What are some of the exchange-traded funds that swing traders should always keep an eye on? Here is a list of 7 ETFs You Need to Know that’s good from the first trading day of the week to the last.
Here are 7 ETFs You Need to Know
The ^SPY^ is among the most widely-traded exchange-traded funds in the stock market. Based on the S&P 500 Index, the SPY is an excellent choice for swing traders and longer term investors alike looking for a liquid proxy for U.S. stocks.
Swing traders and investors wanting more exposure to smaller cap stocks often rely on the ^IWM^ (below) for guidance.
The IWM is based on the Russell 2000 Index of small cap stocks, with small cap typically meaning a market capitalization of less than $450 million.
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The ^UYG^ (below) is one of the more popular ways that professional traders track and trade the financial sector. The UYG is a 2x leveraged fund, being leveraged 2 to 1 to the daily performance of the Dow Jones U.S. Financials Index.
Other widely-tracked financial ETFs include the ^XLF^, which is nonleveraged.
For swing traders and investors looking for liquid overseas exposure – especially to emerging markets – the ETF market provides a number of opportunities such as the ^EEM^.
With buyers moving back into precious metals, swing traders are paying more attention to commodity-based ETFs like the ^GLD^ and the ^SLV^. Both GLD and SLV track the bullion price of gold and silver respectively, rather than the share prices of gold and silver mining stocks.
David Penn is Editor in Chief of TradingMarkets.com