9780137127399

The Up-to-the-Minute Guide to ETF Investing: Pick the Right ETFs for Your Unique Goals! "The authors cover the ETF waterfront. Whether you are a young investor just starting out or a seasoned stock veteran looking for new investment opportunities, this book is a valuable resource." Sam Stovall, Chief Investment Strategist, Standard & Poorrs"s Equity Research "Finally! Lydon and Wasik objectively analyze exchange traded funds for the average person. We particularly likediMoney's comparisons with more familiar mutual funds, the clear discussions about risks, and the varying viewpoints from some of the industry's smartest minds." Alan Lavine and Gail Liberman, syndicated columnists for Marketwatch.com andauthors ofQuick Steps to Financial Stability. Smart investors have made ETFs todayrs"s hottest investment.iMoneyis the only ETF investment guide with up-to-the-minute advice that reflectstodayrs"sETF marketplace: advice that is fully customized toyourspecific investment goals. The authors explain exactly how ETFs fit into todayrs"s investment universe. Even better, they present specific roadmaps, strategies, and model portfolios for a wide range of investors, from recent college graduates through retirees. Yours"ll learn how to build and monitor your ETF portfolio; choose among the fast-growing array of ETFs; and profit from changing global market trends. The authors discuss domestic and foreign stock ETFs; sector, commodity, and currency ETFs; fixed income ETFs, long/short ETFs, and even "actively managed" ETFs. They preview emerging industry trends, and objectively assess the key criticisms that have recently been leveled at ETFs. Tomorrowrs"sETF book, not yesterdayrs"s! Reflects the newest ETFs and strategies, and prepares you for emerging market trends By two of the worldrs"s leading ETF experts... ...Tom Lydon, founder of ETFTrends.com, the nationrs"s #1 consumer ETF site, and John F. Wasik, global personal finance columnist Provides specific strategies and portfolio recommendations Not just theory! Discover what to buy, based on your unique investment profile Covers every major type of ETF... ...including overseas, sector, commodity, currency, and bond ETFs...even long/short ETF strategies!

Tom Lydon is the editor of ETFTrends.com and the president of Global Trends Investments. He has been involved in money management for more than 20 years. He began his career with Fidelity Investments’ Institutional Division. He now regularly appears on CNBC’s “ETF Tracker,” a daily segment focusing on ETFs. His popular seminar, “How to Manage a Million-Dollar Portfolio,” has been attended by thousands of investors around the country. Mr. Lydon holds a bachelor of science in management from Babson College in Wellesley, Massachusetts.

John F. Wasik is the award-winning personal finance columnist for Bloomberg News, the world's third-largest news service. His columns are seen by readers on five continents and posted on www.bloomberg.com. As the author of ten books, including the highly praised Merchant of Power and The Bear-Proof Investor, he has spoken from coast to coast. He earned his bachelor and master of arts degrees from the University of Illinois-Chicago and resides in Grayslake, Illinois, with his wife and two children. Visit him online at www.johnwasik.com.

