ETF TRADING RESEARCH

ETFs To Buy For The 4th Quarter

Welcome to ETF Trading Research Your premier site to instantly diversify your

portfolio to make more money! Want More Research and Strategies on ETFs visit our

website ETFtradingresearch.com

Get Your Free Report On Investing In ETFs!

We’ll tell you about thisSpecial Offer

at the end of the video!

Hi, My name is Corey and I‘m with ETF Trading Research, today were

reviewing our recently published article…

ETFs To Buy For The 4th Quarter

The 3rd quarter was rough one for stocks. The S&P 500 is down nearly 9% during the quarter. What’s more, the large cap

index is down more than 11% from its all-time high.

And it fell below the critical technical support of the 200-day moving average.

Don’t forget, the 200-day moving average is one of the most closely watched

trends.

Many investors that don’t pay any attention to other form of technical

analysis still watch the 200-day moving average. It’s a line in the sand between

bullish momentum and bearish momentum.

In short, if the S&P 500 is above the 200-day these investors are willing to buy. But as soon as it falls below it, they’re

selling stocks or at the very least they’re not buying.

There’s no doubt about it, stocks are facing some serious headwinds right

now. Slowing economic growth in China and the impact of lower oil prices is

having a negative impact on the global economy.

We’ve seen many economists downgrade their projections for economic growth in the US and around the globe. This less

optimistic view is showing up in earnings estimates for companies in the S&P 500.

Nevertheless, we’re seeing some optimism for the S&P 500. Goldman Sachs (GS) recently went on record

projecting the S&P 500 to finish the year at 2,000. That’s 6% higher than where the

S&P is today.

As we put the 3rd quarter in the rearview mirror, it’s time to focus on the future. Let’s see if we can find some ETFs To

Buy For The 4th Quarter!

How To Find ETFs To Buy For The 4th Quarter

You can use a covered call strategy with any stock or ETF. But some stocks and ETFs are better than others for this type

of strategy.

You can find bigger option premiums from volatile stocks or ETFs. But you stand a bigger chance of your stock ending up above the strike price and

having your stock or ETF called away.

I prefer more stable stocks or ETFs… even though you won’t collect as big of

an option premium as you’ll see on more volatile investments.

Choosing The Right ETFs To Buy For The 4th Quarter

Two ETFs to consider for your covered call strategy are the Consumer Staples Select Sector SPDR ETF $XLP and the Technology Select Sector SPDR ETF

$XLK.

I think both of these ETFs are good ones to own in the current market

environment. Consumer staples are a traditional safe haven. It also pays a

2.65% dividend yield.

You should see some solid profit by holding this ETF and writing a covered

call against this position. The Technology Select Sector SPDR ETF is another good choice for a covered call

strategy.

XLK is dominated by large cap tech stocks that have become some of the steadiest performers. It pays a solid 1.93% dividend yield and you’ll find

slightly better option premiums on XLK than you will with XLP.

Covered Call ETFs To Buy For The 4th Quarter

Some of you may not comfortable using options. Don’t worry, I’ve got a solution

for you too…There are ETFs that used a covered call

strategy.

The ETF does all of the work for you. You just buy the ETF like any other ETF

and all of the work is done inside the ETF.

The most popular ETF that uses a covered call strategy is the PowerShares

S&P 500 BuyWrite Portfolio $PBP.

It has a little over $300 million in assets under management. PBP tracks CBOE

S&P 500 BuyWrite Index. It’s designed to give investors returns of a hypothetical

covered call strategy on the S&P 500 Index.

It does this by using a hypothetical portfolio consisting of a long position in the S&P 500 and selling a succession of

one-month, at- or slightly out-of-the-money S&P 500 call options.

There a few other ETFs with slightly different covered call strategies.

You can use an ETF screener to find them

.

Want More from ETF Trading Research.com?

Follow us on Social Media

Want more FREE information on ETF Trading?

ETF Trading Research.comGet Your FREE

Report Now

Get the TOP 3 ETFs For 2015

READ THIS FREE REPORT!