Tag Archives: etf

ETFs (exchange-traded funds) are a straightforward method to begin investing. ETFs are easy to understand and can generate significant returns with little cost or effort. Here is everything you need to know about ETFs, including how they work and how to do investing in US ETFs. What is an exchange-traded fund (ETF)?  An ETF, an exchange-traded fund, enables investors to buy many shares or bonds at once. Investors purchase ETF shares, and the funds are employed to invest in a specific way.   If you buy a Nasdaq 100 ETF, your money is put in the index's 100 companies. The ETF trading on the exchange is precisely like a regular stock.   Throughout the trading day, ETFs are bought and sold, and the price of an ETF share might swing above or below its net asset value (NAV) according to supply and demand.  Although ETFs and Mutual Funds appear to be similar on the surface, both are bundles of assets in which thousands of owners regularly invest; they have a few key differences.   Mutual Funds, for example, are usually actively managed. Unlike ETFs, which trade continuously throughout the day, mutual funds are transacted once daily.   Mutual fund prices are determined once every 24 hours based on the NAV at the end of the trading day.  ETFs have two categories: passive and active. Passive ETFs (also known as index funds) monitor a stock index like the S&P 500. Passive ETFs replicate the performance of an index. Active ETFs hire portfolio managers to invest their money. Active ETFs aim to outperform a benchmark index.  5 Steps on how to invest in US ETFs The first step is to open an account with a brokerage firm. This account can be used to buy and sell stocks, ETFs, commodities contracts, and other securities. For all deposits, the broker acts as a custodian. A broker which provides services in India and the USA must be selected.  Make an ETF investment strategy that suits your goals and risk profile.  Once the investor decides on his investment strategy, he should focus on the ETFs. He should research the various types of ETFs available in the market.  The final step in the ETF purchase process is to purchase the ETF. The investor must first deposit monies into the brokerage account from which the purchase will be performed. After ensuring that the funds are sufficient, the investor must look for the ETF ticker symbol and make a buy order. The investor must also specify the number of ETF shares he wants to buy. ETF shares cannot be purchased in fractions in most cases. Confirm the order.   Since the investor has purchased the shares, he must prepare an exit strategy for minimizing losses (if any) or minimizing capital gains taxes.  What to look for in the ETFs before buying/investing?  Expense ratio: Expenses eat into the earnings of the investor, so the smaller the expense ratio, the better. In addition, an investor should consider the costs charged by an ETF to maintain a portfolio.  ETFs often have lower costs than actively managed funds since they track an underlying index. When purchasing specialty ETFs, however, an investor must use caution.  Volume: ETF volume reflects the ETF's trading potential and, as a result, its liquidity. Higher volume means lower spreads and more liquidity.  Underlying Holdings: Look at the underlying holdings of the ETF.   Performance: Look at the fund's past performance and compare that to its peers.   Market price: An ETF should ideally trade near its NAV. Before making any acquisitions, investors should consider the NAV.   Beta: Beta measures how much security is likely to go up or down daily concerning the tracking Index. It is, in essence, a measure of a security market or systemic risk.   For example, a stock having a beta =1.0 swings in tandem with the general market, so a 1% increase or decrease in the underlying index is mirrored by a 1% gain or fall in the ETF's price.  Alpha - Alpha is referred to as 'excess return', which measures the return earned by a stock above or below the market's demand for its risk class.  Age of the ETF - The age of the fund can be used as a proxy for the reliability of the fund. A fund that has been around for a considerable time must have a proven track record.   Why should you invest in US ETFs?  All key US stock exchanges have companies listed worldwide, making it a potential investment destination. If you invest in the US share market, you diversify your financial portfolio while investing in worldwide companies.   The equity market in the United States is the largest in the world. The US financial markets accounted for 54.5 percent of worldwide stock market value as of December 2021.  Investments in US stocks can help you get a good return on your money because global corporations are there, and the return you receive will be high due to various factors.  Unlike India, you can hold US stocks in fractions. After all, buying a single Google share is out of range for most individuals. You can own a part of the company for as little as Rs 1,000 or even less.  According to historical data, the Indian Rupee has been losing value against the US dollar, and there is a probability that this trend may continue.  The rupee-to-dollar exchange rate influences the profit you make from foreign equities. Any rupee weakening helps boost profits if dollar-denominated investments such as US shares appreciate.   Even if global markets are disappointed or remain steady, you benefit if the rupee falls against the dollar.  How to send money to the United States?  All residents, including minors, are entitled to freely transmit up to USD 2,50,000 per financial year (April – March) for any permissible current or capital account transaction, or a combination of both, under the Liberalized Remittance Scheme.  Furthermore, residents can use the foreign exchange facility for up to USD 2,50,000 for the purposes listed in paragraph 1 of Schedule III of the FEM (CAT) Amendment Rules 2015, dated May 26, 2015.  Indian residents can use the LRS to send money overseas for tourism, education, medical treatment, stock and property purchases, care of family living abroad, presents, and donations.   Individuals may also create, manage, and retain foreign currency deposits with foreign banks to conduct transactions. The scheme does not cover corporations, partnerships, trusts, etc.  All about taxation when investing in the US Market Let us sum up the taxation aspect in an easy-to-understand flowchart  1. Dividends  An intended distribution of a company's profit to its shareholders is known as a dividend. You must thus pay the tax on the dividend you receive because your investment is lucrative.  2. Capital gains on the sale  You can choose to make money or lose money when you sell a stock. If you experience a loss, no tax is owed; but, if you experience a profit, you must pay capital gains tax.  The capital gains tax rate is based on how long the stock has been held. Foreign investors in US stocks are not subject to the country's capital gains tax. However, the Capital Gains Tax plan in India requires you to pay taxes.  a) Long-Term Capital Gains Tax Rate (LTCG)  If you own a stock for more than 24 months, the profit from selling it would be taxed at the Long-Term Capital Gains rate in India. Long-term capital gains are taxed at a rate of 20%. (Plus, any additional surcharge and cess).  b) Short-Term Capital Gains Tax Rate (STCG)  If a sale is made before the 24-month period, it will be considered normal income, and the tax rate will depend on your tax bracket.  Understanding some critical ETF terms  Smart Beta ETFs - "Factor-based" or "Strategic Beta" ETFs are other names for Smart Beta ETFs. These ETFs wisely select their underlying assets in keeping with their namesake.  