What’s an ETF?

[Pages:1]What's an ETF? AN ETF EXPLAINER

Click on any of the ETFs below for more info and news courtesy of

WHAT IS AN ETF?

ETF stands for...

Exchange Traded Fund

It's a group of assets that you trade like an individual stock.

WHAT'S THE A DVA N TAG E OF AN ETF?

1

With one trade, you can buy a basket of investments all

at once.

2

You can spread out your risk across a

broader range.

3

They have lower fees than

many funds and brokers.

ETFs make wide exposure quicker and simpler.

You can buy an ETF that tracks an entire market, or even gives you double, triple or greater exposure to a group of assets.

SPY and QQQ contain shares of every stock in the S&P 500 and the NASDAQ, respectively.

FAS is an ETF that generates returns similar to 3X the Russell 1000 Financial Services Index. SwingTrader identified FAS as a profit opportunity in January 2018; members who executed the setup notched nearly 8% in profits in 19 days.

ETFS CAN HELP SPREAD OUT RISK.

ETFs are a way to mitigate risk in volatile industries. A good example is biotechnology: these stocks can show big overnight growth when a successful new medicine or treatment is developed--or an overnight crash when a new drug fails.

Biotech ETF BIB tracks the NASDAQ Biotechnology Index at 2X, meaning gains and losses are magnified by that amount. SwingTrader touted BIB as a buying opportunity in Sept. 2017; members who executed their ready-made trade plan saw 3.4% profits in less than 2 weeks.

ETFs CAN FOCUS ON SPECIALIZED MARKETS.

They can also be narrowed to specific sectors or composed of instruments like bonds or commodities.

When the housing market is hot, you could invest by buying a house and then selling it later. Or you could skip all that work and simply buy shares of a Homebuilding ETF (like XHB or ITB) that includes building supply retailers, heavy equipment manufacturers and construction companies.

During a gold rush, be the one selling shovels.

ETFS ARE AN EASY WAY TO BUY

COMMODITIES. $

100 The Gold ETF GLD was not so shiny

in mid-2005, when it was trading at 80

around $40. But when investors get

60

spooked, they often come running

to the relative safety of gold. During

40

the market correction of 2008, GLD

20

was trading at a high of $96, up

Gold ETF (GLD)

$96

$40

}up nearly 140%

nearly 140%.

mid-2005 2008

THE MOST IMPORTANT PART

OF INVESTING IN ETFS IS YOUR

STRATEGY.

" SwingTrader gives

you the strategies of market experts.

If you're looking for a better way to invest, SwingTrader gives you the strategies of market experts. You get a full trade setup--an ETF or stock primed for growth, a buy point, a profit target and a stop-loss. These trades produce quick-hit profits over days, not months.

KEEP IN MIND: ETFS HAVE A COST.

It's called an expense ratio, and it's the % that you'll be paying in annual fees. Meaning lower is better. It averages around half a percent, which is lower than the average for mutual funds.

"

Want to see which stocks and ETFs are near a buy zone RIGHT NOW, and how the pros would plan the trade? Click here to try out SwingTrader!

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