About the Authors	p. xiii
Preface	p. xv
Introduction: A New Investment Strategy	p. xix
Investors Want More	p. xx
Enter the ETF, the Younger, Sleeker Cousin of the Mutual Fund	p. xxii
Profit with Prudence, Avoid the Hype	p. xxiv
How to Use This Book	p. xxv
Busted: The Failure of Mutual Funds and Birth of ETFs	p. 1
Brain Freeze: We Listen to Bad Vibes	p. 4
A Brief History of Mutual Fund Folly	p. 5
Bubble Mania: Falling to Earth Again	p. 6
After the Bubble Burst: Salt in the Wounds	p. 8
Bad Performance: The Final Straw	p. 9
Index Investing Writ Large: How ETFs Can Be Employed	p. 11
The Art of Indexing Using the iMoney Plan	p. 15
The Granddaddy Dow: A Brief History of Indexing	p. 17
Enter the S&P 500	p. 21
The Stock Index Universe	p. 22
Not All Index Funds Are the Same	p. 23
The Closet Index Peril	p. 24
What Difference Does It Make?	p. 25
Index Types	p. 25
The Old Guard Shouts Back	p. 27
Equal vs. Fundamental Weighting: The Battle Continues	p. 29
P/E and PEG and Your ABCs	p. 30
Investing in Domestic Shares: U.S. Stock Index ETFs	p. 35
Big Caps: The Blue Whales of the Stock Market Ocean	p. 36
The Middle Path: Mid-Cap Companies Show Promise	p. 38
Small-Caps: The Little Guys Grow Fast	p. 40
The Smallest of the Small: Micro/Minis	p. 41
Growth vs. Value: The Age-Old Question	p. 43
Overseas Exposure: Foreign Stock ETFs	p. 49
It's a Small World After All	p. 51
Emerging Markets Provide Growth	p. 52
Foreign ETF Expenses Are Low	p. 53
Adding More Growth to Your Portfolio	p. 54
The Chinese Dragon	p. 55
Watch the Index	p. 57
Up-and-Comers	p. 58
Slicing and Dicing: Sector ETFs	p. 61
Picking a Winner and Scratching Your Head?	p. 62
A Growing Segment	p. 64
Buying Commercial Real Estate: REIT ETFs	p. 65
Who's Winning the Popularity Contest?	p. 66
Not Diversified Enough to Be Single Holdings	p. 67
Taking a Thin Sector Slice: The Downside	p. 68
Gold, Silver, and Oil: Commodity ETFs	p. 73
Hedging Inflation: Still a Concern	p. 75
The Wayback Machine: A History of Commodities	p. 77
How Futures Work	p. 78
Down on the Farm: Food-Based Commodities	p. 79
Knowing the Risks	p. 82
How Commodity ETFs Work	p. 82
Tax Treatment Different for Commodity ETFs	p. 84
The Golden Ticket: Precious Metals ETFs	p. 85
A Buck Isn't Worth a Dollar: Currency ETFs	p. 87
A Brief History of Currency ETFs	p. 89
Back to Basics	p. 89
Making It Personal	p. 90
How Currencies Are Valued	p. 92
Turn Dollars into Lemonade	p. 93
Getting Chunks of the Bond Market: Fixed-Income ETFs	p. 97
Slow to Take Off	p. 98
Why Bonds?	p. 100
Municipal Bonds	p. 100
Federal Government Bonds	p. 102
Corporate Bonds	p. 103
Putting It All Together	p. 106
Exchange Traded Notes	p. 107
Retire with Dignity: The 401(e) Plan	p. 109
A Reality Check	p. 110
Boomers May Go Bust	p. 112
Black Box Retirement Plans: Costs Are Not Transparent	p. 113
The Next Step: The 401(e)	p. 114
ETFs Offer New Alternatives to Investing	p. 115
401(e) Providers Use New Technology	p. 116
Not for Everyone	p. 118
ETFs with an Expiration Date	p. 119
ETFs in Your IRA Accounts	p. 120
And We Come Full Circle	p. 121
Hedging Your Bets: Long and Short ETFs	p. 125
The Hedging Strategy	p. 126
Short Selling's Dark History	p. 128
Short Selling Beyond Stocks	p. 128
Selling Short with ETFs	p. 129
Trading Strategies	p. 131
How Margin Accounts Work: Some Pitfalls	p. 131
What Lies Ahead: The Future of ETFs	p. 135
Enter the Actively Managed ETF	p. 136
But What About Costs and Transparency?	p. 138
What's in Store?	p. 138
Active Management vs. Mutual Funds	p. 140
ETF of ETFs: The Latest Package	p. 141
The Evolution Continues	p. 142
The "Height of Esoterica"?	p. 143
iMoney ETF Portfolios	p. 145
The Rules Everyone Should Follow	p. 146
Do You Track Trends?	p. 148
Going Your Own Way: Using the 200-Day Moving Average	p. 152
Spread It Around: Asset Allocation	p. 152
Don't Want to Do It Yourself? Find a Fiduciary	p. 154
Finding a Model Portfolio for You	p. 156
Model Portfolios	p. 157
Too Much of a Good Thing	p. 162
References	p. 165
Resources	p. 183
Glossary	p. 211
Index	p. 219
Table of Contents provided by Ingram. All Rights Reserved.

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Preface Praise Quotes for iMoney"The authors cover the ETF waterfront. Whether you are a young investor just starting out or a seasoned stock veteran looking for new investment opportunities, this book is a valuable resource." --Sam Stovall, Chief Investment Strategist, Standard & Poor's Equity Research"Finally! Lydon and Wasik objectively analyze exchange-traded funds for the average person. We particularly liked iMoney's comparisons with more familiar mutual funds, the clear discussions about risks, and the varying viewpoints from some of the industry's smartest minds." --Alan Lavine and Gail Liberman, syndicated columnists for Marketwatch.com and authors of Quick Steps to Financial Stability Preface ETFs for EveryoneTime and research have demonstrated that individual investors like you want to be empowered--and to get there, you are seeking new information, new products, and more powerful tools to aid in your quest. You want control over your portfolio, and you want to know what's actually in it. Thanks to great advances in technology and the increasing globalization of the world economy, today it's easier than ever for you to take investments into your own hands.Maybe you already know about exchange traded funds (ETFs), but you'd like to know more. Or you know a lot about them, but you haven't quite figured out how to incorporate them into your portfolio. With hundreds of ETFs dotting the financial landscape, becoming ever more specialized and covering some creatively constructed indexes, trying to figure out how they work and how to use them to your best advantage can be a daunting task.We've taken the time to speak with and e-mail individual investors just like you. We've actively solicited your comments and input on our blog, ETFTrends.com, every step of the way. We asked: How did you discover ETFs? What have your experiences been so far? And how do you use them to your advantage? Your answers helped shape the direction of this book. We also sought expert advice and opinions about ETFs--where they've been and where they're going. We've done extensive research, in an attempt to make this book the one-stop-shop for ETF information. And we hope it will be light and entertaining as well.ETFs came into existence in the early 1990s, but they didn't really take off until a series of scandals rocked the mutual fund industry. Today they're a formidable challenger to the mutual fund throne. To understand ETFs fully is to know where they came from and how they--and the underlying indexes they track--are created. This is why we've broken it down for you and given you a brief history before we dive in and discuss the nuts and bolts of the industry. We also have special chapters devoted to both buy-and-hold and trading strategies.It's now more important than ever to ensure that you have a handle on your retirement savings. With lavish pension plans quickly becoming extinct, people can no longer just assume that the government will carry them through. How dire is the situation? During World War II, there were 42 workers paying into Social Security for each person receiving benefits. By 2030, projections are that only two working people will be contributing for each person receiving benefits--and most baby boomers will be retired by then. Ouch. But all is not lost if you firmly resolve to look out for yourself and your money.Our goal in writing this book is to give you confidence to make wise, educated, and informed choices about the investments you make when it comes to ETFs. We want you to have a solid grasp of how ETFs work. You will be able to put together a

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iMoney Profitable ETF Strategies for Every Investor

iMoney Profitable ETF Strategies for Every Investor

0137127391

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