ETFs: Are retail investors missing out on the message?

You may be asking what are ETFs? This article will clear that up for you and begin you on your way to learning about ETFs and just how useful they are in today’s financial climate. With access to the Internet and busier lifestyles ecommerce has become a way of life for current society. Nowadays if we have a need for something the first we do is head onto our phone and search for it there. This has a huge impact on the market, reducing the need for a physical store and putting more importance on the web-based retailers. Due to this sometimes retail investors can be missing out on just how useful ETFs can be to them.

What are ETFs and how do they relate to retail?

An ETF is an exchange traded fund, which means it is an investment fund traded on stock exchanges, pretty similar to stocks themselves. It holds assets such as commodities, bonds and stocks and tries to stay as close to its net assets value as possible, but sometimes deviations can occur which change this. They are simple and low cost making them an ideal option for investors. So what is holding them back? Education on the subject when it comes to retail investors and that it is difficult to invest in. Due to this retail is missing out on a huge investment opportunity. Read more!

Why is it so difficult?

We have established previously the reason why it is difficult, the lack of knowledge about this platform. When a retail investor is trying to decide how to invest they normally go to a platform or an independent financial adviser. This then becomes a problem as a majority of the platforms offer only a few ETFs and advisers don’t tend to include them in their portfolios. The reason behind this lies with the technology, ETFs aren’t available on platforms that IFAs use, making them harder to access for the majority of the users.

Bad reputation

Whilst ETFs have both lack of education and lack of access going against them, they also have somewhat of a bad reputation too. ETFs gained a bad reputation and were incorrectly blamed for the financial crisis. Although they were not responsible for the crisis, the damage had already been done and those three letters etched into the brains of thousands of financial advisors. So if ETF investing wasn’t already difficult enough for them to make headway in the market then with this going against them, then even more so.


In conclusion, if we want ETFs to become more commonplace, not only does more information have to be made accessible to the public and to companies but it also has to be simplified so that possible investors don’t leave with their head fried. We also need to take a look at the systems so that ETFs turn up in more searches than they currently are. As with everything in life, education is key, and with education ETF investing might just be the way forward for retail. Click here for more information:

Difference between Active and Passive ETF Funds

A retirement ETF can be an ideal option for those who want to set aside extra money for when they retire. As many people already know, the cost of living is expensive and is constantly increasing. During your golden years, you don’t want to have to worry about money. Unfortunately, not everyone puts enough aside for retirement and may have to work to subsidize their living. That is why ETF funds are extremely popular, but which one is for you – active or passive ETF’s? See more!

What Are Passive ETF Funds?

Passive ETF’s are quite simple to run. If you want a long-term investment option, the passive ETF’s have to be the one for you. These funds are ideally suited for the people who want to buy and hold onto their investment for several years, instead of a few weeks or months. While it’s good to have a manager to oversee the funds, it’s not always necessary to have the same level of expert as that of an active ETF. ETF investing is quite unique however, in terms of the options available, so that even if one doesn’t suit you, there is another available. These funds do come with lower fees than that of active ETF’s since there are fewer trades being made, and is more tax-friendly!

What Are Active ETF Funds?

Active ETF’s definitely take on a more hands-on approach rather than the passive funds. Why is that? Well, there is a lot of short-term trading and investing and that means a professional portfolio manager is required. Remember, with long-haul investing, there is no need to constantly watch the market as it’s a long-term investment, however, active ETF’s require a lot of care and attention. It’s about investing short-term in the stock market and getting small returns. However, you build the returns up over time. These are flexile but can be costly since more transactions are being handled so more fees to worry about. They are a great option for many nonetheless looking for a retirement ETF. Click here for more information:

Which Fund Is Better?

Everyone needs something different and that can determine the type of funds they choose. For example, some investors may be happier to opt for long-haul investments and if that’s the case, passive ETF’s are the ideal option. However, there are also many who prefer to short-term investments, and that means active EFT’s are better. At the end of the day, it’s going to come down to what you need, want and desire. If you’re not comfortable with a long-term investment, short-term might be more suited, and vice versa. You have to carefully think about your options when looking into ETF investing.

Invest Wisely

You’re investing for your future, for your retirement, and ideally you want something that is easy to understand and profitable at the end of the day. When it comes to deciding, you should take the time to understand fully what options are available and what each ETF entails. You shouldn’t choose until you research both options fully so that you’re 100% sure you know which way to turn. Hopefully, you’re retirement ETF will be profitable for you during your golden years.

Why ETF Investing is Ideal for Young Investors

Welcome to the world of investment. If you are new to ETF (Exchange Traded Funds), it is probably time to analyze this as part of your investment portfolio. So, what is an ETF? An ETF is an Index Fund that is quoted on a stock exchange and traded intraday (you can buy and sell it at any time of the day just like a stock). Therefore, ETF can describe as a Mutual Fund trading like a stock. While there are some very important differences between them, it is easy to understand ETFs if you consider them as mutual funds.

