How to Switch Alternate ETF Pairs
- 1). Decide why you want to switch out of your existing ETF pairs. Perhaps you think the underlying market has changed or will move in a different direction. Perhaps your current ETF pairs are not cushioning risk the way you'd like them to.
Clarifying the reason you want to switch will help you decide which type of new pairs you want to pick up. - 2). Find a brokerage or trading house that buys and sells ETFs. State Street Global Advisors created and sold the first ETF, but now ETFs are sold by many major brokerage houses such as Fidelity, Vanguard, Charles Schwab, iShares, Blackrock, ProFunds, Goldman Sachs and many more.
- 3). Think about the tax consequences of switching your pairs. You will have to pay capital gains tax on your sale. If it's close to the end of the calendar year, this may impact your decision about whether to sell before or after January 1.
