What is an ETF?
ETF stands for Exchange Traded Fund. But what does that mean?
An ETF is like a mutual fund, in that it holds shares of dozens, hundreds, even thousands of common stocks and other investment securities. But while mutual funds can only be bought and sold once a day—at the close of the day—ETFs can be bought and sold throughout the trading day. This flexibility is good, though not critical.
ETFs also tend to have lower expenses than mutual funds, and this is one big reason for their growing popularity. It means investors get to keep more of their gains.
Furthermore, ETFs can be tailored to particular investment themes, like industry sectors, and that’s a very attractive feature for many investors. Trouble is, many investors—desiring to be in the “right” industry sectors—have difficulty knowing exactly how to determine this. That’s where Cabot ETF Investing System comes in.
Cabot ETF Investing System uses a two-part system to steer investors to the top-performing ETFs, while lowering risk. Part one consists of market timing; when the broad market is unsupportive, the system tells you to stay in cash, so you don’t lose money while other investors do. Part two consists of industry sector selection, based not on price performance but on economic fundamentals, using a time-tested system that correlates stock performance —segregated by industry—to economic fundamentals.
This is a fundamentally groundbreaking— and very successful system—and you can learn more about it in our Special Report on ETF Investing.
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ETF Investing
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Learn more about ETF Investing
Frequently asked questions about ETF sectors, long and short strategies, market timing, and more...
Read about ETF Investing in the Cabot Wealth Advisory Archives:
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Effective ETF Investing Strategies
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A Successful ETF System
Cabot ETF Investing System has a great market-beating record, using a system of sector selection and market timing. It’s simple, and it works.
How
to Diversify Without Clutter
With literally thousands of stocks available, you can clutter up your holdings pretty fast. But you can capture a great deal of diversification just by using market sector ETFs.
Talking
About Exchange-Traded Funds
Investors who find it easier to understand the economic dynamics of a whole class of securities like a sector or industry are natural ETF users.
Safe
Investing and Lagging Indicators
ETFs are arguably the most sensible of the no- or low-fee investment vehicles out there. They're traded on the open market, so you purchase them the same way you'd buy stock.