Stocks Lesson 15

ETFs. You can’t do Value Investing with ETFs. But, you can mimic the Index Investing that John C Bogel made popular with his books and Vanguard. You just have to do it with “sector indexes” that mimic broader market indexes.

ETFs do not have the traditional P/E, debt/equity, 5 year returns, ROE or other fundamental numbers that apply to Vlue Investing. What’s left are performance numbers (returns) and sector evaluation.

Seeking Alpha – This is a great recap of sector ETF movement.

etf.com – The performance tab on this page will let you sort by performance. Good way to find potential ETF buys. 

etfdb.com – See if there is anything here worth using.

Morningstar – rates ETFs.

Barchart – Rates ETFs really well.

etfscreen.com – This site has a “relative strength index” that looks promising.

swingtradebot.com – Interesting website.

Benzinga – Investigate to see what’s there.

Tom Lydon, ETFTrends.com’s founder, uses the 200-day line as a simple buy and sell signal. He buys when an ETF crosses above its 200-day line and sells when it falls about 8% off its 52-week high.

Fund Flows – Are they significant? How so?

etf analytics scoring methodology – ETF.com - Good ETF discussion.

TD Ameritrade – Think risk, ratings, classification, etc.