Comments on: 4 things to look at before investing in an ETF http://www.experiglot.com/2006/07/17/4-things-to-look-at-before-investing-in-an-etf/ Because you shouldn't need an MBA to be savvy about finance and business Wed, 08 Feb 2012 23:34:28 +0000 hourly 1 http://wordpress.org/?v=abc By: Offering Personal Training http://www.experiglot.com/2006/07/17/4-things-to-look-at-before-investing-in-an-etf/comment-page-1/#comment-136012 Offering Personal Training Tue, 19 Feb 2008 19:26:06 +0000 http://www.experiglot.com/2006/07/17/4-things-to-look-at-before-investing-in-an-etf/#comment-136012 <strong>In-Home Personal Training NYC is best to get impressive personality...</strong> Fitness training is necessary for everyone to lead a healthy life. After all, the question is regarding your health and no compromises can be made at any cost.... In-Home Personal Training NYC is best to get impressive personality…

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]]> By: Personal Finance Carnival - Second Year Running http://www.experiglot.com/2006/07/17/4-things-to-look-at-before-investing-in-an-etf/comment-page-1/#comment-85251 Personal Finance Carnival - Second Year Running Thu, 21 Jun 2007 12:49:56 +0000 http://www.experiglot.com/2006/07/17/4-things-to-look-at-before-investing-in-an-etf/#comment-85251 [...] 4 Things to Look at Before Investing in an ETF - great article on investing in ETFs. I very much agree with his point #2 - you need to check the underlying holdings of the ETF - some small ETFs have large weightings to individual stocks which can really drive the performance of the ETF. I would also add that you should look at whether the ETF is trading at a premium or discount to the underlying net asset value (NAV). While any premium or discount is usually very small for most ETFs, sometimes it can be large for illiquid ETFs. In this case, buying ETFs that are trading at a substantial premium to their NAV may not be a wise decision. [...] [...] 4 Things to Look at Before Investing in an ETF – great article on investing in ETFs. I very much agree with his point #2 – you need to check the underlying holdings of the ETF – some small ETFs have large weightings to individual stocks which can really drive the performance of the ETF. I would also add that you should look at whether the ETF is trading at a premium or discount to the underlying net asset value (NAV). While any premium or discount is usually very small for most ETFs, sometimes it can be large for illiquid ETFs. In this case, buying ETFs that are trading at a substantial premium to their NAV may not be a wise decision. [...]

]]> By: Carnival of Personal Finance: Greatest Hits Edition ? Get Rich Slowly http://www.experiglot.com/2006/07/17/4-things-to-look-at-before-investing-in-an-etf/comment-page-1/#comment-82100 Carnival of Personal Finance: Greatest Hits Edition ? Get Rich Slowly Mon, 18 Jun 2007 08:25:03 +0000 http://www.experiglot.com/2006/07/17/4-things-to-look-at-before-investing-in-an-etf/#comment-82100 [...] Ricemutt at Experiments in Finance wrote about exchange-traded funds (ETFs) last summer, offering 4 things to look for before investing in an ETF. The advice here is great for investing in any mutual fund. [...] [...] Ricemutt at Experiments in Finance wrote about exchange-traded funds (ETFs) last summer, offering 4 things to look for before investing in an ETF. The advice here is great for investing in any mutual fund. [...]

]]> By: July’s site stats update | Experiments in Finance http://www.experiglot.com/2006/07/17/4-things-to-look-at-before-investing-in-an-etf/comment-page-1/#comment-1317 July’s site stats update | Experiments in Finance Tue, 01 Aug 2006 16:37:37 +0000 http://www.experiglot.com/2006/07/17/4-things-to-look-at-before-investing-in-an-etf/#comment-1317 [...] Experiglot's valuation In July, Experiglot’s NPV grew to $89.93. Traffic has continued to grow, albeit a bit slower, in large part due to my guest writing stint over at All Things Financial and having my post on ETFs picked up by TheStreet.com. [...] [...] Experiglot’s valuation In July, Experiglot’s NPV grew to $89.93. Traffic has continued to grow, albeit a bit slower, in large part due to my guest writing stint over at All Things Financial and having my post on ETFs picked up by TheStreet.com. [...]

