The Tax Bill of ETFs and ETNs

With the tax deadline rapidly approaching, it is absoltuly essential that investors understand how their exchange traded funds (ETFs) and exchange traded notes (ETNs) will be taxed.

With the vast array of ETFs to choose from, taxes can get tricky. In general the tax treatment of ETFs is relatively simple and is applicable to long-term and short-term capital gains rules and rates. For example if one held the SPDY (SPY) for less than one year, any gains would be subject to short-term capital gains rates and if held for longer than one year, then the gains would be subject to long-term capital gains rates. Read more of this post

Precious Metal ETFs: Ultimate Guide

As economic uncertainty continues to prevail around the world and political instability takes its toll in North Africa and the Middle East, the appeal for gold and other precious metals is expected to continue to remain elevated, pushing up prices.

Gold has appeal for numerous reasons and will likely continue to be the “go-to” precious metal.  The shiny metal offers protection from inflation- a fear that many investors have, a hedge against a falling dollar and has long been a safe haven for Central Banks.   Additionally, a growing middle class in developing nations will likely support its demand.  Good ways to gain exposure to gold include the following: Read more of this post

5 ETFs To Play Silver’s Shine

Silver has been on a great uptrend, and as inflation fears continue to loom, the dollar remains relatively volatile and political unrest prevails around the world, the precious metal will likely continue to witness price appreciation. 

As a whole, both macroeconomic and microeconomic forces are favorable for silver.  From a macroeconomic perspective, the increases in money supply over the past few years to support the US economy and boost artificial demand are expected to lead to increased prices, making inflation inevitable.  Additionally, the US government is running a budget deficit of more than $1 trillion per year and has been borrowing to fund this spending spree.  This monetizing of debt is more likely than not to support inflation, which will further lead to a reduction in the purchasing power of money, or dollars.  Read more of this post

Seven ETFs To Fight Inflation

Although current US economic data indicates that inflation is relatively subdued, there are numerous reasons to suggest that rising prices are on the horizon.

Rising commodity prices have already prevailed as demand for corn, wheat and soybeans around the world continues to outpace supply and political unrest has sent the price of WTI crude oil north of $109 per barrel.  Furthermore, inflation has already prevailed in much of the developing world causing the People’s Bank of China to increase its benchmark one-year lending rate to 6.31 percent and its one-year deposit rate to 3.25 percent.  A similar tune was heard in India, when its central bank raised the cost of borrowing for the eighth time in nearly one year.  Read more of this post

How Uncle Sam Treats ETFs and ETNs

As the timer to file one’s taxes continues to tick away, it is important to understand how exchange traded funds (ETFs) and exchange traded notes (ETNs) can increase or decrease Uncle Sam’s portion of the pie.

With the vast array of ETFs to choose from, taxes can get tricky.  In general the tax treatment of ETFs is relatively simple and is applicable to long-term and short-term capital gains rules and rates.  For example if one held the SPDY (SPY) for less than one year, any gains would be subject to short-term capital gains rates and if held for longer than one year, then the gains would be subject to long-term capital gains rates. Read more of this post

How To Play Precious Metals With ETFs

As the Federal Reserve continues to maintain its short-term nominal interest rate target near or at zero and political and social unrest continue to spread in North Africa and the Middle East, the appeal for gold and other precious metals is expected to continue to remain elevated, pushing up prices.

Gold has appeal for numerous reasons and will likely continue to be the “go-to” precious metal.  The shiny metal offers protection from inflation, which is a fear that many investors have, a hedge against a falling dollar and has long been a safe haven for Central Banks.   Additionally, a growing middle class in developing nations will likely support its demand.  Good ways to gain exposure to gold include the following: Read more of this post

5 ETFs To Play Silver’s Uptrend

As political uncertainty in Africa and the Middle East continues to prevail, commodities, in particularly crude oil, gold and silver have surged.  As for the future, it appears to remain bright for all three of these commodities, but especially so for silver.

In addition to political uncertainty, macroeconomic forces have been favorable for the metal. Increases in money supply and a record budget deficit have many concerned about the overall strength of the dollar and a reduction in the purchasing power of the nation. Read more of this post