Ten tips to safely invest in ETFs

Ten tips to safely invest in ETFs
News from Telegraph.co.uk:

Don’t get caught short

ETFs that aim to profit from falling prices can produce surprising results. Ben Gutteridge, a director of wealth managers Brewin Dolphin, explained: “Most are based on daily closing prices. This means a 10pc rise one day will lead to a 10pc fall in your short ETF. If we carry this on for a five-day pattern, a £100 long investment would be worth approximately £161 – that is, up 61pc. But, such is the mechanics of daily calculation that a £100 investment in a short ETF will be worth £62 – that is, down 38pc. This imperfect hedge needs to be accounted for. Also, the more volatile the referenced asset, the greater this imperfection risk becomes.”

Big may be beautiful

Mr Fletcher said: “One indicator of whether to invest or not is the level of assets under management (AUM) within the ETF – a low AUM may eventually result in a delisting. So we lean toward the larger funds.”

Leverage is a two-edged sword

Borrowing to invest – …………… continues on Telegraph.co.uk
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Tips for farming in the city
News from The Seattle Times:

Originally published June 17, 2011 at 10:01 PM | Page modified June 17, 2011 at 11:13 PM

Urban food gardeners here in the Seattle area went through the same drill for decades. We chose our crops from the small list of usual suspects and then hoped for more sun for our tomato plants.

We still want more sun, but everything else has changed. Innovation and experimentation have overgrown the old limits on raising food in the city. Today we can raise more things using new methods, and our home food production might even involve a kick, a sting or a cuddle.

Keeping bees, chickens, goats and even ducks in the heart of the city no longer gets you labeled as a wacko. You do need to know what you’re doing, however, if you want to avoid wasting time and money, alienating your neighbors and making a big mess.

Q: Before I take the plunge, do you have a couple key pieces of advice abou…………… continues on The Seattle Times

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