We have talked about ETFs quite a bit. These investment products trade just like a stock but are valued based on a collection of stocks or other factors. They allow you to trade an entire index, for example, just like you would buy a single stock. Below is a list of the major index ETFs and their symbols. Another great feature of ETFs is that there are inverse ETFs that move in the opposite direction of the factors the ETF is based on. For instance, a very popular ETF is the SPY which tracks the S&P. Here is a chart of the SPY:

Now compare that to a chart of the inverse ETF that tracks the S&P.

This makes it easier to hedge against a potential market drop or continue to pull in income even when markets are bearish. Using leveraged ETFs allow you to increase the impact of each move in the index the ETF is tracking. Here is the list of the bullish/standard index ETFs and their bearish/inverse counterparts:

Most of these ETFs have an active options market as well to even further increase their flexibility as tool for pulling steady income from a transitioning market like we are in now. Be sure to check out the article from the other day on how to pick ETFs for options trades to make sure you can get the most out of each trade.

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily