Details

ETFs for the Long Run

What They Are, How They Work, and Simple Strategies for Successful Long-Term Investing
1. Aufl.

von: Lawrence Carrel
19,99 €
Verlag:	Wiley
Format:	PDF
Veröffentl.:	09.09.2008
ISBN/EAN:	9780470399675
Sprache:	englisch
Anzahl Seiten:	320

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Beschreibungen

Titelbeschreibung

Praise for ETFs For The Long Run "As the title of the book suggests, ETFs are going to be an increasingly important reality for a broad class of investors in coming years. This book offers the reader real understanding of this growing force in our economic lives." —Robert J. Shiller, Arthur M. Okun Professor of Economics at Yale University, Co-founder and Chief Economist at MacroMarkets LLC "ETFs for the Long Run is a fascinating read. A seasoned financial industry journalist, Lawrence Carrel does an excellent job of highlighting exchange traded funds' meteoric rise in popularity over the last few years. A terrific book for anyone looking to grasp the ABCs of ETF investing." —Jerry Moskowitz, President, FTSE Americas Inc. "ETFs for the Long Run provides a unique combination of a detailed history of the development of ETFs, a clear explanation of the sophisticated mechanics of ETFs, an assessment of investors' choices amongst this dynamic product area, and unbiased recommendations for appropriate portfolio allocation to these efficient investment tools. Lawrence Carrel has done investors and the industry a great service in pulling these four elements together in a highly readable and often entertaining book. —Steven Schoenfeld, Chief Investment Officer, Global Quantitative Management, Northern Trust, and Editor, Active Index Investing Despite the incredible growth of exchange-traded funds (ETFs) and the fact they've been on the market for fifteen years, some investors are still either unaware of the effectiveness of ETFs or unsure of how to use them in their investment endeavors. That's why respected ETF expert and journalist Lawrence Carrel has written ETFs for the Long Run. Filled with in-depth insights and practical advice, this reliable resource puts ETFs in perspective and reveals how they can help you profit in both up and down markets. Page by page, Carrel takes you through the ins and outs of ETFs, including their history, the tax benefits and minimal charges associated with them, and the fundamental differences between ETFs and other types of investments. He also provides you with the resources and tools needed to trade ETFs and build your own ETF portfolio. You may have heard about ETFs while researching other investments or speaking with an investment advisor. If you want to learn more about them, this book will provide you with a clear understanding of what ETFs are, how they work, and how they can be used to create a low-cost, liquid, and diversified portfolio.