These ETFs choose the primary assets based on factors other than market capitalization.  ETF liquidity - 2 different types of allied liquidities - Primary and Secondary.  Primary Liquidity is the Liquidity associated with the ease of creating and redeeming the ETF shares with the help of underlying securities.   The Liquidity of the underlying securities plays a significant role in determining the Liquidity of the ETF shares in the primary market.  Secondary Liquidity is the Liquidity associated with the already created ETF shares in the stock market. This Liquidity is generally the visible Liquidity on the market.   The non-institutional investors or investors with a smaller scale of operations generally are concerned with this type of liquidity. Investors buy and sell ETF units on the secondary market without the involvement of the ETF issuer.  Tracking difference - which can be either positive or negative, indicates how well a fund has outperformed or underperformed its benchmark index.   It's derived by subtracting the fund's total return from the benchmark's total.  Tracking error - reflects how much variability occurs among the individual data points that make up the fund's average tracking difference.  The value of a fund's assets subtracting the value of its liabilities is known as net asset value (NAV). The term "net asset value" is frequently used in the context of mutual funds and ETFs, and it refers to the value of the assets owned in the fund.  If the ETF's price is higher than its NAV, it is considered to be trading at a "premium." In contrast, if the ETF's price is below its NAV, the ETF is considered to be trading at a "discount." Spread - At any given point in the market, there are two prices: the sale price, i.e., 'ask' and the other to buy, i.e., 'bid'. Buyers of ETFs aim to pay a fair price and, if possible, a discount on the market price of the core securities in the ETF, while sellers want to get the highest price -leading to the existence of spreads.   International investments allow you to diversify your portfolio and acquire exposure to new markets. Geographic diversification can help mitigate country risk, such as the chance of bad events affecting India's domestic economy.   Furthermore, when comparing investing in Indian vs US markets, US stocks have traditionally displayed lower volatility, higher returns, and greater foreign exposure.  Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

"Man is not what he thinks he is; he is what he hides." ― André Malraux.  Similar is the case with our ETFs. ETFs are not what they seem to be. Several ETFs are named similarly, which is often deceptive to a layman investor.  Investors must evaluate a variety of variables while choosing the right ETF. ETFs' costs, tracking, structure, and liquidity are all critical. Even with these factors in place, an ETF's results primarily depend on the underlying assets at the end of the day.  This article aims to help the investor know the nitty-gritty of the ETF nomenclature and why an investor should not go by just the name of the ETF and should also check under the hood.   Let's take an example and understand why this is the case. Let's take 2 ETFs tracking emerging markets:  iShares Core MSCI Emerging Markets ETF (IEMG)   iShares MSCI Emerging Markets ETF (EEM).  ParameterIEMGEEMTickeriShares Core MSCI Emerging Markets ETF (IEMG)iShares MSCI Emerging Markets ETF (EEM)IssuerBlackrockBlackrockExpense Ratio0.11%0.68%AUM$74.02B$27.94BAverage Daily $ Volume$965.69M$2.10BUnderlying IndexMSCI Emerging Markets Investable Market IndexMSCI Emerging Markets IndexMedian Tracking Difference (12 Mo)-0.40%-1.08%5-year annualized performance7.24%6.44% Country-wise holdings:  Source: etf.com Source: etf.com Sectoral weightage:  Source: etf.com Source: etf.com The above two funds are very similar, yet they are slightly different and have given separate returns over the same period. The two funds track emerging markets and also follow the same market classification given by MSCI.   Still, they have different tracking indices, which differ very slightly. As seen above, IEMG tracks the MSCI Emerging Markets Investable Market Index, and the EEM tracks the MSCI Emerging Markets Index, which are two different indices with almost the same name!  The case was not very severe in our example; what if the two ETFs tracking very similar markets gave drastically different returns?   Frontier markets made a big impression in 2013, outpacing the BRICs and other developing markets by a wide margin. Frontier markets are developing-world capital markets that are less developed.  Because it is too tiny, has too much inherent risk, or is too illiquid to be termed an emerging market, a frontier market is a country that is more established than least developed countries (LDCs) but yet less established than emerging markets. Pre-emerging markets are another name for frontier markets.  The iShares Frontier 100 ETF (FM) and the Guggenheim Frontier Markets ETF are the two broad frontier market ETFs currently available (FRN).  You'd believe they're the same fund because they both   claim to have broad exposure to frontier markets.   However, if you had invested in the wrong one, you would have had no idea that frontier markets performed well in 2013. FM returned over 25% in 2013, whereas FRN returned -13 %. That's a 38 percent difference in returns between the two funds!  FRN uses the BNY Mellon classification system and is only allowed to retain depositary receipts. As a result, the underlying basket gives you access to nations like Chile, Colombia, Egypt, and Peru, which account for more than 70% of FRN's weighting, even though MSCI, FTSE, and S&P all classify them as emerging.   Meanwhile, FM adheres to MSCI's classification system and is authorized to hold local securities - this gives FM a preference for Saudis like Kuwait, Qatar, and the United Arab Emirates, as well as African nations like Nigeria and Kenya.  The lesson here is to not assume that a fund will cover a country, sector, location, or theme precisely as you think based on its name. Checking under the hood is the key!  Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Bond ETFs are exchange-traded funds that invest exclusively in bonds. They hold a portfolio of bonds with various strategies and holding periods.   Bond ETFs are for treasuries, corporates, convertibles, floating-rate bonds, etc. Bond ETFs are analogous to stock ETFs as they are passively managed and traded in the secondary market. ETFs have become especially prominent vehicles for entering the fixed income segment of the market in recent years.   Investors have gradually become more comfortable with the mix of fixed income exposure and the exchange-traded structure, which grew far more slowly than equities ETFs at first.  Investors in bond ETFs are typically attracted to a product like the Total Bond Market ETFs, which provide exposure to the entire bond market in one shot.   Treasuries dominate many ETFs that expose the investment-grade U.S. debt market, a bias that stems from the sheer scale of the U.S. government's debt obligations.   As a result, there is a concentration within a single issuer, which may not be an ideal thing to do for investors looking to build a well-balanced long-term portfolio.   Several ETFs can augment this fixed income exposure, providing affordable and efficient access to parts of the global bond market not included in popular bond ETFs like AGG and BND. Municipal bonds, often called Munis, are also very secure and stable bonds. Municipal bonds typically include tax-free interest payments, making them attractive to investors in higher-tax bonds.   