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Recent member discussions

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ETF (Exchange Traded Fund)

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 Abijith Nadahalli, Quant Strategist at Alphamatters.

 Friday, July 18, 2014

What are the ETF(Exchange traded fund) Flexibility's ? GDOW & FTSE.


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5 comments on article "ETF (Exchange Traded Fund)"

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 Bruce Allen, Coating Tech at Belcan TechServices

 Friday, July 18, 2014



In my opinion ETFs are the way to go. You can buy and sell the ETF at any time during the trading day. You can focus on a narrow sector of the market or a very broad index. You can buy "long" or "short" ETFs. If you are so inclined, you can buy leveraged ETFs. And you can buy commodities based ETFs. To me, ETFs represent a democratization of the markets.


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 Julie Krentz, Owner/Director at Krentz & Griffin Sarl

 Saturday, July 19, 2014



Whilst there are many benefits of ETF's, an investor needs to understand how the ETF has gained its market exposure. Is it replicating the index it is tracking directly? Or is it creating a synthetic exposure via derivatives? If it is the latter, the investor may be exposed to risks that are not initially obvious. What type of derivatives are in play? What are the collateral arrangements? Have other securities been placed into the fund to meet diversification requirements?

At a minimum, read the prospectus and annual report to understand the investment method before investing.


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 Bruce Allen, Coating Tech at Belcan TechServices

 Saturday, July 19, 2014



Julie, the ETFs try to track the underlying index. Yes, there is tracking error. With the commodities ETFs, they use futures and options to "track" the commodity. Investors and traders need to read the fine print for the EFT to know what is going on with it. And we have to remember that the market price and the NAV don't follow each other. Like Closed End Funds, ETFs can trade at a premium or a discount to the funds NAV. We must perform our due diligence before placing that trade.


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 Kinneth Morgan Jr, Co-Founder at SBR Global & KMJ Capital

 Sunday, July 20, 2014



I've traded ETF's as a prop trader, & it's less of a risk trading ETF's vs Stocks. Sector ETF's are some of the best ones to trade because no matter how the markets are moving, it follows the sector instead of the whole index. One thing about ETF's is that they don't move off of earnings reports, which could be a good thing or a bad thing, depends how you look at it.


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 Abijith Nadahalli, Quant Strategist at Alphamatters.

 Tuesday, July 22, 2014



Thanks Shelley, Bruce,Julie,Kineth.

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TRADING FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS
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