Exchange Traded Funds (ETFs) provide a different way to trade stock. But it’s not simply another way. ETFs open themselves to multiple strategies.
First of all, Doug discusses the fact that ETF tend to mirror a benchmark. But why not aim to outperform the benchmark?
Then, the discussion extends to discuss some tax saving strategies you could implement using ETFs. (Remember, I never give specific tax advise, but just discuss investment strategies)
And how about inverse ETFs? Why should someone buy one? If you believe the market will go south, wouldn’t you just sell your stocks?