Utilizing the Exchange‐Traded Fund Market

This chapter discusses strategies to utilize the exchange‐traded fund (ETF) market to the fullest. It is pointed out that ETF products open a door to risk management for individual investors that previously was open only to institutes. Cash management takes on a whole new meaning in the present scenario; in fact, it can now become a profit center. The ETF product is certainly a tremendous leap forward for industry but is the analysis of the product that will make the funds a viable addition to an investor's portfolio. It is advised that like investing in general, investors must have an operating system firmly placed in mind before any information about the investment process can be evaluated effectively. It is the analysis that is done in the ETFs that makes them one of the most useful investment tools.