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Strategies & Market Trends : Underexposed Technical Analysis
AQN 5.840-1.2%Dec 4 3:59 PM EST
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To: Underexposed who wrote (424)8/16/2019 9:21:04 AM
From: Underexposed1 Recommendation

Recommended By
ItsAllCyclical

   of 914
 
DIS: Final Thoughts on Investing in ETFs


I have come to the conclusion that when it comes to equity and dividend stocks I don't like investing in ETFs.

Here is why.....

1. You are dealing with a heavily manipulated investment vehicle.... if the ETF becomes overly bullish or bearish there is one or more mechanism (AP) to adjust the market price to the NAV... I don't like manipulated investments.

2. Because of this manipulation I am not confident in applying my TA to an ETF

3. You eliminate Fundamental Analysis from your judgement of stock picking. There is no income or debt information on the ETF... You have maybe 100 companies in the ETF each with its pluses and minuses with respect to their fundamentals... they are all smooched together in an average.

I don't think that you can be a "Value" investor and invest in ETFs.

4. On dividend paying ETF's... you are not getting the best dividend available.... you are getting an average dividend less a portion taken by the managers of the ETF. I thought I would look at the constituents of the ETF to find the good stock wrt dividend and performance. It was a waste of time... too many ETFs and too many constituents to check out... using a stock screener would narrow down prospects quicker.

Conclusion

I might use an ETF if I wanted to track an index or something that I don't normally invest in....bonds for example... But for equities I prefer to invest in specific companies where I can use the tools I have developed to final stocks that I think are favourable.

I don't view this investigation as a waste of time. I have always wondered how ETFs work and now I know.

I will get back to doing what I do best.

UE
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