Etf Profit Driver – Another Reason To Favor Exchange Traded Funds-steam_api.dll

15 Sep

Investing Holding equity positions during a sustained market downturn can decimate a portfolio. An alternative is to adopt a trading methodology that inserts capital into the market at safe entry points as a favorable trend emerges, then removes capital as the trend breakdown. Bill Poulos has .piled such a method in his ETF Profit Driver course. Based on a study conducted a few years back, about 10% of all long-term mutual-fund assets were held in index funds. Those funds offer .paratively low fees track indexes familiar to most investors. The drawback of index fund investing has been holding those positions during market downturns. In the past several years Exchange Traded Funds have started opening up significant new investment strategies. While Exchange Traded Fund behave much like traditional index mutual funds, they have key differences. The primary distinguishing feature between a mutual fund and an Exchange Traded Fund is the fact ETF’s are traded on exchanges. This means that you can quickly enter or exit an Exchange Traded Fund position at any time during market hours. You will also find that many ETF’s have robust, highly liquid options chains something traditional mutual funds cannot offer. As a result of this expansion of ETF’s, small investors are gaining access to a growing array of different exchange-traded index products. Each year, numerous new ETF’s are launched, tracking everything from clean-energy stocks to the nanotechnology industry. A key driver in the popularity of ETF’s is the failure by many mutual-fund managers to beat the market for extended periods of time, even as they collect big management fees. Instead, many advisers have turned to a strategy of lower-cost index funds, and increasingly, ETF’s. ETF’s rising attractiveness also stems from the mutual-fund trading scandals of recent years. Because mutual funds are priced only once a day, after the market closes, some insiders used strategies designed to profit at the expense of the little guy. ETF’s are priced like stocks, however. This means tat they trade throughout the day and are not vulnerable to these scams. The key to unlocking the power of ETF’s is to have a well thought out plan. Ideally, you want to be long an Exchange Traded Fund position when that fund is in, or is starting, an upward trend. ETF Profit Driver ac.plishes that, but also applies an intelligent money management plan to reduce risks of loss when the market turns. About the Author: Each month in STAT, our charts and .mentary reflect on the previous month. For example, a December STAT issue will have Novembers numbers. This month our .mentary will focus on year 2015 in review. 相关的主题文章: