Do Vanguard ETFs require a minimum investment?

July 7, 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

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

What types of futures contracts are typically sold on an exchange?

July 7, 2024 No Comments

A: There are futures contracts available and traded on exchanges for virtually every class of investment asset, ranging from agricultural commodities to stock index futures. The earliest known futures exchange was established in Japan in 1710 for trading rice futures, although informal futures trading in

What types of stocks have a large difference between bid and ask prices?

July 7, 2024 No Comments

A: The bid-ask spread is the difference between the highest offered purchase price and the lowest offered sales price for a security. The spread is often presented as a percentage, calculated by dividing the difference between the bid and ask by either the midpoint or

Where can I find the P/E ratios for the Dow and S&P 500?

July 7, 2024 No Comments

A: The price-to-earnings (P/E) ratio is one of the most frequently used and trusted stock valuation metrics. It is calculated by dividing a company’s share price by its earnings per share. This provides a measure of the price being paid for the earnings. A high P/E ratio signifies greater investor

Which benchmarks / indexes track the automotive sector?

July 7, 2024 No Comments

A: Some of the benchmark indexes that investors can use to track the performance of the automotive sector are the Nasdaq OMX Global Auto Index, the S-Network Global Automotive Index, the MSCI ACWI Automobiles and Components Index, and the STOXX Europe 600 Automobiles & Parts

Why are MLP ETFs so expensive?

July 7, 2024 No Comments

A: A master limited partnership (MLP) is a specific type of limited partnership that is publicly traded. Under this legal structure, limited partners are the investors who provide the capital to the MLP in return for income distributions from the MLP’s cash flow. The general

Why can you short sell an ETF but not an index fund?

July 7, 2024 No Comments

A: To answer this question, we should first define exactly what an index fund is. An index fund is a mutual fund, or a basket of stocks sold by a mutual fund company, that attempts to mimic or trace the movements of a given index.

What is the QQQ ETF?

July 7, 2024 No Comments

The PowerShares QQQ, previously known as the QQQQ, is a widely held and traded exchange-traded fund (ETF) that tracks the Nasdaq 100 Index. The Nasdaq 100 Index is composed of 100 of the largest international and domestic companies, excluding financial companies, that are listed on the

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