How to use ETFs (Exchange-Traded Fund) to invest

Watch on YouTube

Now Playing

Transcript

40 segments

0:00

Give me a summation of the book.

0:02

>> So, the book is about how you can use

0:05

ETFs to invest what we're seeing in the

0:08

markets through the lens of ETFs. ETFs

0:10

are a great measurement of investor

0:12

behavior, right? I can see flows,

0:15

volumes, and product launches every

0:17

single day.

0:18

And they are becoming more and more

0:19

ingrained in the market. On an average

0:21

day, an ETF will do about 30% of volume.

0:24

>> Say that again.

0:25

>> ETFs will do about 30% of US exchange

0:27

volume on a given [clears throat] day.

0:29

>> So, in other words, total trading volume

0:32

stocks and ETFs is basically the

0:34

summation of all the all the trading

0:36

volume. On a daily basis, ETFs are 30%

0:39

of the total.

0:40

>> Yes. And stocks are the remaining 70%.

0:43

>> growing.

0:44

And then during more stressful

0:45

environment, when everyone's freaking

0:47

out, they'll go up to 40 to 45% cuz

0:49

people are adjusting exposures.

0:50

>> I see.

0:51

>> So, they're this great tool.

0:52

>> They're selling tech and they're buying

0:53

staples, whatever.

0:55

>> they're doing. Could be used for

0:56

hedging, shorting, whatever it might be.

0:58

So,

0:59

along with building charts, I handle all

1:02

of our ETF research at Strategas as

1:03

well. And so, I want to tell folks how

1:05

they can There's 5,000 of them, right?

1:07

How can we

1:09

>> ETFs.

1:09

>> 5,000 ETFs. How many stocks are there?

1:11

Less than that.

Interactive Summary

Ask follow-up questions or revisit key timestamps.

The discussion revolves around a book detailing how Exchange Traded Funds (ETFs) can be used to interpret market trends and investor behavior. ETFs are highlighted as excellent indicators due to observable flows, volumes, and product launches. They are increasingly integral to the market, representing about 30% of daily US exchange trading volume on average, and up to 40-45% during stressful periods as people adjust exposures. The speaker, who handles ETF research, notes there are currently 5,000 ETFs available.