Looking for a great investment vehicle has become priority number one for many baby boomers who are looking for a way to recover from the economic downturn. If you are not considering new ETFs like the silver ETF, copper ETF, natural gas ETF, or biotech ETF now is the time to reconsider the merits of these little gems. If you have never heard the acronym before, the term ETF refers to an “exchange traded fund” where you do not own one piece of a company like a stock, but instead many pieces of different companies or investments.
This offers average investors a chance to spread their investing dollar further to gain more market access. Imagine if you were to buy stocks like silver stocks in a company and that company lost money then you would lose as well. With ETFs you are buying pieces of many investments so if one loses but two increases you still win. The previous analogy will give you some insight on why many savvy investors are taking advantage of this opportunity.
There are a wide range of ETF products available and there is one to suit your preference. What many investors do is take part in an “index ETF” which is benchmarks its results based on the performance of a particular exchange i.e. NASDAQ, Dow Jones Industrial Average, S&P 500. Some of the new ETFs are directed to the commodity market which offers many opportunities for growth as well. If you love to make money off of commodities then these products are just right for you.
Other types include bond market and currency market opportunities. Depending on your preference you can mix and match the funds or focus on the ones that you understand the best. When you buy into these programs you are able to leverage your dollars and since these investments are designed to offer significant tax advantages it is really worth exploring.
You may be wondering why you haven’t heard a lot about these products and the reason for that is they have been around for roughly only twenty years. So the practice of investing in ETFs is relatively new compared to the more traditional stocks, bonds, futures, mutual funds, etc.
If you need help deciding on which new ETFs are best for you should speak with close friends, trusted associates or an investment professional and seek their input. Investing is a very personal choice and should be made after you have done your own due diligence to ensure that your money is working hard for you.