I’m Keith DeGreen and this is your Investors Minute.
We’ve seen recently how quickly markets can drop. Declines of around two percent or more in a single day have become too common.
Exchange-traded funds – ETFs — are as nimble as stocks, and can be traded immediately throughout the day. Mutual funds may only be bought or sold at the end of the day. Obviously, much can be lost in the interim.
But protecting your portfolio is not just about minimizing losses. It’s also about protecting your gains. Because we manage nine different ETF portfolios based on risk, we are able to establish soft trailing stop loss points for each ETF we hold to protect all clients at once. These stop-loss points rise as the value of an ETF rises so that we are often able to exit before all gains have been erased.
Be sure to ask your advisor if they have a similar program to protect you.
I’m Keith DeGreen and this has been your Investors Minute.
FEE-ONLY DeGreen Capital Management. Pioneers in low-cost exchange-traded fund investing. Irvine: 949-333-4550. Scottsdale: 480-609-9900. www.DeGreen.com. Minimum portfolio requirement $1,000,000.
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