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Few Disadvantages of the ETF Trading System

February 10th, 2009 . by admin

Although many investors prefer the ETF trend trading system over the other financial instruments available in the stock market due to its many advantages, it may also have some disadvantages. For instance, ETFs offer almost zero advantage to long term, tax-deferred, about to retire investors. Another excahnge-traded fund disadvantage, as shown in a recent survey, is the unknown and untested indexes that many ETFs use. It is also claimed that ETFs manipulate the market prices and are used for short-selling which contributed to the 2008 market collapse. These claims are however unfounded and the advantages of the ETFs still far outweigh its disadvantages.


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