Anyone else use ETF's?

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I am not sure. . .related to the cult thread, it seems most people here are mutual fund afficiando's but maybe a few of you own ETF's out there.

Does anyone take the role of "mutual fund manager" or "porfolio manager" and put stops and calls on their ETF's?

I'd be interested in hearing your system.

For instance, instead of using S & P 500 Index Fund and letting it ride. . .maybe using SPY or SPDR and putting a stop order if it goes over a 15% return and maybe a "put" (is that the term) if it's dropped and you want to get in.

Definitely not your "buy and hold" strategy.

[disneysteve]

I like the idea of an ETFs for a taxable account to better manage the tax implications. The problem is I invest monthly, and have for nearly 16 years. I can't be paying a commission every time I send in $100. Even with a low cost brokerage, that would add up to a significant amount of money over the years.

I think ETFs are best if you are investing a lump sum.

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DS,

True. . .which is what I did. Makes sense that's it's harder unless you are mid or end game in portfolio to use ETF's.

[JBinKC]

I use them occasionally. For the most part they are pooled sector investments. They work very well as a shortcut if you don't have the time to research the particulars of an individual company within an investment class but thoroughly understand the general macroeconomics of the investment.

[Slug]

I use ETF's in my Roth. I buy SPY and some sector and country ETF's. I don't have stops on any of them. And, I don't sell covered calls or puts in my Roth. My retirement is too important to be messing in options (at least right now).

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I use ETF's in my Roth. I buy SPY and some sector and country ETF's. I don't have stops on any of them. And, I don't sell covered calls or puts in my Roth. My retirement is too important to be messing in options (at least right now).

Yeah. . .I just put a stop in to prevent losses (which seems actually rather conservative). I am not betting on the fact that my ETF will drop.

It seems to me if you have some assets to play around with, especially SPY. . .when I rebalanced 1x/year. . .I would put a stop at -10% of the share price and then let it ride up hopefully 20%.

I know. . .I know. . .I am probalby trying to beat the market with this. . .but I think it's a little deeper than that. . . it's about deciding each year how much loss you can tolerate in your portfolio rather than getting to the end of the year and saying, "Whaaaaaaa? I lost 30%???"

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Yeah. . .I just put a stop in to prevent losses (which seems actually rather conservative). I am not betting on the fact that my ETF will drop.

It seems to me if you have some assets to play around with, especially SPY. . .when I rebalanced 1x/year. . .I would put a stop at -10% of the share price and then let it ride up hopefully 20%.

I know. . .I know. . .I am probalby trying to beat the market with this. . .but I think it's a little deeper than that. . . it's about deciding each year how much loss you can tolerate in your portfolio rather than getting to the end of the year and saying, "Whaaaaaaa? I lost 30%???"

Yeah, actually, I am quite OK with this! Although I prefer to just buy and sell based on MY financial situation and strategy rather than market trends, but with a reasonable stop-loss in place, at least you're protecting most of the gains you've made thus far. This is especially true considering how strongly you feel about keeping the SLV. So, if you must keep it, stop-loss it.

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Sweeps,

BTW, I called Schwab today and they informed me that you did not cost me $12.95.

I am only charged when the order is executed in the market. So, my stop order cost me nothing.

I could place stop orders all year long and lock in gains if I wanted for free (except when the market inevitably dropped).

[sweeps]

Happy to be of service.