| A few years ago there were only a handful
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| | ETFs take advantage of their size to
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| of Exchange Traded Funds. Today there are
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| | minimize transaction cost associated with
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| over 500 ETFs covering many different
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| | buying and selling individual stocks
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| segments of both the domestic and foreign
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| | within their respective portfolios.
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| markets. Understanding the differences in
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| | Advantages over Mutual Funds:
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| Exchange Traded Funds and Mutual Funds
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| | With ETFs there are no minimum holding
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| will help you in your long term
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| | periods and no early redemption fees.
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| investment strategy.
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| | Types of Exchange Traded Funds:
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| Exchange Traded Funds:
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| | *Growth oriented (Smaller growth stocks)
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| *Are listed on the various stock
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| | *Value oriented (Large cap value stocks)
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| exchanges and trade just like a stock
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| | *Income oriented (Bond funds or dividend
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| *They are priced continuously throughout
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| | paying stocks)
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| the trading day
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| | *Specific country focused (China,
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| *ETFs can be sold short
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| | Singapore, Germany, etc.)
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| *You pay a commission when buying and
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| | *Regional focused (Latin America, Europe,
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| selling just like when buying an
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| | Asia, etc)
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| individual stock.
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| | *Foreign exchange (Forex related vs. the
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| ETFs offer all of the advantages of a
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| | U.S. Dollar)
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| mutual fund without some of the
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| | *Specific market segments (energy,
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| disadvantages:
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| | healthcare, consumer products, etc.)
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| Diversification:
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| | *Precious Metals (Gold, silver, etc.)
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| A typical ETF will hold many individual
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| | Rebound Trading Systems
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| stocks within its portfolio.
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| | With so many diverse ETFs to choose from
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| Professional Management:
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| | it is important to have a sound system
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| ETFs are managed by highly professional
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| | for building a portfolio of Exchange
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| investment specialist that make the buy
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| | Traded Funds. The Rebound trading systems
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| and sell decisions for their individual
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| | I have developed consistently out-perform
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| ETF portfolios.
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| | the S&P 500 by a wide margin.
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| Economies of Scale:
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