Luckily, diversification is an innate advantage of ETFs.
For our own take on this, in addition to diversification’s benefits, many investors may also find it to their advantage to use trend lines to determine where they ought to be in the markets. By applying the 200-day moving average to any area, whether it’s stock or bond or currency ETFs, investors can give themselves the opportunity to be in a position for a potential long-term uptrend.
For more on bonds, visit our bond ETF category. For trend following strategies, visit our trend following category.
Max Chen contributed to this article.