How To Analyze ETFs With Bloomberg: Trading ETFs
AAA
  1. How To Analyze ETFs With Bloomberg: Introduction
  2. How To Analyze ETFs With Bloomberg: Navigating The ETF Universe
  3. How To Analyze ETFs With Bloomberg: Comparing ETFs
  4. How To Analyze ETFs With Bloomberg: Trading ETFs

How To Analyze ETFs With Bloomberg: Trading ETFs

While many individual investors may not trade ETFs directly over Bloomberg, the system can still aid the trading and portfolio management process. For example, an investor interested in trading the S&P 500, might choose to use an ETF as their vehicle for expressing their views. That same investor might want to take advantage of Bloomberg's robust technical analysis capabilities prior to determining buy and sell levels. While a full discussion of technical analysis is beyond the scope of this article, some useful functions include: <GP> for viewing a simple price chart, <IGPV> for looking at intraday price and volume, <BOLL> for analyzing Bollinger Bands® and <RSI> for looking at relative strength indicators. Once you have bought or sold an ETF, Bloomberg can be used to monitor your portfolio and evaluate your performance. Since ETFs track underlying markets and sectors, you can use the Bloomberg terminal to monitor the performance of various markets. For instance, by typing <WEI> into the Bloomberg you can access a screen that displays the performance of global equity markets. The screen also allows you to dive deeper, so that if, for instance, you are interested in trading an ETF that tracks the Taiwan stock market, you can view the performance of the Taiwanese market by clicking on submenu three of the <WEI> screen to see the performance of additional Asian equity markets.

Figure 3 - <WEI> screen submenu three


You can also manage a portfolio of ETFs on Bloomberg by typing <PORT>. These functions allow you to input the securities in your portfolio, as well as the quantity that you own and the price paid. The system will then continually update market prices, allowing you to track your P&L.

Conclusion
Bloomberg provides a wealth of tools for evaluating, comparing, trading and monitoring ETFs. This article has only touched the surface of the tools available. However, the functions discussed in this article should provide a good starting point for "hands-on" learning on the terminal.

  1. How To Analyze ETFs With Bloomberg: Introduction
  2. How To Analyze ETFs With Bloomberg: Navigating The ETF Universe
  3. How To Analyze ETFs With Bloomberg: Comparing ETFs
  4. How To Analyze ETFs With Bloomberg: Trading ETFs
RELATED TERMS
  1. Exchange-Traded Mutual Funds (ETMF)

    Investopedia explains the definition of exchange-traded mutual ...
  2. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  3. Lion economies

    A nickname given to Africa's growing economies.
  4. Factor Investing

    An investment strategy in which securities are chosen based on ...
  5. Reverse Gold ETF

    Exchange traded funds that are designed to trade in a direction ...
  6. Investment Fund

    A supply of capital belonging to numerous investors that is used ...
  1. Can an investor buy leveraged ETFs that track the automotive sector?

    Learn about the main exchange-traded fund that tracks the automotive sector and how option strategies can be used for stocks ...
  2. What are some examples of smart beta ETFs that use passive and active management?

    Learn about smart beta investment strategies and discover examples of smart beta exchange-traded funds that use both passive ...
  3. What is the difference between the QQQ ETF and other indexes?

    Find out more about the PowerShares QQQ Trust, the index the QQQ tracks, and the difference between QQQ, the SPY and Nasdaq ...
  4. What is the QQQ ETF?

    Find out more about the PowerShares QQQ Trust, what sectors are included in this exchange-traded fund and the top 10 holdings ...

You May Also Like

Related Tutorials
  1. Mutual Funds & ETFs

    Top ETFs And What They Track: A Tutorial

  2. Retirement

    Analyzing The Best Retirement Plans And Investment Options

  3. Mutual Funds & ETFs

    Guide To ETF Providers

  4. Mutual Funds & ETFs

    Complete Guide To Investment Companies, Funds And REITs

  5. Mutual Funds & ETFs

    Exchange-Traded Funds (ETFs)

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!