Examining “Dynamic” ETFs

The vast majority of the 1,300+ exchange-traded products now available to U.S. investors are alike in that they offer static exposure to a specific asset class, whether it be stocks, bonds, commodities, volatility futures, or other “exotic” securities. While the composition of the underlying portfolios changes regularly, the type of exposure offered–whether it be soybean futures, large cap U.S. stocks, or inflation-protected bonds–remains generally stable. But a number of relatively new exchange-traded products differentiate themselves by offering “dynamic” investment strategies that have the potential to shift allocations between multiple asset classes depending on price trends, volatility, or other observable market conditions [see also Six Noteworthy ETF Innovations]. In other words, these ETPs offer low maintenance access to investment strategies that call for investors to switch their exposure between different assets depending on the market environment, in many cases providing a “hands off” solution that would be time consuming and/or expensive [...] Click here to read the original article on ETFdb.com. Related Posts: RBS Launches Crude Oil Trendpilot ETN When ETNs Are Better Than ETFs Gold ETF For Trend Followers (TBAR) Debuts RBS Launches Mid Cap TrendPilot ETN (TRNM) Not All Mid Cap ETFs Are Created Equal