• Breaking News

    Monday, April 30, 2018

    Zero-Fee ETFs (or Even Negative) Are on the Horizon Investing

    Zero-Fee ETFs (or Even Negative) Are on the Horizon Investing


    Zero-Fee ETFs (or Even Negative) Are on the Horizon

    Posted: 29 Apr 2018 06:36 PM PDT

    https://www.wsj.com/articles/zero-fee-etfs-or-even-negative-are-on-the-horizon-1517800320

    For some reason, I can see the entire article on my mobile Firefox browser, but not on my desktop Firefox (even in private mode) or desktop MS Edge. Someone who has a WSJ account could help.

    In summary (copied from my phone), the ETF industry grew at an average of more than $100 billion per quarter over the past two years, totaling about $3 trillion.

    One of the founders of iShares was quoted: "There isn't a zero lower bound to expenses. A negative management fee is certainly conceivable."

    WSJ estimates that it would take about another $900 billion (within the year) to push from 0.03 expense ratio to zero, or an increase in revenue generation from lending out shares to short sellers.

    The funds can make money by charging lending fees, as well as on the collateral that borrowers have to post for the shares they short.

    TL;DR: Increasing inflows into ETFs and charging short sellers fees could allow ETFs to have zero or negative expense ratios.

    I've also read that M1 Finance makes money by charging short sellers fees in return for lending out shares.

    EDIT: https://blogs.wsj.com/moneybeat/2016/10/07/the-etf-with-the-0-00-fee/

    An ETF manager said there were lots of excess expenses that could still be cut out, and he would love it if someone showed up with a zero or negative expense ETF.

    submitted by /u/COMPUTER1313
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    Sprint and T-Mobile are reportedly nearing a merger deal

    Posted: 29 Apr 2018 09:35 AM PDT

    https://www.washingtonpost.com/news/the-switch/wp/2018/04/27/sprint-tmobile-merger/?noredirect=on&utm_term=.1d14f5cee3bc

    T-Mobile and Sprint are reportedly nearing a merger deal that would combine the nation's third- and fourth-largest wireless carriers, respectively — adding to a whirlwind of consolidation in the communications industry.

    submitted by /u/corporatedemocrat
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    Best book to learn about Portfolio Management

    Posted: 29 Apr 2018 06:40 PM PDT

    I've been trying to find a good book about portfolio management. Maybe University textbooks would be better, because I would like to have an idea on how to forecast different asset class expected returns, portfolio construction, asset allocation, evaluating performance, etc. It seems like most books don't touch all of those subjects and don't help the reader validate the theory read by showing real life examples or by giving problems.

    Thank you!

    submitted by /u/etienner
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    U.S. Allies Brace for Trade War as Tariff Negotiations Stall

    Posted: 29 Apr 2018 06:43 PM PDT

    https://www.nytimes.com/2018/04/29/us/politics/us-allies-trade-war-tariff-negotiations.html

    I made some portfolio changes Friday.

    "But with only days left before the exemptions expire and punitive tariffs take effect, it's dawning on foreign leaders that decades of warm relations with the United States carry little weight with a president dismissive of diplomatic norms and hostile toward the ground rules of international trade."

    submitted by /u/JuniorDeluxe
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    Trader: The Documentary (1987)

    Posted: 29 Apr 2018 09:00 PM PDT

    Does anyone know where to find this? It's an old pbs documentary about futures trading.

    submitted by /u/BruhItsEuropean
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    Investopedia Academy

    Posted: 29 Apr 2018 02:34 PM PDT

    Has anyone taken the Investopedia Academy courses and can say if they're worth it or not? I am a beginner investor.

    submitted by /u/DingoBabey
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    Should we believe investment firms public ratings and consenus on stocks?

    Posted: 30 Apr 2018 03:51 AM PDT

    For example when you see GS putting a buy consensus on a stock or a derivative, isn't it all bulls...? I mean they have always used that as a way to lead the public opinion to their interest, and it has sometimes ended really bad #2008.

    submitted by /u/AgaistTheCurrent
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    Sprint Merger makes them worth $26B. Why is their stock down 7% afterhours?

    Posted: 29 Apr 2018 09:06 AM PDT

    I'm confused as to why a merger like this made their stock drop afterhours instead of increase. Wouldn't the merger make them both (or "them," now, I suppose) more competitive? If not—why'd they even merge to begin with?

    submitted by /u/ShitInMyJorts
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    Is there an app to get news about stocks?

    Posted: 30 Apr 2018 12:21 AM PDT

    Is there an App that lets you choose what Stocks you hold and then Always gives you News and Updates about the companys?

    submitted by /u/Tatankafisch
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    So these retail deposit accounts are paying 6.5% USD per year...in Bangladesh

    Posted: 29 Apr 2018 10:54 PM PDT

    Anybody know about the risk profile of these instruments. They call it US Dollar Investment Bond. It seems to be a type of CD I guess that pays a 6.5% per year. How can any institution afford this without major subsidization?

