Preview

Etfs

Satisfactory Essays
Open Document
Open Document
728 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Etfs
UGA I would buy UGA ETF because it is one of the most important commodities in the world but I would take it for short investment. Despite of our high level of dependence and its usage in the transportation industry which are indicators of a safe choice the price of gasoline can be affected by a multitude of factors, including the health of the global economy, geopolitical tensions, and even tax policies changes across the world. My point of view for going short is because of the fact that UGA is a commodity which should not be used by long-term, buy-and-hold investors since positions in futures-based products, like UGA, can quickly turn against you. If you go for a UGA ETF you should be able to monitor your positions frequently and should also have a firm understanding on the energy market. So because gasoline is a very trend-dependent commodity, I would prefer short as the recent high prices of gasoline and its potentials and also of its continuous consumption, limited reserves, and gasoline cartel control is subject to rapid price increases in the event of perceived or actual shortages.

SPDR S&P 500 energy ETF, is listed to the top three ETFs with the best performance during January 2013, has a low risk something that we can observe it from the low standard deviation that the specific ETF has, approximately 15.21, but the low risk can mean that the return might not be as high as we would expect. Finally, the ETFs have the disadvantage that can be really affected from global economic situation. I choose this ETF because it suites my profile and in short term I believe that is going to give me the best return by minimize the risk of the global economic situation.

GOLD I would buy GLD ETF and pick it for long investment as it is not only the most liquid gold fund, but it is one of the largest funds in the world and a safe haven to invest your money. Going long for gold is a good idea because If you hold gold ETFs for more than a year, you pay a

You May Also Find These Documents Helpful

  • Good Essays

    Barrick Gold

    • 1173 Words
    • 5 Pages

    1. One organization that I feel has the best longterm position in terms of their stock market price is Barrick Gold.…

    • 1173 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    16 Day Coursebook BOWS

    • 27912 Words
    • 91 Pages

    Analyzing Sector Strength Using ETFs Chapter 12 - Risk Management Determining Risk to Reward Ratios and Position Sizes Tips on Managing Winning Positions to Maximize Profits Types of Stop Losses and Exit Strategies Managing Your Portfolio Risk in Conjunction with Market…

    • 27912 Words
    • 91 Pages
    Powerful Essays
  • Good Essays

    Dynamis Fund case study

    • 4275 Words
    • 18 Pages

    Furthermore, investing in energy funds serves as a diversification tool. This is because from historical…

    • 4275 Words
    • 18 Pages
    Good Essays
  • Good Essays

    Merck Stock Market Game

    • 691 Words
    • 3 Pages

    In the stock market game, the whole class learned about the importance of analyzing stocks before buying. For me, the ultimate result of the game did not please me, but I did learn some things about the market. If we were to play another game for a short period of time, my strategy would certainly change. Using my experience, I would purchase precious metals. Precious metals constantly change price, and these constant changes guarantee high variability and chances to jump to the top. For example, the stock SIVR had over five peaks in period of two months. Other precious metal stocks have had similar patterns. Furthermore, the price of these stocks almost always bounce back to the original purchase price during the short period, so these stocks are relatively safe investments in the short term. As long as I do not become too greedy, precious metals provide a way to make quick money.…

    • 691 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Central idea: The main types of funds that you can invest in are the G, F, C, S, and I funds, and lifecycle funds.…

    • 1318 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Vanguard Case Analysis

    • 2454 Words
    • 10 Pages

    Investing in the total stock market allows an investor to capture the return of the stock market while at the same time diversifying an investment portfolio. The easiest way to build a total stock market portfolio is with a mutual fund or an exchange traded fund. This particular portfolio is diversified with Vanguard ETF’s that were carefully chosen to seek the highest return with moderately aggressive to aggressive risk strategy. The investment strategy associated with this portfolio is short-term with an aggressive attitude of “more risk more reward”.…

    • 2454 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    Given the traditional risk preference behavior exhibited by financial managers, which investment would be preferred? Why?…

    • 635 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    We currently have 4 holdings in Energy, 4 in Materials and 3 in Utilities. Our Energy holdings consists of Buckeye Partners Limited which is a Oil and Gas Pipeline company, Valero Energy which is an oil refiner and marketer, VanEck Global Alternative Energy ETF which consists of companies that have over 50% of their revenue from renewable sources, and we hold the XLE which is our sector SPDR. In Materials we hold the iShares Global Timber ETF, The Graphic Packaging Holding Company which creates containers and packaging, Minerals Technologies which is an produces industrial speciality materials, and we hold the XLB which is Sector SPDR. Within Utilities we hold American Water Works which is a water utility provider, we hold…

    • 1633 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Week 5 Bus 650

    • 713 Words
    • 3 Pages

    After discussing your concerns, Dan gives you some information comparing the performance of equity mutual funds and the Vanguard 500 Index Fund. The Vanguard 500 is the world’s largest equity index mutual fund. It replicates the S&P 500, and its return is only negligibly different from the S&P 500. Fees are very low. As a result, the Vanguard…

    • 713 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Given your predictions, recommend whether or not a risk-adverse person should invest in the DOW index fund. Explain your rationale.…

    • 1361 Words
    • 6 Pages
    Satisfactory Essays
  • Good Essays

    Stocks have the best chance of achieving high returns over long periods. A healthy dose…

    • 460 Words
    • 2 Pages
    Good Essays
  • Good Essays

    concentrating an investment in two or three large stocks will eliminate all of your risk.…

    • 7931 Words
    • 32 Pages
    Good Essays
  • Powerful Essays

    Hedge Fund

    • 1259 Words
    • 6 Pages

    Stochastic Simulation and Applications in Finance with MATLAB Programs, (2008), Huu Tue Huynh, Van Son Lai, Issouf Soumare (HLS) [this book may be available as an e-book for students]…

    • 1259 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Deciding to invest is a huge financial step, not something to be taken lightly. In deciding which method, stock or bonds, one has to look at all the angels- the advantages and disadvantages, both immediate and long term.…

    • 402 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    BUS 650 Week 4 DQs

    • 539 Words
    • 3 Pages

    * From the scenario and e-Activity, recommend two (2) bonds that you believe TFC should invest in, and provide a rationale for your recommendation.…

    • 539 Words
    • 3 Pages
    Satisfactory Essays