Beginner's guide to ETFs

This is a discussion on Beginner's guide to ETFs within the Indices forums, part of the Markets category; Originally Posted by LittleKnown You shouldn't invest in anything at all without knowing for yourself, is this a lul thread? ...

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Old Oct 2, 2011, 4:49am   #8
 
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Re: Beginner's guide to ETFs

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Originally Posted by LittleKnown View Post
You shouldn't invest in anything at all without knowing for yourself, is this a lul thread? Dunno how much you have to play with but I can't see much point in ETF or stocks with less than 10G and even then it will be a long road to a decent profit but what do I know as I reckon 100,000 is more like the capital needed to make anything decent from stocks & ETFS while being able to trade according to a plan with risk reward mm all set out an that, unless you find the next smack donalds or microsoft invest you full ten g then wait ten years and be a millionaire!
All the best
What is a "lul thread"?
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Old Oct 2, 2011, 5:47am   #9
 
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Re: Beginner's guide to ETFs

All ETFs are not created equal. If you are going to be day trading ETFs, there's not much to learn. My presumption is you are not going to be doing that.

So - the first step is to understand the different ways the products are structured, for example ETFs & ETNs aren't the same at all. They have different risk profiles (ETNs are more risky), they have different tax profiles too.

There's a good book called "The ETF Book" which explains all the types and the different tax implications of each type.

If you intend to buy commodity based ETFs that go out & buy Futures contracts, then you also need to understand the way the underlying futures contracts work and how they roll from one month to the next. You also need to understand concepts such as contango and backwardation because the returns on a commodity based ETF is going to be impacted by this as much as it is by the price in the underlying.

In terms of investing in a commodities through ETFs, there may be more merit in buying an ETF that (for example) invests in Gold companies than Gold futures.

You need to understand the fees & dividends too.

I'd get the book I mentioned. It's got all the info you need.
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Old May 26, 2013, 10:35pm   #10
kih
Joined Oct 2012
Re: Beginner's guide to ETFs

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Originally Posted by DionysusToast View Post
All ETFs are not created equal. If you are going to be day trading ETFs, there's not much to learn. My presumption is you are not going to be doing that.

So - the first step is to understand the different ways the products are structured, for example ETFs & ETNs aren't the same at all. They have different risk profiles (ETNs are more risky), they have different tax profiles too.

There's a good book called "The ETF Book" which explains all the types and the different tax implications of each type.

If you intend to buy commodity based ETFs that go out & buy Futures contracts, then you also need to understand the way the underlying futures contracts work and how they roll from one month to the next. You also need to understand concepts such as contango and backwardation because the returns on a commodity based ETF is going to be impacted by this as much as it is by the price in the underlying.

In terms of investing in a commodities through ETFs, there may be more merit in buying an ETF that (for example) invests in Gold companies than Gold futures.

You need to understand the fees & dividends too.

I'd get the book I mentioned. It's got all the info you need.
Could you please mention the name of the author of the book "The ETF Book" ?
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Old May 29, 2013, 8:33pm   #11
 
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Re: Beginner's guide to ETFs

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Originally Posted by kih View Post
Could you please mention the name of the author of the book "The ETF Book" ?
Here are some websites that you should find useful:
ETFguide: Financial Advisor
The Seeking Alpha ETF Investing Guide - Seeking Alpha
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Old May 29, 2013, 9:14pm   #12
kih
Joined Oct 2012
Re: Beginner's guide to ETFs

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Thanks for sending those links.
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