ETF Profit Driver - Another Reason To Favor Exchange Traded Funds

Mar 31 08:13 2008 Christopher Smith, B.B.A., J.D. Print This Article

Exchange Traded Funds offer several advantages over traditional mutual funds.  With the introduction of ETF Profit Driver, Bill Poulos has added one more reason to abandon mutual funds in favor of ETF products.

ETF Profit Driver takes investing in exchange traded funds to a new level,Guest Posting adding one more reason to abandon your old mutual funds in favor of ETF products. Bill Poulos has assembled a comprehensive method of managing a portfolio of ETF's in a manner that drastically reduces risks associated with market downturns, while dramatically increasing potential for sustained capital appreciation.

Based on a study conducted a few years back, about 10% of all long-term mutual-fund assets were held in index funds.  Those funds offer comparatively low fees track indexes familiar to most investors.  The drawback of index fund investing has been holding those positions during market downturns.

In the past several years Exchange Traded Funds have started opening up significant new investment strategies. While ETF behave much like traditional index mutual funds, they have key differences.

The primary distinguishing feature between a mutual fund and an ETF is the fact ETF's are traded on exchanges. This means that you can quickly enter or exit an ETF position at any time during market hours. You will also find that many ETF's have robust, highly liquid options chains something traditional mutual funds cannot offer.

As a result of this expansion of ETF's, small investors are gaining access to a growing array of different exchange-traded index products. Each year, numerous new ETF's are launched, tracking everything from clean-energy stocks to the nanotechnology industry.

A key driver in the popularity of ETF's is the failure by many mutual-fund managers to beat the market for extended periods of time, even as they collect big management fees. Instead, many advisers have turned to a strategy of lower-cost index funds, and increasingly, ETF's.

ETF's rising attractiveness also stems from the mutual-fund trading scandals of recent years. Because mutual funds are priced only once a day, after the market closes, some insiders used strategies designed to profit at the expense of the little guy. ETF's are priced like stocks, however.  This means tat they trade throughout the day and are not vulnerable to these scams.

Each method taught in the ETF Profit Driver course identifies a safe point in the market to open a new ETF position. As such, you enter when market risk is at a relative low. Bill Poulos' money management rules then force an exit from the position, preserving capital and locking in profits, if and when the trend begins to fail.

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Christopher Smith, B.B.A., J.D.
Christopher Smith, B.B.A., J.D.

Discover 4 methods for safely entering high probabiliy ETF positions, while minimizing risk to your portfolio, in our ETF Profit Driver Review.

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