Sunday, July 6, 2014

Trading Profits by ETFs


                       
ETFs are different than mutual funds, in that they are traded on exchanges; they are indexes that are usually not managed by advisers.
                       
From time to time, their securities may be lent for purposes of short selling, It’s a source of added income. The stock lending profits of such ETF funds can be substantial.
                       
Do earnings go back to shareholders of the ETF, or to its managers?
In some funds, almost all go to the shareholders, while as little as half may be returned to other holders.
                       
You should check your ETF investments, to see how your managers treat these earnings.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
                       

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