MTI079: Listener Questions on ETF Arbitrage, Index Funds, and Pay Down Mortgage or Invest

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We are back to answer your questions!

John bought oil stock and lost money. Then bought the Direxion Daily S&P500 Bull 3X ETF (SPXL) at the low – about $64. What do we think about it?

Rick wants to know if two ETF that are the inverse of each other, meaning one is up 2 percent and the other is down 2 percent, is there an arbitrage opportunity if one is up 2 percent and the other down 1 percent?

Isabelle is very interested to invest in Money Tree but I have no idea what it is? Doug marks the price and Linda explains the process.

Andrew reflects on a previous episode where Doug Goldstein gave the example around the 1830 mark about investing $400,000 with a hypothetical of a 50/50 split between stocks/bonds. Would he really put $200,000 into the S&P Index fund?

David is a 24yr old and started dipping into ETFs. What are some suggestions for spotting good ETF’s? He looks at expense ratios, fees, tracking errors and finding your asset class. Any there other good indicators?

Scott has an extra $100 a month and just got bought a house with a mortgage. Does it make sense to pay an extra $100 at the beginning of the amortization schedule and then switch 10 years down the road to investing? Would the return on the first 10 years have benefited me more than paying down the mortgage?

Today’s Panelists

For a quick bio of each of our show participants, head on over to our panelists page.

Send us your questions for a future Listener Letters episode