Considering that an ETF can be composed of stocks, use the (5) five stocks in your project’s portfolio to find and identify (2) two ETFs that have at least one of your (5) five stocks in the portfolios of the ETFs. You may use the link below to find and identify the (2) two ETFs. Or you may use other resources. Please reference resources that you use.
https://www.etf.com/etfanalytics/etf-stock-finder.Links to an external site.
After selecting your ETFs, provide a description of the following:
The Name of Your Stock(s) that are in the (2) two ETFs
The Top (3) Three Sectors or Sub-Industries to Make Up the Portfolios of the ETFs
The Top (3) Three Holdings to Make Up the Portfolios of the ETFs
The Betas of the ETFs
The Expense Ratios of the ETFs
The Buy-and-Hold Returns for the two ETFs based on the following:
Purchasing 100 Shares of Each ETF in accordance with each ETF’s adjusted closing price on Thursday, January 12th, 2023
Selling 100 Shares of Each ETF in accordance with each ETF’s adjusted closing price on Thursday, February 2nd, 2023
Any dividends that were received and paid between Thursday, January 12th, 2023, and Thursday, February 2nd, 2023
The Buy-and-Hold Return Formula: [(MVend – MVbeginning + DIV) / MVbeginning].
Please note that MVend represents the Market Ending Value of each ETF on Thursday, February 2nd, 2023. MVbeginning represents the Market Beginning Value of each ETF on Thursday, January 12th, 2023. To determine the market values, the number # of shares for each ETF will be multiplied by the ETF’s adjusted closing price. DIV in the formula stands for any dividends that were received and paid during the period of Thursday, January 12th, 2023, and Thursday, February 2nd, 2023, for each ETF.
If needed, you may use Yahoo Finance Links to an external site.to find the information above for your ETF.
Based on the information that you found for each ETF, which ETF appeals or does not appeal to your interest? Explain why the ETF appeals or does not appeal to your interest.
Considering that corporate bonds represent debt obligations that companies often issue to generate capital, let’s take the time to examine the amount of debt as well as the liquidity that (2) two of the companies in your portfolio have. To begin the examination, you may conduct a Google search to find the 2022 annual balance sheets of the (2) two companies that you selected for your portfolio. MarketWatch and WSJ Markets are (2) two useful resources that you may consider using to find annual balance sheets and to calculate the debt and liquidity of each company. The debt-equity ratio, current ratio, and quick ratio are given below and may also be found in the seventh chapter of the textbook on pages 276 – 277 and 279. For each ratio, please show the numbers as well as calculations that you used.
The Debt-equity ratio: To calculate and determine this ratio, use the following formula:
Debt-equity ratio = [Long-term debt / Stockholders’ equity] The Current ratio: To calculate and determine this ratio, use the following formula:
Current ratio = [Current assets / Current liabilities] The Quick ratio: To calculate and determine this ratio, use the following formula:
Quick ratio = [(Current assets – Inventory) / Current liabilities] Evaluating the calculations that you found for each company’s debt-equity ratio, which company appears to be financed primarily with debt? Which company presents itself as having the most liquidity?
Describe possible factors that may contribute to each company’s debt and liquid position.
To what extent does the debt and liquid position of each company impact your investment interest in each company?
Please use in-text citations as well as provide a reference list of resources that help to support the points and reasoning that you give in the Discussion Board.