For several reasons, I have decided that ETFs are just not suitable for trading

B

BPtrader

some time ago, Jim Cramer said ETFs do not make sense, now I agree with him.

Same as ETFs, index futures also are not suitable for trading.

Maybe they are good for long-term investment.
 
Quote from clacy:

Ok, so you make a claim, but don't even give your reasoning?
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Since you ask so politely, I will answer:

1. cancellation among components/sectors.

2. not subject to direct buying/selling.

3. murky conversion between components and the instrument.

4. arbitrary weighting.

5. unclear roles of leader/follower.

6. friction between futures and cash.

7. Red_Ink.
 
The larger the ETF, the less problems you will have.

IMHO, only 20 or 30 ETFs can be traded efficiently, the rest are just fillers. Note the word: efficiently.
 
I agree with zgtrader. I only trade ETFS both long and short time with no problem. You have to pick the right ones. Never pick a new one.
 
ETF's were a great idea years ago. I made good money with them. But they're just fee-sucking machines for institutions that "sponsor" them now. Might as well trade the individual components in most cases. Top 30 volume ETFs are ok, the rest suck.
 
Quote from risktaker:

ETF's were a great idea years ago. I made good money with them. But they're just fee-sucking machines for institutions that "sponsor" them now. Might as well trade the individual components in most cases. Top 30 volume ETFs are ok, the rest suck.
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ETFs are the only thing that I recommend to family members who want to profit from a falling market.

No way I'd recommend an individual stock to people who think that holding an overnight short GE carries the same risk as a bare-bones, cash-poor biotech who just scored a phase III approval on their lead candidate.
 
risktaker
how much money would you need to buy each stock in the S&P 500. Oops for got my dentist has all my money 2 root canals and 3 caps ago. Thats why I buy ETFS.
Seriously I would limit my selection to the top 20 in volume and have been around at least 3 years. :)
 
Just to add, these are the 20 big ETFs (sorted by volume):

SPY S&P Dep Receipts
XLF S&P Sel Financial Spdr Fund
QQQQ PowerShares QQQ Trust Series 1
EEM iShares MSCI Emerg Mkt Index F
FAZ Financial Bear 3x Shares
IWM iShares Russell 2000 Index Tr
UYG Ultra Financials ProShares
UNG United States Natural Gas Fund
SDS UltraShort S&P 500 ProShares
FAS Financial Bull 3x Shares
SSO ProShares Ultra S&P 500
SRS UltraShort Real Estate ProShrs
URE Ultra Real EstateProShares
SKF UltraShort Financials ProShare
EWJ iShares MSCI Japan Index Fd
IYR iShares DJ US R/E Index Tr
FXI iShares FTSE/Xinhua China 25
QID UltraShort QQQ ProShares
EFA iShares MSCI EAFE Index Tr
XLE S&P Sel Energy Spdr Fund

Although, some consider the below list to be the most popular.

SPY S&P Dep Receipts
QQQQ PowerShares QQQ Trust Series 1
EEM iShares MSCI Emerg Mkt Index F
IWM iShares Russell 2000 Index Tr
XLF S&P Sel Financial Spdr Fund
EWJ iShares MSCI Japan Index Fd
EFA iShares MSCI EAFE Index Tr
FXI iShares FTSE/Xinhua China 25
IYR iShares DJ US R/E Index Tr
GLD SPDR Gold Trust
XLE S&P Sel Energy Spdr Fund
EWT iShares MSCI Taiwan Index Fd
EWZ iShares MSCI Brazil Index Fd
DIA Diamonds Trust, Series 1
XLV S&P Sel Health Care Spdr Fund
XLI S&P Sel Industrial Spdr Fund
XLB S&P Sel Materials Spdr Fund
EWH iShares MSCI Hong Kong Idx Fd
XHB SPDR S&P Homebuilders
ILF iShares S&P Latin Am 40 Index
 
Quote from BPtrader:

some time ago, Jim Cramer said ETFs do not make sense, now I agree with him.

Same as ETFs, index futures also are not suitable for trading.

Maybe they are good for long-term investment.
More...
yes, need huge cash to trade ETF stocks...BUT...ETF options are the sole way to go...
 
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