Comments on: Alternative Investments http://www.canadiancapitalist.com/alternative-investments/ Helping you invest and prosper Sat, 11 Feb 2012 19:27:54 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Free Money Finance http://www.canadiancapitalist.com/alternative-investments/#comment-1267 Free Money Finance Fri, 07 Apr 2006 10:32:32 +0000 http://www.canadiancapitalist.com/2006/04/04/alternative-investments#comment-1267 <strong>Star Money Articles for the Week of April 3...</strong> Here are interesting posts and news this week from the MoneyBlogNetwork members and beyond: MightyBargainHunter tells of his three flea market finds, all for a dollar. Five Cent Nickel says his house is on the market. Blueprint for Financial Prosperity... Star Money Articles for the Week of April 3…

Here are interesting posts and news this week from the MoneyBlogNetwork members and beyond: MightyBargainHunter tells of his three flea market finds, all for a dollar. Five Cent Nickel says his house is on the market. Blueprint for Financial Prosperity…

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/alternative-investments/#comment-1263 Canadian Capitalist Fri, 07 Apr 2006 02:15:32 +0000 http://www.canadiancapitalist.com/2006/04/04/alternative-investments#comment-1263 Maryann: You can contact me at ccapitalist-at-yahoo-dot-ca. Maryann: You can contact me at ccapitalist-at-yahoo-dot-ca.

]]> By: Maryann http://www.canadiancapitalist.com/alternative-investments/#comment-1261 Maryann Fri, 07 Apr 2006 00:00:17 +0000 http://www.canadiancapitalist.com/2006/04/04/alternative-investments#comment-1261 Hi, How I can contact the admin of this blog as I need to share one important information. Hi,
How I can contact the admin of this blog as I need to share one important information.

]]> By: Average Joe http://www.canadiancapitalist.com/alternative-investments/#comment-1255 Average Joe Thu, 06 Apr 2006 03:54:32 +0000 http://www.canadiancapitalist.com/2006/04/04/alternative-investments#comment-1255 Investorial: Check out iunits.com. They have an FAQ on how ETFs work. You can also see the holdings in the various ETFs at http://www.iunits.com/english/funds/fund_values.cfm Investorial:

Check out iunits.com. They have an FAQ on how ETFs work. You can also see the holdings in the various ETFs at http://www.iunits.com/english/funds/fund_values.cfm

]]> By: Investorial http://www.canadiancapitalist.com/alternative-investments/#comment-1254 Investorial Thu, 06 Apr 2006 02:35:45 +0000 http://www.canadiancapitalist.com/2006/04/04/alternative-investments#comment-1254 Well, the education I'm getting out of this has been great. So ETFs can be considered as derivatives? I've always had a "to each his own" attitude, if you like PPNs, or ETFs, or run-of-the mill mutual funds, stock-picking, options, currency trading... then all the more power to you, AS LONG AS you understand it. I've exposed my weakness in ETF's. Thanks guys! Well, the education I’m getting out of this has been great. So ETFs can be considered as derivatives? I’ve always had a “to each his own” attitude, if you like PPNs, or ETFs, or run-of-the mill mutual funds, stock-picking, options, currency trading… then all the more power to you, AS LONG AS you understand it.

I’ve exposed my weakness in ETF’s. Thanks guys!

]]> By: Investing Intelligently http://www.canadiancapitalist.com/alternative-investments/#comment-1253 Investing Intelligently Wed, 05 Apr 2006 18:02:49 +0000 http://www.canadiancapitalist.com/2006/04/04/alternative-investments#comment-1253 "I haven’t figured out yet why people would a buy a derivative product [ETFs] that hardly seem like they were backed by any real asset (correct me if I’m wrong, please!)" I can't imagine that any stock index ETF would not be backed by real assets. “I haven’t figured out yet why people would a buy a derivative product [ETFs] that hardly seem like they were backed by any real asset (correct me if I’m wrong, please!)”

I can’t imagine that any stock index ETF would not be backed by real assets.

]]> By: Average Joe http://www.canadiancapitalist.com/alternative-investments/#comment-1252 Average Joe Wed, 05 Apr 2006 16:52:23 +0000 http://www.canadiancapitalist.com/2006/04/04/alternative-investments#comment-1252 I am a big fan of ETFs. In fact, what I like to do is put money into a mutual fund index. Once that mutual fund index gets big enough (ie. low transaction cost - for me, I would wait til roughly $6,000 so that the trading cost of $30 is .5%), I flip that mutual fund into an ETF so that I can enjoy the much, much lower MERs. The bulk of my Canadian Equity is in XIU. MER of .17. Not including e-Funds or even Altamira, most mutual fund index funds charge over .7. Some (like BNS) charge over 1%! I am also looking at buying XBB in the very near future as my bond component. MER of .3 I believe. And with the low bond yields, every little bit helps. I am a big fan of ETFs. In fact, what I like to do is put money into a mutual fund index. Once that mutual fund index gets big enough (ie. low transaction cost – for me, I would wait til roughly $6,000 so that the trading cost of $30 is .5%), I flip that mutual fund into an ETF so that I can enjoy the much, much lower MERs.

