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