On the other hand, these bonds can be helpful in various portfolios, potentially boosting the yields on government debt. Some ETFs specialize in multiple durations and credit quality, from low-risk pre-refunded Munis to speculative high-yield municipal debt.  Build America Bonds are a unique section of the municipal bond market that can provide investors with significant actual returns while posing a low risk of default.   The Build America Program aimed to lower borrowing costs for towns seeking to complete critical capital projects. BABs are taxable bonds issued by state and local governments, with the U.S.   The Treasury is subsidizing the interest on the bonds. BABs are appealing because of their unique structure, which provides an attractive coupon for investors.  Many of the new fixed-income ETFs launched in recent years have concentrated on bond markets outside of the United States, and a variety of broad-based and precise ETFs are available to access this asset class.  Multinational Corporate Bonds give investors access to international corporate debt products, which are a force to be reckoned with.  Emerging Market Bonds are a group of instruments that provide investors with exposure to both dollar-denominated and local currency-denominated bonds.   Those seeking greater dollar diversification will generally be better suited to investing in issues denominated in foreign currencies rather than the U.S. dollar.  By employing three simple steps, we can create a bond portfolio Determine the allocation of choice in the fixed income ETFs.  Implement a prudent trade strategy to get maximum returns through a single purchase, SIP, or any other plan that the investor deems fit.  Monitoring and assessing the portfolio regularly.  A bond portfolio can be made using the products mentioned earlier, weighting methodologies, management type, expense ratio, duration, credit quality, yield to maturity, and even returns.  The taxability of the ETF should also be kept in mind. The ETF finder is a handy tool for such combing operations! Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

We have seen how exchange-traded funds differ from mutual funds. Now let us focus on the difference between ETFs and stocks since both are tradeable on the 'stock' exchange.   In today's day and age, investors have many choices to invest in to grow their wealth. Investing in stocks, bonds, mutual funds, ETFs, etc., the list is virtually endless.   The main aim of any investor is to see his investments grow; thus, each instrument brings many advantages and disadvantages.  Retail investors like you and I can choose from stocks and ETFs. Both are available on the stock market for trading. On the one hand, a stock offers ownership in a single firm; an ETF gives you a basket of securities depending upon the type of ETF you choose.   Thus, ETFs give you access to virtually any part of the financial market. ETFs are collections of stocks, bonds, commodity derivatives, and other investments traded on an exchange.  There are several differences between stocks and ETFs, but first, look at their similarities. Both the ETFs and stocks are taxable upon redemption. Both offer a steady income.   Stocks’ dividends are credited directly to the investors' accounts after tax deductions. Similarly, the assets underlying the ETFs also generate dividends and returns, either invested back into the fund or given back to the investors after proper deductions.   You can choose both ETFs and stocks from various sectors. Similar to stocks, ETF trading can be done on the stock exchange.  What are the differences, then? ETFs are a group of securities packaged as a unit and listed on the exchange. These assets need not be only stocks but can be any security.   These ETFs are managed by professional fund managers who own the underlying securities. The investors concerned about the ETFs do not own the underlying assets directly and hence give no ownership and voting rights.   On the other hand, stocks listed on the exchange offer ownership and voting rights (if they are not preferencing shares) in a single company. Preference shares are the shares that give the investor a promised return at the cost of forgoing voting rights in the AGMs.  ETFs are managed by a professional, thus saving you the trouble of deciding which securities in the underlying assets of the ETF to sell or hold. In the case of stocks, investors need to be very vigilant in the market to know when to buy, sell, or hold.   Conversely, in the case of ETFs, investors don’t have any control over what happens to the portions of ETFs. Since ETFs have a diversified profile of assets, the risk associated with the investment reduces significantly.   Whereas in stocks, the risk attached is higher as the stock price depends entirely upon the company's performance and other external factors (outside the control of the person in question).  The liquidity of a stock is way higher than the liquidity of an Exchange Traded Fund. However, in rare cases, the latter can have higher liquidity than the former.  The bottom line is that you should make every investment by studying the risks involved. The investor should keep his risk profile in mind before proceeding.   Most importantly, the strategies and goals of the investor are vital when choosing the securities. The right for one might not be the right choice for the other.   Keeping these fundamental differences and similarities in mind helps in better decision-making.  Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

So, why do we need to know the difference between exchange-traded funds and mutual funds in the very first place? ETFs are very similar to Mutual Funds, but they are not mutual funds. It's just a matter of grasping the differences between the two.   We at EduFund believe that understanding where each of the instruments makes the most sense, and the investor just doesn't blindly follow the crowd and the trend.  At the very outset, let's know why they are so similar before diving into their differences. Exchange-Traded Funds and Mutual Funds represent a basket of professionally managed securities, such as stocks, bonds, currencies, commodities, real estate, etc.   These securities can either be thematic or also depend upon the type of mutual fund or the ETF you chose. Both offer various investment options and are managed by professional portfolio managers.   Thus, saving our time and energy in research.  The ETFs and Mutual funds are highly diversified because of the basket of securities. Thus, they are less risky than investing in individual securities like stocks, bonds, commodities, currencies, etc.   How does this help reduce risk? Imagine if you are holding stock that is performing poorly, and thus your return will also be poor; perhaps you may lose money too.   However, suppose you have an ETF or a mutual fund. In that case, this poor performance of that stock may be overdone by the good or average performance of other stocks and assets, which will give you a better return than holding a single asset otherwise.  The most important difference between the ETFs and Mutual funds is that an ETF is tradeable on the stock exchange, i.e., its trading is just like a simple stock on the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE) if it's traded in Indian markets or it will be listed on the New York Stock Exchange or the Nasdaq if it's to be tradeable in the United States of America.   