What are Exchange Traded Funds (ETFs)

Exchange Traded Funds (ETFs) give investors the opportunity to buy or sell an entire portfolio of stocks or bonds in a single transaction, as easily as buying or selling a share of stock.
Exchange traded funds (ETFs) represent ownership in either funds or unit investment trusts that hold portfolios of common stocks or bonds, which are designed to generally correspond to the price and yield performance of their underlying indexes, either broad stock market, stock industry sector, international stock, or U.S. bond. The American Stock Exchange (AMEX) in New York pioneered the concept of ETFs and now lists over 300 different funds on indices of broad stock markets, stock industry sectors, international stocks, U.S. Treasury and corporate bonds and commodities. The Australian Stock Exchange (ASX) also lists a few ETFs albeit at a much lower liquidity and trading volume than the major AMEX funds.

Major features of ETFs

Tax efficiency: ETFs, like index funds in general, tend to offer greater tax benefits because they generate fewer capital gains due to low turnover of the securities that comprise the portfolio. Generally, an ETF only sells securities to reflect changes in its underlying index. Exchange trading of ETFs further enhances their tax efficiency. Investors who want to liquidate shares in an ETF simply sell them to other investors through exchange trading.
Lower costs: Expenses can have a significant impact on returns for investors. ETFs, in general, have significantly lower annual expense ratios than other managed investment products. ETFs are less likely to experience high management fees because they are index-based, not "actively" managed. And, since they trade on an exchange, ETFs are insulated from the costs of having to buy and sell securities to accommodate shareholder purchases and redemptions. Of course, an investor selling ETF shares may realize capital gains or losses, as with common stocks. Purchases or sales of exchange traded funds are subject to brokerage commissions.
Transparency: ETFs generally are designed to correspond to the performance of their underlying index or commodity.
Buying and selling flexibility: Because they are exchange traded, ETFs can be:

bought and sold at intraday market prices
purchased on margin
sold short, even on a downtick (unlike common stocks)
traded using stop orders and limit orders, which allow investors to specify the price points at which they are willing to trade

All day tracking and trading:ETFs are priced and traded throughout the day, and are not restricted to once-a-day trading. Because the pricing of ETFs is continuous during trading hours, investors will always be able to obtain up-to-the-minute share prices from their broker or financial adviser.
Diversification: Because each ETF is comprised of a basket of securities, it inherently provides diversification across an entire index. Additionally, the expanding universe of ETFs available at the American Stock Exchange offers exposure to a diverse variety of markets, including:

broad-based equity indexes (such as total market, large-cap growth, and small-cap value)
broad-based international and country-specific equity indexes (such as Europe, EAFE, and Japan)
industry sector-specific equity indexes (such as healthcare, energy, and real estate)
U.S. bond indexes (such as long-term Treasury bonds and corporate bonds)
commodities (such as gold, silver, and oil)

Dividend opportunities:Dividends paid by companies and interest paid on bonds held in an ETF are distributed to ETF holders, less expenses, on a pro rata basis. Of course, not all companies will pay dividends. Based on past performance, few, if any, distributions can be expected from certain ETFs. There may also be opportunities for reinvestment of distributions.
Risks of ETFs
ETF shareholders are subject to risks similar to those of holders of other diversified portfolios. A primary consideration is that the general level of stock or bond prices may decline, thus affecting the value of an equity or fixed income exchange traded fund, respectively. This is because an equity (or bond) ETF represents interest in a portfolio of stocks (or bonds). When interest rates rise, bond prices generally decline, adversely affecting the value of fixed income ETFs. Moreover, the overall depth and liquidity of the secondary market may also fluctuate.
An exchange traded sector fund may also be adversely affected by the performance of that specific sector or group of industries on which it is based.
International investments may involve risk of capital loss from unfavorable fluctuations in currency values, differences in generally accepted accounting principles, or economic, political instability in other nations.
Although exchange traded funds are designed to provide investment results that generally correspond to the price and yield performance of their respective underlying indexes, the ETFs may not be able to exactly replicate the performance of the indexes because of expenses and other factors.

Which markets do we trade?

