What is the correct security type for ETF

davistom

When creating a new brokerage investment account, after identifying a security holding record by ticker code, security name and total shares, a security type selection (with options Stock/Mutual Fund/Other) is required. Is the correct selection for an ETF the "Mutual Fund" option or the "Other" option?

NotACPA

Both a stock and a fund are security types ... and Q will treat them the same unless you choose to arrange the account by TYPE instead of arranging it by the more common "Name" value.

BTW, it's not at all unusual for SuperUsers (who are simply other users of Q) to have differing opinions as to how address an issue.

What REALLY matters is what works for you: SO,

• Take a backup
• Enter the ETF as a stock
• Work with it a bit to see what it does for you.  Be sure to download quotes several times.
  
• RESTORE from that backup
• Enter the ETF as a fund and repeat the trial, again downloading multiple quotes.
  

At the end, you can either leave it as a fund or RESTORE once again and proceed with it being a stock. 

This, REALLY, is a personal preference matter.

Tom Young

I don't believe you can have an Account's Holdings view arranged by Security Type but you certainly can do that in Portfolio View and certain Investment Reports. 

q_lurker

If you tag an ETF as a Mutual Fund, you can show in Portfolio views the Morningstar ratings, risk, and return stars for that security.  Not so if you tag it as a stock.

Option 3 -- You can create a security type ETF if you choose.  But doing so makes it behave more like a stock than a mutual fund with respect to the portfolio views. 

Tom Young

Well it's certainly not a mutual fund since the ETF trades all day while a mutual fund only trades at End of Day price.  I've identified my ETFs as "stock" but if you want to make a distinction here I'd say simply use "Other."

NotACPA

It's an "Exchange Traded Fund"  ... so I'd call it a mutual fund which, legally, it is.

davistom

So, two Superuser replies with divergent answers. I think both are properly focused on market mechanisms but what I am trying to understand is how the subject selection affects the way Quicken arranges the corresponding account user interface. That is, how are the data entry/edit and tracking/display features affected? I realize that this question probably yields a very detailed, intricate answer but hopefully, there is a broad overview explanation.

NotACPA

Both a stock and a fund are security types ... and Q will treat them the same unless you choose to arrange the account by TYPE instead of arranging it by the more common "Name" value.

BTW, it's not at all unusual for SuperUsers (who are simply other users of Q) to have differing opinions as to how address an issue.

What REALLY matters is what works for you: SO,

• Take a backup
• Enter the ETF as a stock
• Work with it a bit to see what it does for you.  Be sure to download quotes several times.
  
• RESTORE from that backup
• Enter the ETF as a fund and repeat the trial, again downloading multiple quotes.
  

At the end, you can either leave it as a fund or RESTORE once again and proceed with it being a stock. 

This, REALLY, is a personal preference matter.

Tom Young

I don't believe you can have an Account's Holdings view arranged by Security Type but you certainly can do that in Portfolio View and certain Investment Reports. 

q_lurker

If you tag an ETF as a Mutual Fund, you can show in Portfolio views the Morningstar ratings, risk, and return stars for that security.  Not so if you tag it as a stock.

Option 3 -- You can create a security type ETF if you choose.  But doing so makes it behave more like a stock than a mutual fund with respect to the portfolio views. 

Rocket J Squirrel

q_lurker said:

If you tag an ETF as a Mutual Fund, you can show in Portfolio views the Morningstar ratings, risk, and return stars for that security.

I believe this is the most practical answer (although I would use the word "classify" instead of "tag"). ETFs are obviously not mutual funds, but Quicken provides more information if you classify them as such.

It would be optimal if Quicken would treat ETFs as MFs just in this one area, but it does not.

q_lurker

It would be optimal if Quicken would treat ETFs as MFs just in this one area, but it does not.

In this idea post, I suggested the Morningstar data should be presented independent of the security type used within Quicken (something @Rocket J Squirrel agreed with at the time but could still use more supporting votes):  
https://community.quicken.com/discussion/7876107/morningstar-ratings-return-and-risk#latest

Rocket J Squirrel

q_lurker said:

(something @Rocket J Squirrel agreed with at the time but could still use more supporting votes): 

I would vote again if I could. I think super users should get extra votes, maybe 5 per idea.