Tag Archives: Spider

All About the ETF (Exchange Traded Fund), The Creation and Growth (Part 1)

(Those on the edge of your seats… this post accidentally set for 10:30 PM… such the delayed email today… carry on)

Working on the Q2 Newsletter and with a fabulous article about ETF’s (Exchange Traded Fund) in the making, as promised from last week, wanted to share in short version, here in this format, in advance….

ETF Index SPY is Born

This first Index ETF, traded (s) on the exchanges as SPY can be purchased just like a stock, during market hours and even after market hours in the much less stable and liquid extended market hours. Today just like when it was established, trades at 1/100 of the actual index value.  I.e. Index 3300, SPY 330.

This Index ETF allowed investors the ability to purchase one asset, under the ticker SPY, just like an individual stock, but hold 500 stocks, in this case the Standard and Poor’s 500, generally known as the largest US public companies in the world all at once and have throughout the day ability to buy or sell.

Prior to the SPY, there were certainly Mutual Funds (and still are today) that represent the same index, but were only tradable at the end of each day, also called end of day settlement.

In an ever faster moving world, the ETF has gaining appeal and continued money flows through low cost purchase.

Time Flies When We Are Having Fun – National Quote 1.5 Decade Ago Still Pertinent

Oddly, the following quote in 2006, actually still hits to the heart of an important topic of this article today…

Managers Look Ahead To Era Of Rate Declines

BY MURRAY COLEMAN

INVESTOR’S BUSINESS DAILY

Posted 10/6/2006

“The interim period while we’re not raising or lowering rates is a time to build ETF watch lists,” said John Kvale, a Dallas- based adviser. “If it’s a soft landing for the economy, then our belief is that we’ll gravitate much more toward higher-quality stock funds.” He’s moving clients away from small-cap ETFs. The funds he favors now include S&P 500 tracker SPDRs. (SPY) “We’re holding off right now on investing in more sector-specific ETFs,” Kvale said.

Fast Forward to the Growth of ETF’s

From Ishares/Black Rock and Visual Capitalist

HIstory of ETF

As long as there is demand, Wall Street will Build!

Next up, beginnings of Danger!

Have a Great “ETF Creation” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

EOQ, Newsletter, Out of Office Today

Today marks the end of the quarter and the start of the run to the Holiday season, historically the best for capital markets. While we are hopeful for continued progress in capital markets we are skeptical to say the least.  

This quarter’s Newsletter is coming along.  Kathy our editor always amazes in turning a somewhat rough yard into a masterpiece.  With a very long article on Big Ben and a critical assessment of the current economic environment we think you will like our analysis of possible outcomes (nonpolitical.) 

Donald is in town today for an out of the office event and makes his usual whirlwind tour, 7:00 am airport pick up and 3:30 pm departure, thank goodness for quick entrance and exits at Love Field. 

Enjoy your Friday and Weekend!

 JK

 PS One of the Kvale’s (Pamela) most celebrated holidays is Halloween. After finally acquiescing to ONLY ONE item, spiders (we are not even to October yet?) we are the proud house on the block with 13 spiders outside on the front of the house and another 30 or so inside …. okay…mix a skeleton or two in there…..overkill….

 

214-706-4300

www.jkfinancialinc.com

8222 Douglas Ave Suite 590

Dallas, TX 75225