Inhaltsverzeichnis

Preface ix Acknowledgments xiii Chapter 1 Etfs—The Newfangled Mutual Funds 1 How ETFs Stack Up against Mutual Funds 2 Greater Flexibility 3 Lower Fees 4 More Tax Efficient 5 Greater Transparency 6 Precise Allocations 6 Investment in Alternative Asset Classes 7 One Caveat 7 Summary 8 Chapter 2 Etf History Lesson: How A New Type of Fund Was Born 11 A Short History of the Amex 13 The Father of the ETF 17 Philly Strikes First 18 Back to the Drawing Board 21 Along Came a Spider 26 The Birth of an Industry 27 Let’s Do It Again 29 What Tangled Webs We Weave 30 Building a Business 33 Shine On, You Crazy DIAmonds 34 Arachnophobia? 35 Wedding Bells 35 The Biggest ETF Launch 37 All in the Family 41 The First Assault 45 If You Can’t Beat ’Em, Join ’Em 46 Builders and Bonds 47 Free Again 49 Chapter 3 The Evolution Of The Etf 51 The Importance of a Broadly Diversified Portfolio 53 The Appeal of Investment Companies 55 Types of Investment Companies 56 Types of Mutual Funds 58 Running a Mutual Fund 60 The Creation of an ETF 63 Summary 67 Chapter 4 Index Fund-Amentals 69 Why an Index? 70 Fund Management Options 72 The Rise of the Index Funds 76 The Big Index Companies 79 Indexes from the Stock Exchanges 82 Actively Managed ETFs 84 Summary 84 Chapter 5 Fee Bitten 87 Wall Street Produces Vintages 87 Looking for Low Management Fees 89 Summary 92 Chapter 6 the better mousetrap: how can etfs charge so little? 95 Transparent Costs of Mutual Funds 96 Hidden Costs of Mutual Funds 105 The Creation Unit: How They Make ETFs So Cheap 110 So Long, Transaction Costs 114 So What Costs Do ETFs Have? 119 Why Would I Ever Buy a Mutual Fund? 123 Summary 127 Chapter 7 The New Indexers 129 Missed Opportunity 132 Unfair Fight 136 BONY Builds a BLDR 137 The Name Is Bond 138 Rydex Rides In 140 Vanguard Makes a Splash 142 There’s Power in Them There Shares 144 Mutual Fund Scandal Helps ETFs 145 PowerShares Becomes a Powerhouse . . . and Other Important Developments of 2005 147 The Buy-Out 148 Opening the Floodgates 149 The Fundamentalists 155 Grow, Baby, Grow 163 Summary 168 Chapter 8 The Etfs That Aren’t Etfs: Etps, Etvs, And Etns 171 You’ve Got a HOLDR to Cry On 174 Exchange-Traded Notes 176 Commodity-Based ETVs 180 Money Makes the World Go ’Round 199 Summary 204 Chapter 9 Putting The “Trade” In Exchange-Traded Funds 217 Discount Brokers 219 The Actual Trade 220 Going Long to Go Short 226 Options on ETFs 229 Summary 232 Chapter 10 Building Your Own Etf Portfolio 235 The Simplest Portfolio 237 Assessing Your Risk 237 Strategic and Tactical Asset Allocation 241 Foundation Portfolios 248 Not Following the Herd 258 Tax-Loss Harvesting 265 Hiring an Investment Adviser 267 Summary 269 Chapter 11 The Future Of Etfs 273 The NYSE-Amex Merger 274 Specialists and Seed Capital 275 Actively Managed ETFs 279 Entering the 401(k) Market 281 In Conclusion 283 Appendix : How To Decide Which Etfs Are Best For You 285 Notes 289 About the Author 300 Index 301

Rezension

"This book should go a long way to helping not just investors but top-notch financial professionals…" (Research Magazine)

Autorenportrait

LAWRENCE CARREL, as a senior writer, took over the weekly ETF and mutual fund columns at TheStreet.com in 2007. Prior to that, he created SmartMoney.com's "ETF Focus" column, a weekly look at the ETF industry from the individual investor's point of view. Before joining SmartMoney in 1999, Carrel was a founding member of the Wall Street Journal Online, where he covered the stock market, edited breaking news, and was one of the writers of the "Cyber Investing" column. Carrel holds a bachelor's degree in applied economics and management and communications from Cornell University.

Back cover copy

ETFs FOR THE LONG RUN Over the past few years, exchange-traded funds (ETFs) have gained wider recognition among retail investors and become a staple in the portfolios of many individuals. In addition to its flexibility and transparency, the ETF's ability to track asset classes besides stocks and bonds—such as commodities and currencies—has allowed investors to own a liquid, diversified portfolio for a minimal investment. Respected ETF expert and journalist Lawrence Carrel knows how effective this financial product can be, and now, with ETFs for the Long Run, he'll show what they are and how they work—as well as outline simple strategies you can use to incorporate them into your investment endeavors. The journey begins with a brief history of ETFs, who the industry leaders are, and how they got there. After this introduction, you'll become familiar with the fundamental differences between ETFs and other types of investments, such as mutual funds. You'll also discover the advantages that an ETF's indexing structure has over an actively managed product. With this information in hand, you'll be prepared to delve into the nuts and bolts of the ETF and see why it's one of the most efficient ways to gain exposure to today's market. Page by page, Carrel skillfully examines the unparalleled benefits associated with ETFs, explores new exchange-traded vehicles (ETVs)—which are very similar to ETFs—and addresses innovations within this area that have created more diverse opportunities for today's individual investor. Along the way, Carrel also reminds us that while a fund's returns can't be known ahead of time, its costs can—so focusing on cutting those costs can save you thousands of dollars down the road. Rounding out this detailed discussion of ETFs are two chapters dedicated to building your own ETF portfolio, touching on everything from the mechanics of trading to designing asset allocation strategies. Here, Carrel calls upon a select group of financial professionals to help you understand a wide variety of portfolio construction possibilities and implement the ones that best suit your investment style. The basic challenge that every investor faces is creating a broadly diversified portfolio for the least amount of money. ETFs can help you achieve this goal, and ETFs for the Long Run will show you exactly how.