Trading International Exchange Traded Funds

Trading International Exchange Traded Funds

Trading International Exchange Traded Funds

Author: NobleTrading

Investing money in well performing world economies, foreign markets and companies can be good strategy; especially when investments in local markets and companies are not offering good returns. More over many investors want to diversify and/or want to internationalize their portfolio. International ETFs are for excellent investment options for these investors.

International Exchange Traded Funds (ETFs) are exchanged traded funds which track foreign stock exchanges. They are traded on local stock exchanges and are traded just like stocks – through a brokerage firm. International ETF firm buy and hold stocks traded in the exchange(s) they are tracking to make a small replica of that stock exchange. They then issues shares of the ETF through local exchanges like NYSE, Nasdaq and AMEX. The price of ETF shares goes up with rise in tracking foreign stock market and goes down when market drops.

International ETFs holds many advantages.

  1. They let investors to invest their money in growing markets.
  2. They help investors to invest in emerging markets which are otherwise hard to access or are costly.
  3. They hold all the benefits of ETFs like no tracking error, low expense ratio, increased liquidity, and tax benefits.
  4. They are easy-to-trade instruments; they can be intraday traded and short-traded. Unlike mutual funds, which disclose value once a day, one can get real-time value of ETF shares and total ETF portfolio value.
  5. They suit almost every trading and investing styles; they can be day traded, swing traded or long-term traded.

There are now a range of international ETFs to choose from. One can choose ETFs for a single stock market, a single country, a region, a currency specific or a sector specific. Some most popular international ETFs include iShares from Barclays, InvescoPowerShares international ETFs and State Street International SPRDs. The number and types of international ETFs are also growing and you can also find some leveraged and smart ETFs among them; which can offer above average return for higher risk taken.

Before investing in international ETFs, it is necessary to analysis of the fund portfolio. Funds which track illiquid and small foreign exchanges and sectors are not much suitable for investors who want to minimize their portfolio risks. The investor should also have an understanding of the fundamentals and growing scope of the region, country, market and companies concerned.

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NobleTrading is an Online ETF Trading Broker offering many flexible plans and advantages for traders and investors. Join the NobleTrading online trading blog subscribers and increase your trading knowledge.

ETF Trend Trading – How to Consistently Beat the Pants of the S&P Average Every Day

Robert R Stanton asked:

The people who are just stepping into the forum of trading are nowadays abandoning the age old forex trading techniques and stock trading. They are nowadays more interested in ETF trend trading. This article aims at explaining how ETF trading can be of real help is minimizing your losses everyday and ensure a win -win situation for you.

In a trading there are drawdown or rather sudden and abrupt losses involved. If you do nothing to shield yourself from these losses then this business will simply ruin you and get your whole world crumbling around you. For example let us assume that when you started trading your account consisted of $20,000.

After 3 consecutive losses you simply come down to a value of $10,000, which happens to be 50% of what you had. So the loss incurred was 50%. Now if I ask you that how much profit you need to make in order to get started, I think your answer will be 50%. This is nothing shocking, because this would be the reply of most people.

But in order to be in the business and to ensure that you are extracting a good lot you must make a profit of 100%. In order to get back to even you cannot afford to compromise a value less than that. Your new base would significantly grow low as you suffer these losses and so it is necessary that you come back with a high percentage of profit to be in a stable position. Now here comes the role of ETF trend trading.

Professional managers and people who are into this business of trading would never risk more than 2% for every trade. In this way they can handle 10 consecutive losses which would result them a total loss of 20% and not more than that. And there is less to recover in this way.

This is quite low compared to the earlier situation. If anyone has told you that more risk is equal to more money then please break that world and come out, more risk is more risk and nothing beyond that. ETF trend trading does a great job in teaching you handle these risks. It works excellently by reducing your chances of losses. And if you can reduce your chances of loss then what else but a good win deal is waiting for you.

The biggest battle is the battle of survival in this field as most traders do not manage to survive. Since ETF trend trading can make one survive this drawdown, naturally it turns into something that would go a long way.

If you can go for an ETF trend trading course then nothing can be more helpful than this. It would give you a brief idea on the government policies, economic scenario of the country, the supply and demands. It would help you identify trends and would equip you in such a way that you are able to make most of the moving costs.

So learn more about it and stop suffering by losing heavily over trades.