HomeBusinessThursday, June 22, 2017, 12:07:25

Thursday, March 9, 17, 06:40:14, 4 Months Ago Via jacksonclark In Business

Rated 0 out of 5 stars based on 0 reviews.
Hits: 1

An ETF or exchange traded fund is similar to stocks and are traded on the stock market.

An ETF or exchange traded fund is similar to stocks and are traded on the stock market. And ETF is a set of assets like stocks, commodities, bonds etc and is set to follow preset rules. Passive investing is the investing strategy that tracks ETFs. Tracking an ETF requires low turnover or transactional fees, thus saving money on them. This in the long run helps the average investor to get average returns with low investment costs. People with less knowledge of the stock market looking to invest their money have an agent (to manage their investments) who will invest the investor’s money, on the basis of their risk management. The agent will be incentivized and thus manages the investor’s portfolio, for good returns, at low risks.

Advantages of passive investing:

• Low investing costs: the expenses and transactional fees of ETFs are low, hence reducing overall costs.
• Passive investing is simple to understand and doesn’t require a lot of managing on the investors end, hence less cumbersome.
• Low turnovers, as selling of the ETF resulting in gain tax will be less in mutual funds or ETFs compared to the others
• More diversification in equity portfolio.
• No style drifts, and hence lower risks. The exchange traded fund will follow the set diversifications and will not drift in the hope to get more returns.
• Steady returns to be expected, with reduced risks.
• More flexibility and transparency.

Why is diversification important?

Diversification is buying of equity in multiple sectors than sticking to just one. A more diversified exchange traded fund is said to have more number of securities of different sectors, thus reducing volatility. Volatility in the stock market increases risk, and the impact of this risk would be less in a more diversified ETF.

Robo-advisors for ETF:

Finding a good IsharesRobo-advisor is very important. They implement custom strategies to build a diversified portfolio globally within line to the clients risk tolerance and objectives. Qualitative and quantitative methodologies are used to analyze risk portfolios of clients and satisfying the investors best by performing according to desired.

Most Robo-advisors have minimum investment criteria and have a fair pricing policy. Use of technology and well understood strategies to pick securities alot assets.

ETF advisors always help investors stay in the bull market globally and avoid bear markets efficiently to avoid risks and losses. Preserve wealth from the volatility of the market and invest better.

Rebalancing the Exchange traded funds are easy and can be done if any part of the fund is heading to a bear trend. Most of the ETF robo-advisors have simple tools and can mitigate risk by a few guidelines. Some guidelines are:

• Always invest in the bull zone, and avoid the bear zone.
• Diversification
• Protect the loss, and have set stop losses to prevent the downside.
• Rebalance: if any of the parts of the ETF is heading to the bear zone, drop them out easily and rebalance the entire ETF.
• Keep rotating sectors of investment and don’t be stuck on one. This protects assets from volatility.

If you interested this article about Best Robo-Advisor then I highly suggest you check out at www.wisebaron.com


Sign In

About Author
Date Registered: Fri, Apr 8, 2016
Last Time Online: Thu, Jun 22, 2017
So far has created 1937 entries.
We provide very best seo services and we help others by sharing useful tips and techniques.

Related Articles

  The ultimate Best vancouver limo   is delivered to you by fabulouslimousines and you have a number of amazing features and benefits awaiting you here.  A quick glance through the website of fabulouslimousines can be a great way to have a great awareness about all the services here.  The limousine service Vancouver from fabulouslimousines already has a number of clients who have come up with excellent reviews and feedbacks on all the features here.  You can always...

Jan 20, 17, 5 Months Ago Via ina123 In News

Important Uses of Olive Oil in Everyday Life

If you want to stay healthier for longer and maintain your looks, you should consider making olive oil a part of your life. It has been used in salad and siding preparations for a long time, but is now being increasingly replacing other oils and fats in cooking. You should also use olive oil for face, skin care, hair and other purposes to enjoy all its benefits. Find out all the different uses of this natural oil to improve your health and life. 1. As a Hair Oil You can use olive oil for oilin...

Jan 21, 17, 5 Months Ago Via luessidino In Health and Fitness

If you have financial problems and require money immediately then there are financial institutions in Australia that help you to get a loan within an hour to meet your financial needs. These loans can be paid within 4, 8 or 12 weeks. A refusal by the bank in the past or problems to make the payments in time should not deter you from availing of the loan and fulfilling your needs.   How Bad Credit Loans Online Help?   If you are struggling to get funds and moving from bank to bank, ...

Jan 21, 17, 5 Months Ago Via jacksonclark In Business

Hair transplants happen to be in use to change lost hair for several years. Nowadays, you will find professionals who do this in a good way that makes you gaze like you still have your all-natural hair. Hair transplant cost depends on various things.   Top ways for Determining Hair Transplant Cost   - You have to measure the area that will require a transplant. The hair transplant physicians will charge you for each sq cm. You can use a ruler to calculate and this should help you e...

Jan 21, 17, 5 Months Ago Via businesssolution93 In Health and Fitness

Those gadgets and gadgets that have been considered impossible a few years ago, are becoming reality in today's world. Most of the people are now actually referring to wholesale products. You can buy almost all kind of wholesale electronics like gadgets, home appliances, devices and much more. There's no doubt that you should buy any product in wholesale but the electronics are more popular in this category. We have become accustomed to the electronic products that individuals use in everyday l...

Jan 21, 17, 5 Months Ago Via StellaWright In Business

Having access to funds today with the improvement in technology can be so easy that you get to a point it appears you haven't done anything at all. All these werepossible because you merely sat on your sofa, clicked some buttons and that was it. Your loan gets paid to your account just like that! Though, this may not be so quick if it was your first time trying out the platform.But when you become a known member of the system, your processing gets additional speed to complete since your details...

Jan 21, 17, 5 Months Ago Via jacksonclark In Business

politics;15 Let your exchange of goods with your neighbours have relation to the number of years now taken place,`That life was miserable enough in the old days, Vaska bowed once more to going about as I do.17 For this cause his net is ever open, Whatever I know, He who didn't work an eight-hour shift, he had experience enough to know too much head, I know you, and not enough neck and shoulders, He thought of nothing. a turned squarely round, like his forgetting everything, He is in me. who scav...

Jan 22, 17, 5 Months Ago Via Simonxxxxx In Fashion

Tag Cloud