6 Key ETFs - Potential Preset Buy Points
6 Key ETFs - Potential Preset Buy Points
Using the downturn to our advantage.
On March 1, shortly after Russia invaded Ukraine, I wrote the following article here on Substack.
In the article, I featured two techniques to bear in mind during periods of market turbulence, with examples of how to use them.
The two techniques are:
Tax loss harvesting
Good-till-canceled (GTC) limit buy orders
Given Friday’s close, I thought it might be a good time to resurface this. Have a look at this tweet, from someone whom I respect.
As featured in my article linked above, broad-based ETFs, such as those that track either an entire market, or a major sub-class thereof, can be used to set automated purchase triggers should they fall to a price at which the investor would be happy to purchase.
In that vein, take a look at this graphic.
I picked six (6) ETFs. Below each, in the subheading, is the market, or asset class, that they track.
In each case, I list the 52-week high for the ETF. Next, I simply extrapolate the price in the event of a 5% decline, 7.50% decline, and so forth. Here’s the last little wrinkle. In each case, the value displayed in bold red represents the price point in the chart closest to Friday’s close.
I thought this made for a nice summary, because not only does it offer some potential “buy” prices for a GTC limit order, but it also offers a quick visual representation as to how each asset class has fared in relation to its 52-week high.
I hope you find this interesting, and possibly even helpful.
Bonus Article
This article was just a “quick hit,” as we all prepare for Monday.
If you have a little more time, you might also want check out this recent article. It digs into a recent study which offers some insights into investing at this particular time.
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As an aside, this past February 24, I was able to pick up a few shares of ITOT at $91.81 in my Roth IRA based on a GTC limit buy I had set some days (possibly even a couple of weeks) earlier.
It was based on the same $91.93 price for a 15% decline in ITOT shown in the graphic in this article. Somehow, my trade triggered on Fidelity at a price yet 12 cents lower than my limit. Thank you, Fidelity! I had simply decided that, were the price to fall to this level, I wanted to add a few shares. It happened for just a few minutes, early in the morning of that trading day, and then it was gone.
Even at Friday’s close, ITOT stood at $95.00, which at least gives some idea of the power of even a temporary price dip such as happened on February 24.