tag:blogger.com,1999:blog-2580989564838748562.post777038870205206619..comments2023-09-03T20:21:47.133+08:00Comments on Financial Freedom SG: Exchange Traded Funds (ETF)- Better than Managed Funds?Lemizeraqhttp://www.blogger.com/profile/14066758470866342603noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2580989564838748562.post-11244623554918542172009-02-13T18:31:00.000+08:002009-02-13T18:31:00.000+08:00Hey there, this is a great article! It is key to ...Hey there, this is a great article! It is key to stay calm, and "buy when others are fearful." It's a timeless strategy that have built wealth around the world.<BR/><BR/>However, one should also consider certain drawbacks of ETFs. One of the biggest downsides that I see is that ETFs typically track collections of large cap stocks. This means that you do not have the benefit of the growth potential that you would see by having some mid or small capitalization stocks in the portfolio.<BR/><BR/>Additionally, because they are traded like stocks, you may run into issues with low trading volumes for sector-specific ETFs. Probably not a big deal if you are in it for the long haul, but still it is something to consider.<BR/><BR/>Since I do a lot of Forex trading, I have found that the currency ETFs are nice, at least in terms of providing an additional data point -- since forex is so decentralized, there is no concept of "volume." however, with the currency ETFs, you can get a good picture of the volume and activity, at least during the New York session. <BR/><BR/>One other key feature of ETFs that I like are the Long and Short ETFs. The Short ETFs can be used to get around some of the restrictions on short selling that have been put into action, as they provide a relatively safe way to capitalize on the decline in securities, without some of the riskiness inherent in actual short selling.Anonymoushttps://www.blogger.com/profile/07321994925870759632noreply@blogger.com