On the other hand, Mutual Funds’ listings are not done on the stock markets; they must be purchased manually from the fund either through your financial advisor or through online brokers.  The ETFs are easily transactable, i.e., they can be sold or purchased at any point in the day, just like a stock. However, for mutual funds, this happens only once during the day after the market has closed.   This buying or selling of mutual funds is through the mutual fund company based upon the investor's instructions - this delay can be very costly if the market fluctuations are very dynamic.   While easy and anytime trading of ETFs sounds cool, not all ETFs are as tradable. This leads to illiquidity concerns.  Source: Pixabay Generally, an investor purchases the mutual fund at the price of its NAV, but on the other hand, ETFs are bought at the prevailing market price, which is typically near the NAV but not the same.   Hence, most mutual funds allow automated transactions but ETFs do not because of price volatility.  Generally, ETFs have a lower expense ratio as compared the mutual funds. The expense ratio is the fee you pay the manager for managing your securities.   The reason is quite simple when a mutual fund is traded, it leaves a long paper trail, and thus the exchange of hands for this paperwork is more - translating to higher costs for the fund manager, which are imposed upon the investor.   On the contrary, ETFs are traded directly by the investor and thus naturally explain the lower charges.  Based on management, most ETFs are passively managed, whereas there are quite a few mutual funds that are actively managed, but some are passively managed.  What is better?  Well, neither of the two is perfect! You can achieve diversity using any of the two options based on your goals. Naturally, a portfolio balanced by combining both offers greater variety and lower risk.   Notably, there is no reason this must be a tight rope walk situation. Both Mutual Funds and ETFs can live together in a portfolio happily. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

ETF investment strategy is new to India. In fact, the first successful ETF was introduced in 1993 in the United States to monitor the Standard & Poor's 500 Index (S&P 500), and it is still one of the most popular ETFs today. In India, the first ETF to track the Nifty 50 Index came to the market in 2001. ETFs are a low-cost, low-risk way to invest.  Since it tracks a specific index, such as the NIFTY 100 or S&P 500, and is passively managed. An exchange-traded fund (ETF) is similar to an index mutual fund.   However, today's market has a large number of actively managed ETFs. ETFs, unlike index funds, are marketable securities that may be bought, sold, and traded at an exchange throughout the day, just like any other corporate stock.  Benefits of investing in ETFs ETFs offer liquidity as they are tradable securities on the exchange;  ETFs are very cost-efficient compared to their mutual fund counterparts due to their structure and functioning; ETFs offer unparalleled flexibility due to traceability advantages;  ETFs offer diversification to the portfolio;  ETFs are single transaction securities; when an investor buys a mutual fund, he or she buys a basket of equities made up of small shares spread across various assets. When an ETFs are bought in a single transaction, it is akin to owning a tiny portfolio it is beneficial to investors who are keeping track of their performance;  Unlike some mutual funds, ETFs do not have lock-in periods.  ETFs are tax-efficient  Passive management helps get transparent returns akin to the underlying index.   Source: Pixabay Four ETF investment methods Cost-per-dollar Averaging    You acquire assets worth a specific amount of money regularly, regardless of how the asset's price changes. Even if it's a modest amount, if you're new to the US investing, you should strive to save a regular amount in an ETF or a set of ETFs every month.   This aids in the development of saving discipline. The goal is to spend time in the market rather than trying to time it.  For instance, using DCA, a $200,000 investment in shares can be made over eight weeks by investing $25,000 each week in the same manner. The trades for lump-sum investing and the DCA approach are in the table below:   DCA @ $25000 per weekLumpsumWeekShare priceNo of shares purchasedShare priceNo of shares purchased185294852353286291  383301  481309  582305  678321  780313  882305  Total shares purchased 2437 2353Average share price82 85  The entire amount invested is $200,000, with 2,353 shares purchased as a lump-sum transaction. On the other hand, the DCA strategy purchases 2,437 shares, a differential of 84 shares worth $6,888 at the $82 average share price.   As a result, DCA can raise the number of shares purchased when the market is down and decrease the number of shares purchased when the market is up.    Asset Allocation  Simply put, you should not invest all your money in a single asset group. Instead, you spread it over various asset classes, such as equities, bonds, and commodities.   ETFs can assist a novice in putting together a basic portfolio allocation. The asset allocation you make should be based on your risk tolerance. When you're in your twenties, for example, stock ETFs may make up the bulk of your portfolio as you have more time on your hands.   You might choose to implement a less aggressive policy as you age and your goals change by increasing the proportion of your assets in bond ETFs.    Sector Strategy  ETFs are a great method to gain access to a sector that otherwise would be hard to enter. For example, the ARK Autonomous Technology & Robotics ETF can help you gain exposure to the technology and robotics sectors.   You can also invest in the ALPS Clean Energy ETF if you wish to invest in the clean energy sector. It also allows you to perform a sector rotation, in which you can earn gains from one ETF and switch to another based on economic cycles – this is especially useful in cyclical businesses.    Global Diversification  ETFs also allow you to diversify your portfolio regionally and in global markets other than the United States. The Invesco China Technology ETF, for example, tracks the performance of the FTSE China Incl Index.   Tencent Holdings Limited and Baidu Inc. are the firms represented in this 25% Technology Capped Index.   The iShares MSCI Japan ETF monitors the performance of an index of Japanese stocks, with Toyota Motor Corporation and Sony Group Corporation among its holdings. Investing in the United States and other countries allows you to build a global portfolio.  ETFs are a solid long-term investment alternative because they have a lesser expense ratio than active funds. Hence going with them makes the most sense. Consult an expert advisor to get the right plan for you   Talk to an expert