Why do I propose that you should take a look at ETF as part of your investment portfolio in today context? Since ETF is relatively new as compared to mutual funds, also that means there are now few investors with the basic knowledge and skill investing in it, so providing a huge opportunity for young investors in this investment arena.

Who Issues ETFs?

Do you want to find a complete list of ETFs currently on the market? A pretty complete list is actually on Yahoo! finance. If you go there, you will find a section on ETF in the “Invest” tab. Deepen using the menu on the left until “View ETF” appears. It is not necessarily 100% current, but again, it is the best resource on the Internet at this time.

To get more detailed information about ETFs, you will want to visit the websites of the issuers of these ETFs. There you will find much more information that will help you identify the exchange-traded funds that you feel comfortable buying.

Some of the main issuers include:

  1. Barclays – iShares
  2. State Street Global Investors – SPDR (spiders) and streetTRACKS
  3. Merril Lynch – HOLDRSs
  4. Rydex Financial – Rydex ETFs
  5. Vanguard Group – Vanguard ETFs
  6. ProFunds – ProShares inverse and leveraged ETFs
  7. Bank of New York – BLDRS (based on ADRs).

Some of the Common ETFs:

Standard & Poors Depository Receipts, Series 1 (SPDR): A word about ticker symbols- each stock ETF or index mutual fund has an assigned ticker symbol. For example, the symbol for “Citigroup” is C and the symbol for “S & P Depository Receipts (SPDR)” is SPY. Every time you want to exchange security, you must type the ticker symbol.

The SPDR (also known as SPIDER) is an ETF that tracks the performance of the S & P 500 Index. They are listed on the AMX (American Stock Exchange) and you can buy and sell them as the shares of any other company.

The DIAMONDS Trust Series 1 aims to track the performance of the Dow Jones Industrial Index. They are listed on the AMX and can be bought or sold easily as the shares of any other company. Learn more.


ETF is an excellent investment tool that should not be lost at this time when the market is bruised after the credit crisis and is in a tendency to recover in the coming years. The beauty of ETFs is that they allow you to allocate money in the same way an institution does, that is, sector by sector. This used to be the Big Boy game, but with ETF, young investors like us can afford to join the game now. As I always said, this crisis is once in a lifetime so you can get a big profit on your investment portfolio, do not miss the boat this time, remember to accumulate any weakness and keep investing in the coming years. For more information visit:





  1. Focus On The Offer Ask Spread


  1. Consider Restrict Orders





  1. Abstain From Exchanging Around The Market Open And Close



5 Exchange Traded Funds to Help You Diversify Without Mutual Funds


Fortunately, exchange traded funds provide an alternative to mutual funds for the independent investor. Like mutual funds, exchange traded funds track multiple stocks or bonds in a single fund. But what’s nice about exchange traded funds is that you can trade them just like individual shares of stock.

  1. S & P 500

One of the best ways to grow your capital over the long term is to invest in large-cap companies. If you had enough time and money, you could buy shares in each of the S & P 500 companies, but that’s something out of reach for most of us. Fortunately, exchange traded funds can make this type of investing feasible. You purchase shares in a fund which in turn invests the money in S & P 500 stocks. The price of the shares is indexed to the S & P 500, so as the S & P 500 grows (or declines) the value of your shares grow or decline with it, giving you a way to track the overall progress of the stock market. One exchange traded fund which does this is the SPDR S & P 500 (SPY), an affordable way to start investing in the S & P 500.

  1. The Dow Jones Industrial Average

In today’s market the Dow Jones Industrial Average, which tracks the 30 largest companies, isn’t considered the best overall indicator of market performance (the S & P 500 is considered by many to have taken over that role). Even so, the Dow still plays a role as one of the major indicators of the overall stock market performance and state of the economy. If following the Dow Jones Industrial Average is to your liking, then one exchange traded fund that’s available is the Dow Diamonds Fund (DIA).

  1. Gold Shares

Looking to take advantage of the exploding gold market, but don’t want to store gold bars in your home? Exchange traded funds that follow prices of precious metals give you a way to do that. Examples include the SPDRS Gold fund (GLD) and the iShares Gold Trust, both of which follow the price of gold bullion. Investing in other precious metals such as silver and platinum is also possible with exchange traded funds.

  1. Bonds

There’s an ETF for just about anything and this is great for the independent investor-because its an easy way to get into bonds. Any smart investor will have a diversified portfolio that includes bonds but unfortunately, buying bonds as an individual is a little bit harder than stocks and often requires larger investments. One very easy way to get around these problems is to find an exchange traded fund that invests in bonds that suits your liking. Take one example, Barclays Capital New York Municipal Bond Fund ETF (INY).

  1. Real Estate

Every portfolio should have a small amount invested in real estate, and an ETF is a relatively painless and inexpensive way to do it. One example is the SPDR Dow Jones Global Real Estate ETF (RWO). This fund follows a Dow Jones index which tracks global real estate. There are many other options which can be used to track different sectors of the real estate market. More details here:


The variety of exchange traded funds available on the market is staggering. Here is a small sample of funds you could use to start building a diversified portfolio. By selecting the right asset allocation, you could develop your own fund that meets your goals such as growth, value, or interest income.

