Latest news with #ETFs
CNBC
an hour ago
- Business
- CNBC
Why ether ETF inflows have come roaring back from the dead
Ether ETFs have finally come to life this year after some started to fear they may be becoming zombie funds. Collectively, the funds tracking the price of spot ether are on pace for their sixth consecutive week of inflows and eight positive week in the last nine, according to SoSoValue. The second largest cryptocurrency has become more attractive to institutions in recent weeks largely due to recent regulatory momentum in the U.S. around stablecoins – many of which run on the Ethereum network – the successful IPO of Circle, the issuer of the second-largest stablecoin; and new leadership at the Ethereum Foundation. "What we're seeing is institutional recalibration," said Ben Kurland, CEO at crypto charting and research platform DYOR. "After the initial ETH ETF approval fizzled without a price pop, smart money started quietly building positions. They're betting not on price momentum but on positioning ahead of utility unlocks like staking access, options listings, and eventually inflows from retirement platforms." The first year of ether ETFs, which launched in July 2024, has been characterized by weak demand. While the funds have had spikes in inflows, they've trailed far behind bitcoin ETFs in both inflows and investor attention – amassing about $3.9 billion in net inflows since listing versus bitcoin ETFs' $36 billion in their first year of trading. "With increasing acceptance of crypto on Wall Street, especially now as a means for payments and remittances, investors are being drawn to ETH ETFs," said Chris Rhine, head of liquid active strategies at Galaxy Digital. Additionally, he added, the CME basis on ether – or the price difference between ether futures and the spot price – is higher than that of bitcoin, giving arbitrageurs an opportunity to profit by going long on ether ETFs while shorting futures (a common trading strategy) and contributing to the uptrend in ether ETF inflows. Despite the uptrend in inflows, the price of ether itself is negative for this month and flat over the past month. For the year, it's down 25% as it's been suffering from an identity crisis fueled by uncertainty about Ethereum's value proposition, weaker revenue since its last big technical upgrade and increasing competition from Solana. Market volatility driven by geopolitical uncertainty this year has not helped. In March, Standard Chartered slashed its ether price target by more than half. However, the firm also said the coin could still see a turnaround this year. Since last week's big spike in inflows, they've "slowed but stayed net positive, suggesting conviction, not hype," Kurland said. "The market looks like a heart monitor, but the buyers are treating it like a long-term infrastructure bet."
Globe and Mail
2 hours ago
- Business
- Globe and Mail
The Smartest S&P 500 ETF to Buy With $500 Right Now
So you want to invest in the stock market, but you don't want to hand-pick specific stocks. Simply mirroring the S&P 500 (SNPINDEX: ^GSPC) market index can deliver fantastic results over the years, and you'll never lose a single night of sleep worrying about the rise or fall of any particular stock. But you're working with a strictly limited budget of $500 this month, and the usual exchange-traded funds (ETFs) are a little bit too pricey. Vanguard S&P 500 ETF (NYSEMKT: VOO) traded at $549 per share on June 18. SPDR S&P 500 ETF (NYSEMKT: SPY) costs $597 per stub, and the iShares Core S&P 500 ETF (NYSEMKT: IVV) goes one tiny step further to $599. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Sure, you can save up a bit more before buying these high-quality ETFs, or use the fractional share feature of your favorite stock brokerage to pick up 83% of an iShares or SPDR share for less than $500. But you actually have one more option. Meet the SPDR Portfolio S&P 500 ETF (NYSEMKT: SPLG) -- a fourth pure-play S&P 500 index fund that costs just $70 per share today. How SPLG stacks up against the classics This fund is exactly the same thing as one of the classic S&P 500 index ETFs. They hold the same 503 stocks, reflecting the components of the S&P 500 index. The weightings are identical. Their management fees are slightly different, with an annual expense ratio of 0.09% for the more famous S&P 500 ETF and 0.02% with the lower-priced Portfolio fund. But both offer the same performance as the underlying S&P 500 index, for all intents and purposes: ^SPX data by YCharts The subtle differences that matter The SPDR fund managers at State Street (NYSE: STT) agree that these funds are very similar. They underline the fact that the higher-priced fund happens to be the largest and most heavily traded ETF on the market, making it the obvious choice when you're looking for top-notch liquidity. The bid-ask spreads are also lower for this fund, as a direct effect of the unbeatable liquidity and higher price -- bid-ask gaps a couple of pennies apart make a bigger percentage-based difference to a lower-priced ETF. With lower annual fees and higher price-spread trading costs, the Portfolio fund is arguably the superior choice for long-term holdings. On the other hand, the classic SPY ticker (or its VOO and IVV cousins) offers ever so slightly lower costs for more frequent trades. In other words, the ETF that's easier to