In our trading recommendations we concentrate on the most liquid markets around the world and have developed a longer term fund switching model. In this model we follow close to 40 of the most liquid ETFs around the world and select the ETFs that our longer term trading model indicates to have the highest performance probability. Currently the markets we actively trade and recommend are:
Asia Pacific

EWA	Australia
EWH	Hong Kong
EWM	Malaysia
EWS	Singapore
EWT	Taiwan
EWY	South Korea
IFN	India
EJW	Japan
EPP	Asia less Japan

Latin America

ILF	Latin America
EEM	Emerging Markets
EWC	Canada
EWW	Mexico
EWZ	Brazil

General

GLD	Gold
TLT	LT Treasuries
LQD	Corp Bonds
RWR	Real Estate

USA

DIA	Diamonds
SPY	Spyders (S&P 500)
QQQQ	NASDAQ 100
IJJ	S&P 400 MidCap
MDY	S&P MidCap
IJS	S&P 600 SmallCap
IWM	Russel 2000

Europe

EWD	Sweden
EWG	Germany
EWK	Belgium
EWL	Switzerland
EWN	Netherlands
EWO	Austria
EWP	Spain
EWQ	France
EWU	UK
EFA	Europe AFE
EZU	Europe
EKU	Europe

However, we have the capability of trading the following on AMEX
1st TR DB Str Vlu Fund Common Share
Claymore Bny Bric Common Share
Claymore Sabr Insdr Common Share
Claymore Sabrient Stealth Common Share
Claymore Zacks Sector Rotation Common Share
Claymore Zacks Yield Hog Common Share
Consumer Discrection Select Sector SPDR Inde
Consumer Staples Select Sector SPDR Fund Ind
Diamonds Trust Common Share
DJ Euro Stoxx 50 Common Share
DJ Wl Ttl Index ETF
DJ Ws Reit Index ETF
Energy Select Sector SPDR Fund Index ETF
Euro Stoxx 50 Fund Sbi Common Share
Financial Select Sector SPDR Fund Index ETF
First Tr AMEX Biotech Inx Fund Common Share
First Tr DJ Internet Inx Fund Common Share
First TR/VAL LN & Ibbots EQ AL Common Share
First Trust Dow Jones Select Common Share
First Trust Ipox 100 Index Fund Common Share
FT Val Line Divd Common Share
Ftetf Morningstar DV Common Share
Health Care Select Sector SPDR Fund Index ET
Industrial Select Sector SPDR Fund Index ETF
iShares Comex Gold Trust Index ETF
iShares DJ US Cons Goods Index Fund
iShares Djit Index Fund Index ETF
iShares Ftse/Xinhua China25idx Index ETF
iShares Iboxx Cp BD Index ETF
iShares Lehman Aggregate BD Fund Index ETF
iShares MSCI Belgium Index Fund
iShares MSCI Brazil Index Index ETF
iShares MSCI Eafe Fund Index ETF
iShares MSCI Eafe Growth Index Fund Index ET
iShares MSCI Eafe Value Index Fund Index ETF
iShares MSCI Emerg Mkts Fund Index ETF
iShares MSCI Emu Fund Index ETF
iShares MSCI France Index Fund
iShares MSCI Hong Kong Index Fund
iShares MSCI Italy Index Fund
iShares MSCI Japan Index Fund
iShares MSCI Malaysia (Free) Index Fund
iShares MSCI Netherlands Index Fund
iShares MSCI Pac EX-Jap Fund Index ETF
iShares MSCI S Africa Fund Index ETF
iShares MSCI Singapore (Free) Index Fund
iShares MSCI Spain Index Fund
iShares MSCI Sweden Index Fund
iShares MSCI Switzerland Index Fund
iShares MSCI United Kingdom Index Fund
iShares Russell 1000 Growth Index ETF
iShares Russell 1000 Index ETF
iShares Russell 1000 Value Index ETF
iShares Russell 2000 Growth Index ETF
iShares Russell 2000 Index ETF
iShares Russell 2000 Value Index ETF
iShares Russell 3000 Growth Index ETF
iShares Russell 3000 Index ETF
iShares Russell 3000 Value Index ETF
iShares S&P 100 Index Fund Index ETF
iShares S&P 500 Index Fund
iShares S&P 500/Barra Growth Index Fund Inde
iShares S&P 500/Barra Value Index Fund Index
iShares S&P Europe 350 Index Fund Index ETF
iShares S&P Midcap 400 Index Fund
iShares S&P Midcap 400/Barr Growth Ix Fund I
iShares S&P Midcap 400/Barra Value Ix Fund I
iShares S&P Smallcap 600 Index Fund
iShares S&P Smcap 600/Barra Growth Ix Fund I
iShares S&P Smcap 600/Barra Value Ix Fund In
