The ETF Book: All You Need to Know About Exchange-Traded Funds

by Richard A. Ferri

Exchange-traded funds (ETFs) are revolutionizing the investment industry. From their introduction in 1993, ETFs have expanded exponentially over the past fifteen years. You, as an informed investor, need to know what makes ETFs unique, how they work, and which funds may help you achieve your financial goals. The updated edition provides the most current look at the ETF market, where the number of funds has doubled since the book first published in December 2007. A huge number of bonds funds, commodities funds, currency funds, leverage and short funds have been introduced. In addition, actively managed ETFs are here now, and some major mutual fund companies, like Fidelity and PIMCO, are getting into the market. Remarkably, the terminology in the ETP marketplace is also evolving at a rapid pace. The acronym ETP for exchange-traded product has become an industry standard. The term did not exist two years ago.

Written by veteran financial professional and experienced author Richard Ferri, The ETF Book, Updated Edition gives you a broad and deep understanding of this important investment vehicle and provides you with the tools needed to successfully integrate exchange-traded funds into any portfolio.

This detailed, yet clearly articulated guide contains the most up-to-date information on navigating the growing number of ETFs available in today's marketplace. Divided into four comprehensive parts, this guide addresses everything from ETF basics and in-depth fund analysis to the tax benefits of using ETFs. Included are a variety of portfolio management strategies using ETFs and examples of different model portfolios that you can easily adapt to your own investment endeavors.

Whether you're just getting started or are a seasoned ETF investor, The ETF Book, Updated Edition will help enhance your understanding of this evolving field by: Each chapter of The ETF Book, Updated Edition offers concise coverage of various issues. It is filled with in-depth insights on different types of ETFs and practical advice on how to select and manage them. The appendixes are an added benefit, offering an ETF Resource List, which will point you to more places for information on these structures, and a detailed Glossary to help you with industry-specific definitions.

The ETF Book, Updated Edition is an invaluable road map for developing a winning investment strategy. Armed with the knowledge found throughout these pages, you'll be prepared to build a solid portfolio of ETFs that will benefit you for years to come.

Genres: Finance, Money, Business, Nonfiction, Economics

400 pages, Hardcover

First published December 21, 2007

Reviews

[Wlad · Rating 3 out of 5]

A parte introdutória é excelente, já que o autor explica como funcionam os ETFs e como os índices são construídos. Já a parte mais descritiva sobre os ETFs disponíveis foi feita para o mercado dos EUA, ou seja, quase nada é aplicável para o Brasil e achei que pode ser pulada. Traz uma parte sobre como montar um portfólio e quais classes de ativos devem compor de acordo com as características da pessoa.
Porém, fiquei com a impressão que o autor faz muita propaganda de si mesmo, tanto de seus outros livros quanto da própria empresa de consultoria. Além disso, ele parece ficar ofendido com a ideia de que algumas pessoas não queiram investir na indústria de armas.

[Andrea · Rating 4 out of 5]

Libro indicato a chi voglia capire come funzionano gli ETF, oltre ad utilizzarli come strumento di investimento. Ho apprezzato molto la parte più tecnica (storia, tipologie e meccanismi degli ETF), che solitamente viene trattata in maniera più superficiale nei libri di finanza personale. La parte sulla composizione del portafoglio, invece, non ha nulla di particolare. Concludendo: consigliato a chi conosce/utilizza gli ETF e vuole approfondire, dal punto di vista tecnico, la tematica.

[Stephen Chung · Rating 4 out of 5]

Probably the best book on the subject of ETF in the market. but only holds as long as the money supply is stable.

[Hercules Merscher · Rating 3 out of 5]

This book explain what is an ETF if someone does not know what it is and offers a really good overview of the main ETFs available in the market. The strategies of how to manage your portfolio is very clear and straightfoward. However some informations are too focused on US market. The explanation of how ETFs came to be could be left for the end of the book as optional material, if you want to hit the ground running with the bits and pieces of the subject and is not patient you going to be a bit bored, although you might find it interesting in case you like to understand how everything started without to hurry.

[Jack · Rating 3 out of 5]

Quite dated.

Because of the details about how fundamental indexes can be created and managed I have a better understanding than before

Explains how ETFs that are formed as unit investment trust differ from those organized as an investment company under the investment company act of 1940. This is good information but it doesn't have a lot of practical impact day-to-day

One good thing about reading an old book is looking at things like the sector rotation funds discussed in the book. Most if not all are gone. I guess if they had been successful they would still exist.

[Salvador · Rating 4 out of 5]

This book is the most completed book I had read about ETF

This book has a detailed explanation of ETF including advantages and disadvantages. Also has practical tips. Not a five star due to the lengths of the book.

[Pavlo Kochubei · Rating 5 out of 5]

It's a technical books packed with details describing inner working of ETFs, but it also has practical guides on building ETF porfolios and provides copious examples. If you're like to understand how things work before you start using them, it could be a great read for you.

[Rick Butruce · Rating 3 out of 5]

Way more info than needed - target audience should be investment professionals. Read general sections.

[Volkan Taş · Rating 4 out of 5]

Some fundamentals of ETFs,

[Tracey · Rating 5 out of 5]

This is definitely the togo book for anyone wants to know about ETF investment.

[Rodolfo Gonzalez · Rating 4 out of 5]

It provides a comprehensive overview of what an ETF is and the viable options. It also includes general investment strategies and some practical advice.

[Philski · Rating 3 out of 5]

An ETF is a mutual fund that trades like a stock.

There. I said it. No reason to read the book, unless you like history, want to understand why some are regulated by an act of 1933 and some by an act of 1940, or want a list of ETF's which is surely outdated. Read chapter 1 for the background and the last chapter for some interesting strategies using ETF's.

I'm not saying it's a bad book, if you are a serious investor or possibly selling ETF's it's probably awesome. But the book is broked into 4 sections:
1. What is ETF's How do they work? (Good)
2. Here's the background/nitty gritty details of the different ETF's (fair but unecessary to. The general trader)
3. Here's the different kind of funds (mirrors funds available as mutual funds or general Morningstar ratings ... nothing new)
4. Here's some investment strategies (again, this is generic to trading any stock...)

Some interesting quotes. In one section he talks about how large banks "no one knows abot" Like Lehman Brthers and Goldman Sachs and Merrill Lynch, "Firms few people outside of Wall Street have heard of" Sure enough, copyright date of 2008 (probably written in 06-07).

[Clement Chan · Rating 3 out of 5]

Definitely an informative read about the ETFs and I learnt quite a fair bit, even though some parts can be a little too technical and over my head. Some points are also often repeated so many times it gets a little too repetitive, and the language used in this book can also be a little too formal and academic.

Nevertheless, if you wish to purchase an ETF, a good read through this book is recommended.

[Rich Williams · Rating 4 out of 5]

While I've read many times that ETFs are more tax efficient and have lower costs than other funds, nothing ever explained how or why they were. This book explains this and and pretty much everything else about how ETFs are created and work, has an easy to understand way of comparing ETFs and a good overview of investing strategies using them.

[Amit · Rating 3 out of 5]

Good information. Learnt about different types of ETF's (Unit Trusts, ETNs) etc. and also got some hints about how the leveraged, ultra short ETFs are implemented.

Probably good for Financial Advisors, though individual investors can pick a few concepts.

[Takedown · Rating 3 out of 5]

Interesting if you want to know a little more about ETF

[Karl · Rating 3 out of 5]

Needs another update.

[Chad Olson · Rating 2 out of 5]

As interesting as expected...I was looking for more guide than fact. Index composition was interesting, though not etf specific.