Before moving to what emerging market ETF is, let's quickly learn what emerging markets are, their characteristics, and why they should be acknowledged whilst making a portfolio.  Emerging markets are countries that are increasing their manufacturing capabilities. They are moving away from agriculture and raw material exports, which were once their main sources of income.  Governments in emerging countries want to improve the lives of their citizens. They are fast industrializing and transitioning to a mixed economy or free market. Brazil, China, India, Russia, etc., are some examples of emerging economies.  Characteristics of emerging economies What does this mean?  There are numerous ways to profit from emerging markets' high growth rates and prospects. The best option is to invest in a fund that focuses on emerging markets.   Many funds either track the MSCI Index or strive to outperform it. This helps save a load of effort. It is unnecessary to conduct extensive research into foreign firms and economic policies.   It also lowers risk by distributing investments across various emerging markets rather than just one.  However, emerging markets are not all equal in terms of investment potential. Since the global financial crisis of 2008, some countries have used rising commodity prices to boost their economies.   They did not put money into infrastructure. Instead, surplus funds are used to fund subsidies and new government employees. As a result, their economies grew swiftly, their citizens bought a lot of imported goods, and inflation became a problem immediately.  Brazil, Hungary, Malaysia, Russia, South Africa, Turkey, and Vietnam. Governments can encourage foreign direct investment by keeping interest rates low.  It was well worth it, even if it did assist in raising inflation. The countries received tremendous economic growth in exchange.  Emerging market funds are mutual funds or exchange-traded funds that invest in publicly traded companies based in an emerging country or region.   Funds might target specific geographic areas or invest in a single country. While an emerging market fund does not have to invest solely in developing markets, it should have most of its holdings in that sector.   The remaining holdings could be more extensive domestic holdings that make capital investments in the economy's development. As Hyundai has made significant investments in plants in India, an emerging market fund investing in India may also hold Hyundai stocks.  Emerging Markets ETFs have $330.14 billion in assets under management, with 233 ETFs trading on US exchanges. The cost-to-income ratio is 0.58 percent on average.   With $79.22 billion in assets, the Vanguard FTSE Emerging Markets ETF VWO is the largest Emerging Markets ETF. MEXX, the best-performing Emerging Markets ETF in the previous year, returned 80.89 percent.   The VanEck Digital India ETF DGIN was the most recent ETF to launch on February 15, 2022.  Top emerging market ETF issuers by AUM.  IssuerAUM in $ billionNumber of fundsBlackrock Financial Management112.4014State Street7.124Invesco1.665Charles Schwab13.892First Trust0.645 Top and Bottom performers in the category of ETFs Top ETF Performers according to etf.com  TickerFund NameTrailing 30-day price TR changeYANGDirexion Daily FTSE China Bear 3X Shares28.44%FXPProShares UltraShort FTSE China 5018.58%EDZDirexion Daily MSCI Emerging Markets Bear 3x Shares17.37%CHIEGlobal X MSCI China Energy ETF15.04%BRZUDirexion Daily MSCI Brazil Bull 2X Shares13.19% Bottom ETF Performers according to etf.com TickerFund NameTrailing 30-day price TR changeRUSLDirexion Daily Russia Bull 2X Shares-85.12%RSXVanEck Russia ETF-70.31%FLRUFranklin FTSE Russia ETF-59.40%RSXJVanEck Russia Small-Cap ETF-44.38%YINNDirexion Daily FTSE China Bull 3X Shares-24.81% Emerging markets offer investors a great way to diversify their portfolios without sacrificing growth.   While the investments are more volatile, the underlying firm frequently enjoys significant growth as the new market grows. Before investing in emerging economies, investors should do their homework. Consult an expert advisor to get the right plan for you  TALK TO AN EXPERT

Before proceeding to the comparison between Bond ETF vs Bond Mutual Funds, let's quickly brush up on our knowledge of bond ETFs and Mutual Funds.  Bond Mutual Funds  For many years, mutual funds have been investing in bonds. Balanced funds, including stock and bond allocations, have been around since the late 1920s.  As a result, there are many bond funds available that provide a wide range of investment alternatives.   Passively managed funds, which strive to duplicate various benchmarks while not attempting to surpass those benchmarks, and actively managed funds that seek to outperform their benchmarks are the two types of bond mutual funds available in the market.  There are two types of bond mutual funds available  Open-ended funds can be purchasable directly from fund providers. The brokerage commission cost does not exist if the item is purchased directly.  Bond funds can be redeemed by resale to the fund house, making them liquid and easy to buy and sell.  Open-ended funds are valued and exchanged once a day. Furthermore, each fund's net asset value (NAV) is determined when the market closes.   The NAV is reflected in the trading price. Since open-ended funds do not trade at a markup or a discount, determining how much a fund's shares will yield if sold is simple and predictable.  Daily, bond mutual funds do not disclose their core holdings. They report their holdings semi-annually in most cases, with specific funds reporting every month.   Investors cannot ascertain the specific makeup of their portfolios at any given time due to a lack of transparency.  A closed-end fund is a form of mutual fund that raises cash for initial investments by selling a limited number of shares in a single initial public offering (IPO).   Its shares can then be purchased and sold on a stock exchange, but no new shares or money will flow into the fund.  Source: Freepik Bond ETFs  Compared to mutual funds, bond ETFs are new to the market, with iShares establishing the first bond ETF in 2002.   Although a rising number of actively managed products are available, most of these offers strive to mirror various bond indices. Ceteris paribus, ETFs often have lower fees than their mutual fund counterparts, potentially making some investors the more attractive choice.  Trading of bond ETFs on a secondary market and the provider is not involved in the day-to-day transactions of the investors. ETFs are traded continuously throughout the day.   Share prices can change dramatically from one minute to the next and throughout a trading session. Shares can also be bought and sold at a premium or discount their underlying net asset value.  Bond ETFs have no minimum holding time, so there are no penalties for selling soon after making a purchase. They can also be purchased on the margin and sold short, giving them far more trading flexibility than open-ended mutual funds.  Bond ETFs, unlike mutual funds, divulge their underlying holdings daily, providing complete transparency to investors. Bond ETFs provide several advantages over traditional bond mutual funds.   Bond ETFs are tradable to a considerable extent because of their listing on the stock exchange, and they can be quickly sold off without the involvement of the fund house, as in mutual funds.   Mutual fund trading is done only once a day after the market closes. Bond ETFs are highly transparent of their holdings due to regular holdings publishing regulations.  Source: Freepik The ETF method reduces paperwork, record-keeping, and distribution costs, among other things. As a result, the overall expense ratio of an ETF is typically lower than a matching mutual fund.  However, not everything is rosy; Bond ETF investors need to shell out commissions to the broker for every trade carried out in the stock market, which can amount to a sizeable sum in the longer run.   The ask spreads can become pretty broad in the bond market, thus eliminating potential returns coupled with the possibility of having the market price of the ETF available at a discount or premium from the NAV, making the ETF proposition less lucrative.  During extreme volatility in the market, bond mutual funds may be worse off as individual bond values are difficult to calculate. Certain bonds can go without trading for several weeks, making such holdings' value judgment challenging.   