ETF Trends

(interview with ETF Trends) -

How long have you been blogging?

ETF Trends began in August 2005.

What got you started blogging?

As proponents of exchange traded funds in my asset management firm, we noticed a major hole in the ETF information market. We started the blog to fill that hole and provide investors with the information and tools they need to make investment decisions when it comes to ETFs.

What is the focus of your blog, i.e. how does it set you apart from the other bloggers out there?

We cover a range of information devoted solely to exchange traded funds. Our blog is a mix of current events that could affect funds, strategies, industry information and coverage of the ever-evolving ETF marketplace. ETF Trends updates at least eight times a day with a mix of stories focused on current events, various asset classes, sectors and global regions that impact the world of ETFs.

What is it you hope a reader will come away with when they visit your blog?

We want our readers to come away from our blog with a better sense of how ETFs work, as well as how they can incorporate them into their portfolios. Whatever information readers are seeking, our goal is for them to be able to find it on our site, and we want them to be wiser investors.

Do you like to be edgy in your posts and try and stir up some controversy?

If we have a strong opinion about an issue, we will definitely express it and let our readers know what we think. We want to be a source of unbiased and trusted information; we think readers and subscribers appreciate an opinion and like being given some guidance.

About Tom, The Author

What would you like our readers to know about you?

I am a huge advocate of individual investors and think ETFs are the investment tool of the 21st century. ETF offerings will continue expand. I’m dedicated to continuing to educate investors about all ETFs have to offer.

It’s your blog and you’ve invested so much time into it. Is there a personal connection in your writing to your end users, or do you strictly write what interests you?

I write about what I think is most important. ETFs in general interest me, and if there’s something interesting or unusual going on, we’re going to mention it. I’m also passionate about about educating investors. I’ve seen so many smart people make foolish mistakes when it comes to investing, and I’d like to have some hand in preventing that.

In other words, if you find that your readers enjoy specific topics, does that influence what you write about?

Yes, while we try to write on a wide range of topics, we also understand that our readers are looking for certain information more at some times than others. For example, during the commodities bubble, we increased our coverage of this sector because that’s the information we knew readers were looking for.

Do you trade the markets? If so, when did you start to trade?

We do trade and watch the markets all day, overnight and prior to the U.S. open. However, given that our strategy is specific to moving averages, there is no “best” time to trade. We began trading ETFs a little more than five years ago.

What is your favorite instrument to trade (stocks, options, forex, futures, bonds, etc.)

ETFs are hands-down my favorite. They’re the easiest and most accessible investment tool around.

What is your favorite strategy to trade?

My favorite strategy is the 200-day moving average - when a fund is above it, we’re in; when it’s below that mark or 8% off the recent high, we’re out.

What time frame do you like to trade?

When our indicators dictate a trade is required.

For someone new coming into the markets, what steps would you recommend they use to get started?

I would recommend they think about several things: their goals, their time horizon and their risk profile. Someone in their 40s might have to be a lot more conservative than someone in their 20s. Some people like a lot of risk and thrive on it, while others don’t like it – young or old. Know your limits and act accordingly.

What is the biggest stumbling block you see for most beginner traders, i.e. where do you see them making the biggest mistakes?

Many traders, even the seasoned ones, make the mistake of getting emotionally involved in their investments. If you get attached to your holdings, it will ruin you. You have to be able to let go when the time comes, and you also have to be able to not look back.

In today’s trading environment, where do you see the biggest opportunities for traders?

Traders could see the biggest opportunities in those areas that were the most beat-up in the downturn. For example, financials and real estate. They’re so beaten down that when a recovery begins, they’ll have a lot of room to move forward and grow. Look for the sectors that have gotten punched around.

What do you see in store for the markets in 09?

When banks and governments get a handle on the subprime toxic paper issue is when we’ll begin to see a recovery. Seeing the bleeding stop in real estate will also be a crucial event.

When these events take place, investors will gain the confidence they need to get back into the market.

Do you use technical analysis?

Yes.

If yes, what are your favorite technical indicators?

We use the the 200-day moving average.