Exchange Traded Funds and E-Mini Stock Index Futures [Hardcover]

David Lerman (Author)

Book Description

Publication Date: September 14, 2001 | ISBN-10: 0471442984 | ISBN-13: 978-0471442981 | Edition: 1

Shows how to use both ETFs and E-Minis for high-powered results

Exchange Traded Funds (ETFs) are a remarkable new tool for trading and investing in broad market segments or narrow sectors. ETF trading volume and asset growth continue to soar at record levels. Ideal for speculating in and hedging as well as long-term investing in the broader markets, these index products work together to diversify and balance any global portfolio. Now, one of the top executives (and experts) in the industry reveals the intricacies of the products, how to use them, and what the future holds. Readers will get sample index portfolios and strategies for all market participants--ranging from the short-term trader to the long-term investor; and from the risk taker to the conservative investor.

David Lerman (Chicago, IL) is the Senior Director of Equity Index Products Marketing at the Chicago Mercantile Exchange. He has traveled around the globe on behalf of the CME, giving seminars and workshops to retail and institutional audiences, including pension funds, corporations, banks and brokers on risk management/trading using equity index futures and options.

Editorial Reviews

Review

?The publishing of Exchange Traded Funds and E-mini Stock Index Futures provides investors, retail and institutional alike, great insight as to the structural advantages and applications of these two innovative investment and trading instruments. The launch of these products continues the trend of democratization of index investing empowering more investors to capitalize on the virtues of indexing. Mr. Lerman?s book is a great reference tool to gain a better understanding of these exciting products.? (Nick Lopardo, Vice Chairman, State Street Corporation, and Chairman & CEO, State Street Global Advisors)

?This book is a must-read for anyone thinking of investing/trading in Exchange Traded Funds (ETFs) and E-mini stock index futures! Lerman combines excellent research with practical examples to provide a comprehensive analysis of one of the fastest growing products in all of finance.? (Jay Baker, Vice President of Exchange Traded Funds Marketing, Spear, Leeds & Kellogg)

?David is one of the most powerful communicators in the industry. His succinct style and practical examples make this book a must-read for anyone thinking of investing in ETFs and E-mini stock index futures. Standard & Poor?s is proud to have played a role in the success of these innovative and exciting new products.? (Shirley Petersen, Vice President, Global Licensing, Standard & Poor?s Corp.)

?Here?s a great guide for those looking to get started in index investing and to learn how by using Wall Street?s most successful new investment vehicles?exchange traded funds and E-mini stock index futures.?(Erin Arvedlund, Staff Writer, Barron?s magazine)

?The ownership of index funds is a must for all long-term investors. David Lerman has done a terrific job of explaining everything you need to know in order to take advantage of the broad array of index fund products on the market. He shows just how simple it is to be a participant in funds that routinely outperform nearly every money manager in existence.? (Lawrence G. McMillan, author of McMillan on Options and President, McMillan Analysis Corp.)

From the Publisher

"The publishing of Exchange Traded Funds and E-mini Stock Index Futures provides investors, retail and institutional alike, great insight as to the structural advantages and applications of these two innovative investment and trading instruments. The launch of these products continues the trend of democratization of index investing empowering more investors to capitalize on the virtues of indexing. Mr. Lerman's book is a great reference tool to gain a better understanding of these exciting products." (Nick Lopardo, Vice Chairman, State Street Corporation, and Chairman & CEO, State Street Global Advisors)

"This book is a must-read for anyone thinking of investing/trading in Exchange Traded Funds (ETFs) and E-mini stock index futures! Lerman combines excellent research with practical examples to provide a comprehensive analysis of one of the fastest growing products in all of finance." (Jay Baker, Vice President of Exchange Traded Funds Marketing, Spear, Leeds & Kellogg)

"David is one of the most powerful communicators in the industry. His succinct style and practical examples make this book a must-read for anyone thinking of investing in ETFs and E-mini stock index futures. Standard & Poor's is proud to have played a role in the success of these innovative and exciting new products." (Shirley Petersen, Vice President, Global Licensing, Standard & Poor's Corp.)

"Here's a great guide for those looking to get started in index investing and to learn how by using Wall Street's most successful new investment vehicles—exchange traded funds and E-mini stock index futures."(Erin Arvedlund, Staff Writer, Barron's magazine)

"The ownership of index funds is a must for all long-term investors. David Lerman has done a terrific job of explaining everything you need to know in order to take advantage of the broad array of index fund products on the market. He shows just how simple it is to be a participant in funds that routinely outperform nearly every money manager in existence." (Lawrence G. McMillan, author of McMillan on Options and President, McMillan Analysis Corp.)

