Finance Investment / Trading

Exchange-Traded Funds For Dummies, 2nd Edition

By Russell Wild
John Wiley & Sons December 2011

Specifications

ISBN-13
9781118104248
Publisher
John Wiley & Sons
Publication
December 2011
Format
Paperback , 384 pages
Jurisdiction
International ? Countri(es) for reference only

Details

The fast and easy way to get a handle on ETFs

Exchange-traded funds (ETFs) have a strong foothold in the marketplace, because they are less volatile than individual stocks, cheaper than most mutual funds, and subject to minimal taxation. But how do you use this financial product to diversify your investments in today's fast-growing and ever-changing market?

Exchange-Traded Funds For Dummies shows you in plain English how to weigh your options and pick the exchange-traded fund that's right for you. It tells you everything you need to know about building a lean, mean portfolio and optimizing your profits. Plus, this updated edition covers all of the newest ETF products, providers, and strategies, as well as Commodity ETFs, Style ETFs, Country ETFs, and Inverse ETFs.

  • Create the stock (equity) side of your portfolio
  • Handle risk control, diversification, and modern portfolio theory
  • Manage small, large, sector, and international investments
  • Add bonds, REITs, and other ETFs
  • Invest smartly in precious metals
  • Work non-ETFs into your investment mix
  • Revamp your portfolio to fit life changes
  • Fund your retirement years

Plus, you'll get answers to commonly asked questions about ETFs and advice on how to avoid mistakes that many investors—even the experienced ones—make. It provides forecasts of the future for ETFs and personal spending and also provides a complete list of ETFs and Web resources to assist your investment. With Exchange-Traded Funds For Dummies, you'll soon discover what makes ETFs the hottest investment on the market!

Table of Contents

Introduction 1

Part I: The ABCs of ETFs 9

Chapter 1: The (Sort of Still) New Kid on the Block 11

Chapter 2: What the Heck Is an ETF, Anyway? 23

Chapter 3: Getting to Know the Players 45

Part II: Building the Stock (Equity) Side of Your Portfolio 69

Chapter 4: Risk Control, Diversification, and Some Other Things You Need to Know 71

Chapter 5: Large Growth: Muscular Money Makers 91

Chapter 6: Large Value: Counterintuitive Cash Cows 103

Chapter 7: Small Growth: Sweet Sounding Start-ups 111

Chapter 8: Small Value: Diminutive Dazzlers 121

Chapter 9: Going Global: ETFs without Borders 127

Chapter 10: Sector Investing: ETFs According to Industry 147

Chapter 11: Specialized Stock ETFs 165

Part III: Adding Bonds, REITs, and Other ETFs to Your Portfolio 183

Chapter 12: For Your Interest: The World of Bond ETFs 185

Chapter 13: Real Estate Investment Trusts (REITs): Becoming a Virtual Landlord 211

Chapter 14: All That Glitters: Gold, Silver, and Other Commodities 219

Chapter 15: Working Non-ETFs and Active ETFs into Your Investment Mix 235

Part IV: Putting It All Together 249

Chapter 16: Sample ETF Portfolio Menus 251

Chapter 17: Exercising Patience: The Key to Any Investment Success 271

Chapter 18: Exceptions to the Rule (Ain’t There Always)  285

Chapter 19: Using ETFs to Fund Your Golden Years 303

Part V: The Part of Tens 321

Chapter 20: Ten FAQs about ETFs 323

Chapter 21: Ten Mistakes Most Investors (Even Smart Ones) Make 329

Chapter 22: Ten Forecasts about the Future of ETFs and Personal Investing 333

Part VI: Appendixes 339

Appendix A: Great Web Resources to Help You Invest in ETFs 341

Appendix B: Glossary 347

Index 353

About the Author

Russell Wild, MBA, is a NAPFA-certified financial advisor and principal of Global Portfolios, an investment advisory firm. His writing has appeared in many national magazines and numerous professional journals. He is also the author of Bond Investing For Dummies and Index Investing For Dummies.

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