Why Choose an Exchange Traded Fund (ETF)

Why Choose an Exchange Traded Fund (ETF)

ETF investing is something which millions are looking into each and every year. You cannot blame investors for looking into ETF’s as they really appeal to many everyday investors. However, there are still many potential investors who remain a bit unsure as to whether or not they can actually benefit from ETF’s. Why should you consider choosing an exchange traded fund? Read on to find out what potential benefits you could get when looking to these today.

Fewer Costs (Including Taxes)

Trying to trade with ETF’s can be far easier and less costly overall. Anyone who wants to invest in them will find they don’t need a lot of money to get started which is ideal. Most people don’t have tens of thousands of dollars to start up with but with the exchange traded funds you don’t need a lot of money. Taxes will have to be paid for ETF’s but it is only when you have sold them and even then the costs are a lot more affordable. The taxes due on these funds can be reasonable compared to many other investments and that is another reason why people love them so. They can be somewhat cheaper and it will help those who don’t have thousands to put towards taxes too.

Why Choose an Exchange Traded Fund (ETF)

Easier To Understand

Investing is not easy at any given time and it can often be difficult to get your head around the most basic terms of trading. However, with ETF’s they can be far easier to understand and learn about. Most investors will be able to understand the basic concepts surrounding ETF’s and will be able to research their potential investments as well. That is another reason why so many are choosing these today and why investors love them so. ETF investing is quite popular and you can find it’s a great concept too. Learning about them doesn’t have to be so difficult.

Buy Any Time, Any Day

With the stock exchange and stock markets there are limits in terms of when and where you can invest. You aren’t able to trade once the market closes for the day and that can really cause some problems. However, with exchange traded funds you don’t have to worry so much about the close of the market. You can trade anytime you want to and without too much trouble either. This is why there are so many who look to these every day. You really aren’t faced with lots of limitations either. It’s going to mean you invest whenever you want to. It’s ideal.

Invest Wisely

ETF’s are the new trading craze and yet they aren’t as complicated as they appear to be. Yes, you need a good head to understand how and when to invest but in comparison to many other investment avenues, it’s pretty straightforward. These investments have given thousands the ability to invest without the hassle. Yes, there is still a lot to be learned but there is a real possibility of succeeding. That is why thousands have chosen ETF investing each and every day.

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The Drawbacks of Lifestyle Funds or ETFS

The Drawbacks of Lifestyle Funds or ETFS

Choosing a retirement ETF can be very common amongst millions. There are quite a few people today who look to the future and want to find a way to make their golden years a little more comfortable. Investing has become highly popular for many who want to retire with enough money to live comfortably. You cannot blame millions for wanting that as it can make life far easier for everyone. Lifestyle or EFT’s have become one major investment talking point as well but there are many who often find they aren’t all sunshine and roses. What are the potential drawbacks of EFT’s?

Short-Changing Yourself for the Future

For one reason or another, your funds can run out of money and that is not good. You could retire and within a matter of months, the money is all gone and then what will you do? Many people can end up short-changing themselves and running out of money is never a good sign. That is a major drawback of lifestyle funds and it’s more common than you think. The trouble is that these investments can be poorly managed and mismanagement is easily done. This has become a major problem for millions and it happens too easily in truth. EFT investing is good but it must be done right for it to work.

The Drawbacks of Lifestyle Funds or ETFS

No Growth

What happens if you don’t invest or that one day your money doesn’t grow? No growth within your ETF could result in you losing money. Again, you don’t want to lose out but it’s something which happens more often than not! It’s a major problem and it’s not going away anytime soon either. No growth can result in a heap of trouble and you will lose out. If you want a retirement ETF you have to be careful and understand there are many drawbacks. This is one which can be very disastrous for you.Get more,visit this link:

No Knowledge of ETF’s

ETF investing is simple but for many newcomers they don’t fully understand it and that can cause them to lose money. What is more, if investors don’t learn, they could find in years to come, they don’t have the cash they thought they should have. It can leave a lot of people at risk and it’s not ideal to say the least. The trouble is people don’t think about educating themselves on the ins and outs of ETFs. It’s going to cause a lot of problems and it’s easily done.

Be Aware Before You Risk Your Money

Anything can go wrong with investing, even with ETF’s and when they do, it can be devastating. You can lose everything you have and end up with very little money for your retirement. What is more, you might have to end up working until you are seventy or beyond in order to make up for what you’ve lost. A retirement ETF can be great but you must understand the drawbacks and risks before you put your money on the line so you can decide if it’s right for you.

How to Choose the Right ETF

How to Choose the Right ETF


Look At Its Past Performance



How to Choose the Right ETF

Think About the Economy and Strength of the Market


Think About Your Financial Goals and Be Realistic


Choose Wisely
