Hi, this is Kkoogongnam. In a taxable U.S. brokerage account, an ETF can create tax when it pays a distribution, when it passes through a capital-gain distribution, and when you sell your shares for a gain. The rate depends on the type of income, your holding period, your taxable income, the fund’s legal structure, and … Read more
Hi, this is Kkoogongnam. ETF dividends are cash distributions paid by a fund to its shareholders, but not every ETF pays them and the schedule is different for each fund. To know whether you will receive the next payment, check the fund’s ex-dividend date, record date, and payable date. In most ordinary cases, you must … Read more
Hi, this is Kkoogongnam. A currency-hedged ETF tries to reduce the effect of foreign-exchange moves on an investment’s U.S. dollar return. If a U.S. investor buys foreign stocks, the result normally depends on both the stocks and the foreign currencies. A USD-hedged fund adds contracts—usually currency forwards—to offset much of that currency exposure. Hedging does … Read more
Hi, this is Kkoogongnam. An ETF premium or discount is the gap between the price you can trade on an exchange and the per-share value of the ETF’s portfolio. If the market price is above net asset value, the ETF trades at a premium. If it is below net asset value, the ETF trades at … Read more
Hi, this is Kkoogongnam. A leveraged ETF is an exchange-traded fund designed to deliver a multiple—often 2x or 3x—of a benchmark’s return for one trading day. The words “one trading day” are the key. If the benchmark rises 1% today, a 2x fund aims to rise about 2% today. If the benchmark falls 1%, the … Read more