On the other hand, ETF prices are kept in check by the power of arbitrage held by the APS. The very organic process of creation and redemption of ETFs makes this a breeze and helps in maintaining the market price of the ETF near the NAV.   Whether to buy a bond fund or a bond ETF is usually based on the investor's investing goals. Bond mutual funds provide more options if the investor desires active management.   Bond ETFs are a smart alternative if the investor plans to trade regularly. Bond mutual funds and bond ETFs can suit the needs of long-term, buy-and-hold investors, but it's best to do some homework on the holdings in each fund.  If transparency is vital to the investor, bond ETFs are suitable. If the investor is worried about liquidity and trading volume, a bond fund can be a better option because one can sell the holdings back to the fund provider.  It's crucial to conduct due diligence and consult with a broker or financial advisor before making any investment decisions. Consult an expert advisor to get the right plan for you  TALK TO AN EXPERT

In the previous article, we talked about what is healthcare ETF. In this article, we will discuss what is innovative ETF. Many organizations' business models include acquiring fresh perspectives through research and then using those findings to develop and execute new technologies.   Much of these efforts are expected to be in the medical sector, which will have a significant economic impact and spread. The same is true about digital technology, which will likely result in a complete makeover of different sectors like supply chain and sales processes.  Why invest in Innovative ETFs? Innovation propels the global economy. New exchange-traded funds (ETFs) were put out in the market to provide exposure to companies that have developed new goods, patents, or technology.   Index providers assess firms based on their innovation objectives and create unique indices based on this data. Some ETFs which enable you to invest in emerging technology are enumerated in this investment guide.  All ETFs that allow you to invest in innovative technology is on this list.  Innovative ETFs manage $233.55 billion in assets management through 91 ETFs trading on US exchanges. The expense ratio is 0.69 percent on average.  With $182.04 billion in assets, the Invesco QQQ Trust QQQ is the largest Innovative ETF. The best-performing Innovative ETF in the previous year was IEFN, which returned 20.26 percent.   The WisdomTree Battery Value Chain and Innovation Fund WBAT was the most recent ETF in the Innovative category.  List of top 10 Innovative ETFs Here is a list of the top 10 ETFs based on their AUM. AUM is the Assets Under Management which means the total market value of the investments that a person or entity handles on behalf of investors.   TickerFund NameIssuerAUMExpense ratio3-month TRSegmentQQQInvesco QQQ TrustInvesco$182.04B  0.20%-11.83%Equity: U.S. - Large CapARKKARK Innovation ETFARK$11.99B00.75%    32.77%Equity: Global Broad ThematicFDNFirst Trust Dow Jones Internet Index FundFirst Trust$7.19B  0.51%-18.31%Equity: U.S. InternetKWEBKraneShares CSI China Internet ETFCICC$6.94B0.76%-18.29%Equity: China InternetQQQMInvesco NASDAQ 100 ETFInvesco$3.69B0.15%-11.71%Equity: U.S. - Large CapARKWARK Next Generation Internet ETFARK$2.38B0.83%-34.31%Equity: Global InternetBOTZGlobal X Robotics & Artificial Intelligence ETFMirae Asset Global Investments Co., Ltd.$2.09B00.68%  -18.31%Equity: Developed Markets Robotics & AIROBOROBO Global Robotics and Automation Index ETFExchange-Traded Concepts$1.65B00.95%  -11.82%Equity: Global Robotics & AIARKQARK Autonomous Technology & Robotics ETFARK$1.56B0.75%-18.51%Equity: Global Robotics & AIARKFARK Fintech Innovation ETFARK$1.53B0.75%-34.75%Equity: Global FinTech Now let us look at the top and bottom performers.  Top ETF Performers according to etf.com  Bottom ETF Performers, according to etf.com  Innovation is the very backbone of our society; thus, it's bound to grow in the future and give handsome returns in the long run.   Investments in innovative ETFs are perfect for those who belong to the 'buy and hold' type of investor category and have long-term goals. Consult an expert advisor to get the right plan for you  TALK TO AN EXPERT

In the previous article, we discussed bitcoin ETFs. In this article, we will discuss what are energy ETFs in India? What are Energy ETFs? An exchange-traded fund (ETF) that offers traders access to the energy industry is known as an energy ETF.  Like other exchange-traded funds, Energy ETFs invest in oil, gas, and alternative energy firms to track a broad sector index, sub-sector, commodity, or another asset.  The energy sector is a large portion of the global economy that affects almost every business. Practically every investor with a well-balanced portfolio has some exposure to energy firms.   The fact that energy comprises a significant representation in broad market averages such as the S&P 500 demonstrates its importance. Energy ETFs, as previously said, are security baskets that allow people to invest in the energy industry without having to pick specific firms.   Crude, gas, and alternative energy ETFs invest in firms participating in the discovery, production, distribution, haulage, and heavy industry of energy and related products, as well as those that are engaged in the discovery, manufacturing, distribution, logistics, and production of energy and associated products.   The MSCI World Energy index, for example, monitors all companies in the energy sector that are part of the MSCI World index. As a result, a global energy ETF allows you to invest in the world's largest energy corporations.  Energy ETF shares, like stocks, can be acquired on a stock exchange. Unlike mutual funds, there is no loading on ETFs, and the fees are often lower. Energy ETFs with a specialized focus encompass various industries, locations, and risk profiles. Both conservative and adventurous investors have options.   The energy sector involves a highly complex and sophisticated network of enterprises producing and transmitting the energy required to power daily life and business.  Global energy supply and demand is a massive element in sector performance, yet demand isn't static. When oil and gas prices are high, producers usually outperform, whereas they earn less when their value falls.   On the other hand, oil refiners can benefit from lower crude prices by lowering the cost of feedstock used to make petroleum products like gasoline.  However, one important thing to note here is that renewable energy producers and providers may not be factored in the energy sector; thus, clean energy ETFs can be used to invest in such businesses. Source: Pexels What are some benefits of investing in energy ETFs in India?  Energy ETFs offer access to various firms to invest in without requiring you to pick them individually. It is a bundle of energy assets helping you to avoid market risk, commodity price risk, and geopolitical risk, which are all risks connected with investing in the energy sector.  One can also select specialized ETFs based on investment objectives and specific requirements. For example, if users wish to invest in new kinds of energy, ETFs allow them to choose between clean energy ETFs and classic energy businesses that deal with petroleum, gasoline, and lignite.  Energy ETFs have $80.18 billion in assets under management, with 55 ETFs trading on US exchanges. The cost-to-income ratio is 0.68 per cent on average.  With $35.91 billion in assets, the Energy Select Sector SPDR Fund XLE is the largest Energy ETF. The best-performing Energy ETF in the previous year was NRGU, which returned 156.99 per cent.   On January 20, 22, the Direxion Daily Oil Services Bull 2X Shares ONG, the most recent ETF in the Energy industry, was launched.  Let's now look at some top and bottom performers Top ETF Performers according to etf.com  Bottom ETF Performers according to etf.com  ETFs provide diversification, but there are hazards that you need to take into account. Any specialized sector-based ETF, such as one that follows energy companies, might increase portfolio volatility, so doing due diligence before making any investment decisions is imperative.   Investors should read the prospectus, especially when dealing with volatile commodities like energy. It will provide a decent understanding of associated costs and the securities to which the ETF exposes you. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

