Posts Tagged "etfs"

Index Fund Tracking Error Sources

Posted by Preet on Mar 24, 2010 | 2 comments

NOTE: I’m scrambling to write this before I get on a plane and my laptop battery is near death, so pardon any typos for the time being – I’ll edit it tomorrow, and may even re-write it! It’s good to be my own editor…. :) Not all index funds are created equal. Some actually track their indices pretty well, and some do a poor job. Most people think that tracking an index would be a relatively simple thing but you know what they say, “in theory, theory and practice are the same but in practice they are not.” Some sources of index fund tracking errors: 1. Resampling (Or Optimization) If an index has 500 constituents, then it is...

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iShares Now Commission-Free For Yanks with Fidelity

Posted by Preet on Feb 22, 2010 | 2 comments

I just saw an ad on TV for Fidelity’s trading accounts (available in the United States only). What was interesting is that they are now offering commission free trading on 25 of some of the most popular iShares ETFs. Charles Schwab also offers commission-free trading on their own lineup of proprietary ETFs, but I don’t believe they have any fixed income offerings. Their equity index ETFs are a bit more limited than the commission free list of iShares being offered by Fidelity as well. Take a look here to see the details and ETFs available. Remember, this isn’t available for Canadians. We’re...

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Even More Clarity on Vanguard ETF Taxation

Posted by Preet on Sep 22, 2009 | 4 comments

A well informed authority on indexing emailed me to offer some further insight into the taxation nuances of Vanguard ETFs. Without revealing the source, I can assure you that what follows comes from a real expert on the subject matter. For those who have missed it, you may want to read these related posts first: Vanguard ETFs have Different Tax Considerations that other ETFs, and Tax Efficiency of Vanguard ETFs Follow-Up. The claim that the activity of the investors in the Vanguard traditional index funds will cause adverse tax consequences for holders of the ETF class of shares has been raised before. However, this has yet to materialize and the proof is in the pudding....

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