And you don’t have to stop with those markets, there are many more markets just waiting for buyers and sellers, and there are just as many market ETFs that track them. Bond investing, in general, can be difficult. Coupon rates, default risk, duration. However, a bond ETF can alleviate some of that complexity by giving investors one pre-packaged asset that gives instant access to the bond market. When you buy an ETN, you buy a debt asset similar to a bond, but the terms of the debt contract are determined by the structure of the note. ETNs are backed by a bank with a high credit rating, so they are pretty secure products. However, ETNs are not without credit risk, just a lower level of risk. Creating downside is possible by selling any ETF, but what if I told you that you can buy an ETF and still get short. It’s true, and it’s called an inverse ETF. Perfect for investors who have restrictions against selling, but want to get short; they can buy an inverse ETF. There are many investors who are new to ETFs, so this is a perfect way to see if any of these 14 ETF trading strategies can be a fit for a portfolio. No asset is going to be perfect. However, there’s a very strong case to be made for including exchange traded funds in your investment strategy and not a lot of reasons not to.
