The ETF Playbook 5: Whatever comes, you will always have a good ETF tool to win
Through this playbook, we aim to provide you with the tools and knowledge necessary to navigate the exciting world of ETF investing with confidence! Join us as we explore the various strategies and opportunities offered by ETFs, and discover how they can enhance your investment portfolio.
Hey, mooers! ![]()
Welcome back to the ETF Playbook, your ultimate guide to mastering ETF trading tools and earning rewards through our playbook!
Today is the final session of our ETF Playbook series. We'll guide you through different ETF tools and features in moomoo and see how they can benefit you in different scenarios. Whether you're a veteran investor or just starting out, understanding the trends and dynamics of ETFs can offer you essential insights and assist you in making smarter investment choices.
Market downsliding or fluctation? ![]()
Time to try Leveraged, Inverse ETFs and Index ETFs ![]()
Since the Federal Reserve Chairman's testimony on July 11, U.S. stocks have been volatile, including a significant dip on July 24, with the S&P 500 and Nasdaq dropping notably. Following a short period of stability, the market's decline continued on August 1, with the Nasdaq falling over 2%. ![]()
At this time, however, it might be a good idea to consider ETF tools like inverse ETFs.
Inverse ETFs
Consider adding inverse ETFs to your portfolio. These ETFs rise as the market falls. $ProShares UltraPro Short QQQ ETF (SQQQ.US)$ and $Direxion Daily Semiconductor Bear 3x Shares ETF (SOXS.US)$ are good for tech-heavy portfolios. Be cautious with position sizes, as these ETFs will fall if the market rebounds, potentially leading to losses.
VIX ETFs
During sharp market declines, the $CBOE Volatility S&P 500 Index (.VIX.US)$ (volatility index) spikes. Trade VIX through ETFs like $iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX.US)$ and $ProShares Ultra VIX Short-Term Futures ETF (UVXY.US)$ , which surged recently. These are suitable for short-term trading only, as long-term holding is risky.
To locate these VIX related ETFs, you can go 2 ways:
a) Find them in ETF> Leveraged ETFs
b) Find them in ETF> Index ETFs
Sectors benefiting from potential easing cycle? ![]()
You can also catch the chances by Thematic ETFs and ETF Heatmap ![]()
Wall Street has seen sharp fluctuations recently, with Tuesday's rally softening the impact of last week's heightened recession worries. Investors are uncertain if the Federal Reserve will prevent a downturn or repeat historical errors by not acting swiftly enough.
Market predictions suggest a likely 0.5% rate cut by the Fed in September and further reductions totaling 2.25 percentage points by next year's end, based on Fed funds futures contracts.
But, can I also benefit from rising sectors? ![]()
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The answer is Yeeeeeesssss! ![]()
Method 1: Thematic ETF
Just go to ETF > Thematic ETF
Method 2: Heat map
Same here! You can also find it by going to ETF> Heat map
Your Feedback Matters!
Would you use invest in ETF using all the great features and tools we talked about? Write your thoughts in the comment section to earn 33 points! We will put your comments into our future contents.![]()
Duration: Till 11:59 PM 16th August 2024. Don't hesitate to drop your answer now!
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Prof Ho : Yes, thematic ETFs are particularly useful
102362254 : Yes, I find the Inverse ETFs feature very helpful. I plan to add some to my portfolio as a hedging tool to potentially offset losses during market downturns. These inverse ETFs go up when the market goes down. I’ll be prudent in my investment sizing though, as such ETFs could lose value if the market rebounds faster than I expected.
Each ETF feature and tool has its merits, but I'd choose based on what aligns best with my investment strategy at any given time.
72997525 : Try an inverse ETF
72776924 : As a hedge.
Meme_Short_Queen : I like all the different options, filters and groupings of ETF! great work Team Moo!
QueenOfStocks : Yes I plan to use the ETF strategy and the tools mentioned to leverage this next bull cycle. It’s only up from here
Bobbyjee : I believe focussing on index ETF is better since we have multiple equities under one umbrella