What is the automotive sector?

June 30, 2024 No Comments

In the world of finance, the automotive sector represents the financial performance and economic variables related to automobile manufacturers, dealerships, original equipment manufacturers and auto maintenance companies. The U.S. Department of Labor recognizes the manufacture, sales, servicing and production of spare parts as part of

Do Vanguard ETFs require a minimum investment?

June 30, 2024 No Comments

Vanguard completely waives any U.S. dollar minimum amounts to buy its exchange-traded funds (ETFs), and the minimum ETF investment is one share. Vanguard offers various ETFs with a wide spectrum of investment objectives at very low expense ratios. Advantages of Vanguard ETFs Vanguard has a

What is the best way to get exposure to electric cars when investing in the automotive sector?

June 30, 2024 No Comments

A: Investors interested in electric cars have a variety of options. Automakers such as Tesla Motors exclusively manufacture electric vehicles and may be directly invested in by purchasing stock. Companies within the automotive sector that manufacture vehicle parts or supply raw materials used in producing

How are ETF fees deducted?

June 30, 2024 No Comments

A: Investment management fees for exchange-traded funds (ETFs) and mutual funds are deducted by the ETF or fund company, and adjustments are made to the net asset value (NAV) of the fund on a daily basis. These management fees are never directly seen on any

What is the difference between iShares, Vanguard ETFs and Spiders?

June 30, 2024 No Comments

A: iShares, Vanguard ETFs and spiders each represent different exchange-traded fund (ETF) families. In other words, an individual company offers a range of ETF types under one product line. Because these ETF families are constructed and operated by different companies, you will find differences in

How do leveraged ETFs compound volatility? (SPXL)

June 30, 2024 No Comments

A: Leveraged ETFs often advertise their volatility versus a tracked index with the multiple included in the name of the fund. For example, an investor who buys the Direxion S&P 500 Bull 3x ETF (NYSEARCA: SPXL) assumes that the fund triples the volatility of that

How do you calculate the excess return of an ETF or indexed mutual fund?

June 30, 2024 No Comments

A: For exchange-traded funds (ETFs), the excess return should be equal to the risk-adjusted (or beta) measure that exceeds the instrument’s benchmark or annual expense ratio. It’s easy to assess index mutual funds against the benchmark index: just subtract the benchmark’s total return from the

Is it possible to invest in an index?

June 30, 2024 No Comments

A: First, let’s review the definition of an index. An index is essentially an imaginary portfolio of securities representing a particular market or a portion of it. When most people talk about how well the market is doing, they are actually referring to an index.

Should I invest in ETFs or index funds?

June 30, 2024 No Comments

A: Exchange-traded funds, or ETFs, and index funds are very popular with investors; both offer advantages over actively managed mutual funds. The question of whether to include them in your investment portfolio is largely decided by whether they suit your personal investment style, strategy and

The most common ETFs that track the metals and mining sector

June 30, 2024 No Comments

A: There are two general types of ETFs that track the metals and mining sector. There are ETFs that invest in mining companies and there are ETFs that invest directly in physical metals. The most common ETFs that track the metals and mining sector are:

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