January 06, 2007 at 1:53 am by Tom Lydon
Is one exchange traded fund (ETF) provider better than another when it comes to capturing sectors? Roger Nusbaum of Seeking Alpha says one family of sector funds isn’t better than the other, each one does something slightly different. For instance, the WisdomTree family is focused on foreign stocks, weighted by dividend, while the iShares line combines foreign and domestic together.
Sector ETFs can be used as a function of account size and tolerance for single stock volatility. When building your portfolio it is important to have an exit strategy. For example, use the 200-day moving average as a guideline or make a stop-loss point such as 8% off the high. Also, consider what’s in the ETF and how it fits in your portfolio when doing your research.
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