subject: Simple Market Timing with Exchange Traded Funds [print this page] The stock market is a much more complex and confusing entity that many consumers realize. Many different types of securities are traded every day by small investors as well as huge corporations and even countries. Securities commonly traded on exchanges around the world are known as exchange-traded funds or ETFs that are often exchanged using simple market timing.
What is an exchange-traded fund?
An ETF is an investment much like a share of stock and is traded in much the same way on a centralized exchange. Unlike a share of stock that is a piece of ownership in a company, an Exchange Fund is comprised of assets that can include stocks, bonds, and commodities. They are traded by average consumer investors using retail brokers on a secondary market and by large corporations that purchase funds in huge blocks of thousands of shares.
The ETF definition does not shed much light on how investors use these funds to generate a profit on the market. Just like with regular shares of stock, individual and corporate investors use a strategy known as market timing when buying and selling ETFs. Investors use an ETF funds list, ETF news, and a calculation known as an ETF expense ratio among other tools to determine whether a particular fund it a good investment. Factors influencing the value of a fund and numbers related to its value fluctuate from day to day. Timing the market using information is how investors buy and sell ETFs to generate a profit. Investors may also look for opportunities to generate large profits by trading an emerging market ETF or financial services ETF. A high yield ETF such as these can be bought for relatively small amounts of money and pay off big if the fund's net assets should rapidly increase in value. Investors on the primary market also participate in overseas exchanges through the purchase of an international ETF.
The securities market is filled with many different types of investments. An exchange-traded fund is just one of those many that both individual as well as corporate investors use to generate profits. Buyers and sellers use market timing and information from a variety of different sources in order to predict future prices of ETFs. Exchange funds are traded all over the world on different centralized exchanges and offer a more robust and secure portfolio than traditional securities.
