It’s common knowledge in the investment world that with more potential for gain comes more risk; therefore generally the highest profit types of investment tend to be among the riskiest. That’s why I always like to keep an eye out for anything that can, if only slightly, stack the deck a little in my favor, and that’s where ETFs come in. If you’ve been actively involved in the stock market for any length of time, you may have heard the term ETF (or Exchange-Traded Fund) being tossed around lately. The popularity of this investment vehicle has grown tremendously in recent years, with a 26-fold increase in the ETF market to a current level of over 600 billion dollars. The main reason for the popularity of this type of fund is the relatively low risk-level, tax-efficiency, as well as their stock-like features allowing them to be traded with ease. And unlike many larger mutual funds, ETFs can often be more accessible to people with less capital.
Now, I don’t mean to portray Exchange-Traded Funds as some kind of miracle investment vehicle that you should throw all your money into, but they should definitely be considered a key component of a well-balanced portfolio. Continue reading ‘ETF Trend Trading – Hype Or Untapped Potential?’ »