What yield can I expect from an expertly traded ETF?

Question

With properly traded ETF's what is the ballpark figure of a low end and a high end of what you can make from these trades? I like to study options and know that the ballpark figure of what you can make is zero to on rare occasion up to 1000%...though most of the time it is 30% if you have a nice little pop in the stock. Does anyone have a realistic ballpark of what to expect from ETF trades?

Answer 1

Your question is too broad for anyone to give a realistic answer. Asking about "ETF" trades is the equivalent of asking about trades on virtually the entire world, because there are ETFs that range from representing, quite literally, entire markets, entire countries, entire regions, all the way down to the tiniest niches. No one broad answer is useful.

Answer 2

Do you mean profit rather than yield?

It depends what the ETF is tracking. There's no gearing so just think what rise (or fall) the underlying instrument could make. Short Oil: if oil drops from $140 to $100 That's about 30% gain.  I suppose that's what you could be looking at. There's no ballpark figure. You could do an ETF on a CFD to get some gearing.

Answer 3

Are you asking about ETFs or options?  Two very different animals.

Answer 4

ETFs a investment vehicles and not trading vehicles.

There's no documentation available as to what one makes "trading" the product, and if they tell you numbers, they're lying and if you belive it you're foolish.

Your not going to get sufficient leverage to trade ETFs to satisfy youself.  The volume usually isn't there, the prices are much higher which lowers leverage, and there very seldom those price swings that make trading profitable

But try going the the ETF section of MSN Money, using the tab for ETF you can learn from the pros.

http://moneycentral.msn.com/home.asp

But if you are looking for trading vehicles, it would be in your best interest to stay with options.  Try visiting Schaffers

forhttp://www.schaeffer.com/ for some option advise and strategies.  I think you have more opportunities with options than you would with ETFs.

Remember trading isn't always about making profits, it also about protecting what you have.   With good money management you can be a very profitable trader and you don't have to be right 100% of the time, if you're right 60% your making a ton of money.  

Good luck, it would interesting to see what route you take and how you make out.  Hang in there and trade well