Know about the area you are investing in – what are the risks for that region or country in the world. Don’t just look at the economic risks, look at the political and population risk. These days, the risk of one attribute to a country can affect another.
Also, if you are waiting for your chance to jump into an ETF, it is important to have a strategy in place. We prefer to keep it simple with trend following: when a position is above the 200-day moving average, it’s a buy signal; when it’s below, it’s a sell. You can read more about implementing a trend following strategy: ETF Trend Following Plan.
For more information on global ETFs, visit our global ETFs category.
Max Chen contributed to this article.