iShares S&P/TOPX Index ETF
iShares Silver Trust Index ETF
iShares TR Cohen & Steers Realty Index ETF
iShares Tr DJ US Basic Materials Index Fund
iShares Tr DJ US Energy Sect Index Fund
iShares Tr DJ US Financial Index Fund
iShares Tr DJ US Fincl Sect Index Fund
iShares Tr DJ US Healthcare Index Fund
iShares Tr DJ US Industrial Index Fund
iShares Tr DJ US Real Estate Sect Index ETF
iShares Tr DJ US Services Index Fund
iShares Tr DJ US Technology Idx Fund
iShares Tr DJ US Telecom Sect Index Fund
iShares Tr DJ US Total Market Index Fund
iShares Tr DJ US Utility Sect Index Fund
iShares TR Gold Sachs Tech Index ETF
iShares TR GS Nat Res Fund Index ETF
iShares TR GS Networking Index ETF
iShares TR GS Semicond Fund Index ETF
iShares TR GS Software Fund Index ETF
iShares TR Leh 20+ YR Tres BD Index ETF
iShares TR Leh 7-10yr Tres BD Index ETF
iShares TR NQ Biotech Index Fund Index ETF
iShares TR Russell Mid CAP Grw Index ETF
iShares TR Russell Mid CAP Idx Index ETF
iShares TR Russell Mid CAP Val Index ETF
iShares TR S&P 1500 Index Fund Index ETF
iShares TR S&P Glb Energy Index ETF
iShares TR S&P Glb Fincls Index ETF
iShares TR S&P Glb HC Index ETF
iShares TR S&P Glb Infotec Index ETF
iShares TR S&P Glb Telecom Index ETF
iShares TR S&P Lat America 40 Index ETF
iShares Trleh 1-3 YR Tres BD Index ETF
Ishr DJ Sel Idx Fund Common Share
Materials Select Sector SPDR Fund Index ETF
MKT Vect Gold Mnrs Common Share
NASDAQ-100 Trust Series I Common Share
PowerShares Aerospace & Defense Index ETF
PowerShares Biotech & Genome Index ETF
PowerShares DB G10 Currency Harvest Index ET
PowerShares Dynamic Building Index ETF
PowerShares Dynamic Energy Exp Index ETF
PowerShares Dynamic Energy Sctr Prtfl Index
PowerShares Dynamic Hardware & Consumer Inde
PowerShares Dynamic Hlthcare Sctr Prtfl Inde
PowerShares Dynamic Insurance Index ETF
PowerShares Dynamic Magniquant Prtfl Index E
PowerShares Dynamic Mid CAP Gr Index ETF
PowerShares Dynamic Mid CAP Va Index ETF
PowerShares Dynamic Oil Servic Index ETF
PowerShares Dynamic Retail Por Index ETF
PowerShares Dynamic Sftw Index ETF
PowerShares Dynamic Small CAP Index ETF
PowerShares Dynamic Small CAP Index ETF
PowerShares Dynamic Small CAP Index ETF
PowerShares Dynamic Small CAP Index ETF
PowerShares Dynamic Tchnlgy Sctr Prtfl Index
PowerShares Dynamic Telecom & Wireless P Ind
PowerShares Dynamic Utilities Index ETF
PowerShares ETF Tr Dynamic Index ETF
PowerShares ETF Tr Dynamic Index ETF
PowerShares Food & Bev Index ETF
PowerShares Gold Drag Usx Chna Index ETF
PowerShares Hi Yld Eq Div Achv Index ETF
PowerShares Leisure & Entmnt Index ETF
PowerShares Lux Nanotech Portf Index ETF
PowerShares Media Portfolio Index ETF
PowerShares Networking Port Index ETF
PowerShares Pharm Index ETF
PowerShares Semiconductor Index ETF
PowerShares Value Line Timeliness Select Ind
PowerShares Water Resource Portfolio Index E
PowerShares Wilderhill Clean E Index ETF
PowerShares Zacks Micro CAP PO Index ETF
PowerShares Zacks Small CAP PO Index ETF
Proshares Dow 30 Common Share
Proshares Midcap 400 Common Share
Proshares Qqq Common Share
Proshares S&P 500 Common Share
PS DB Commodity Idx Trk Common Share
Pwshrs Div Achvrs Prt Common Share
Pwshrs High Grwth Prt Common Share
Pwshrs International Div Prt Common Share
Ryder ETF TR S&P Equal Weight Common Share
Rydex Russell Top 50 ETF Common Share
Rydex S&P Midcap 400 Pure Value Common Shar
Rydex S&P 500 Pure Growth Common Share
Rydex S&P 500 Pure Value Common Share
Rydex S&P Midcap 400 Pure Growth Common Shar
Rydex S&P Smallcap 600 Pure Growth Common Sh
Rydex S&P Smallcap 600 Pure Value Common Sha
