ETF Strategies - ETFs offer an array of investing opportunities - they can be optioned, shorted, hedged, and bundled. Still, most individual investors should stick to a few simple ETF strategies.
ETFs can be sold short, even on a downtick. (Thanks to a regulation many feel is out-of-date, regular stocks cannot be shorted if the last trade price is lower than the next-to-last trade price.)
Alternative to Money Market fund is a short-duration bond ETFs. These investments often pay double or triple money-market yields. However, don't blow your gains on brokerage fees. Although some money market funds make investors pay early withdrawal penalties, brokerage fees to sell your bond ETFs could run even higher. But if you're just looking for something less risky than stocks yet still fairly secure and are willing to commit for a while, you might appreciate their higher returns.
|The ETF Book: All You Need to Know About Exchange-Traded Funds|
by Richard Ferri