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A Practical Guide to ETF Trading Systems by Anthony Garner

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Establishing Benchmarks

The aims of this chapter are–

  • Benchmarks – To establish buy and hold benchmarks against which the success or otherwise of mechanical systems trading can be judged.
  • Diversification – To demonstrate the benefits of diversification within asset classes.
  • Asset allocation – To demonstrate the benefits of the addition of other asset classes to stock investment.
  • Standalone commodity investment – To explore the returns available from long-term standalone investment in commodity ETCs.

Asset allocation and diversification

Asset allocation determines return

Successful investing is largely a matter of asset allocation and diversification, not picking individual investments (let alone individual stocks). Asset allocation ...

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