहीं है। जब मार्केट १६००० पर था तब मेरे एक परीचित ने मुझसे झट्पट करोडपति बनाने वाले कुछ शेयरों के नाम पुछे तो मेने उससे कह दिया कि अभी तो मार्केट बहुत आगे आ गया है। थोड़ा दिन रुको भाई साहब। फिर तो वो मुझे रोज फोन करते कि आपका मार्केट कब टूट रहा है? और मार्केट बढकर २१००० हो गया। वो सज्जन मुझे कोसने लगे कि में १६००० पर शेयर ले रहा था पर आपनें नहीं लेने दिये। अब टी.वी. पर एनालिस्ट नेक्सट टारगेट ३०००० के सेन्सेक्स का दे रहें है।खैर मेने अपनी झेंप मिटाने के लिए ना चाहते हुए भी कुछ शेयरों के नाम बता दिए और आज उनका हाल क्या है ये जानकर आपको भी खुशी होगी।
अब वो सज्जन शेयर बाज़ार को जुआ मानने लगे हैं तथा सोने में निवेश करने लगे हैं। उनको पुरा विश्वास है कि सोना निवेश का सबसे अच्छा विकल्प है। टी.वी. पर भी एनालिस्ट मंदी का डर बताकर शेयर बेचकर सोना लेने की राय दे रहें है त्तथा सोने का २४००० का टारगेट दे रहें है।
मुझे तो लगता है कि अव उपरवाले को सोने में फ़्युचर का धन्धा करने वालों की जरुरत है क्योंकि थोडे दिन पहले शेयर वाले आत्महत्या करके, हार्ट अटैक होकर मर रहे थे अब सोना ८००० आ जावेगा तब इनकी टीकट बन जायेगी।
आपको क्या लगता है??? कृपया कमेंट्स देने में कंजुसी ना करें www.sharegenius.blogspot.com par comments kare आपको सोने में सट्टा करने वालों की कसम है।(क्योंकि उन्होने तो सिर पर कफन बांध ही रखा है)
अब तो आपकी धर्मपत्नी जी को पटाइये की वो आपको उनके एक दो हार बेचने दे जब बाद में सोने में मंदा होगा तो वापस बना दे गें?
श्रीमतियां जी मुझे माफ करें ।
I know what mutual funds are. How are exchange traded funds any different?
ETFs are like mutual funds, but ETF shares are traded on the stock exchange. Shares of mutual funds are not traded on the stock exchange. You must have a brokerage account to purchase ETF shares, like the online Scottrade or Ameritrade. Mutual fund shares can be purchased directly from the fund company as well as through a brokerage account. For both ETFs and mutual funds, the share price reflects the price of the individual stocks it holds. ETFs are "indexed" rather than actively managed: the stocks an ETF holds are selected to reflect a stock index like the S&P 500. ETFs are like index funds in terms of their stock holdings. If an ETF is "actively" managed, it's called a "closed-end fund" rather than an ETF.
Advantages of ETFs: the expense ratio is usually slightly smaller than the equivalent mutual fund. Also ETFs are available that target very specific market sectors, such as water resources (PHO offered by Powershares). ETFs are also more tax efficient, since they do not generally distribute as much income in the form of dividends and capital gains, but there is some debate as to the actual tax efficiency of ETFs. It may depend upon the particular ETF you choose.
Disadvantages: Every time you purchase or sell shares of an ETF you pay broker fees. If you purchase mutual fund shares directly from the mutual fund company, there are usually no fees for buying or selling.
I am an individual investor who is currently using options on exchange traded funds for capital growth.I sell both put and call options on SPY (S&P500 index) close to the current market price. I also buy protective puts.I generally sell options two months out to maximise my return on investment. Can you advise me if it is a good and safe strategy?
Sounds to me like you are a little more advanced than the teenagers on this site! I can not give you advice ... can you give me some? Why not stocks? I am into [GW] Grey Wolf and [GE] General Electric. What are your thoughts?
Hedge Funds Take Direct Stakes in Commodities … Should We Be Wary?
Reported last week.
Institutional investors are making these moves in order to sidestep expected regulatory changes. But with gold at near-record levels, and other commodity prices advancing, too, a major migration to the physical commodities market will translate into an actual jump in physical commodities demand.
Such a shift will push up commodity prices – and it has the potential to rev up inflation and cause major economic disruptions.
Regulatory ImbroglioThe world’s hedge funds all piling into commodities doesn’t matter much if the funds all stick to futures contracts . Dealers arrange the futures markets so that at expiration, the demand for physical pork bellies – or whatever – doesn’t outstrip the physical supply.
Even the major purchases of futures contracts we cite in our example would likely be enough to push up the price of pork bellies. But that increase would be limited in scope and consumers have learned to deal with such increases in living costs. What’s changing, however, is that the U.S. government is talking of introducing “ position limits ” to futures markets, and commodities speculators are worried that their hedging-and-speculating activities may be restricted.
Brazil ETF Investor Employs Covered Call Strategy Through December ...
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- Gel1, Sep 16, 2009
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- Zucko, Sep 4, 2009
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...News
Searching ETFs is pretty easy at USATODAY.comUSA Today - Oct 14, 2009
Q: What's an easy way to find an exchange-traded fund, or ETF, that invests in a particular niche, say clean energy? A: The website I used to recommend for Bond ETFs Suffer from Pricing DiscrepanciesETFs suit diversified investorsGlobal ETF Assets Hit all-time High of $891b - -all 12 news articles »Wall Street Journal - Oct 13, 2009
ETF DatabaseGas futures slipped after the US Natural Gas Fund, an exchange-traded fund, said it could put part or "potentially all of its investments" in gas-related UPDATE 1-UNG mulls investment in interests outside futuresUS Natural Gas ETF Discloses Strategy Changes & Risks (UNG)all 27 news articles »
Reuters - Oct 13, 2009
P), an exchange-traded fund that holds all of the financial-related companies from the Standard & Poor's 500 index .SPX, was up 12 cents to $15.36 at the Bullish traders pile into financial ETFXLF Draws Bullish Options Tradesall 7 news articles »Emii.com - Oct 14, 2009
The index will serve as the basis for an exchange-traded fund, to be listed on the Abu Dhabi Securities Exchange. NBAD plans to launch the ETF after gaining Dow Jones GCC Titans 50 to underlie first ETF in UAEall 3 news articles »guardian.co.uk - Oct 11, 2009
Glowing returns: Gold is proving popular on the London Stock Exchange. Photograph: Siphiwe Sibeko/Reuters Exchange traded funds may sound like something you CORRECT:ETF Assets Up $33.6B In Sept To Record $695B -State StreetLow-cost ETF portfolio holdingsAdvisors Talk Up All-ETF Portfolios - -all 46 news articles »