Should You Put a Stop Loss on an ETF?

Should you put a stop loss or trailer on an ETF?

 

A: Thanks for the question.

There is no right or wrong answer to this.

That said, it would probably be considered to be rather unusual behavior to put a stop loss on an investment in an ETF that tracks a broad based index which relatively, is not that volatile (for example, an ETF that tracks the S&P/ASX 200 will be a lot less volatile that most individual company shares).

If the ETF tracked a volatile commodity, index or is enhanced, then a stop loss could make some sense.


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