trade with a smaller budget brings higher trading costs over time. It's the Sam Vimes "boots" theory of socio-economic unfairness at work. But there are a couple of awesome upsides this time. State Street makes up for the less efficient economics by charging lower management fees. And the resulting differences are incredibly small. Small budget, smart move All things considered, I think the Portfolio fund is a winning concept for people with modest investment budgets. For example, my daughter recently opened her first brokerage account with a SPDR Portfolio S&P 500 position that fit her budget just right. Fractional shares weren't an option, and it's probably better to get started quickly rather than saving up for a more expensive ETF. That position has already posted a double-digit percentage gain in less than three months, and she's off to a good start with a lifetime of intelligent money management. The SPDR Portfolio ETF may not be the perfect fund for your portfolio, and many investors clearly prefer the higher-priced version. But you should know about it, just in case this lower-priced option ever meets your specific needs. Today, $500 won't quite buy you a full-priced S&P 500 index fund, but you can get 7 SPDR Portfolio shares with that budget. Should you invest $1,000 in SPDR Series Trust - SPDR Portfolio S&P 500 ETF right now? Before you buy stock in SPDR Series Trust - SPDR Portfolio S&P 500 ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SPDR Series Trust - SPDR Portfolio S&P 500 ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Anders Bylund has positions in SPDR Series Trust-SPDR Portfolio S&P 500 ETF and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
Yahoo
3 hours ago
- Business
- Yahoo
Take the Bite Out of Bitcoin's Volatility Using an Options Collar
These days it seems like Bitcoin (BTCUSD) is everywhere. Retail and institutional investors are snapping up coins, investing in companies that hold Bitcoin on their balance sheets, and trading ETFs. It seems the leading cryptocurrency by market capitalization is inescapable, which is both frightening and fascinating. Bitcoin is also incredibly volatile. The introduction of about a dozen ETFs that track the spot price of Bitcoin back in January 2024 has been a huge catalyst for crypto. The leader of that ETF pack is the one brought to market by Blackrock's iShares ETF unit, the behemoth of the managed investing world. Its Bitcoin ETF Trust (IBIT) has more than $70 billion in assets under management. 3 ETFs with Dividend Yields of 12% or Higher for Your Income Portfolio Dear Tesla Stock Fans, Mark Your Calendars for June 30 Nvidia Is Quickly Approaching a New Record High. Is It Too Late to Buy NVDA Stock? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. It also trades nearly $3 billion a day in volume. If we apply some quick math, that implies that the average IBIT investor holds that ETF for about 20 days. That's it. I can and do trade Bitcoin ETFs and many other funds and stocks. But in this case, I want to try to 'own' IBIT for a while. Several months to start, then maybe years. But that risk! This technical chart below is not the best-looking one I've seen lately. In fact, I get a very 'toppy' message from it. This makes it tough to open a position in IBIT with the intent to hold the fund for a longer time frame. I wanted to take the Bitcoin plunge, but I wanted to do it my way. I take a risk to make a high return, but I define my worst-case scenario up front. And since the options market has exploded in popularity and liquidity along with Bitcoin itself, I started looking into collaring it. As a refresher, a collar is where you buy a stock or ETF and accompany it with a pair of option contracts. One of them is a put purchase, which means for a set period of time, you can sell that underlying asset at a specific price. This is essentially the options market's version of an insurance policy. The other part of the collar is the 'covered call' which simply means that I take in some cash now in exchange for the obligation to sell the stock or ETF if it crosses above a specific price level before that option's time runs out ('expiration date'). I have owned an IBIT collar for several weeks, but for this article, I'm replicating my process for educational purposes. This table from Barchart, like most options tables, is quite busy. That's because there are so many options to choose from, literally and figuratively. Here's where to focus: IBIT traded for about $60 a share at this snapshot in time. One option contract represents 100 shares of IBIT, so to do this cleanly, I'd need to spend about $6,000 to buy the minimum amount of IBIT to complement that position with a collar. The options combination I picked out for this example is the one at the top of that table above. Both options expire on Dec. 19, 6 months from now. The call is struck at $75 and the put at $60. That's my range if I buy the put and sell the call. I bring in $3.90 for being willing to sell IBIT during the next 6 months at $75 a share. With the fund needing to appreciate 25% for that to be possible, I say, 'bring it on!' That's a high-class problem. It would cost me $7.70 to have the right to sell IBIT at $60 during the next 6 months. That said, if I were less risk-averse, if you look three rows further down, the puts struck at $55 cost only $5.30 a contract. Since each option contract relates to 100 shares of IBIT, that means the first example costs $770 for that protection. Or, I can pay only $530 for the $55 strike puts, but that means I might have to sell IBIT for $500 less than the original contract I mentioned above ($60-$55 times 100 shares). Let's sum this up, using that original example: It costs me about $60 a share for 100 IBIT shares. It costs me $7.70 a contract for the protection (puts). I receive $3.90 a contract for capping my upside (calls). The next options cost, in round numbers, is about $4 a share ($7.70-$3.90). So, my range of outcomes is $75-$4=$71 best case if called, and $60-$4=$56 is my worst case. Remember, IBIT was a $60 purchase in this example. So, that's $11 of upside, $4 of downside over 6 months. Nearly a 3:1 ratio. And that's nearly 20% IBIT upside in 6 months, versus less than 7% downside. For an ETF that was trading at $43 in April, I like this tradeoff. Because I can always trade around it. This is potentially the start of a longer-term position. We'll see. But the key here is that by using the flexibility of an option collar, we can potentially tame the volatility inherent in some high-flying assets, while also taming our own emotions related to the risk of investing. On the date of publication, Rob Isbitts had a position in: IBIT. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Globe and Mail
3 hours ago
- Business
- Globe and Mail
This Nasdaq ETF Could Turn $500 Monthly Into $1 Million
The $1 million mark is a significant financial milestone for many people. There's something about seven figures that feels like you have achieved a real level of financial security. For most people, the most realistic way to reach $1 million is through investing. That's not groundbreaking news, but what is often underappreciated is just how simple it can be. It doesn't take hitting big on a generational winner like Nvidia or Amazon; it can be done with exchange-traded funds (ETFs) that take a lot of the guesswork out of investing. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » One ETF in particular, the Invesco QQQ ETF (NASDAQ: QQQ), has delivered historical returns that could carry you to the $1 million mark. And it's worth considering for your portfolio. An ETF that leans heavily on big tech stocks The Invesco QQQ ETF mirrors the Nasdaq-100, an index that tracks the 100 largest non-financial companies listed on the Nasdaq stock exchange. The ETF is weighted by market cap, so megacap tech stocks make up a large portion of the fund. Below are its top 10 holdings (as of June 13): Microsoft: 8.79% Nvidia: 8.62% Apple:7.34% Amazon: 5.59% Broadcom: 4.80% Meta Platforms:3.72% Netflix:3.17% Tesla: 2.94% Costco Wholesale: 2.69% Alphabet (Class A): 2.54% Having half of a 100-stock ETF in 10 stocks doesn't scream diversification, but it does give you exposure to some of the stock market's heavy hitters. Each of the 10 stocks has considerably outperformed the S&P 500 over the past decade and operates in industries with plenty of growth opportunities. NVDA data by YCharts; ANN = compound annual growth over previous 10 years. This ETF has a history of impressive returns Since it hit the stock market in March 1999, this ETF has averaged around 10% total returns (close to the S&P 500 long-term average). Over the past decade, its returns have been much greater. QQQ data by YCharts. Averaging 17% to 18% annually is impressive, no doubt, but it shouldn't be the long-term expectation. Would it be nice? Absolutely. However, it's much better to plan for more-modest returns and be pleasantly surprised if it does work out that way. For the sake of illustration, let's assume the ETF's returns are in the middle, around 14% annually. Here's how much $500 monthly investments would grow to in different numbers of years. Years Investment Value 15 $258,700 20 $533,400 25 $1.05 million 30 $2.05 million 35 $3.96 million Table by author. Investment values are rounded down to the nearest hundred and take into account the ETF's 0.20% expense ratio. The biggest factor is time because that's what allows compound earnings to work their true magic. Even if we use the more conservative 10% annual returns, you could hit the $1 million mark a little after 30 years. In all fairness, these are assumptions, and we should never take past performance as a guarantee of future results. However, it does show this ETF's long-term potential with consistent investments over time. Use this ETF as a supplemental part of your portfolio Although this ETF is full of world-class companies and has all the tools to outperform the market, I wouldn't make it a large portion of my portfolio because of how concentrated it is. The tech sector is over 57% of the ETF, so your returns will depend a lot on the sector's performance, especially the " Magnificent Seven" companies. Granted, the tech sector has been the highest-performing over the past decade or so, but there's a risk that comes with relying heavily on one sector. It's especially important to be aware of how concentrated your stock portfolio is if you're investing in the S&P 500, which has become tech-heavy over the past few years with the explosion of megacap tech stocks. Even if you can't afford to dedicate $500 monthly solely to this ETF, a relatively small amount can go a long way over time. Should you invest $1,000 in Invesco QQQ Trust right now? Before you buy stock in Invesco QQQ Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Invesco QQQ Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Globe and Mail
