Fundztrader is Closing Down

Unfortunately the team behind Fundztrader has stepped down and will no longer continue publishing new information.

There will be no new ratings posted, effective immediately!

We will leave the website up so that visitors have some warning time, but it will be taken down permanently some time in the future. When that date is determined, we'll update this message.

etf news

ETF Trading Strategies - A Look at Several ETF Trading Systems

One of the attractive features of ETF’s is that they can represent a relatively narrow sector of the market, but don’t generally have the volatility of individual stocks. This makes them ideal for some traditional investment approaches. Here is a look at a number of different etf trading strategies.

Asset allocation - The first is the classical asset allocation approach. This approach is championed by many investment advisors, especially those who embrace the efficient market hypothesis, which basically suggests that you can’t beat the markets, so the best you can do is buy and hold low cost funds, and reduce the overall risk of the portfolio by investing in assets that aren’t correlated and should not move in concert. In this case the key feature is that since you don’t think you can beat the market, all you want from a fund is the lowest cost way to purchase a portfolio of stocks in a given sector.

US Treasury ETF’s - A Look at Treasury ETF Choices

There have been a confusing array of US treasury ETF’s made available over the last several years. They come in a few different classes, here are some that might work for your portfolio.

One advantage of using US Treasury ETF’s is that you can purchase them for a significantly smaller amount than the minimums you will need if buying treasury instruments directly.

Oil ETFs - What are the Choices for an Oil ETF

Oil is a popular investment target these days as the price of oil shows a lot of volatility, and provides some diversification as it doesn’t move in concert with the overall market. As an alternative to investing in oil stocks or trading crude oil directly, you may wish to invest directly in ETF’s that track an oil index.

Fidelity ETF - The Story with Fidelity and ETF’s

Fidelity does sponsor an ETF, but the most common way to trade ETFs at Fidelity is through the brokerage arm. Let’s take a look at the Fidelity ETF.

Many fund families have gotten into the business of creating/ sponsoring ETFs. It would seem like a natural move for them, and they did start the process back in 2003 with the Fidelity Nasdaq Composite Indes Tracking Stock (ONEQ is its trading symbol). This is a simple tracking stock, and it has no real distinctive reason for being.

Fundamentally Weighted ETF’s

We are constantly on the lookout for ways to both diversify our portfolios, while simultaneously improving the risk adjusted return. ETF’s have many advantages over traditional mutual funds, e.g. the ability to trade interday, no early redemption fees, low cost structures, and are not typically tied to the track record of an individual fund manager. This last advantage is a result of the fact that ETF’s are typically set up to track some type of passive index, limiting the ability of a fund manager to add (or subtract) value with his stock picking abilities.

Foreign Currency ETFs - A Look at Foreign Currency Fund Choices

What is a foreign currency ETF or exchange traded fund? The first foreign currency ETF was offered by Rydex in 2005, traded as FXE, and it tracks the European Euro against the US dollar.

Now you should be aware that when you are involved in currency trades, you are actually participating in a market that is much larger than the US stock market. The Forex, or foreign currency exchange market dwarfs the US stock market, and is probably the largest financial exchange in the world.

Trading ETF’s in Odd Lots

We occasionally get the question: Can I trade ETF’s in odd lots. And of course, the answer is “Sometimes.”