Cookies help us deliver our services. By using our services, you agree to our use of cookies.

5 things you need to know about the latest ETFs Trend

Some people still ignore what an ETS is. Simply put, it is the acronym for Extended-Traded Fund and it trades commission free. According to one of the last Morningstar tallies, there are 648 different strategies. This impressing number is the reason why it is very difficult to define every strategy and to find the right approach to each and every one. Some of them are very similar to others and have the same tactical core name but this doesn't mean they are similar in terms of investment. ETS is a good way to invest but you must know the mechanism very well to avoid losing money. Style Drift can be dangerous In order to avoid losing money, it would be a good idea to deal with a standard fund and try to fit it into a sort of 'style box'. This means that the investors’ freedom is limited and, while they might not be satisfied with their secondary role, this is not as risky a strategy as a style drift. Time is very important Another important factor is time. If in the past you used a strategy for one fund and it worked, this doesn't mean that you can use it again. This is what ‘trends’ mean, and it is important to follow the current ones. Sometimes it is sufficient for a firm to have a problem in that particular moment and the whole market will be hit. ETF: a low-fee benefit ETF is often low-fee but not always. Some managers can obtain some benefits that are very popular for ETF and these include tax benefits but it is not always so. Some fees can be as low as 10 basic points but sometimes they can go up to 75. Stay ahead Today the market is very tricky. To be successful it is important to stay ahead trying to minimize risk and understanding the present market. This is the best strategy ever.