Page 2 of 3 FirstFirst 123 LastLast
Results 13 to 24 of 32

Thread: ETF's

  1. #13
    Spaf's Avatar
    Spaf is offline Honorary Hall of Fame Member Reputation: 1179
    Likes received: 0
    Likes given: 0
    AutoTracker

    Join Date
    Aug 2004
    Location
    Oklahoma, USA
    Posts
    4,065

    Post Re: ETF's

    Yea, brokers charge a fee for a trade, whether you buy 1 or thousands. Most trades are done in blocks of 100, but you don't have to. The fee is what the broker makes. Brokers that charge more generally have more frills to their systems.

    The other cost is the "ask" and "bid" price. If the stock had a price of $20.00 they could ask 20.05 for it....or they would bid (buy it) for 19.95. That's where the company makes the money.

    What broker one goes with is a matter of personal preference, but I would caution against the real cheap ones.

  2.  
  3. #14
    clester's Avatar
    clester is offline Planet TSP Reputation: 1932
    Likes received: 532
    Likes given: 20
    AutoTracker

    Join Date
    Oct 2004
    Posts
    2,531

    Default Re: ETF's

    So, do you think ETF's are a good option if I transfer my TSP to an IRA and make SEPP withdrawals? just looking for best guesses. anyone? thanks.

  4.  
  5. #15
    Spaf's Avatar
    Spaf is offline Honorary Hall of Fame Member Reputation: 1179
    Likes received: 0
    Likes given: 0
    AutoTracker

    Join Date
    Aug 2004
    Location
    Oklahoma, USA
    Posts
    4,065

    Post Re: ETF's

    Quote Originally Posted by clester View Post
    So, do you think ETF's are a good option if I transfer my TSP to an IRA and make SEPP withdrawals? just looking for best guesses. anyone? thanks.
    As with any investment, there are risks. I like ETFs because there are so many to chose from and they are mainly indexed to mirrow a certain sector. However, check out www.barcharts.com go to market overview and click on ETFs, there you can see the majority of the funds and their performance. Plus you can play with their performances via the tab buttons. Another good site is www.iShares.com

  6.  
  7. #16
    James48843's Avatar
    James48843 is offline Hall of Fame Reputation: 6497
    Likes received: 1046
    Likes given: 581
    AutoTracker

    Join Date
    Apr 2005
    Posts
    10,933
    Blog Entries
    7

    Default Re: ETF's

    I recently bought FXI , which is capturing the China market. A bit of diversification into Asia while it's on the upswing. It's an iShares EFT.

  8.  
  9. #17
    GGal's Avatar
    GGal is offline Club TSP Reputation: 144
    Likes received: 0
    Likes given: 0
    AutoTracker

    Join Date
    Feb 2005
    Location
    USA
    Posts
    1,132

    Cool Re: ETF's

    I am interested in this one: H & Q Life Science Investors

    http://www.fool.com/investing/mutual...gvisit=y&npu=y

    If I wanted to buy x amount of it every month, should I use my regular broker, or should I set up some kind of online account (which I have never done!)

    Please advise.

    Thanks
    GA

  10.  
  11. #18
    Show-me's Avatar
    Show-me is offline TSP Guru Reputation: 4742
    Likes received: 123
    Likes given: 98
    AutoTracker

    Join Date
    Sep 2004
    Location
    Missouri
    Posts
    8,618

    Default Re: ETF's

    Sharebuilder is a Warren Buffet company I believe. It is more of a buy and hold broker.

    Scottrade you can transfer money electronically or they can transfer money from a savings or checking account like a allotment.
    Socrates: "Democracy, which is a charming form of government, full of variety and disorder, and dispensing a sort of equality to equals and unequaled alike."


  12.  
  13. #19
    James48843's Avatar
    James48843 is offline Hall of Fame Reputation: 6497
    Likes received: 1046
    Likes given: 581
    AutoTracker

    Join Date
    Apr 2005
    Posts
    10,933
    Blog Entries
    7

    Default Re: ETF's

    Quote Originally Posted by GeorgiaGal View Post
    I am interested in this one: H & Q Life Science Investors
    Georgia gal:

    HQL appears to have lost a significant amount of value over the last 12 months, going from about 18 bucks down to 13 bucks, and has a negative 25 percent growth rate.

    What do you know that makes this one worth looking at? Yes, it's paying a dividend. But there doesn't appear to be many other things to make it an outstanding performer.

    So what do you know about it?

    thanks

  14.  
  15. #20
    GGal's Avatar
    GGal is offline Club TSP Reputation: 144
    Likes received: 0
    Likes given: 0
    AutoTracker

    Join Date
    Feb 2005
    Location
    USA
    Posts
    1,132

    Smile Re: ETF's

    Hey James,

    I know debits and credits, and I know tax law, and I know how to cook, etc. etc.