In the previous article, we discussed Marijuana ETFs. In this article, we will discuss ESG ETF. An ESG investment is a socially responsible investment that considers a company's impact on the environment, its shareholders, and the planet in addition to financial rewards.   Investors have recently become interested in the financial efficiency of ESG stocks. Many companies with good ESG track records demonstrated lower fluctuation than their non-ESG rivals during the market upheaval caused by the COVID-19 epidemic.   ESG investment was justified for many investors because good corporate behaviour leads to more significant financial results.  What is ESG?  ESG stands for Environmental, Social and Governance - the three criteria to adjudge the company's sustainable performance.   E- Environmental addresses the effect of the company's business on the planet through Climate change policies  Greenhouse gas emissions   Carbon footprint   Water use and conservation and waste disposal   Renewable energy sources   Recycling and disposal methods   Green products, technologies, infrastructure, and so on.  S-Social addresses the company's responsibility towards society, its employees and customers. Employee dealing and remuneration  Employee skills and development  Employee security and sexual harassment deterrence  Social inclusion  Ethical supply chain sourcing  Mission or higher purpose  Consumer service   Whistleblower protection programmers  Public stance on social justice matters  G - Governance relates to the governance position and standards in the firm.  Executive remuneration and benefits and their link with long-term corporate value  Ethical governance policies.  Social diversity in top-level management.  Presence of conflict of interest in the board.  Shareholders' influence on the board  Tenure of board members  Mutually exclusive responsibilities of chairman and CEO  Communication with shareholders is transparent.  Addressing shareholder grievances.  ESG’s performance evaluation can be done with the help of corporate reporting and third-party sources like MSCI ESG Ratings and Sustain analytics ESG Ratings. Source: Pexels Why choose ESG ETF?  Environmental, social, and governance challenges are essential threats to operations and profits in every industry. Hence firms segregated on such grounds are bound to perform well in the foreseeable future.   Companies trying to address ESG issues will perform well and have fewer disruptions in business routines. They face less scrutiny from regulators and produce reliable financial returns resulting in a lower risk for investors.  ESG compliant companies also produce superior financial returns. Take, for instance, JUST Capital's JUST U.S. Big Cap Diversified Index (JULCD), which analyses the performance of large, publicly-traded firms with substantial environmental, social, and governance (ESG) scores.   It comprises half of the Russell 1000 index's large-cap public firms. Still, it excludes those without a demonstrable dedication to employee well-being, valuable goods, positive environmental performance, and strong communities. For three years, JUST Capital's JULCD index has outperformed the Russell 1000.  Thus, ESG compliant investing helps keep portfolio risks at bay and generate competitive returns.  What are some risks of ESG ETF investing?  There are no universally accepted ESG standards, thus leaving a scope of discretion to the ESG scoring agencies. For instance, some ESG funds also hold companies manufacturing tobacco!  As ESG is a comparatively newer concept, no long-run data proving its efficacy is available.  Companies may no longer report sustainability data of their own volition. Any reduction in the availability of high-quality (investable) ESG enterprises results from a general dereliction of ESG qualities.  ESG ETFs have a total asset under management of $159.76 billion, with 50 ETFs trading on U.S. exchanges. The expense ratio is 0.36 per cent on average.  With $48.64 billion in assets, the Vanguard Information Technology ETF is the largest ESG ETF. FLCA was the best-performing ESG ETF in the previous year, with a gain of 22.43 per cent.   On 11/08/21, the iShares ESG Advanced Investment Grade Corporate Bond ETF ELQD became the most current ETF in the ESG area.  Let us look at some top gainers and losers Top ETF performers according to etf.com  Bottom ETF performers according to etf.com There is no paucity of money or interest going into ESG investment. ESG investments will stay valid and expand further, thanks to drivers of change like E.V.s and the effect of the coronavirus.   That implies it's time for investors to start paying notice. A fantastic strategy to assure portfolio success is to align your money with your values. Consult our expert advisor to get the right plan for you TALK TO AN EXPERT

Earlier we read about three costliest ETFs regarding their expense ratio. In this article we will know the three cheapest ETFs regarding their expense ratio.  Two of the most successful long-term investment vehicles are mutual funds and exchange-traded funds (ETFs). You may even have some of these in your pension fund.   However, a part of your portfolio is dedicated to a charge termed an expense ratio each year. It's critical to understand the costs you're paying no matter what you're investing in.  And, given the prevalence of mutual funds and exchange-traded funds (ETFs), many of us pay an annual expense ratio out of our portfolios.  What is an Expense Ratio?  The fee that mutual-fund or exchange-traded fund charges investors is Expense ratio. This charge covers the costs of management, asset allocation, marketing, and other services.   These charges are calculated as a portion of an investor's annual cost. ETF expense rates are often less than 1%. That means you spend less than $1 per year on expenses for every $100 you invest. Three cheapest ETFs in terms of their expense ratio Rank ETF SymbolExpense Ratio1 JP Morgan Betabuilders U.S. Equity ETFBBUS0.02%2 Vanguard Total Stock Market ETFVTI0.03%3 iShares Core S&P 500 ETFIVV0.03% JP Morgan Betabuilders U.S. Equity ETF  BBUS invests in the top 85% of stocks in the US equity market by market capitalization across all sectors. The fund includes large cap and mid-cap stocks.   Common shares, preferred shares, and REITs are forms of equity securities. BBUS, part of the "BetaBuilders" suite, offers low-cost, plain-vanilla access to US stocks, except for small-cap enterprises, which can be used as a primary investment or complement BBMC or BBIN.   