ETF (exchange traded fund) holdings for short term trading?

If you invest in an ETF can you use a HOLDING of that ETF to scalptrade? Short term trade? Thanks

you can buy and sell etfs just as you do stocks.

If you so chose to day trade or swing trade, you could use ETFs for that purpose. They trade just like stocks would based on their holdings performance or the index to which they are tied. As such, they can be traded infinitely without incurring any of the load fees that mutual funds inflict. Obviously, the brokerage's commission will apply.

As far as efficacy of ETFs, many don't trade the high volume that would be needed to offer a fairly stable price for scalping. Swing trading uses higher risk, greater price fluctuations, to make short term profits. Unfortunately, ETFs try to take out of their prices those large but short fluctuations by investing in a portfolio thus, using them for short term would likely result in frustration.

I do assume that you would want to change relatively large and abnormal fluctuations. If you are content with smaller changes then, you will be more satisfied.

only reason to short trade is because the etf made a huge gain on it

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