    I'm interested in HQL because I'm interested in investing in biotech companies for the long haul because of the aging baby boomer population. We baby boomers are squeaking like a gazillion little mice, wanting everything to be cured.

    I like the idea of somebody with more expertise than me doing the picking. And, I like the idea that the price has dropped. That's a good thing.

    I'm going to do more research before I set it up after the first of the year, but right now it looks like I'm going to go with a sharebuilder account, and it looks like HQL will be my primary target for now.

    By the way, this year I made what turned out to be fabulous investments in ALNY and RNAI. And I could a made a bunch on ACOR but my broker talked me out of it. And so far my ANIK is doing well also.

    I'm just real interested in Biotech. I am so sad that I did not buy Genentech. (sic?)

    GA

  16.  
  17. #21
    Spaf's Avatar
    Spaf is offline Honorary Hall of Fame Member Reputation: 1179
    Likes received: 0
    Likes given: 0
    AutoTracker

    Join Date
    Aug 2004
    Location
    Oklahoma, USA
    Posts
    4,065

    Post Re: ETF's

    Biotech
    My STA gives a reference to [BTX]. For a sector index seasonality it's a start buy around the end of July and runs through the beginning of March......

  18.  
  19. #22
    GGal's Avatar
    GGal is offline Club TSP Reputation: 144
    Likes received: 0
    Likes given: 0
    AutoTracker

    Join Date
    Feb 2005
    Location
    USA
    Posts
    1,132

    Cool HQL - to James

    http://www.hqcm.com/Reports/HQL/hqla06.pdf

    Link to HQL's latest annual report filed with SEC.

    What I'm seeing is potential. Since this is a managed fund, I don't think the term "negative growth" should be used or viewed in the same context that we would use that term as related to a Home Depot or a Walmart, etc..

    The volatility of the biotech market sector this year is what caused the decline in NAV. But, that can and will change.

    It's not the same thing as saying Home Depot (or whatever) had a 25% negative growth rate because they closed x number of stores or lost x number of accounts..

    GA

  20.  
  21. #23
    James48843's Avatar
    James48843 is offline Hall of Fame Reputation: 6497
    Likes received: 1046
    Likes given: 581
    AutoTracker

    Join Date
    Apr 2005
    Posts
    10,933
    Blog Entries
    7

    Default Re: ETF's

    Thanks for the link to the annual report. That's an interesting read.

    What I take from it is what I see as a pretty high fee ratio for the returns they are getting. They are charging 1.75% in asset management fees. Pretty steep, if you ask me. You mention the volitility in the sector- the annnual report icks out that as a factor, but I also see not just one year but all five years as a pretty questionable return. For those kind of consulting fees, one might expect to see some better performance.

    But I understand your interest in the sector. Nice place to look around for the future. I'll keep my eye on it.

    Thanks for the read. Good luck. Hope it works out for you.

    J

  22.  
  23. #24
    Bullitt's Avatar
    Bullitt is offline Club TSP Reputation: 2334
    Likes received: 80
    Likes given: 14
    AutoTracker

    Join Date
    Sep 2006
    Location
    Upstate NY
    Posts
    1,925
    Blog Entries
    44

    Default Re: ETF's

    According to the WSJ...

    2/3 of people who are worth $500K-$1Million invest in ETFs and more than half invest in Mutual Funds.

    On the other hand, 76% of the ultra rich (>$20mil) choose to invest in Hedge Funds and 35% choose startup companies. Allegedy only 1% of this category directly invests in ETF's/Mutual Funds.

    I think this is deceiving though because alot of that money flowing into Hedge Funds gets invested into ETF's. It makes sense to give money to a hedge fund because I couldn't imagine trying to personally invest $20 million in the market. I don't understand what is wrong with a mutual fund though even if you have that kind of money though. I guess it all comes down to wanting to drive a Porsche or Ford.

    My one gripe about ETFs is this that they all proclaim to have low fees. At the end of the day price is all that matters. If a Fund returns 18% YTD and has a 1.5% 12-b fee attached to it, who cares. You still made 18%!!! It's not like the Fund says 'ok you made $2000 this year but we're taking 1.5% from that.' It's already factored into the NAV. If you want to mimic an index, then buy an index mutual fund so you can DCA and not worry about getting blasted by commissions with your contributions. I don't think the big companies want the retail investor to know this because then they would lose money in commissions.

    I think ETFs are good but not great. Like anything else there are winners and losers. They are best for riding a high flying sector or dropping a lump of cash down all at once. For example, the FXI would be a great wave rider but not a long term investmet. DVY would be a great ETF to drop a lump sum on and watch grow.

    ETF's are a relatively new phenomenon and I wouldn't be surprised to see a few founder in the years ahead.

  24.  
Page 2 of 3 FirstFirst 123 LastLast

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
S&P 500 (C fund)
[Chart]
Dow Completion (S fund)
[Chart]
EFA (I fund)
[Chart]
Bonds (F fund)
[Chart]