Many investors and advisors know that ETFs are not only a low-cost, effective means of capturing the performance of almost any segment of the market, they are also powerful tools for monitoring market trends. This dual purpose of ETFs is where etf.com’s Markets Monitor comes in as a powerful tool.
Learn more about how ETFs can be used to monitor market trends and how the Markets Monitor tool efficiently fills this need for investors and advisors.
How Can Investors Use ETFs to Monitor Market Trends?
Investors can use exchange-traded funds as a tool to monitor stock market trends in several ways, including sector rotation trends, market index tracking, style investing, international markets and technical analysis.
Here are a few common ways investors use ETFs to monitor market trends:
SPY, QQQ: Tracking Market Trends With ETFs
Markets Monitor provides investors and financial advisors a broad view of performance trends through the lens of major market ETFs. Users of etf.com’s Markets Monitor can see a summary of performance of these ETFs, or they may drill down to specific areas of the market, including equities, sectors, factors, global markets, fixed income, commodities and market movers.
Within each of these tool options, investors and advisors can handpick among preselected ETFs that represent major market indexes.
For example, if a user wanted to see performance trends for the S&P 500, the Nasdaq-100, REITs, crude oil and China stocks in one consolidated view, they could select those options in the tool and see trends on those market segments, as represented by the SPDR S&P 500 ETF Trust (SPY) , the Invesco QQQ Trust (QQQ) , the Vanguard Real Estate ETF (VNQ) , the United States Oil Fund LP (USO) and the SPDR S&P China ETF (GXC) , respectively.
How to Use etf.com’s Markets Monitor
Here’s a breakdown on how to use the various elements in etf.com’s Markets Monitor :
Bottom Line on etf.com's Markets Monitor Tool
The Markets Monitor tool at etf.com is a quick and efficient means of following major market trends through the lens of ETFs that track the major market indexes. It's important to note that while ETFs can provide valuable information about market trends, the Markets Monitor tool does not replace the broader investment decision process, which typically includes further research and analysis.
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