Became your own fund manager using ETF?

After the Financial turnmoil, most of the people afraid of letting other people to manage their own bloody money. I total agreed with it and I never believe what the fund managers and banks said. This people also said with their service, you can diversifilied your risk with their expert knowledge. Honestly, it is not 100% true. Actually, you can also trade globle market with a good broker. Centainly, we have to bear the counter party risk under this critical moment in this century.

Back to the topic, I just want to say actually we can use the Exchanged Trade Fund (ETF) to act as one of the vehicle to trade in global market. Nowsdays, ETF market is very mature and you can use these vehicles to short, long in different markets. e.g commodity, region markets, treasury, currency etc.

So what is ETF, according to investerpedia.org, you can find the following explaination :

" A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold.
Because it trades like a stock, an ETF does not have its net asset value (NAV) calculated every day like a mutual fund does. By owning an ETF, you get the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share. Another advantage is that the expense ratios for most ETFs are lower than those of the average mutual fund. When buying and selling ETFs, you have to pay the same commission to your broker that you'd pay on any regular order. "

Now, let's introduce some ETF, we are familiar first.

Now China is the only countries have over8 % GDP forecast in 2009, if we are in HK, we can trade the 2823 in HK Market, However, in US market, you can also trade it through "FXI".

Both 2823 and FXI is managed by iShares. However, please read clearly the document to understand your risk before you trade.

However, sometimes you also worry the market will pointing down instead of up, then you can do reverse side ETF. For instance you have short view on china index, you can try UltraShort FTSE/Xinhua China 25 " FXP" issued by Powershares.

With this two types of vehicle, as a individual investor, we can also do some hedging. However clearly to manage the hedging, we have to do the detail calculation on corelation of this ETF and the market index.

I am not working in any company but I just don't like the fund managers and the banks said customer can only managed our wealth effectively through them.

I strongly believe enrich knowledge through sharing.

Next time, I will share with you about the both long and short Commodity ETF