Zonker Etf Investing Strategy
Exchange Traded Funds, commonly known as ETFs, are similar to mutual funds, in that the ETF holds a "basket of stocks", meaning, that the ETF will own many stocks, many times even a hundred or more. This allows safety and low risk through diversification. If one, or two, or even several stocks go bad it will not have much of an impact on the value of your ETF. Furthermore, ETFs are very inexpensive to buy, sell and maintain, increasing your bottom line. Usually, the total cost associated with an ETF is a small trading fee, the same as a stock trading fee that an online broker will charge. ETFs are generally more tax efficient than mutual funds. Most mutual funds have to sell holdings to meet redemptions, which trigger a capital gains distribution for all the mutual fund shareholders. Anyone that has bought mutual fund shares in the month of December and paid taxes on other people's gains knows what I am talking about here. Why not let all of your money work for you instead of paying commissions, loads, management fees, redemption fees and penalties and paying the salaries of all those infamous professional money managers who, like you, are doing whatever they need to do to make the most money for themselves.
Unlike mutual funds ETF's trade like stocks. You don't have to pay "loads", a fee mutual funds sometimes charge to buy or sell your mutual funds. Furthermore, with ETFs, you don't have to worry about paying early redemption fees or penalties like you do when you sell your mutual fund within a certain prescribed period, normally within one to three months, sometimes even longer. With Exchange Traded Funds you don't have to worry about when your mutual fund buy or sell order will be executed. With most mutual funds your order will not be executed when you want it to be executed, when you hit the buy or sell button. Your order will be executed when the mutual fund company wants to execute it, usually, after the close of the market the day you put your order in. Many times however, the mutual fund company doesn't execute your order until the next trading day or even after the close of the market the following day. You could literally put your buy or sell order in to the mutual fund company at 10:00am one morning and your order may not get executed until after 4:00pm or possibly even after the next trading day! Tell me there is no manipulation of the mutual fund pricing or the pricing of the underlying stock prices going on here. The professional money manager and mutual fund company will execute the order when it is most beneficial to them, not you!
ETFs put the control back in your hands. You simply execute your ETF order the way you would with a single stock. What? You never executed a stock order on your own before? You don't know how to find the right ETF? No problem, it is both easy and inexpensive. Learn how to stay fully invested in the market and on the right side of the market via the "Zonker ETF Strategy". You will be on the long/bull side of the market when the market is trending higher and on the short/bull side of the market when the market is trending lower. You win on both sides! You will soon find that you enjoy working your new Zonker ETF Strategy and taking control of your investments, especially when you see the value of your ETF accounts grow and grow. "Your Only Financial Security is the Security You Create"
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