Downside riskcan be adequately hedged by buying put options, the price of which depends on market volatility. Astute investors tend to buy options when the VIX is relatively low and put premiums are cheap. Such protective puts will generally get expensive when the market is sliding; therefore, ...
Finance geeks talk about “regression to the mean.” Most hedge fund managers aren’t really geniuses. Shrewd, yes. But sometimes their outperformance also stemmed from luck, or a specific investment thesis that could not easily be repeated. The ego that helped them make and win those big ...
What is the financial mechanics of an ETF (exchange-traded fund) every time I buy or sell one on the open market, and how does it mimic the market so closely with such low fees? What are the advantages of having multiple currency exposures in my portfolio, especially to emerging market ...
While a high inflation rate means that prices are increasing, a low inflation rate does not mean that prices are falling. Counterintuitively, when the inflation rate falls, prices are still increasing, but at a slower rate than before. When the inflation rate falls (but remains positive), ...
It all depends on the policy of the product provider. Not everyone does it and you can choose ETFs or index funds from providers who don’t if you want to. A fund or ETF provider will state on its website which products are not subject to securities lending. ...
Currency option traders often speak of buying low volatility (or vol) and selling high vol rather than buying or selling the option itself. A) What does this mean exactly? B) From this perspective, wh Which is the best brokerage firm in India to trade, in bot...
QQQJ, meanwhile, tracks the Nasdaq Next Gen 100 Index, measuring the performance of the 100 largest companies that fall just outside the regular Nasdaq-100. And while QQQJ does give ETF investors exposure to big tech companies (other than Meta), it also has holdings in mid-cap companies ...
Currency hedged should be the default unless you have a view on GBP or are investing in higher yielding EM government bonds (which is hardly risk minimal). I also think that you need to bear in mind that the short-term bonds of many developed countries are deeply distorted by unconventional...
We’ve just had Vanguard move into Canada. The equivalent to VTI is VUS, for those of us who don’t wish to move money into US$ (Norbert’s Gambit helps with the conversion costs if you do). VUS is currency hedged which will add a little drag, but the 0.17% MER is not too b...
How does the hedging of exchange-traded funds of foreign country stock indexes work and under what circumstances do they outperform non-hedged ETFs?Exchange-traded fund:An ETF (exchange-traded fund) is a form of investment fund tha...