NEW YORK ( FMD Capital Management) -- Constructing a well-balanced portfolio takes time, tools and discipline in order to implement a plan that will meet your goals. My preferred investment vehicle to construct a diversified portfolio is the exchange-traded fund. I love ETFs because they are low cost, transparent, liquid and easy to trade. They allow you the ability to set automatic stop losses as a function of managing risk and have greater flexibility than a traditional mutual fund.As I wrote several months ago, the first step in this process is selecting core holdings that will be the foundation from which you can ultimately expand. These core positions will give you broad-based exposure and directional bias in the market to keep pace with rising stock prices. However, a core position will take you only so far. Ultimately, getting exposure to specific sectors or tactical trading ideas will shape your portfolio to your specific investment preference.
How to Add Alpha Using Tactical ETFs
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