Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

The vast majority of retail client accounts lose money when trading CFDs.

You should consider whether you can afford to take the high risk of losing your money.

Important Notice - Fraud awareness
Important Notice - Scam alert
54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Major ETF price factors - 10 Best ETFs to buy today

Exchange Traded Funds (ETF) have become increasingly popular in the financial market with global asset valuation estimated to be in the range of trillions. Due to its complexity, new investors usually shy away from trading ETFs solely because they lack guidance and understanding about the traded instrument. Exchange Traded Funds possess an ability which enables investors to hold multiple positions across a variety of assets.

An ETF can consist of any mix of stocks, bonds, and commodities, allowing for diversification of assets. Although ETFs are most typically centred around a unique pool of stocks, such as the S&P 500 index fund, it can be further digressed to include stocks with dividends, national investments, growth value stocks, disruptive advanced technology, information technology (IT), medical healthcare, varied bond maturities and others.

ETFs begin the new week on a strong Bullish Momentum

ETFs started this week on a strong uptrend movement after absorbing the losses from last week. This is largely attributed to the diminishing dollar strength on Monday during the Asian session. #ETF- ARGT is up by 1.2% with price at $30.92, #ETF - ASHR is up by 0.6% with the price at $30.08, #ETF EFA is currently up by 0.9% with the price at $67.69. Investors are optimistic that the bullish trend ought to continue all through the day given the aforementioned weakening dollar strength.

Major ETF price factors

  • Dollar strength and Inflation

Because ETFs are similar to stocks and indices, their price movement is always affected inversely by the dollar strength. Investors are attracted to them when the US dollar proves weak due to the high rate of inflation.

  • Profitability

Very often, investors tend to choose from the list of those ETFs that have provided good profits in the past. This is today known as the traders' sentiment towards such ETFs.

  • Demand and Supply

The price of an ETFs fluctuates daily based on the principle of Demand and Supply in the market. When there are more buyers than sellers; the price will generally rise in the market. However, the price may fall if the number of sellers dominates.

  • Value

Generally, investors are easily attracted to ETFs which have great potential for higher price value when they are still low. An ETF is under-priced if its net asset value is higher than the market price. Here investors are easily attracted to buying such ETFs in the hope that the market price will overtake the net asset value in the future.

  • Quality

High-quality ETFs are often chosen as the best option for long-term investment. The quality of an ETF is often considered based on the underlying index or asset class on which the ETF is established.

  • Traded Volume

The volume of transactions carried out on a particular ETF determines whether more investors are likely to come in. This is because investors paid great attention to the volume of trades placed on a given ETF daily. Volume directly impacts liquidity. Thus, low volume means low liquidity and higher slippage and vice-versa.

Best ETF to buy today

  1. Global XMSCI Argentina ETF (#ETF- ARGT)
  2. Xtrackers Harvest CSI 300 China A-Shares (#ETF - ASHR) 
  3. SPDR Dow Jones Industrial Average ETF (#ETF DIA)
  4. iShares MSCI EAFE Index ETF (#ETF-EFA) 
  5. iShares MSCI Peru ETF (#ETF - EPU)
  6. iShares MSCI Malaysia ETF (#ETF - EWM) 
  7. iShares MSCI Mexico ETF (#ETF-EWW) 
  8. iShares MSCI South Korea ETF (#ETF-EWY) 
  9. iShares MSCI Hong Kong ETF (#ETF-EWH) 
  10. iShares MSCI Pacific ex-Japan ETF (#ETF-EPP)
Last Updated: 06/06/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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