 » ETF Trading |
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» ETF Fund Overview |
| What
are exchange traded funds?
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| Exchange
traded funds (ETFs) are index funds or trusts* that
are listed on an exchange and can be traded
intraday. Investors can buy or sell shares in the
collective performance of an entire stock or bond
portfolio as a single security. Exchange traded
funds add the flexibility, ease, and liquidity of
stock trading to the benefits of traditional index
fund investing. |
The
advantages of ETFs:
- Tax efficiency
- Lower costs (ordinary brokerage
commissions apply)
- Transparency
- Buying and selling flexibility
- Diversification
- Dividend opportunities
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Tax efficiency
ETFs, like index funds in general, tend to offer
greater tax benefits because they generate fewer
capital gains due to low turnover of the securities
that comprise the portfolio. Generally, an ETF only
sells securities to reflect changes in its
underlying index. Exchange trading of ETFs further
enhances their tax efficiency. |
Lower costs
Expenses can have a significant impact on returns
for investors. ETFs, in general, have significantly
lower annual expense ratios than other investment
products. ETFs are less likely to experience high
management fees because they are index-based, not
"actively" managed. And, since they trade on an
exchange, ETFs are insulated from the costs of
having to buy and sell securities to accommodate
shareholder purchases and redemptions.
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Buying and selling flexibility
Because they are exchange traded, ETFs can be:
bought and sold at intraday
market prices
purchased on margin
sold short, even on a downtick
trade using stop orders and limit
orders
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Diversification
Because each ETF is comprised of a basket of
securities, it inherently provides diversification
across an entire index. |
Dividend opportunities
Dividends paid by companies and interest paid on
bonds held in an ETF are distributed to ETF holders,
less expenses, on a pro rata basis... not all
companies will pay dividends. |
ETF
BULLY Provides
Daily ETF Fund Buy and Sell Update Reports
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Here |
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»
Short Term |
Long Positions:9
Short
Positions:4 |
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Intermediate |
Long Positions: 9
Short
Positions:4 |
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»
Long Term |
Long Positions: 13
Short
Positions:0 |
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» Closed Stats |
Closed
ETF Signals: 103
Wins: 87
Losses: 16 |
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