ETFs · 16 Oct · 7 min read
What Is a Thematic ETF?
Thematic ETFs invest in trends such as AI or clean energy. Why they attract money, why most have underperformed or closed and how to evaluate one before buying.
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What Is an ETF and How Does It Work?
An ETF is a fund holding a basket of assets that trades on an exchange like a share. How ETFs work, why prices track their holdings' value and their costs.
Sector ETFs vs Broad Market ETFs
Broad market ETFs spread money across a whole index; sector ETFs focus on one industry. How they differ in risk, cost and use, and when each one fits.
Physical vs Synthetic ETFs
Physical ETFs hold the index's securities; synthetic ETFs use swaps with a bank to deliver the index return. How each works and the counterparty risk in swaps.
How Volatility Decay Erodes Leveraged ETF Returns
Leveraged ETFs reset daily, so in choppy markets they lose value even when the index ends flat. If an index goes +10% then −9.09%, a 3x ETF ends 5.5% down.
What Are Inverse ETFs?
Inverse ETFs aim for the opposite of an index's daily return. Because they reset daily, longer-term results can drift far from the inverse. How they work.
How to Compare ETFs That Track the Same Index
Compare the expense ratio, tracking difference, spreads and volume, size, replication and dividend policy: how to choose between ETFs that track the same index.
ETF vs Mutual Fund
ETFs trade all day at market prices and are usually cheaper; mutual funds price once a day at NAV and are often active. How they differ in trading and fees.
What Is Tracking Difference in an ETF?
Tracking difference is the gap between an ETF's return and its index's, driven by fees, trading costs, cash drag and lending income. How to measure it and why.
Why ETF Prices Can Trade Away From Their NAV
An ETF's price can drift from the value of its holdings when markets are closed, illiquid or stressed. Why premiums and discounts appear, with the 2020 example.
ETF Mistakes Beginners Make
An X-ray of one beginner's ETF portfolio reveals seven common mistakes, from overlapping funds and late themes to leveraged ETFs held too long, with fixes.
How to Read an ETF Factsheet
Check the objective and index, fees, size, holdings, performance vs the index, structure and listing details: how to read an ETF factsheet, step by step.