And that does tend to be more locked in because companies are very reluctant to stop paying the dividend or reduce the dividend. It tells you how much you’re going to get from dividends every year. So now you get like a 4% dividend yield instead of two. They’re still paying the same $2 in dividends. Now, if the price crashes, because down to $50 a share. We’re getting $2 back, 2% of that every year in a dividend. So if their stocks are trading at a hundred dollars, the yield is 2% because we’re paying a hundred dollars. Stock from a company might pay a dividend. So if I’m buying, we could use stock as an example. So can you explain dividend yield quickly? So, somebody understands what that means. So those would be the answers to those two questions. Which changes the yield, even if the dividend stays the same. Those can change as the companies raise or reduce their dividends. The dividend yield will also change, which can depend on either the dividends that are held or the dividends held in the ETF. As they’ve gotten bigger, they can spread out more spread out costs over more people, which lowers the exchange rate. Those have been able to lower their fees over the years because they’ve been able to use economies of scale. And so an example would be like target-date funds. Sorry, expense ratios have trended lower over the years. Does that change, or is that locked in, you have a long-term trend of exchange to answer Joseph’s question?
For them to deal with paperwork, to deal with the regulation and all of the administrative costs that go with collecting a bunch of people’s money and using that to buy stocks in a group, in a vehicle called an ETF that all costs money. So that fund would give you whatever those stocks values are, but they take some of it for themselves.Ĭause it costs money. So if you are, let’s say you bought an ETF that bought the whole stock market. So when you buy an ETF, you have to pay an expense fee. Let’s you buy the entire stock market in the basket. The most common ones you’ll see are as a market index ETF. And it’s a group of stocks bought into a single fund, and you can buy one share of it. Andrew: So let’s start in case some of these are beginning just to tune in an ETF is an extreme exchange-traded fund, easy for me to say easy. Andrew, what are your thoughts on Joseph’s question? I have a few questions about ETFs that I’m hoping you could answer here or on an upcoming episode, does the expense ratio of an ETF ever change, or is it locked in for each share I buy? Similarly, does the dividend yield of an ETF ever change? Thank you, Joseph. I’ve been listening to your podcast each week since I began investing in January I’ve learned so much from your podcast. And so, without any further ado, I will go ahead and read our first question. Tonight, we have episode 208, and we will discuss a great list of questions we got recently. Welcome to Investing for Beginners podcast.
#Drive increaser 2 free download how to
How to examine financials for irregularities or any other changes from the past to present using CTRL-F function.įor more insight like this into investing and stock selection for beginners, visit Īpple | Spotify | Google | Stitcher | Tunein How expense fees and dividend yields work for ETFS, and whether they change over time.Īn example of a set it and forget it type investment portfolio using ETFs
Welcome to the Investing for Beginners podcast.