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A few years ago there were only a handful of Exchange Traded Funds. Today there are over 500 ETFs covering many different segments of both the domestic and foreign markets.
Exchange Traded Funds:
- Are listed on the various stock exchanges
and trade just like a stock
- They are priced continuously throughout
the trading day
- ETFs can be sold short
- You pay a commission when buying and selling
just like when buying an individual stock.
ETFs offer all of the advantages of a mutual fund without some of the disadvantages:
-
Diversification:
A typical ETF will hold many individual stocks within its portfolio.
-
Professional Management:
ETFs are managed by highly professional investment specialist that make the buy and sell decisions for their individual ETF portfolios.
-
Economies of Scale:
ETFs take advantage of their size to minimize transaction cost associated with buying and selling individual stocks within their respective portfolios.
-
Advantages over Mutual Funds:
With ETFs there are no minimum holding periods and no early redemption fees.
Types of Exchange Traded Funds:
- Growth oriented (Smaller growth stocks)
- Value oriented (Large cap value stocks)
- Income oriented (Bond funds or dividend paying stocks)
- Specific country focused (China, Singapore,
Germany, etc.)
- Regional focused (Latin America, Europe, Asia, etc)
- Foreign exchange (Forex related vs. the U.S. Dollar)
- Specific market segments (energy, healthcare, consumer products, etc.)
- Precious Metals (Gold, silver, etc.)
Rebound Trading Systems
With so many diverse ETFs to choose from it is important to have a sound system for building a portfolio of Exchange Traded Funds. These robust trading systems consistently out-perform the S&P 500 by a wide margin. Click below to learn more about how our trading systems teach you how to invest in ETFs:
Mutual
Funds Trading System
Exchange
Traded Funds ETF
Rebound
High Five
You too can be on your way to doubling
your money in the next 3 years.
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