The Role of an ETF Strategist

Before we get on with the role of the Strategists, it is important that we learn what ETF is. ETF refers to Exchange Trade Fund. The ETF looks and acts like a mutual fund but is traded in the stock exchange market, very much like stocks itself. The ETF holds a variety of assets, such as- Bonds, Stocks and other commodities that are traded with close to the amount of their NAV or net asset value, at the very end of the day full of trade. There a number of reasons that individuals and businesses find ETFs to be attractive. Some of these reasons include- Low cost of investment, more tax efficiency and finally it resemblance to stocks. These advantages make it one of the most popular and opted for traded product in exchanges. An ETF strategist, guides one through the various aspects of investing in ETFs and also helps them learn all they need to before they go about investing.

What is the role of the strategist?

As mentioned above, the Strategist introduces investors to a number of different aspects of ETFs, such as- ETF fundamental, the loop holes in ETF investing, the risks of investing in ETFs, the profits of investing in ETFS, the different types of ETFs, ETFs in 401k, etc. Some of the major sides that the strategist enlightens the investors about, include-

• The creation and redemption mechanism of ETFs,
• The features that define ETFs for what they are,
• How you can go about trading in ETFs securely,
• The different challenges that investors might have to overcome when investing in commodities, in fixed income, and other different classes of assets of ETF,
• Potential warning signs and presumable pitfalls of trading in ETFs,
• The perfect time to invest in ETF
• The perfect time to sell off ETF investments, and a lot more.

Hence, it can be said that the strategist is a person that helps you gain the most out of your ETF investments. Some of the different kind of ETFs that the strategist might interest you with, apart from the ones mentioned above, include- Currency, Actively managed, Leveraged and Inverse ETFs.

Source : http://moderntheory.livejournal.com/3246.html