Clients of TD Ameritrade will now be able to trade 100 exchange traded funds commission-free. The ETFs eligilble for commission-free trading include funds from Blackrock’s iShares and Vanguard.
Fidelity has introduced commission free trading of 25 iShares ETFs. The move comes in the wake of Schwab’s introduction of no-commission exchange traded funds.
An ETF does not require a certain amount of trading volume in order to be liquid. The underlying securities of the ETF determine its liquidity. Many within the industry do not grasp this reality and are missing out on a lot of quality ETFs.
After the decision to invest in the ever popular market benchmark, S&P 500, investors have two options within the ETF universe for a pure play S&P 500 option, iShares IVV and the SPDR, SPY. It seems that investors have made up their minds but is this decision optimal and which S&P 500 ETF is best suited for which kind of investor?
In an environment where the stock market recovers and the credit crisis is in the rearview mirror, will your investments recover with the stock market, lag behind or remain at today’s levels? The investment tool you are using will make the difference.
The recent rally in equities has seen small cap ETFs outpace their larger cousins. Since the equity markets bottomed on March 9, the iShares S&P SmallCap 600 (IJR) is up 37% compared to a 26% gain for the iShares S&P 500 (IVV) over the same period.
Jane and John have experienced significant declines in their portfolio over the past year and want to lock in capital losses now to offset future gains. They anticipate a market upturn at some point in the near future, so they don’t want to be out of the market. At the same time, they want to avoid any problems with the “wash-sale” rule that discourages the sale and repurchase of a similar security within a 30-day period.