]]> By: Ricemutt http://www.experiglot.com/2006/07/17/4-things-to-look-at-before-investing-in-an-etf/comment-page-1/#comment-1283 Ricemutt Mon, 31 Jul 2006 05:09:05 +0000 http://www.experiglot.com/2006/07/17/4-things-to-look-at-before-investing-in-an-etf/#comment-1283 Thanks, glad you liked it and found it useful. Thanks, glad you liked it and found it useful.

]]> By: Naren http://www.experiglot.com/2006/07/17/4-things-to-look-at-before-investing-in-an-etf/comment-page-1/#comment-1278 Naren Mon, 31 Jul 2006 02:21:24 +0000 http://www.experiglot.com/2006/07/17/4-things-to-look-at-before-investing-in-an-etf/#comment-1278 The article is great with all basic things needed to learn about ETF. Thanks The article is great with all basic things needed to learn about ETF.

Thanks

]]> By: Carnival of the Capitalists » Names@Work » Blog Archive http://www.experiglot.com/2006/07/17/4-things-to-look-at-before-investing-in-an-etf/comment-page-1/#comment-1168 Carnival of the Capitalists » Names@Work » Blog Archive Mon, 24 Jul 2006 16:54:13 +0000 http://www.experiglot.com/2006/07/17/4-things-to-look-at-before-investing-in-an-etf/#comment-1168 [...] Four Things To Look At Before Investing in an ETF Ricemutt from Experiments in Finance looks at the pros and cons of ETFs and how to read them for their real value. [...] [...] Four Things To Look At Before Investing in an ETF Ricemutt from Experiments in Finance looks at the pros and cons of ETFs and how to read them for their real value. [...]

]]> By: Jason http://www.experiglot.com/2006/07/17/4-things-to-look-at-before-investing-in-an-etf/comment-page-1/#comment-1081 Jason Tue, 18 Jul 2006 00:01:06 +0000 http://www.experiglot.com/2006/07/17/4-things-to-look-at-before-investing-in-an-etf/#comment-1081 Great article. Using the <a href="http://simulator.investopedia.com/home.aspx" rel="nofollow"> Investopedia Simulator</a>, I created an all ETF Index portfolio. Here are my respective holdings and the approx. % of the portfolio they comprise: Vanguard Value (<a href="http://quote.morningstar.com/ETFQuote.html?topnav2=hetopquote&ticker=vtv" rel="nofollow">VTV</a>) 20% Vanguard Growth (<a href="http://quote.morningstar.com/ETFQuote.html?topnav2=hetopquote&ticker=vug" rel="nofollow">VUG</a>) 20% Vanguard Extended Market (<a href="http://quote.morningstar.com/ETFQuote.html?topnav2=hetopquote&ticker=vxf" rel="nofollow">VXF</a>) 15% Vanguard Dividend Appreciation (<a href="http://quote.morningstar.com/ETFQuote.html?topnav2=hetopquote&ticker=vig" rel="nofollow">VIG</a>) 10% Vanguard REIT (<a href="http://quote.morningstar.com/ETFQuote.html?topnav2=hetopquote&ticker=vnq" rel="nofollow">VNQ</a>) 5% Vanguard Pacific (<a href="http://quote.morningstar.com/ETFQuote.html?topnav2=hetopquote&ticker=vpl" rel="nofollow">VPL</a>) 10% Vanguard Emerging Markets (<a href="http://quote.morningstar.com/ETFQuote.html?topnav2=hetopquote&ticker=vwo" rel="nofollow">VWO</a>) 10% Vanguard Europe (<a href="http://quote.morningstar.com/ETFQuote.html?topnav2=hetopquote&ticker=vgk" rel="nofollow">VGK</a>) 10% Nothing sexy, but basically covers every aspect of the market. I hold similar holdings in my actual portfolio, but I chose mutual funds over ETFs (commission costs are too prohibitive for using ETFs on a regular basis). Great article.

Using the Investopedia Simulator, I created an all ETF Index portfolio. Here are my respective holdings and the approx. % of the portfolio they comprise:

Vanguard Value (VTV) 20%
Vanguard Growth (VUG) 20%
Vanguard Extended Market (VXF) 15%
Vanguard Dividend Appreciation (VIG) 10%
Vanguard REIT (VNQ) 5%
Vanguard Pacific (VPL) 10%
Vanguard Emerging Markets (VWO) 10%
Vanguard Europe (VGK) 10%

Nothing sexy, but basically covers every aspect of the market. I hold similar holdings in my actual portfolio, but I chose mutual funds over ETFs (commission costs are too prohibitive for using ETFs on a regular basis).

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