One way to manage risk, limit losses and take part in possible long-term uptrends is to tactically manage your portfolio with a simple buy and sell strategy. This is going to be more important in the coming decades; the markets have become increasingly more volatile, making the old standard of buy-and-hold riskier than it used to be. [All You Need to Know About Moving Averages.]
The strategy we follow is the 200-day moving average. When an ETF falls below its 200-day EMA, we sell. When it rises above its 200-day EMA, we buy. You can find more details here. You can also find more detail in The ETF Trend Following Playbook.
For more stories on ETFs, visit our ETF 101 category.
Sumin Kim contributed to this article.