Sentences with phrase «underlying stocks or bonds»

The price is usually aligned with the collective price of the ETF's underlying stocks or bonds.

ETFs don't create or retire shares of underlying stocks or bonds.

Not exact matches

An ETF holds assets such as stocks, supplies, or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day.

Taxation Of Distributions Besides taxes on capital gains incurred from selling shares of ETFs, investors are also subject to pay taxes on periodic distributions, which can be dividends paid out from the underlying stock holdings, interest from bond holdings, return of capital (ROC) or capital gains — which come in two forms: long - term gains and short - term gains.

Arbitrage might take advantage of imbalances in prices between two markets for the same security (such as a domestic and a foreign market) or between two types of securities whose value depends on the same underlying security (such a stock and a bond convertible into the stock).

In a series of posts last month, I looked at ETFs from Horizons and Claymore that use derivatives rather than simply holding the stocks or bonds in their underlying indexes.

The underlying funds in a variable annuity are invested in subaccounts, which are professionally managed investment options that invest in stock and / or bond markets.

To illustrate the comparison of a convertible bond's price to its common stock price, we look at conversion parity, which is the value you would receive if converted to stocks today; the conversion premium, which is the amount the bond is trading above the conversion parity, or how much you would pay for the option to convert to stocks in the future; and delta, which measures the sensitivity of the convertible bond's price to changes in the underlying stock price.

Option: A security that represents the right to buy or sell a specified amount of an underlying investment instrument such as a stock, bond, futures contract - at a specified price within a specified time.

With this type of policy, individuals can allocate their funds into various types of underlying investments such as stocks, bonds, or mutual funds.

Suppose a situation arose where there were no buyers in the secondary market for a particular ETF (such as VTI), even though there were still buyers of the stocks and / or bonds that underlay the ETF.

It is possible that as the fund manager changes the portfolio composition over time, she may actually lose or make money relative to a static portfolio of the underlying, but this is no different in a bond fund than in a stock fund.

For the most part, this function is managed by the underlying managers of each individual stock or bond strategy.

Both are ETNs, or exchange traded notes which are similar to ETFs but structured differently and issued as senior debt like a bond rather than equity in the underlying commodity like a stock.

An ETF of ETFs is an exchange - traded fund (ETF) that tracks other ETFs rather than an underlying stock, bond, or index.

Essentially, derivatives are financial instruments that can be used to limit risk; their value is «derived» from underlying assets like mortgages, stocks, bonds or commodities.

Here they're usually just either a few mutual funds blended together, or just the same underlying basket of stocks and bonds that's in all other similar mutual funds at the time.

Binary options are a type of financial instrument that allows individuals to bet on whether the value of an underlying asset, such as a stock, bond or even bitcoin, will be higher or lower after a specific pre-determined time period.