New answers tagged etf
Frankly, I'm surprised that the cost to roll is so low. Transaction costs can be minimized. If term is averaged, the annualized cost to roll could potentially be that low. If I had to guess, I'd say that prices are so efficient that the only way to make a market is to ensure a good spread between rolls. Then again, the USD is spiking due to the oil ...
ETNs are senior, unsecured and unsubordinated debt securities issued by an underwriter. When you buy an ETN you are essentially lending money to the issuer in exchange for exposure to an index minus some basis points(management fees). As with most debt instruments, if the issuer defaults, you already assumed the credit risk.
I am not too knowledgeable with ETCs but here are some differences between ETFs & ETNs. ETFs emerged from the concept of buying "baskets" of stocks (similar to mutual funds) & became popular because they were cheaper than mutual funds. ETNs just as their name implies are Notes. They are similar to ETFs in the form of representing baskets of stocks ...
The umbrella term is Exchange Traded Product or ETP, so your sentence would become "The fund invests in ETPs". For the second question a simple way of looking at it is, a ETN would have credit risk with the issuer, where an ETC would not.
Many funds, that manage ETFs provide this on their webpages. E.g. SDPR (SPY, XL* family) has is in "NAV history" xls file on https://www.spdrs.com/product/fund.seam?ticker=SPY
Firstly, Volume doesn't equal movement. The best thing is to look at what it represents. SHV is the iShares Short Treasury Bond ETF. This means it tracks short-term treasury bonds. Many forms of balanced portfolios require some portion of funds in bonds. This ETV is an easy vehicle to get fractional exposure to bonds. As far as "has not moved much" is ...
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