See all Editorial Reviews

Product Details

• Hardcover: 288 pages
• Publisher: Wiley; 1 edition (September 14, 2001)
• Language: English
• ISBN-10: 0471442984
• ISBN-13: 978-0471442981
• Product Dimensions: 9.4 x 6.3 x 1.1 inches
• Shipping Weight: 1.4 pounds (View shipping rates and policies)
• Average Customer Review: 4.1 out of 5 stars  See all reviews (7 customer reviews)
• Amazon Best Sellers Rank: #883,308 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

21 of 22 people found the following review helpful:

5.0 out of 5 stars Investors and Traders Will Love This Book, November 29, 2001

By 

andy cis (Chicago, IL) - See all my reviews

This review is from: Exchange Traded Funds and E-Mini Stock Index Futures (Hardcover)

I've attended several of Mr. Lerman's stock index seminars that he has done for the Chicago Mercantile Exchange--I agree with one of the endorsers that stated that he is a powerful communicator. He has translated his gift for teaching investment/trading principles into written form. Exchange Traded Funds and E-mini Stock Index futures was not only highly educational, it will help boost my investment returns and help save thousands of dollars in annual fees/expenses as well. I particularly liked the asset allocation section and appreciated how easy it is to construct portfolios with Spiders, QQQs and other ETFs. The best parts though were the multitude of strategies for basic investors all the way up to the more advanced trader. The sections on hedging portfolios against a bear market and spreading small/midcaps vs. large caps were easy to comprehend and implement. With small and mid-sized stocks outperforming the large caps YTD 2001, and in 2000, these types of strategies are very germaine. There are also tons of great statistics, graphs and an excellent section on Risk--the most ignored factor in investing. For the advanced investor he also explains fair value and index arbitrage in very easy to comprehend language. Overall, great job...well worth the time and money spent!

23 of 25 people found the following review helpful:

5.0 out of 5 stars Excellent Read, May 9, 2002

By 

Thomas B. Conway (Rockville, MD United States) - See all my reviews

This review is from: Exchange Traded Funds and E-Mini Stock Index Futures (Hardcover)

I happened to pick up this wonderful book while in Chicago recently. In browsing through the introductory pages, I smiled at the references to both Warren Buffett and Jack Bogle. Now here, I thought, is someone who "gets it". Buy this book and read it. It is worth every penny. Amidst today's cacaphony of financial marketing, Lerman's voice emerges from these pages with refreshing honesty, simplicity, and reason.
Those trying to educate themselves in the area of personal finance and investment should read this book carefully. For conservative investors as well as for those inclined to a bit of speculation on occasion, this book is very well written and informative.
Following up on the themes that, in the long run (emphasis), economic fundamentals drive returns; that larger, well-established, actively traded markets are, over time (emphasis), highly efficient; and that costs matter greatly when assessing net performance over extended periods; Lerman does an excellent job of explaining the rapidly developing role of ultra low-cost, exchange traded funds (ETFs) as part of any core indexing program. At the same time, he carefully exposes the many hidden (and, unfortunately, rising) costs lurking in most mutual funds today.
Still, Lerman wisely acknowledges, in the short term things can and do happen. While over long periods of time certain markets may be extremely efficient, the difference between that and what may happen in the near term is, as Buffett points out, the difference between day and night. After all, we are inescapably human, and fear and greed will never be completely expunged from our collective psyche. Sudden, unexpected events can result in major market and/or sector security specific swings, and it is during those times that patient investors as well as prudent speculators can occasionally reap outsized returns. Here again, ETFs (as well as the related E-Mini Stock Index Futures for more enterprising individuals) can help.
In short, by building a long-term, broadly-based core portfolio around low-cost ETFs and perhaps a few well-chosen securities and/or money managers (particularly in less efficient markets), and by then (for the enterprising investor) complementing such a portfolio with the occasional, more speculative foray, whether by utilizing ETFs, E-Mini Stock Index Futures, or other means, an intelligent individual should be able to navigate successfully today's choppy financial waters.

17 of 18 people found the following review helpful:

5.0 out of 5 stars Outstanding for biginners in ETFs and Emini futures, December 19, 2002

By 

J. Boulos "jbboulos" (Campbell, California United States) - See all my reviews
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This review is from: Exchange Traded Funds and E-Mini Stock Index Futures (Hardcover)

This is a well written book and easy to read about the history of ETFs and Emini futures. The author describes the creation of the likes of SPY, QQQ, SMH. Why is it important to know about these instruments, how they get created, who manages them, their cost effective investing over regular mutual funds. He goes in great detail by listing all EFTs available today with their tickers as well, till the point I don't need to keep going to the internet. I started trading the EFTs for profit and for hedging in particular after reading this book. The introduction about the Emini futures is useful and gave me a good start in this subject.