• Step 1
Analyze your portfolio. If your portfolio is well diversified and already contains physical goods, then you might want to buy a GOLD ETF to hedge against risk. When the market goes down, usually gold will go up. That way, your stocks will go down but your gold ETF will go up.
• Step 2
Use ETF screener to find the best ETF. Most ETF screeners can screen out ETF’s based on different criteria. You can use a screener to show you the past and future performance of any ETF. Some ETF Screeners have pre-built screeners to find the best ETF according to pre-defined criteria.
• Step 3
Diversify your portfolio. Sometimes there is not a single best ETF for your portfolio. It might take two or three ETF’s. ETF’s are similiar to mutual funds in the fact that they hold many assets. However, they can be actively traded unlink mutual funds.