ETF Investing: 5 Pitfalls to Avoid

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More ETF Avois

Low volume (illiquid); I use 500,000 daily average.

Too new (need history of at least one major up and down cycle);

preferably 5 years ( at least 3 years).

Active management (defeats the objective of following an index);

"unproven" attempts to seek alpha.

JohnD of TX @ Feb 26, 2009 15:50:06 PM

nice article

I think he meant that collectible 28% only apply to collectible metal like gold. Other ETF could satisfy as 15% capital gain.

bankfinancier of PA @ Feb 01, 2009 16:27:08 PM

ETFs long term

For long term traders,the best and most low cost vehicles are actually the futures.Problem is,speculators try to operate on minimum margins,and suffer when they get stopped out.If you leave sufficient margin,and the future goes the way you traded,you make a profit - provided your broker stays solvent.The same cannot be said for ETFs - which can decay as the underlying index goes up and down.

DANIEL P VICTOR @ Jan 21, 2009 14:18:28 PM

ETF Investing: 5 Pitfalls to Avoid

This article is very helpful. Where can I find more information on ETF tax structure?

of CT @ Jan 14, 2009 09:33:00 AM

thanks well written :)

thanks well written :) www.clousfamily.com (if I've got to give my email to comment :)

Scott Clous of FL @ Dec 09, 2008 19:27:15 PM

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