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Exchange-traded funds, also known as "ETFs"
are low cost index mutual funds that trade like stocks. |
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Non-Leveraged
Exchange Traded Funds are index ETFs tracking the major U.S.
benchmarks are one of the easiest, most cost effective and most diversified
ways to benefit from a rallying market. |
SPY - SPDRs S&P Dep Receipts (Holdings: 500 Stocks)
SPDR Trust is an exchange-traded fund that holds all of the S&P 500 Index
stocks. |
QQQ - PowerShares QQQ Exchange-Traded Fund (Holdings 100
Stocks)
The fund holds all the stocks in the Nasdaq-100 index, before fees and
expenses, which consists of the largest non-financial securities listed on
the Nasdaq Stock Market. |
VTI -
Vanguard Total Stock Market (Holdings:
3375 Stocks)
The investment seeks to track the performance of a benchmark index that
measures the investment return of the overall stock market. |
IWM -
iShares Russell 2000 Index (Holdings:
2000 Stocks)
It uses a representative sampling strategy in order to track the Russell
2000 index, which measures the performance of the small-capitalization
sector of the US equity broad market. |
MDY -
SPDRs
S&P Midcap Deposit Receipts (Holdings:
400 Stocks)
The investment seeks to provide investment results that generally correspond
to the performance of the S&P MidCap 400 Index. |
VEU -
Vanguard FTSE All-World ex-US
(Holdings: 2200 Stocks)
The investment seeks to track the performance of the FTSE All-World (46
Countries) ex-US Index. |
EFA -
iShares MSCI EAFE Index
(Holdings: 845 Stocks)
The underlying index includes stocks from Europe, Australasia and the Far
East. |
EEM - iShares MSCI Emerging Markets Index Fund (Holdings: 320
Stocks)
The investment seeks investment results that correspond generally to the
price and yield performance before fees and expenses, of the MSCI Emerging
Markets (China, Brazil, India, Russia) index. |
VWO
- Vanguard Emerging Markets Index Fund (Holdings: 781 Stocks)
The investment seeks investment results that correspond generally to the
price and yield performance before fees and expenses.
This index includes approximately 781 common stocks of companies located in
emerging markets around the world. |
FXI -
iShares
FTSE/Xinhua China 25 Index (Holdings: 25 Stocks)
The investment seeks investment results that correspond generally to the
price and yield performance, before fees and expenses, of the FTSE/Xinhua
China 25 index. |
EWZ - iShares MSCI Brazil Index Fund (Holdings: 59 Stocks)
The investment seeks to provide investment results that correspond generally
to the price and yield performance of publicly traded securities in the
Brazilian market, as measured by the MSCI Brazil index. |
SH -
Short S&P500 ProShares (Holdings: n/a - S&P500 Swaps)
The investment seeks daily investment results, before fees and expenses,
which correspond to the inverse of the daily performance of the S&P 500
index. |
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Leveraged
Exchange Traded Funds
are one of the more aggressive strategies to profit in an up-market. |
SSO - Ultra S&P500 ProShares (Holdings: 500 Stocks)
The investment seeks daily investment results, before fees and expenses,
which correspond to twice the daily performance of the S&P 500 index.
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QLD - Ultra QQQ ProShares (Holdings: 100 Stocks)
The investment seeks daily investment results, before fees and expenses,
which correspond to twice the daily performance of the NASDAQ 100 Index. |
ROM - Ultra ProShares Technology (Holdings: 187 Stocks)
The investment seeks daily investment results, before fees and expenses,
which correspond to twice the daily performance of the Dow Jones U.S.
Technology index. |
DDM - Ultra ProShares DOW (Holdings: 30 Stocks)
The investment seeks daily investment results, before fees and expenses,
which correspond to twice the daily performance of the Dow Jones Industrial
Average. |
QID -
UltraShort Nasdaq 100 Index (Holdings: n/a - Nasdaq100 Swaps)
The investment seeks daily investment results, before fees and expenses,
which correspond to twice the inverse of the daily performance of the NASDAQ
100 index. |
SDS -
UltraShort S&P500 ProShares (Holdings: n/a - S&P500 Swaps)
The investment seeks daily investment results, before fees and expenses,
which correspond to twice the inverse of the daily performance of the S&P
500 index. |
TBT -
UltraShort 20+ Year Treasury ProShares
(Holdings: n/a -
20+ Treasury
Swaps)
The investment seeks daily investment results, before fees and expenses,
which correspond to twice the inverse of the daily performance of the
Barclays Capital 20+ Year U.S. Treasury index.
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There are hundreds of ETFs you can
check out on the following website:
http://news.morningstar.com/etf/Lists/ETFReturns.html
Top ETFs by Sector site:
http://www.bloomberg.com/markets/etfs/
My strategy uses the above
listed ETFs. However feel free to use any other ETF using the same trading
plan and you may do better (or not) – it's your call. One hint of caution,
don’t use more than four ETFs in your portfolio, it will not increase the
your profits. I am watching about 100 ETFs, and to no surprise, many have
done better than the ETFs I prefer. However, it's a fact that past
performance is no indication of future performance.
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