Ed, what do you think about trading ETFs?
I have been studying and tracking ETFs for a while now, and I am finding that ETFs just might be a good fit for my trading style. You see, I track sectors for my individual trades, which means I believe I know where a sector is headed. The issue is always finding a tradable stock in that sector. This can be a lot of work (although my software makes this easier). Trading ETFs takes this work away, as you are buying (or selling) a “basket” of stocks within the sector. Check out the quote below.
ETFs let you buy an entire index, sector, industry or even an entire country the same way you would buy a single share of stock. You get instant diversification, lower risk, easy trading and rock-bottom fees all rolled up in one package.
Individual investors are just now catching on to what Wall Street has known for a decade –exchange-traded funds (ETFs) might just be world’s most perfect investment. For years, hedge fund managers and institutional investors have been making their big money clients rich by buying huge baskets of stocks, something no individual investor could afford to do — until now.
I don’t necessarily agree with the opening sentence of the second paragraph above, but I do agree ETFs are something to check out for your investing/trading endeavors.
Does anyone out there trade ETFs? If so, what do you think about them?
Trade in the day; invest in your life …
