Comments on: Exchange Traded Notes Explained http://www.thesunsfinancialdiary.com/investing/investment-idea-exchange-traded-notes/ Fri, 03 Feb 2012 17:42:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Laura Sheltinghttp://www.thesunsfinancialdiary.com/investing/investment-idea-exchange-traded-notes/#comment-29808 Laura Shelting Fri, 30 Nov 2007 16:23:08 +0000 http://www.thesunsfinancialdiary.com/investing/investment-idea-exchange-traded-notes/#comment-29808 Merrill Lynch now offers <a href="http://www.elementsetn.com" title="Elements Exchange Traded Notes (ETNs)" rel="nofollow">Exchange Traded Notes</a> as well as Barclays iShare. Merrill Lynch now offers Exchange Traded Notes as well as Barclays iShare.

]]> By: Sunhttp://www.thesunsfinancialdiary.com/investing/investment-idea-exchange-traded-notes/#comment-15127 Sun Mon, 23 Jul 2007 05:14:52 +0000 http://www.thesunsfinancialdiary.com/investing/investment-idea-exchange-traded-notes/#comment-15127 choobro: I feel that any fund that tracks an index, whether it's tracking or mirroring, will have to engage in buy and sell if the fund's performance wants to be measured by that index. Tracking won't necessarily make the adjustments smaller or infrequent than mirroring. choobro: I feel that any fund that tracks an index, whether it’s tracking or mirroring, will have to engage in buy and sell if the fund’s performance wants to be measured by that index. Tracking won’t necessarily make the adjustments smaller or infrequent than mirroring.

]]> By: choobrohttp://www.thesunsfinancialdiary.com/investing/investment-idea-exchange-traded-notes/#comment-14518 choobro Fri, 20 Jul 2007 13:37:16 +0000 http://www.thesunsfinancialdiary.com/investing/investment-idea-exchange-traded-notes/#comment-14518 TFB: what you said is very true but you left out one minor detail. Over the long term the ETF that tracks similar to an index will out perform an ETF mirroring an index when you adjust for costs. The bying and selling costs associated with a fund trading enough to mirror the weighting in the index it is tracking would eat into the investors return. By simply getting close to the index they find a healthy balance. TFB: what you said is very true but you left out one minor detail. Over the long term the ETF that tracks similar to an index will out perform an ETF mirroring an index when you adjust for costs. The bying and selling costs associated with a fund trading enough to mirror the weighting in the index it is tracking would eat into the investors return. By simply getting close to the index they find a healthy balance.

]]> By: Acerohttp://www.thesunsfinancialdiary.com/investing/investment-idea-exchange-traded-notes/#comment-14320 Acero Thu, 19 Jul 2007 01:27:20 +0000 http://www.thesunsfinancialdiary.com/investing/investment-idea-exchange-traded-notes/#comment-14320 Hey Sun, read your blog for a long time, only lurked until now. You certainly have a lot of good work going on here, interesting with every post.Do you have any business notes yourself, not ETNs but actual notes? I was reading about them awhile back and senior secured notes, such as the ones that RiteAid put out a few months ago at 10% or better seemed like a interesting investment vehicle. Not 100% safe, but what is? Only reason I did not invest is that I couldn't find any way for an individual to buy them. Any thoughts on this type of investments? Hey Sun, read your blog for a long time, only lurked until now. You certainly have a lot of good work going on here, interesting with every post.

Do you have any business notes yourself, not ETNs but actual notes? I was reading about them awhile back and senior secured notes, such as the ones that RiteAid put out a few months ago at 10% or better seemed like a interesting investment vehicle. Not 100% safe, but what is? Only reason I did not invest is that I couldn’t find any way for an individual to buy them. Any thoughts on this type of investments?

]]> By: Sunhttp://www.thesunsfinancialdiary.com/investing/investment-idea-exchange-traded-notes/#comment-14317 Sun Wed, 18 Jul 2007 23:45:11 +0000 http://www.thesunsfinancialdiary.com/investing/investment-idea-exchange-traded-notes/#comment-14317 TFB: What I want to say actually is that since ETN is 100% correlated with the index, investors will get whatever the return the index has. For ETF that tracks the same index, however, the 95% correlation could result in a better performance, and it could lead to slightly inferior result as well. Over the long term, as you said, if ETF's performance fluctuates around the index, then the average return could be the same as the index. However, if ETF is consistently underperform its benchmark by even 0.1%, its long term performance cannot be better than ETN's. TFB: What I want to say actually is that since ETN is 100% correlated with the index, investors will get whatever the return the index has. For ETF that tracks the same index, however, the 95% correlation could result in a better performance, and it could lead to slightly inferior result as well. Over the long term, as you said, if ETF’s performance fluctuates around the index, then the average return could be the same as the index. However, if ETF is consistently underperform its benchmark by even 0.1%, its long term performance cannot be better than ETN’s.

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