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© anja_johnson

Trading volumes in ETF funds linked to the Japanese stock market have sky-rocketed following the huge earthquake, tsunami and developing nuclear crisis in that country as the Nikkei and Topix plummeted by double digits at one point during the week. But some bottom-fishing investors are seeing this week's fall in the market as a buying opportunity.

The iShares MSCI Japan fund (EWJ), which is the largest ETF linked to the Japanese stock market listed outside of Tokyo, actually saw net inflows of $1.1 billion this week. However, short interest in EWJ has also moved higher as other investors have chosen to increase their bets on continued weakness in the Japanese stock market. The increase in short interest has not been as great as might be expected given the magnitude of the tragedy.

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© dichohecho

Etftrends.com tips for young people thinking of ETF investments are very handy for someone testing the water of ETF investments. For someone new to ETF investments, it is necessary to first understand the companies and choose on firm with low valuation and make a small ETF investment and see how it goes. Building a portfolio and ETF investment in a number of foreign stocks and equities should come after you've gained some experience.
There will be bad days: don't let them steer you off the course, and trust your own instincts and not the pundits on the media. Also remember that while dollar averaging works well in some other types of investing, ETF investing is more likely to work well if you can invest larger sums.

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© ciccioetneo

ETF providers thrive by identifying narrow, risky slices of the market for investors to trade. Last Friday First Trust launched the Nasdaq CEA Smartphone Index Fund, giving people a chance to invest in the whole smartphone universe in a single ETF fund. With Apple's iPhone, Google Android operating systems and Nokia joining forces with Microsoft, it's fair to say that the smartphone industry is in a boom.

However, this may not be entirely a good thing. Keep in mind that the introduction of such specialty funds have in the past been linked with the peaks of speculative bubbles. The proliferation of Internet funds in the late 1990s is one good example. It is too early to say if that is in fact the case here, of course. It is a good rule of thumb to always be thoughtful and careful before diving into any fund that is narrow or using leverage, especially.

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