What are some good ETF to invest in 2016?
If you're a real contrarian now would be the time to get into energy. The Vanguard energy ETF is VDE. The ETF invests in a diversified set of 146 energy stocks. It's currently priced at $76.19 per share. Its most recent dividend is $.68/share which is a 3.6% yield annualized. But its dividend was $2.20 12/22/2014 or an 11.5% yield annualized. I have a hard time believing the world's oil producers are going to let all those profits disappear. Production will eventually be cut and rational pricing will return. There is a glut of supply on the market so the process will take time but it's better to be early than late. The current yield is low for an energy investment but very acceptable compared to other alternatives while you wait. To compare the current yield of the S&P 500 is 2.33% and the current yield of the FTSE NAREIT All Equity REIT index is ~4.00%. Check out Index Fund Adviser - for other investment ideas.
What are good buy/sell signals (ETF)?
It really depends on your time frame and particular indicator. Personally, I look at how the particular ETF is doing compared to the general market. This is to see if something unusual is happening. But if you want generic signals, you can follow the MACD on the Daily time frame. Usually if falls bellow, its time to sell. The reverse if it rises above. But this is just a general suggestion, not a rule.
Buying Silver: Is This A Good Idea?
I recently decided to start purchasing one or more .999 one troy ounce silver bullion bars per month as an investment toward the future that would not take a big chunk out of my wallet. This month I purchased 3 of them to "start the collection." I was wondering how financially sound it would be to continue the pattern through the next 10 or so years ( providing the price doesn't skyrocket to near the cost of gold). I figure if all goes as planned, that by the 10 year mark I will have between 200-250 troy ounce bars of silver bullion. I watch the spot price on silver. I know that it is down at the moment, but figure (like the others in the precious metals list) that it will only go up as time goes on. I'm planning on keeping the obtained pieces through the next few decades (unless I could make a significant financial gain by selling it off at some point). It may be small bits of silver bullion here & there compared to some purchases, but I figure it's both easy on the wallet & economically safe (just in the off chance that the economy takes another dive into what would be the second Great Depression). So what do you think... Good/bad idea? Any tips/wisdom you have to offer are welcome.
How do I choose a good ETF for a long-term investment?
Start with what you know or believe.If you don’t know much but believe in the world economy, buy the Vanguard Total World Stock ETF(VT).If you believe in the U.S. economy only, by the S&P 500(SPY) or iShares Russell 3000 ETF(IWV).If you know and understand technology(or another sector) and believe it will continue to change the world and be profitable, buy the Vanguard Information Technology ETF(VGT) or a Nasdaq ETF(QQQ).If you are really knowledgeable in one industry you can also look there as many industry ETFs exist today.Remember most ETFs are passive so past performance doesn’t give much indication to how it will perform in the future. You must decide on the macro level what will be relevant for many years to come.
Is it a good idea to invest in gold ETF?
To learn about whether it’s worth investing in gold, I suggest you read these answers:Tejas Khoday's answer to Is this a good time to invest into gold (GLD)?Tejas Khoday's answer to Is this a good time to invest into gold (GLD)?Gold ETFs vs Physical Gold:Gold ETFs are safer to store and less expensive in comparison.Gold ETFs are inexpensive as bid / ask spreads are too narrow.Gold ETFs are standardized as opposed to jewelry or non-BIS marked gold.Gold ETFs ve Sovereign Gold Bonds:Gold ETFs charge a management fee whereas SGBs dont’.Gold ETFs have no fixed return element whereas SGBs offer 2.5% p.aGold ETFs are more liquid and simple in comparison to SGBs.All in all, if you’re a savvy investor then both alternatives make sense as long as you know what you’re getting into. I recently wrote an article on Financial Express. You can also read it here: Should anyone buy gold on Akshaya Tritiya? Here’s what you need to know.You can also read this in depth article about the subject on Financial Chronicle.
Is this a good time (Feb 2018) to invest in VTI ETF?
For me, the answer to this all depends on your time horizon.If you are planning to buy and hold for a long period of time then I would think that you would see returns over a long enough time scale.Short term is less certain - and this is because we are likely going to see an interest rate increase next month from the Federal Reserve, and this can create some selling pressure on equities.On top of this, if we see strong data continue to come out over this month, and at the start of March - for example, if a strong February jobs report is release then this could see another shock to stocks.So to buy now and sell next month I think carries a higher risk than buying next month and holding for 10 years.Nothing is absolute though, I’m not convinced that we won’t see another strong run for stocks, it’s highly news/data sensitive at the moment. So take all of this with a pinch of salt.
Is it a good option to invest in Nifty ETF in Indian markets?
An Electronic Traded Fund (ETF) is a collection of Index Funds that are listed on various stock markets. Nifty ETF is usually priced in line with Nifty index and holds stocks according to it. When a particular share is added or removed from Nifty ETF, a fund manager replicates it. This is ‘passive management’ of your funds leading to a lower expense ratio.The prices of Nifty ETF are dynamic and change on a daily basis based on the price change in the Index. Its benefit is that if you foresee a fall in the index, you could always sell units in your ETF to avert risk on a real-time basis.You can even get a quick preview of the performance of your investment based on the Index price of the day. It can help you strategize or re-strategize based on the Indian market conditions. Hence, it is a fairly good option to invest in Nifty ETF once you understand how Nifty Index works.
What are the best ETF to buy in India? Can they beat mutual funds in % of returns?
ETFs are passively managed funds that essentially mimic the underlying index at a cost lower than mutual funds. So, the definition of “best” ETFs will depend on individual investor. Depending on the risk profile of the investor, a LargeCap/MidCap/SmallCap index-based ETF will be suitable for the investor. Investors can also get exposure to commodities such as Gold through ETFs.But then you may argue that even mutual funds based on LargeCap/MidCap/SmallCap themes can achieve a similar result. These mutual funds could either be actively managed or low-cost index funds. But if you consider the results from the last few years, you will note that ETFs have performed better than Mutual Funds and even Index Funds.Consider the case of Sensex as the Benchmark. Following table shows the performance of three types of funds namelya. ETF based on Sensexb. Index funds tracking Sensexc. Large Cap fundsI have highlighted the returns where the underperformance of the fund exceeds the benchmark Sensex return by more than 0.25%.The data clearly shows that the ETFs tend to perform better than most of the mutual funds.One may argue that the longer-term performance of actively managed MFs is better. But in reality, the data shows the changing trend in the mutual fund industry where it is increasingly difficult for large-cap funds to outperform the benchmark using active management.