The fund might invest up to 20% in futures to track the index more closely. The index recalibration is done every three months. The MSCI ESG Fund Rating for JPMorgan BetaBuilders U.S. Equity ETF is AA, with 7.61 out of ten Performance  Performance [as of 18/03/22]1 year3 years5 years10 yearsBBUS10.62%17.92%--MSCI USA IMI12.14%17.85%15.10%14.24% The fund invests entirely in the United States.  Top 10 Holdings  Source: etf.com BBUS details  BrandJPMorganExpense Ratio0.02%YTD Return-7.79%AUM$1.05BNumber of Holdings632Avg. Spread ($)$0.04Average Daily $ Volume$8.51M Vanguard Total Stock Market ETF  VTI is a strong option for buyers or investors looking for broad equity exposure across the market, including micro-caps. The fund is impartial, with no gambles on businesses, sizes, or styles.   The fund is handled passively and is always fully invested. The ETF has tracked various broad indexes over the years, including Dow Jones, MSCI, and, as of June 2013, CRSP. Its current index closely resembles the MSCI benchmark.   Like all other Vanguard ETFs, portfolio transparency is reported monthly rather than daily. The MSCI ESG Fund Rating for Vanguard Total Stock Market ETF is AA, with 7.36 out of 10.  Performance  Performance [as of 18/03/22]1 year3 years5 years10 yearsVTI3.94%15.79%13.74%13.58%CRSP U.S. Total Market6.94%16.74%14.33%13.73% The fund invests entirely in the United States.  Top 10 Holdings  Source: etf.com  VTI details  BrandVanguardExpense Ratio0.03%YTD Return-7.81%AUM$285.63BNumber of Holdings4033Avg. Spread ($)$0.03Average Daily $ Volume$1.22B iShares Core S&P 500 ETF  IVV, one of numerous ETFs that reflect the S&P 500 Index, provides good exposure to large-cap stocks.   Despite popular belief that the S&P 500 index gives pure market-cap access to the US market, the index's committee has the authority to omit individual companies.   IVV also has a smaller skew than our benchmark because it trades at a lower market capitalization. Nonetheless, our research shows that these discrepancies are mainly academic, as the fund provides excellent coverage.   IVV is organized as a 1940 Act Fund, which, in comparison to other structures, makes it more appealing to buy-and-hold investors because dividends are reinvestible.   The fund issues daily positions. The MSCI ESG Fund Rating for the iShares Core S&P 500 ETF is AA, with 7.79/10.  Performance  Performance [as of 18/03/22]1 year3 years5 years10 yearsIVV8.98%16.70%14.35%13.97%S&P 50011.53%17.54%14.91%14.25% The fund invests entirely in the United States.  Top 10 Holdings  Source: etf.com IVV details  BrandiSharesExpense Ratio0.03%YTD Return-7.13%AUM$324.85BNumber of Holdings507Avg. Spread ($)$0.03Average Daily $ Volume$3.99B Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Earlier we read about top 3 cheapest ETFs in terms of expense ratio. In this article we will read related to top three costliest ETFs in terms of expense ratio. Exchange Traded funds and mutual funds are two of the most successful long-term investment vehicles. You may even have some of it in your pension fund.   However, you may not have the awareness that a portion of your portfolio is allocated to a charge termed an expense ratio each year. It's critical to understand the costs you're paying no matter what you're investing in.  And, given the prevalence of mutual funds and exchange-traded funds (ETFs), many of us spend an annual expense ratio out of our portfolios. You will learn about expense ratio and why is it essential, and how to spot a good one when you see one. What is an expense ratio and what does it mean?  Expense ratio is fees that a mutual or exchange-traded fund charges an investor. This charge covers the costs of management, asset allocation, marketing, and other services.   Calculation of expense ratio is done on an investor's annual expenditure. ETF expense rates are usually less than 1%. That means you spend less than $1 per year on expenses for every $100 you invest.  However, not all ETFs are this cheap to own; some ETFs have an expense ratio that might go into double digits.  Let us look at the three most expensive ETFs in terms of their expense ratio Rank ETF SymbolExpense Ratio1 VanEck BDC Income ETFBIZD10.07%2 Virtus Private Credit Strategy ETFVPC6.46%3 AdvisorShares Ranger Equity Bear ETFHDGE5.20% Let's have a look at these ETFs one by one.   VanEck BDC Income ETF  BIZD is a focused index of publicly traded private-equity companies in the United States: The ETF invests in the equity and debt of mid-sized private companies by purchasing shares of companies that invest in them.  To ensure diversification, the index selects the most significant and most liquid companies, considered Business Development Companies (BDCs) and weights them by market capitalization, with a cap of 20% per issuer.  Small and midcap stocks can be in the index too. The fund employs a sampling technique, which means it will not own all of the equities in the underlying index but will instead hold securities with similar investment profiles.   The index re-evaluated every three months. Performance  Performance [as of 18/03/22]1 year3 years5 years10 yearsBIZD15.80%13.11%8.30%- The fund invests entirely in the United States Top 10 holdings Source: etf.com BIZD details BrandVanEckExpense Ratio10.07%YTD Return1.86%AUM$669.71MNumber of Holdings25Avg. Spread ($)$0.02Average Daily $ Volume$6.08M Virtus Private Credit Strategy ETF  VPC is a fund that invests in US-listed closed-end funds to make money from private credit markets (CEFs). CEFs supervised as business development companies (BDCs) and non-BDC CEFs that concentrate on personal loans are the two primary types.   The BDCs use a variety of loan and equity structures to engage in middle-market companies with below-investment-grade ratings. Loans, CLOs, and senior loans are among the investments made by non-BDC CEFs.   The VPC index looks for consistent dividend payments over the last three years. Non-BDC CEFs are even further vetted to eliminate excessive price premiums or discounts compared to NAV. The dividend yield is the weight of the security.  Because the fund is a fund-of-fund, investors must anticipate spending twice as much due to cost compounding. The benchmark is rejigged every year and rebalanced every three months.   Performance  Performance [as of 18/03/22]1 month3 months1 years3 yearsVPC-2.87%-3.49%6.96%6.17% Peer Comparison ParameterVPCHNDLBrandVanEckStrategy SharesExpense Ratio6.46%0.97%YTD Return-0.72%-7.65%AUM$29.69M$1.61BNumber of Holdings5920Avg. Spread ($)$0.09$0.02Average Daily $ Volume$336.24K$20.79M AdvisorShares Ranger Equity Bear ETF  HDGE builds a portfolio of short positions in large and midcap US-listed equities using a blend of quantitative and fundamental considerations.  This actively managed fund employs a bottom-up strategy to identify companies with poor earnings quality or ambitious accounting techniques and profit when market prices change to reflect the reality of these aberrations.   However, it is to be noted that a protracted bull market is a challenging environment for a short-only approach, and returns may reflect this. The fund's strategy also includes immediate purchases and sales of securities, which could result in a higher portfolio turnover and, as a result, lower returns.   Overall, HDGE has a solid asset base and can act as a substitute for traditional inverse equity funds.  Performance  Performance [as of 18/03/22]1 year3 years5 years10 yearsHDGE-0.85%-27.36%-21.58%-18.53% Peer Comparison  ParameterHDGESOGUBrandAdvisorSharesDe-SPACExpense Ratio5.20%0.95%YTD Return0.94%25.83%AUM$91.24M$24.79MNumber of Holdings50Avg. Spread ($)$0.05$0.20Average Daily $ Volume$4.01M$1.95M Consult an expert advisor to get the right plan for you TALK TO AN EXPERT