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