Are ETFs considered derivatives?

July 7, 2024 No Comments

Most exchange-traded funds (ETFs) are not considered to be derivatives. In the aftermath of the 2008 financial crisis, many pundits pointed the finger of blame at derivatives and financial engineering as the primary causes of the market collapse. As a result, many investors have shied

Are there leveraged ETFs that track the banking sector?

July 7, 2024 No Comments

A: A number of exchange-traded funds (ETFs) track the banking sector. Among them are ProShares Ultra KBW Regional Banking, ProShares UltraPro Short Financials, ProShares UltraPro Financials, Direxion Daily Financial Bull 3X Shares and Direxion Daily Financial Bear 3X Shares. ProShares is a leading company offering

Are Vanguard ETFs commission-free?

July 7, 2024 No Comments

A: While some Vanguard exchange-traded funds (ETFs) are available commission-free from third-party brokers, a large portion still bear commissions. Whether a particular ETF is commission-free depends on the investment broker platform. However, buying Vanguard ETFs through the Vanguard investment platform comes free of any trading

book value per common share & NAV (net asset value)

July 7, 2024 No Comments

A: Book value per common share, also known as book value per equity of share or BVPS, is used to evaluate the stock price of an individual company, whereas net asset value, or NAV, is used as a measure for evaluating all of the equity

Do ETFs pay capital gains?

July 7, 2024 No Comments

A: Exchange-traded funds (ETFs) can generate capital gains that are transferred to shareholders, typically once a year, triggering a taxable event. Although very rare, ETFs have capital gains from time to time due to one-time large transactions or unforeseen circumstances. Because ETFs are structured as

What is the QQQ ETF?

June 30, 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

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

June 30, 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?

June 30, 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?

June 30, 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?

June 30, 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

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