Turn to Understanding Exchange-Traded Funds for a quick, accessible overview of ETFs, the hottest and most significant investment tool of recent years. This expert guide explains why exchange-traded funds are important and why they work so well, highlighting the advantages of ETFs over traditional mutual funds and discussing all the new types of ETFs.
Exchange-traded funds (ETFs) are extraordinary new investments, each one a cross between a mutual fund and a stock. They function like mutual funds but trade like stocks. By my count, 318 exchange-traded funds are available in the United States, with more abroad. Only a few years after ETFs started trading, two of them have become the most actively traded securities in the world. ETF net assets currently stand at more than $350 billion. This pales in comparison with the $9.3 trillion held in mutual funds, but ETF assets are growing considerably faster.
This book explains how exchange-traded funds work, how you can use them, and why you should indeed use them. We begin from the bottom up:
- Stocks and bonds
- Mutual funds
- Exchange-traded funds
- Unsuccessful and successful ways of using ETFs
- A rundown of all ETFs currently available in the United States
Ironically, the person who invented exchange-traded funds intended them to be used by investment professionals for buying and selling over short periods. Short-term trading works fine for some professionals—we’ll explore why. But it’s highly unlikely that in-and-out trading will work well for you. ETFs work better for long-term investing—even better, in fact, than mutual funds.
The book contains an extensive glossary. Terms appearing in bold in the body of the work also appear in the glossary. A few words not otherwise mentioned in the book are explained in the glossary as well. Nearly a lifetime of learning is crammed into this book. But even for the novice, it’s still an easy read. The book enables you to invest with more understanding, better returns, less worry, and less work.
- Secondary Trading
- Those Quirky Bonds
- Mutual Funds
- Indexes and the Funds That Track Them
- The Basics of Exchange-Traded Funds
- Comparison of Costs
- Comparison of Risks
- Comparison with Actively Managed Mutual Funds
- Comparison with Index Funds
- General Financial Guidelines
- Mostly Bum Strategies
- Pretty Good ETF Strategies
- The Ins and Outs of Brokerage Accounts
- Fear Not the Purchase of Stocks
- Approaching a Promising Investment Strategy
- A Superior Portfolio of Exchange-Traded Funds
Understanding Exchange-Traded Funds By Archie Richards pdf