Sophistication Is Overrated

There are now more than 1,400 U.S. exchange-traded products, and that figure continues to grow rapidly, with new funds beginning trade sometimes on a daily basis. A significant portion of my day is spent evaluating trends in the markets and seeking to tie current events to some of the more targeted and precise ETFs out there. The granularity of the exchange-traded world has increased tremendously over the past several years; there is now an ETF for just about every asset sub-class and precise investment strategy. That means investors with strong opinions on certain narrow segments can use ETFs to play them, potentially turning significant profits in a relatively short period.

Sometimes, it's helpful to take a big step back and approach things from a higher level. While there are countless short-term opportunities among the current lineup of ETFs, it is perhaps more useful for many investors to focus in on some of the broader funds out there -- ones that can be useful as cornerstones of a long-term buy-and-hold portfolio. Though many of the "first generation" of ETFs were originally designed with these types of investors in mind, a growing number of products now on the market are ideal for those looking to make tactical allocations to a particular asset class, or a short-term bet for or against a particular section of the investable universe....355 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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