September 27, 2021
When exchange traded funds (ETFs) first appeared, they revolutionized the stock market. Not only did they offer the ability to own multiple assets at once, but they also allowed you to do so at a low price point.
By leveraging the power of ETFs, you could quickly build balanced portfolios and generate market-matching returns. And now a similar investment vehicle has started turning its wheels in the world of deregulated finance. And it’s called an exchange traded portfolio.
An exchange traded portfolio or ETP functions quite similarly to its traditional, and old-fashioned counterpart, the ETF.
You see, through ETF’s you are able to track market indexes like the S&P 500, Russell 2000, or NASDAQ. That’s because when you buy a share of an ETF, they are essentially buying a micro stake of all the stocks contained inside the index.
ETPs function along similar lines with the main difference resting in the terminology.
When you invest in an ETP, you’re buying what can be thought of as a pooled asset. This pooled asset is similar to that of a market index, which is to say it is a collection of a variety of positions. And instead of acquiring shares you’ll be receiving tokens to represent your ownership of the assets inside a given ETP.
Now that you have a working understanding of an ETP, you might be wondering… what are the benefits?
Note: WSBDapp has formed an exciting partnership with Balancer. To learn more about how the pools work, and how you can get involved click here.
Putting all your money into Bitcoin is a bold move, even if the forecasts are claiming it's ‘going to the moon.’
...Yet the traditional stock market just doesn’t carry the same profit potential as emerging areas of decentralized finance.
It’s become wise to diversify across asset types — and an ETP allows you to do so in an incredibly easy manner.
When purchasing an ETP you’re gaining exposure to multiple assets at once, be it cryptocurrencies, commodities or stocks.
Just like an ETF ticker symbol such as ‘GLD’ (the SPDR Gold Shares ETF), each ETP has a ticker symbol such as MACH (the Macro Hedge ETP).
Buying is easy. And Bam! You’re diversified.
Oh, and did we mention you’re the ones diversifying it? Remember, ETPs are not under the thumb of Wall Street like ETFs are. They aren’t the ones putting them together. Instead it’s you and those who think like you inside our global community working together to craft the proper pools for your individual needs.
If your portfolio isn’t diversified, don’t wait. Expand your portfolio now and trade ETPs.
In the traditional world of finance, ETFs are used to manage portfolio risk by purchasing complementary funds.
Let’s use the S&P 500 and the Russell 2000 indexes as an example. The S&P 500 represents the 500 largest companies listed on U.S. stock exchange. But the Russell index is a collection of 2000 small-cap companies. By investing in an ETF that tracks both, you’d balance your portfolio by leveraging both large-cap and small-cap company performances.
You can do the same with ETPs.
You can automatically balance your cryptocurrency positions with a crypto-focused ETP. But you can balance your portfolio performance further by investing in ETPs composed of other game-changing assets like synthetic stocks.
Want to learn more about synthetic stocks? Check out our stonks guide here.
And if you still want to have ties to the traditional markets, you can. You can balance your portfolio by investing in ETPs made of revolutionary assets (ex: cryptocurrencies) with ones composed of traditional assets (ex: mainstream tech stocks).
Sometimes what keeps us living a balanced life is staying away from anything looking to throw us off. And the same holds true for our portfolios.
Too often in the world of traditional finance our ability to control our portfolios or their performances is thrown off by excessive regulations, corruption, or out-dated functionality. But here again, the ETP comes to the rescue.
Given the ETP’s revolutionary nature, you’ll avoid many pitfalls that would otherwise throw off your portfolio’s performance.
Inflation eating away at your returns? Diversify with inflation fighting ETPs.
Can’t make a crucial trade on a Sunday? Not a problem with ETP’s with trading available 24/7.
Stuck paying high brokerage fees? ETPs built on blockchain remove the middleman broker completely.
By trading Exchange Traded Portfolios you don’t have to worry about traditional trading problems knocking your portfolio off balance. ETPs let you both balance and protect your portfolio in an instant.
ETPs are set to change the industry as we know it. And now you’re in the loop on the benefits offered by them…
Don’t hesitate to take action.
Visit WSBDapp to begin trading ETPs and synthetic stocks. And become part of our community that’s dedicated to navigating the exciting and ever-changing world of DeFi.
Join the movement here.