Exchange Traded Funds: An Insider’s Guide to Buying the Market

Exchange traded funds, one of the most exciting new classes of funds, provide investors with an opportunity to get the benefits of individual stocks at the lower costs associated with mutual funds. Although they are a very new type of fund (they were first introduced in 1993), ETFs have nearly 100 billion in assets under management.

Written by senior editors Jim Wiandt and Will McClatchy at IndexFunds.com, Exchange Traded Funds clearly explains this exciting class of funds for savvy individual investors and investment professionals alike. The authors provide a frank appraisal of the advantages of exchange traded funds including low management fees and lower capital gains taxes. They acquaint readers with the full range of what’s available, and provide valuable information on evaluating the funds’ usefulness and performance. They also describe proven strategies for using exchange traded funds to balance investment portfolios and manage long-term and short-term risk.

Introduction:

Since the early 1990s when exchange traded funds (ETFs) first appeared on the financial landscape, many investors knew what they were, but few understood the full potential of these investment vehicles. Exchange Traded Funds fills this gap to both educate and dispel the myths associated with this popular new index product.

Written by the experts at Indexfunds.com, this comprehensive guide thoroughly examines how ETFs make investing money in equity indexes easy, direct, and inexpensive. Whether you’re in the market for long-term gains or short-term profits, Exchange Traded Funds will show you how lower costs, greater tax efficiencies, and superb liquidity make ETFs the perfect tool for index investments.
Providing a clear definition of ETFs and a brief history of how they originated in the receipt-based commodities markets, this book sets the groundwork for any investor looking to ETFs for a reliable investment option. Understand the internal workings of this unique financial instrument and discover the different types currently offered, including SPDRs, iShares, Diamonds, QQQs, HOLDRs, and many more.

Exchange Traded Funds also compares the fees and performances of ETF index funds to traditional mutual funds, and lets you decide which fits your needs best. For the individual long-term investor, typical scenarios are reviewed-including the creation of a basic retirement portfolio, diversification with international and small company ETFs, avoiding duplication, and betting on sectors-so you can make the most out of your investment.

With an overview of how institutional investors use ETFs to help control risk, manage exposure, and soften the effects of fund management transitions, you can use proven professional advice to balance your own portfolio.

Various strategies, plans, and portfolios allow you to evaluate, buy, and sell ETFs while exploring how they actually work. Charts and graphs examine the most interesting developments in ETFs that have occurred abroad, from Canadian ETFs based on Canadian Government bonds to government-sponsored Hong Kong TraHKs and actively managed ETFs in Germany. The scope of ETFs has become enormous in a very short period of time and continues to grow. Exchange Traded Funds is the only place where you can see what the future holds for both foreign and domestic ETFs.

Put this unique new tool to work for you, with a single source of ETF data and information. With well over 100 products covering most major and minor market segments in the United States and across the globe, ETFs can be used to construct a portfolio suited to virtually anyone’s financial plan. Exchange Traded Funds gives you the knowledge needed to excel in this exciting new investment field and provides a fascinating look into the modern world of money.

Contents:

• The Best of Both Worlds
• Comparing EFTs to Traditional Mutual Funds
• ETFs for the Buy-and-Hold Investor
• Institutional Investors Favor ETFs
• Internal Workings of ETFs
• The History of ETFs
• International ETFs
• Day Trading With ETFs
• Advanced Topics

Exchange Traded Funds: An Insider's Guide to Buying the Market By Jim Wiandt, Will McClatchy pdf