Hi Karw
Thanks for the info about share lending.I guess that is the incentive to run an ETF. Synthetic ETFs or any ETF that uses futures to replicate the holdings of an index, I agree are best avoided if another choice is available. Usually futures contracts are used with the commodity ETFs and some foreign ones (China and India come to mind)
I thought VGK was a fund and was looking for Vanguards ETF equivalent. Didn't realize it was an ETF. Europe is having all kinds of issues so I imagine this fund and the stocks it holds are depressed right now. Whether that is a bargain or not will depend on the companies future earnings which will also effect the fund yield.
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VEA is europe/pacific(MSCI EAFE) while VGK(MSCI Europe) is europe only. I could not find the VEA yield on the vanguard website.
At this moment i see two problems with ETFS:
1- synthetic ETFS(use of futures). AVOID THEM.
In 2008 I remember that commodity ETFs which were dependent on AIG did not trade for a week or so, until Paulson did his thing.
At this moment I would avoid any synthetic ETFs, like DBC. Also in France and Germany there are quit a number of synthetic ETFs at the moment that will get into problems when the banks blow up(after a Greece event or an Italian event) <<<<
Toofuzzy
Take the road less traveled. It will make all the difference.
