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The ETF Book: All You Need to Know About Exchange-Traded Funds Hardcover – August 24, 2009
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"The ETF Book is an excellent compendium of the background, structural drivers, pros and cons of ETFs, as well as the strategies that can be advanced using them. Years from now, this book will be noted for introducing index strategy boxes as a powerful analytic." (SFO Magazine, April 2008)--This text refers to an out of print or unavailable edition of this title.
From the Inside Flap
When the original edition of The ETF Book was first published in 2007, it immediately became the source for cutting-edge information on many exchange-traded products (ETPs)mainly exchange-trade funds (ETFs). The book has still not been surpassed, but with the marketplace for ETPs quickly evolving, now is the perfect time for the Updated Edition of The ETF Book.
This detailed, yet clearly articulated guidewritten by veteran financial professional and experienced author Richard Ferricontains the most up-to-date information on navigating the growing number of ETPs available in today's market. Divided into four comprehensive parts, this revised resource introduces you to everything from successful structures such as bond funds, commodities funds, and currency funds to concepts such as actively managed ETFs that have recently become a reality. Along the way, you'll gain valuable insight into how you can effectively integrate ETFs into any portfolio.
Becoming an informed investor means that you need to know what makes ETFs unique, how they work, and which funds may help you achieve your financial goals. Whether you're just getting started or are a seasoned investor, the Updated Edition of The ETF Book will help enhance your understanding of this dynamic field by:
Detailing the different types of ETPs, including ETFs, exchange-traded notes (ETNs), grantor trusts, and unit investment trusts (UITs)
Exploring the latest ETF strategiesfrom buy, hold, and rebalance to market timing and sector rotation
Highlighting how to implement a wide selection of ETPsfrom equity and fixed income to commodities and leveraged funds
Examining the fundamental differences between index-based ETPs
Introducing Index Strategy Boxesa proven way to understand index construction that is the basis for how most ETPs are invested
And much more
As an added benefit, this book's appendixes offers an ETF Resource Listwhich will point you to other sources that discuss these structuresand a detailed Glossary to help you with industry-specific definitions.
The Updated Edition of The ETF Book has everything you need to develop a winning investment strategy. Each chapter is filled with new insights on different types of ETFs and practical advice on how to select and manage them. Reflecting the most recent changes in this field, the Updated Edition of The ETF Book will prepare you to build a solid portfolio of ETFs that will benefit you for years to come.
More About the Author
Mr. Ferri earned a Bachelor of Science degree in Business Administration from the University of Rhode Island and a Master of Science degree in Finance from Walsh College. He also holds the designation of Chartered Financial Analyst (CFA). Prior to joining the investment community in 1988, Rick served as an officer and jet pilot in the U.S. Marine Corps and is now retired from the Marine Corps Reserve.
Top Customer Reviews
If, like me, you have not yet invested in ETFs but want to know how they are constructed, how they function, and what role they might serve in your portfolio, then Rick Ferri's book is the FIRST place you should go for a comprehensive guide to understanding ETFs.
Ferri's book can be read in, or through depending on the reader's interests. By this I mean his book divides into four free-standing, but continuous, parts. The first part deals with ETF Basics--the history, mechanics, and potential benefits and drawbacks. Part Two, a real eye-opener for this reader, focuses on index construction and provides an index strategy box akin to how Morningstar analyses mutual funds. Part Three broadens the discussion to styles and choices--from broad domestic/global indexes to equivalents of slice and dice strategies. Part Four shows, in detail, how investors can incorporate ETFs into their asset allocation plan--whether they are inclined to passive, active, or a combination of portfolio strategies.
Thankfully, Rick Ferri goes to great pains to communicate clearly with his readers. To my mind, he has no axe to grind, although as a professional portfolio manager he advocates passive investing. Ferri provides many alternative portfolios (passive, active, combo) spread along a continuum of life-cycle investing.
It certainly speaks well of this fine book that it receives the ringing endorsements of the likes of Don Phillips, David Blitzer, and Anthony Rochte, Senior Managing Director of State Street Global Advisors. Robert Uphaus
This book does a great job in INTRODUCING indexing and ETF's. It covers a lot of ground about various types of ETFs their pros and cons. There are lot of finer points spread throughout the book which are interesting for people starting new and are hard to come across on web for an average web user like me - eg: pros and cons of Vanguard ETF (VIPER) structure where its ETFs are another class of shares of its index mutual funds. I would have rated this 5 stars except for some repetition of text multiple times in multiple chapters about types of indexing etc in Parts II and Part III of the book. Model portfolios section could have been dealt better.
The only problem is that some of the errors in this book go beyond simple spelling mistakes, and may even lead to some serious investment mistakes and negative tax implications if readers aren't otherwise familiar with account types that the author misrepresents in this book. For example, Traditional IRAs are not non-taxable, rather they are tax deferred. Be careful, because if you read this book and invest in an IRA because you think it is non-taxable, you will be in for quite a ruid awakening. These kinds of mistakes undermine an otheriwse helpful and useful text about ETFs.
My other problem with this book is the clear bias the author expreses in favor of passive investment strategies. Without the bias, the book would have felt more academic and objective, and not so skewed.
The book is worth reading, but be careful, because there are some serious flaws that can lead to trouble here.
The book is well written and arranged nicely. It's a good read and a great reference.
It gives you some sample life cycle investing portfolios, which I find most useful.
You'll find the benefits and the drawbacks of ETF investing. You'll learn about the different types of ETFs.
You'll also learn about the different management styles available.
I would have liked more information on fixed income investing. I find there's not much available on that. I also find there isn't anything about defensive investing, which we need right now.
There is help with asset allocation but I suspect you'll want to buy a book that devotes itself entirely to that subject.
I keep the book near my left hand as I readjust my portfolio and when I'm considering a fund.
I highly recommend this great book.
I have been a long-term fan of low-cost, passive investing (i.e. index funds) and have read all of Mr. Ferri's books. Recently, I have begun using ETFs in place of index funds.
Mr. Ferri's book is a well-researched, complete guide to ETFs. I believe it will be viewed as the definitive ETF book because of its wide-ranging coverage of everything from how ETFs can be used in a portfolio to details of ETF construction.
The practical tips (e.g. don't trade an ETF at the beginning or end of a trading day) alone are worth the price of the book. Also, I really like the detailed information on how various ETFs (e.g. gold ETFs) are constructed.
Great resource for individual investors as well as for professionals!
Most Recent Customer Reviews
Rick did a great job classifiing various ETFs, especially I like the concept of index strategy boxes. Read morePublished 8 months ago by Nikita S.
Highly recommend this book for anyone seeking to gain a working knowledge of the rules of ETF trading. Read morePublished 15 months ago by W. Sholar
The book has useful fundamental and universally-applicable information that helps understanding the mechanics and inner-workings of ETFs and the market participants involved with... Read morePublished 17 months ago by a book reader
I bought a lot investment books, and I usually give them 1 or 2 stars, but this one honestly teaches you how to distinguish the real ETFs from the fake ones. Read morePublished 18 months ago by Steve
All you need is this book. I bought his indexing book also but this one covers it all. A good complete treatment by someone that seems honest, not-reckless, and on your side. Read morePublished 19 months ago by Jack Bert
This book contains everything you want to know about ETFs. It provides a lot of history of ETFs and covers the subject very well. I learned a lot about ETFs. Read morePublished 23 months ago by Herb
Objective presentation of material is thorough and clear. Very good overall. The author expresses some biases that would undermine his advice, but fortunately and appropriately... Read morePublished on October 12, 2013 by D. R. Martz