    I have friends in Bangladesh and friends who are Bangladeshi Americans, so I'm thinking of discussing it with them. One of them who I talked to said it is a very safe instrument, but God only knows with a rate that high...

    https://www.sc.com/bd/nrb/investment-opportunities-for-nrb/en/

    submitted by /u/ROI1234
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    Marathon Petroleum to Buy Andeavor for More Than $20 Billion

    Posted: 29 Apr 2018 07:44 PM PDT

    Question about Trading View's VWAP tool

    Posted: 30 Apr 2018 01:18 AM PDT

    You have the option to scale the tool to the right or the left. What is the difference between the two? I couldn't find any info about it anywhere. Their wiki is of no help either.

    submitted by /u/SilverGryphon
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    STMP (Stamps.com) Thoughts?

    Posted: 29 Apr 2018 02:40 PM PDT

    I've been holding this stock (STMP) for a couple months now and it has made a crazy return especially in this market.

    The PE seems reasonable and they have a solid history of beating their earning estimates. Opinions on this company? Should I hold through earnings this week?

    submitted by /u/maxmcleod
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    Question on wash sale rules and ETFs

    Posted: 29 Apr 2018 09:27 PM PDT

    Are SPY, VOO, and UPRO considered the same thing for wash sale purposes?

    submitted by /u/the_humeister
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    Trading question

    Posted: 30 Apr 2018 12:17 AM PDT

    So I know long term markets like the snp tend to go up.

    So this is a question as using trading as more of supplemental income and not needing to rely on it more of a bonus.

    So with individual stocks I could understand why someone would lose there shirts in this way if a company went bankrupt or failed miserably and never recovered.

    But if you took a broad market etf. Traded as long as the trade was profitable and if the etf suffered any big losses like say what just happened to the snp. You just dont sell. You sell on the green and buy on the red I hear to many people tell me to sell on the red and they say it to maximize profits rather then conserve your money from losses.

    I do t get it I'm not a trader but I've looked into it and am curious on some things as to why people do what they do and how do they lose money if they are smart about it.

    I really want to have a interesting conversation about this to hear everyone's thoughs

    submitted by /u/Usnavy91893
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    How much should you start with currency trading

    Posted: 29 Apr 2018 03:00 PM PDT

    Cash position vs ultra short-term bond fund?

    Posted: 29 Apr 2018 07:56 PM PDT

    Is there a reason to have a position in just plain cash as opposed to a short term bond fund like VUSFX

    submitted by /u/mcnuggetlenny
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    Can someone explain JNJ EPS?

    Posted: 29 Apr 2018 12:10 PM PDT

    Im fairly new to stocks and have been reading and investigating. Using morningstar i was reviewing JNJ stocks eps which has increased significantly and after reviewing their financials i can't seem to wrap my head around why. I'd appreciate the insight.

    http://financials.morningstar.com/ratios/r.html?t=0P0000032S&culture=en-US&platform=sal

    submitted by /u/c3llow
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    Labor Department issues notice on ESG funds directed at company 401K plans

    Posted: 29 Apr 2018 06:02 AM PDT

    Who are some famous, contemporary investors?

    Posted: 29 Apr 2018 09:31 PM PDT

    I'm trying to find some well known investors from the dotcom boom and onwards. Any recommendations?

    submitted by /u/FocusedCrew
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    Newbie question about commodities and futures

    Posted: 29 Apr 2018 08:26 PM PDT

    Hey guys... This is probably a pretty basic question, but here goes anyway...

    From what I understand, there are basically two ways to 'invest' in commodities. Either via futures, or by buying shares in companies that produce the commodity.

    If you're buying futures, does that mean they're only good for a certain period of time (i.e. they 'expire' at some point in the future), or can you hold them indefinitely?

    submitted by /u/RonPaulTouchedMe
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    Advice on investing company

    Posted: 29 Apr 2018 08:05 PM PDT

    I am looking to supplement my current retirement plan with an Ira. I'm going to roll an old account into the new ira and continue to fund. I will be going with mutual funds or index. Two questions: 1) what company is recommended for first time investors 2)I will be converting the roll over to roth. How do I do that?

    submitted by /u/SaintCarl27
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    Mayday On May Day? Trump’s decision on metal tariffs may prove to be the biggest market mover. The tariff exemptions 25 percent on steel and 10 percent on aluminum are due to expire on May 1

    Posted: 29 Apr 2018 07:49 PM PDT

    Trump's decision on metal tariffs may prove to the be biggest market mover. The United States set import tariffs of 25 percent on steel and 10 percent on aluminum a month ago, but granted temporary exemptions to the European Union, NAFTA partners Canada and Mexico, as well as Argentina, Brazil, Australia and South Korea. Those exemptions expire on May 1. Korea secured a permanent exemption for steel within days of agreeing to a revision of its trade pact with the United States. Mayday On May Day?

    submitted by /u/Yard-Dog
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