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