6 hours ago
- Business
- Globe and Mail
2 Vanguard ETFs That Can Turn $300 per Month Into Over $1 Million
Investing a regular amount of money into the stock market each month can be an excellent way to grow your savings and build up a portfolio that's eventually worth $1 million or more. But it can be challenging to do, especially since you have to ensure you can continue to afford making monthly investments, and then picking which investments to make with that money. Amid volatile economic conditions, that's no easy task. You can, however, simplify the process by going with some solid exchange-traded funds (ETFs) that can diversify your portfolio and set you up for some great growth opportunities in the future. A couple of low-cost Vanguard ETFs to consider for this purpose include the Vanguard Growth Index Fund (NYSEMKT: VUG) and the Vanguard Information Technology Index Fund (NYSEMKT: VGT). Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Here's why investing $300 per month into either one of these ETFs could put you on track to generating a $1 million portfolio in the future. Vanguard Growth Index Fund The Vanguard Growth Index Fund is a great, growth-focused ETF you can add to your portfolio. It charges an expense ratio of only 0.04%, which means you don't have to worry about high fees chipping away at your gains. What's attractive about this fund is that it focuses on large-cap growth stocks. These are the types of investments that can drive long-run returns for your portfolio and make the most of your money. Stocks such as Tesla, Amazon, and Nvidia are all among its top-10 holdings. These are leaders within their respective industries, and their businesses are synonymous with growth. With more than 160 stocks in total, this is a well-diversified ETF to simply buy and hold. It also yields around 0.5%. Over the past decade, the ETF has achieved total returns (which include dividend payments) of approximately 327%. That averages out to a compound annual growth rate (CAGR) of 15.6%. But for the sake of being conservative, let's assume that its returns will slow down given how hot the market has been in the past few years and how it's reaching record levels. If the ETF averages a return of about 10% for the very long haul (which is in line with the S&P 500 's long-term average), then a $300 per-month investment could grow to more than $1 million after a period of 34 years. This would require investing in the ETF every month during that time frame. But by doing so, you can put yourself on a path to producing some fantastic returns thanks to the effects of compounding. VUG Total Return Level data by YCharts. Vanguard Information Technology Index Fund As terrific of a growth investment as the Vanguard Growth Index Fund has been in recent years, it still falls well short of the gains the Vanguard Information Technology Index Fund has produced during that stretch. At 543%, its 10-year total returns average out to an annual gain of 20.5%. That's a mind-boggling return, and it highlights just how impressive the stocks within this ETF have been. There will be some overlap between this fund and the growth ETF, but the big difference is there is heavier exposure to big tech. Nvidia, Microsoft, and Apple account for a combined 45% of the Vanguard Information Technology ETF's total holdings, but they make up just around 32% of the growth ETF. That difference can be substantial over time, especially given how well a massive stock like Nvidia has performed. In 10 years, its returns have been truly exceptional, totaling 28,000%. Given Nvidia's size today as one of the most valuable companies in the world, odds are its returns will be far more modest over the next decade. While they may still be great, it's probably a good idea to factor in a healthy dose of conservatism with this ETF as well given how much of a boost Nvidia has given it in the past. Even though the ETF is focused on tech and growth, averaging 20% annual returns likely isn't going to be sustainable over the very long haul. The expectation of a 10% return may also be prudent with this ETF to ensure your expectations aren't set too high for future gains. As with the growth ETF, if you invest $300 per month into this fund, you can also be on the path to a $1 million portfolio. If this ETF continues to outperform the market, however, then it may take less than 34 years to get to $1 million. But by staying the course and investing regularly into this or the growth ETF, you can be in a good position for building up a solid portfolio over the long haul. The Vanguard Information Technology ETF charges an expense ratio of 0.09%, and while that's a bit higher than the growth ETF's fees, they aren't going to drastically alter your prospects for generating potentially life-changing returns from regularly investing in this fund. Should you invest $1,000 in Vanguard Index Funds - Vanguard Growth ETF right now? Before you buy stock in Vanguard Index Funds - Vanguard Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Index Funds - Vanguard Growth ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, Nvidia, Tesla, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
