Other ETF Investment Strategies and Applications

This chapter highlights three exchange-traded fund (ETF) trading strategies: one based on futures, where an individual enters a contract to buy or sell ETFs at a specified price and delivery date; another on margin trading, in exchange for making a small payment known as the “initial margin;” and the third on what’s commonly known as “barbelling,” an investment strategy best described as a balancing act between investments deemed safe and those considered a greater risk.