S&P 500 Depository Receipts (SPDR) Index ETF
S&P Midcap Dep Recpts Common Share
Short Qqq Proshares Common Share
Shrt Dow30 Proshares Common Share
Shrt Mc400 Proshares Common Share
Shrt S&P500 Proshrs Common Share
SPDR DJ Gbl Ttn Index ETF
SPDR DJ Wl Lc Index ETF
SPDR DJ Wl Mc Index ETF
SPDR DJ Wl Sc Index ETF
SPDR DJ Wllc Gt Index ETF
SPDR DJ Wllc Vl Index ETF
SPDR DJ Wlmc Gt Index ETF
SPDR DJ Wlmc Vl Index ETF
SPDR DJ Wlsc Gt Index ETF
SPDR DJ Wlsc Vl Index ETF
SPDR S&P Biotech Index ETF
SPDR S&P Divdend Index ETF
SPDR S&P Hm Bldr Index ETF
SPDR S&P Mtl&Mng Index ETF
SPDR S&P O&G Equ Index ETF
SPDR S&P O&G Exp Index ETF
SPDR S&P Pharma Index ETF
SPDR S&P Retail Index ETF
SPDR S&P Semicnd Index ETF
streetTRACKS Gold Trust Index ETF
Sttrk Kbw Bnk Index ETF
Sttrk Kbw Cpmkts Index ETF
Sttrk Kbw Insure Index ETF
Sttrk Kbw Rgl Bank Common Share
Sttrk Ms Tech Index ETF
Technology Select Sector SPDR Fund Index ETF
Ultra Dow30 Proshrs Common Share
Ultra Mc400 Proshrs Common Share
Ultra Qqq Proshares Common Share
Ultra S&P500 Proshrs Common Share
US Oil Fund ETF Common Share
Utilities Select Sector SPDR Fund Index ETF
Vanguard Consum Discret ETF Index ETF
Vanguard Consum Staples Vipers Index ETF
Vanguard Dvnd ETF Index ETF
Vanguard Emerging Markets Vipe Common Share
Vanguard Ener ETF Index ETF
Vanguard European Vipers Common Share
Vanguard Extended Market Common Share
Vanguard Financials ETF Index ETF
Vanguard Growth Vipers Common Share
Vanguard Health Care ETF Index ETF
Vanguard Info Tech ETF Index ETF
Vanguard Lg CAP ETF Index ETF
Vanguard Materials ETF Index ETF
Vanguard Mid CAP ETF Index ETF
Vanguard Mid-CAP Growth Common Share
Vanguard Mid-CAP Value Common Share
Vanguard Pacific Vipers Common Share
Vanguard Sm CAP Grw ETF Index ETF
Vanguard Sm CAP Val ETF Index ETF
Vanguard Small CAP ETF Index ETF
Vanguard Spec Fds Reit ETF Index ETF
Vanguard Tot Stk Mkt Idx Viper Index ETF
Vanguard Utilities ETF Index ETF
Vanguard Value ETF Index ETF
Vanguard World Fds Ind ETF Index ETF
Vanguard World Telecom ETF Index ETF
Webs Australia Common Share
Webs Austria Common Share
Webs Canada Common Share
Webs Germany Common Share
Webs Mexico (Free) Common Share
Webs South Korea Common Share
Webs Taiwan Common Share
This listing is subject to change without notice.

Why TradingPro for ETFs?

Access to over 300 ETFs listed on the American Stock Exchange
Daily recommendations with fully disclosed performance figures. TradingPro is the only provider who tracks performance in this way
The ability to leverage into ETF positions by doing a CFD on an ETF
The opportunity to short an Index Fund
Direct exposure to country or sector indexes
Private account manager
Multiple options for order placement including email and phone. An online order platform will be available in the near future
Weekly commentary and monthly support sessions
Unlimited phone, email and online support
A comprehensive Home Study Course (optional extra)

Fees and charges

Commission: Phone / Email: 0.20 % of consideration (share price times number of shares) with a minimum of $ 20. All phone / email orders are checked by us on a best endeavour basis.
Financing: Long positions: Base Rate + 3 % Short positions: Base Rate - 3 % Free equity: Base Rate - 1 %. The base rate tracks but does not necessarily mirrors the Reserve Bank of Australia Interbank Cash rate.
For all long positions an interest charge is debited to the investor on a daily basis; for all short positions an interest credit is received by the investor. Details are available in a CFD Product Disclosure Statement which is available on request.

Performance of recommendations