Investing has a mantra – diversify, diversify, diversify. Most investors struggle with what stocks to put in the portfolio. Often mutual funds do not offer what the investor is looking for, or worse, simply do not outperform the major indices.
Today, we have a new instrument, the Exchange Traded Fund, also known as an ETF. These funds are baskets of the best of stocks in a given area. Some of the baskets contain hundreds of issues while others may only hold ten or twenty. The point is diversification and you can purchase or sell these ETF’s at any time – unlike mutual funds. ETF’s have 1/10 the cost associated with maintaining them over a long period and allow the investor to select already “selected” quality stocks. So now, you can buy “Health care”, “Energy”, “Retail” and all the other sectors and know you are getting that famous diversification. They have ETF’s for foreign countries should you wish to invest in the emerging markets.
In this course you will:
- Learn how to use ETF’s
- Learn how they are constructed
- Understand when to buy and what is your exit point
- Be able to diversify into stock, countries, currency and commodities
- Spread Strategies which point to profits and ultimate direction of market
We take you through each step so that you clearly understand this new instrument and the advantages it holds for you.
Are you working in a 401K or other retirement account? ETF’s now have “Inverse” instruments that allow you to take advantage of a falling market, even though you cannot “short sell” in a retirement account. Think about it, when the market goes down, you buy an ETF that will automatically go up.
As modern investor, you need to learn and use Exchange Traded Funds.