Unlimited options that the broader equity markets offers today are best harnessed when coupled with sound research, preferably through professional ETF Consulting services. A niche area, which is gaining popularity as it simplifies the complex world of equity traded products that sprawl across the highest dividend paying Canadian securities to the very dynamic Chinese consumer stocks. ETF Research is executed by professionals and is often customized as per the need of the client and most reputed firms today boast of their trademark analytical software's that will infer the data to investor's maximum advantage whatever the need may be.
The robust onset of equity traded funds post 2008 and the increasing investor interest for them exists for a reason. Participants today have varied choices to suit their risk appetite, sector preferences and investment durations, the biggest enticement here is a fairly liquid asset that enables a wide spectrum portfolio diversification and most definitely scores over direct equity buying due to the basket methodology that the fund issuers practice while picking assets. Hence whether it your retirement corpus you are worried about or your child's education expense, an ETF investment
can enable you in realizing your life goal provided your entry was well researched and best suited to your needs and especially keeping in mind the timelines when you may actually require to withdraw the earned gains.
Equity Traded Product [ETP] v/s Equity:
The most visible benefit with ETPs is maximum diversification, a standardized exposure in contrast to a stock specific one will not only eliminate the need for a company wise study, it will significantly reduce the risks attached without hampering the overall return in long term. Moreover with the ready choices to invest in foreign lands as exotic as the frontier economies of the Latin America or the ASEAN bloc, investment in ETPs provide options that are otherwise difficult to acquire through direct investments, even if you had a large amount of money. Relaxed tax norms and effectively lower brokerages is another deciding factor here.
Vis-à-vis Mutual Funds - The Market Showdown
Although broadly both are aiming towards one goal which is a balanced portfolio diversification but the ETF scores over a mutual fund or an actively managed fund simply because of the higher liquidity feature. ETFs are exchange listed, hence one can buy/sell during market hours and even provisions like shorting and intraday trading exist. Additionally there is higher transparency and no minimum investment criteria as it is with Mutual funds but the availability of a bona fide benchmark to track your investments is available with both thus giving you the best of both the worlds.
Using professional help while foraying into the asset is strongly recommended, because everybody has different needs that may be under the influence of your personal goals, the wants of your family or simply your age that may define a different set of financial needs. A professional will assist you not only through the right guidance but simultaneously an ETF consultant will also make sure that your money is directed to give the desired gains with in a specific time period. That simply means that you get your money when you need it the most.
The biggest plus for these equity linked vehicles is the rising risk appetite for them. ETFs are getting bigger with some even managing billions of dollars of assets under management [AUM]; the simplicity of this concept is even attracting Institutional investors like Pension funds managers and Venture Capitalists who have a sure ability to decide the market sway. The prevalence will catapult into sound gains for somebody who is long on investments decisions derived from well researched data that will put you in the same league with Big Boys of the capital markets. The idea is simple, if you can't beat them; you join them but do so through relevant and effective research.