What are the main benchmarks that track the banking sector?

July 7, 2024 No Comments

A: The appropriate benchmarks for tracking banking sector performance depend on the type of banking. For instance, commercial-only banks can be evaluated very differently than retail-only banks. For smaller savings and loans institutions, standard benchmarks include net interest margins, the ratio between equity and total

What are the most common ETFs that track the banking sector?

July 7, 2024 No Comments

A: Some of the exchange-traded funds (ETFs) that track the banking sector are financial ETFs with varying degrees of exposure to banks, while others are pure-play bank ETFs. Some ETFs focus on the international financial services sector, whereas others concentrate on U.S. banking segments such

What are the most common ETFs that track the chemicals sector?

July 7, 2024 No Comments

A: As of 2015, no exchange-traded funds (ETFs) exclusively track the chemical sector, but ETFs are available that track chemical companies alongside other manufacturing and materials companies. The top chemical ETFs include Market Vectors Agribusiness (MOO), Materials Select Sector SPDR (XLB), iShares DJ US Basic

What exactly is an ETF portfolio?

July 7, 2024 No Comments

A: An exchange-traded fund (ETF) portfolio is simply a portfolio, or group of investments, that consists entirely of ETFs. ETFs are very much like mutual funds in that they are a basket of stocks or other assets that are managed in either a passive or

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

July 7, 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

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

July 7, 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 are ETF fees deducted?

July 7, 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

How do leveraged ETFs compound volatility? (SPXL)

July 7, 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?

July 7, 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?

July 7, 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.

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