4. Easy Flexibility. ETFs are liquid and trade throughout the day like a single stock. You can get in and out of the fund on your terms, and get pricing at all times of the trading day. It is a good idea to have a strategy when investing with anything, and for ETFs, we suggest watching the 200 day-moving-average. If a fund dips below this, or goes 8% off its high, it’s time to exit. ETFs make this easy because of their flexibility.
5. Shorting and leverage ETFs have made some of the most difficult tasks linked to investing easier. Shorting the market and leveraging your exposure is now possible through one fund. It is not foolproof, however, and the risks of shorting the market still apply. Investors need to understand them and be sure they can handle it.
6. What you see is what you invest in. You know what you’re getting when you invest in an ETF. They follow an index, so there’s no guessing. Since there is not a manager, the fees are much lower. You can also go to any provider’s site to see current holdings. Visit our provider page for easy access to the websites for all ETF providers.
7. Do your research. Although ETFs are transparent, the fact remains that a bit of your own research can go a long way. The great news here is that doing this research is easy, since everything you need to know is out in the open and readily accessible. It is recommended to research the holdings of what the ETF actually holds, as well as what the allocation is to that specific holding. Our ETF Analyzer makes this a cinch and you can do it all at one stop.