An ideal ETF portfolio is a range of asset allocations consistent with your chosen risk profiles. ETF's are beneficial in the following ways; They give instant diversification. So you can consider ETF over stocks for this very reason. They are passively managed. These investors can play the future markets and Forex markets at the same time and their management fees are comparatively low.
Implementing your purchase plans for selecting ETF Portfolios should be spread across a certain period of time. Proper research and updates of the charts are advisable as it is always recommended to purchase when the price is at the lowest. The best reward- to -risk ratio should be analyzed every quarter. You can always change your ETF Model according to the positions on the charts. Move on to cash or buy a new potential ETF. So the best way to protect your Portfolio is to be able to access when to sell before the market sees a slump period. Access the equity capitalizations that are anticipated to perform badly in the market and avoid those sectors. Make sure that the market forces don't make an impact on the investment decisions taken. There are too many factors responsible for threatening your investment policies such as State Level Policies and Economic Reforms. Keeping track of these trends and decisions can help you further allocate your desired portfolio. If we follow the rotation of industry sectors based on economic cycles, we would be able to reposition our portfolios in a better place and adapt accordingly to the market flow and trends. According to Sam Stovell's the business cycles is a series of changes in the GDP which have a certain pattern i.e. the expansion, prosperity, contraction & the recession period. This last phase is followed by the first again. He stated that each sector has its own strength at the various points of business cycles; the investors have to invest according to the collective reports of these trends keeping in mind the area of strength for each sector. This gives them an opportunity to be able to redirect their investment strategies and invest in those ETF's which have the capacity and capability of outperforming in a down market. An example of such markets is the consumer staples sector. This sector deals with those goods that are essential and cannot be lived without, and are obligatory in the budgets regardless of the financial situation. Or there are sectors such as the Health Care Industry which is a safe and potential area of investment. Such sectors will be mostly outperformed during a downward market scenario. ETF's were invented 20 years ago and the idea behind this invention was that this form of investment was to enable investors to hold a fixed basket of stock temporarily. For example the 500 S&P Index, which tracks the stocks of small, large and mid-cap companies. Today S&P Index holds $1.5 trillion in assets in the U.S. and has achieved this success beyond everyone's expectations. Before 2004 there was no easy way to invest in Gold. The Gold ETF's changed the whole scenario. You could suddenly invest in Oil and Natural Resources with easily accessible Exchange Trade Funds Portfolios. What is more important is that ETF's have managed to attract the best and potential players with hot pockets. Secondly they are easier to use than their competitive counterparts- Mutual Funds. They can be bought or sold outside the exchange hours. It is important to know that like any other investment vehicle you have to be able to understand how to make full use of the ETF's which are appropriate according to your investment plans. If the investment is targeted towards the U.S. equity market then the option is driven towards the S&P 1500.
Toroso Investments is a SEC recognized; New York based Investment Advisory Firm. The company claims that their services and research work are the best winners for their clients. They provide the appropriate investment solutions and offer services in designing ETF Models for Private Wealth Management, advisors and Institutional Investors and ETF Portfolios that focus on Retirement solutions.