A buyback benefits shareholders by increasing the percentage of ownership held by each investor by reducing the total number of outstanding shares. We talk about how to identify buyback programs and discuss strategies for investors to take advantage of stock buyback opportunities.
One of the great things about being an investor is you can exercise more control over your overall financial situation than non-investors. A great example is the ability to offset high gasoline prices with protective trading strategies.
An ETF that we would call “strategically” indexed would include much more rigorous fundamental and technical criteria. The ProShares 130/30 fund (CSM) is a good example of such an ETF. The fund looks for a lengthy list of positive and negative fundamental characteristics when evaluating stocks to short and stocks to buy.