10 ways to ramp up returns this year on Advanced ETFs

The recent plunge in the value of bitcoin and other cryptocurrencies has also highlighted the risk of being invested in single investments.

We asked our members and investment team how they go about investing to avoid these risks. Even if you delegate some of your investments to a financial advisor or institution, keeping updated on market trends and changes on a broad level will assist you in communicating with them, the- reby managing your risk. Write down what returns you’re looking for, over X time period, and how much risk you can tolerate. Do your investments need to generate a regular income or dividends? Would you prefer a lower-volatility investment? Ensure your investments are aligned with these. High risk can often result in low returns or even losses. A more balanced approach aligned with a strategy and your objectives is preferred. There are many exchange-traded funds (ETF) that’ll give an investor exposure to world markets, the broader US market, or regions outside the US. One can invest in sectors, or themes like low volatility, or income or dividend ETFs, or combinations. We meet too many investors who hold a very high percentage of their assets in one stock, commodity or, one cryptocurrency. A stock can go to zero. People often invest without even looking at the investment’s chart. Look at the trend of the price movement: is it up or down? Try not to purchase at the overpriced ‘top of the market’ when a simple analysis could warn against this. If you’ve ‘missed the boat’, don’t jump in the water. Two of the most significant impacts on investment returns are asset allocation and costs. There may be fees payable to an advisor or the investment product supplier, and in some cases administration fees. Calculate the actual costs per month or year, in addition to the percentage cost. When unsure about an investment, or if its pricing is relative to its value, purchase (or sell) that investment in phases.

Compiled by Advanced Exchange Traded Funds.