One disadvantage of investing in an exchange-traded portfolio is the additional level of complexity that the products provide. The majority of ordinary investors are unfamiliar with the inner workings of a standard open-end mutual fund. As a result, expecting regular investors to understand the differences between exchange-traded funds, exchange-traded notes, unit investment trusts, and grantor […]

If the shares are subject to additional restrictions, such as a tax rate other than the normal capital gains rate, The holding period refers to how long you keep your stock. The holding period begins on the day your purchase order is completed (“trade date”) and ends on the day your sell order is executed […]

We’ve grown accustomed to instantaneous financial transactions. When you buy groceries with your debit card, your bank account is promptly updated. Send money to a friend via Interac transfer, and it will get in their hands in seconds. When you purchase or sell an ETF or mutual fund, however, the trade does not settle for […]

When an exchange-traded fund (ETF) closes, it must follow a stringent and orderly liquidation procedure. An ETF’s liquidation is similar to that of an investment business, with the exception that the fund also informs the exchange on which it trades that trading will be suspended. Depending on the conditions, shareholders are normally notified of the […]

If the shares are subject to additional restrictions, such as a tax rate other than the normal capital gains rate, The holding period refers to how long you keep your stock. The holding period begins on the day your purchase order is completed (“trade date”) and ends on the day your sell order is executed […]

ETFs are purchased and sold during market hours, and their market price is decided by the value of the fund’s holdings as well as supply and demand in the ETF’s market place. The NAV is a metric used to assess the performance of exchange-traded funds (ETFs)…. What factors go into determining ETF prices? An ETF’s […]

If an investor earns $400,000 or more per year, or $450,000 for married couples, they are subject to the highest capital gains tax rate. As a part of the 2010 health-care reform, individuals earning more than $200,000, or $250,000 for couples, must also pay a 3.8 percent investment income tax. Capital gains on gold ETFs […]

ETFs are purchased and sold during market hours, and their market price is decided by the value of the fund’s holdings as well as supply and demand in the ETF’s market place. The NAV is a metric used to assess the performance of exchange-traded funds (ETFs)…. Who determines an ETF’s price? The price of an […]

ETFs are purchased and sold during market hours, and their market price is decided by the value of the fund’s holdings as well as supply and demand in the ETF’s market place. The NAV is a metric used to assess the performance of exchange-traded funds (ETFs)…. What factors influence ETF prices? The market price of […]

An ETF’s net asset value (NAV) is calculated using the most recent closing prices of the fund’s assets and the total cash in the fund on a given day. The NAV of an ETF is computed by adding the fund’s assets, including any securities and cash, subtracting any liabilities, and dividing the result by the […]