The bulk of my Canadian Equity is in XIU. MER of .17. Not including e-Funds or even Altamira, most mutual fund index funds charge over .7. Some (like BNS) charge over 1%!

I am also looking at buying XBB in the very near future as my bond component. MER of .3 I believe. And with the low bond yields, every little bit helps.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/alternative-investments/#comment-1251 Canadian Capitalist Wed, 05 Apr 2006 15:54:48 +0000 http://www.canadiancapitalist.com/2006/04/04/alternative-investments#comment-1251 It is true that some ETFs use derivatives. Examples include the old iUnits XSP and XIN. But most ETFs are real assets. A ETF does have the actual underlying securities backing it. Take the IVV, which tracks the S&P 500. If you have enough shares of IVV, you can exchange it for the underlying stocks that make the S&P 500. In fact that is how the issuer makes sure the ETF tracks the index. If it deviates too much, arbitrageurs will buy the ETF and exchange it for shares and vice-versa. I read the article you have linked and the author is talking mostly non-sense. Hard-core gold bugs want us to sell everything (they always rant about paper assets) and buy gold bullion and bury it in a hold in our backyard. Gold pays no interest, costs money to store and protect and gives a measure of inflation protection and nothing else. It is true that some ETFs use derivatives. Examples include the old iUnits XSP and XIN.

But most ETFs are real assets. A ETF does have the actual underlying securities backing it. Take the IVV, which tracks the S&P 500. If you have enough shares of IVV, you can exchange it for the underlying stocks that make the S&P 500. In fact that is how the issuer makes sure the ETF tracks the index. If it deviates too much, arbitrageurs will buy the ETF and exchange it for shares and vice-versa.

I read the article you have linked and the author is talking mostly non-sense. Hard-core gold bugs want us to sell everything (they always rant about paper assets) and buy gold bullion and bury it in a hold in our backyard. Gold pays no interest, costs money to store and protect and gives a measure of inflation protection and nothing else.

]]> By: Are ETFs A Real Asset? » Investments + Editorials: Dissecting the good, the bad, and the ugly of investment / financial media! http://www.canadiancapitalist.com/alternative-investments/#comment-1249 Are ETFs A Real Asset? » Investments + Editorials: Dissecting the good, the bad, and the ugly of investment / financial media! Wed, 05 Apr 2006 14:15:20 +0000 http://www.canadiancapitalist.com/2006/04/04/alternative-investments#comment-1249 [...] Are ETFs A Real Asset? I’ve been participating in a comment thread with Canadian Capitalist about alternative investments. I mentioned an aversion towards ETFs because to what I understand, ETFs are sort of like derivatives? Though I was hard pressed to find such a definition online. [...] [...] Are ETFs A Real Asset? I’ve been participating in a comment thread with Canadian Capitalist about alternative investments. I mentioned an aversion towards ETFs because to what I understand, ETFs are sort of like derivatives? Though I was hard pressed to find such a definition online. [...]

]]> By: Investorial http://www.canadiancapitalist.com/alternative-investments/#comment-1248 Investorial Wed, 05 Apr 2006 13:54:45 +0000 http://www.canadiancapitalist.com/2006/04/04/alternative-investments#comment-1248 I use titanic to describe new, buzzy things that are hailed as "the next big thing", "unsinkable" and have a lot of first-time adopters. Beyond the metaphorical similarities. ETFs are not titanic. =) My aversion to ETFs arise from the very fact that they are tracking indexes. I'm not too into passive investing, and I haven't figured out yet why people would a buy a derivative product that hardly seem like they were backed by any real asset (correct me if I'm wrong, please!) Here's a link I found http://www.gold-eagle.com/editorials_05/laird010606.html I totally agree with writing covered calls, especially if you are a contrarian investor and just sitting on an unloved dividend paying company. =D I use titanic to describe new, buzzy things that are hailed as “the next big thing”, “unsinkable” and have a lot of first-time adopters. Beyond the metaphorical similarities. ETFs are not titanic. =)

My aversion to ETFs arise from the very fact that they are tracking indexes. I’m not too into passive investing, and I haven’t figured out yet why people would a buy a derivative product that hardly seem like they were backed by any real asset (correct me if I’m wrong, please!)

Here’s a link I found
http://www.gold-eagle.com/editorials_05/laird010606.html

I totally agree with writing covered calls, especially if you are a contrarian investor and just sitting on an unloved dividend paying company. =D

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