ETF Trading and Investing Strategies (Collection)

ETF Trading and Investing Strategies (Collection)

by Tom Lydon, Leslie N. Masonson, Marvin N. Appel
Released December 2011
Publisher(s): Pearson
ISBN: 9780132938655

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Book description

Breakthrough ETF trading and investing strategies: 3 books packed with techniques for reducing your risks and costs – and supercharging your returns

Three remarkable books help you use the latest ETF strategies to cut your investing costs, control your risks, and improve your returns! In The ETF Trend Following Playbook, Tom Lydonhelps you drive superior performance by combining proven trend following strategies, low-cost ETFs, and fully-proven technical analysis methods. You’ll discover how to quickly identify markets that are about to plummet, so you can get out of the way... and how to identify markets that are headed up, so you can capture all of their profits.In Buy–Don’t Hold, Leslie Masonson shows how to avoid the massive stock-market drops that destroy “buy and hold” investors, and offers specific, easy-to-use investing strategies for investors with each risk profile: conservative, moderate and aggressive. Finally, in Investing with Exchange Traded Funds Made Easy, Marvin Appel cuts through today’s ETF marketing hype, helping you choose the right ETFs from the hundreds now available. Drawing on objective data and proven, backtested strategies, Appel reveals what ETFs can and can’t do, and shows exactly how to use them to consistently beat the market.

From world-renowned investing experts includingTom Lydon, Les Masonson,andMarvin Appel

Table of contents

  1. Title Page
  2. Contents
  3. The ETF Trend Following Playbook: Profiting from Trends in Bull or Bear Markets with Exchange Traded Funds
    1. Table of Contents
    2. Acknowledgments
    3. About the Author
    4. Introduction
      1. Buy–and–Hold: Rest in Peace
    5. Chapter 1. Trends Are an Investor’s Best Friend
      1. Buy-and-Hold’s Funeral March
      2. Getting in Touch with Your Emotions
      3. Never-Ending Opportunities
    6. Chapter 2. Risk and Disaster Don’t Have to Go Hand-in-Hand
      1. Greed and Fear and Stocks, Oh My!
      2. Running Scared
      3. What Kind of Risk Level Can You Tolerate?
      4. Types of Risk
      5. Staying Grounded
      6. Is Time on Your Side?
    7. Chapter 3. Spotting Trends
      1. Tools of the Trade
      2. Learning to Identify Trends
      3. The Rules of the Game
      4. Understanding the Moving Average
      5. Exiting Safely and Profitably
      6. Avoiding a Bursting Bubble
      7. Learning to Live with “the Sell”
      8. Finding the Trends
      9. Timing Is Everything
    8. Chapter 4. Why Trend Following Can’t Be Beat
      1. Hot Stocks Can Leave Nasty Burns
      2. The Tulip Mania, Holland, 1634–1637
      3. The South Sea Bubble, Britain, 1719–1720
      4. Never Look Back
      5. What Happens After You Sell?
      6. Conquer Volatility, Don’t Let It Conquer You
      7. Do You Have Any Better Ideas?
      8. Buy-and-Hold: Does It Work Like It Should?
      9. Where That Leaves Us
    9. Chapter 5. The Nuts and Bolts of ETFs
      1. Why ETFs Are a Better Solution
      2. Evaluating ETFs
      3. Employing ETFs
    10. Chapter 6. Tools You Can Use
      1. News
      2. Analysis
      3. Looking Under the Hood
      4. Charting
    11. Chapter 7. Navigating U.S. Markets
      1. Choices Galore
      2. Growth Versus Value
      3. Value: Slower but Steadier
      4. Trends in Value and Growth
      5. Domestic Market ETFs
      6. Digging in Even Deeper
    12. Chapter 8. International Opportunities
      1. The Land of the Rising Sun...and Profits
      2. The Beginning of the End
      3. Emerging Markets
      4. International ETFs
      5. Developed Markets
      6. Emerging Markets
    13. Chapter 9. The Best-Looking Sector in the Room
      1. Technology: High Highs and Lower Lows
      2. The Bubble Springs a Leak
      3. Passing Around Blame
      4. One Big Financial Mess
      5. The Beginning of the Global Crisis
      6. Sector-Specific ETFs
      7. Power Up with Utility ETFs
      8. Checking Up on Healthcare ETFs
      9. Banking on Financials
    14. Chapter 10. The Luster of Gold and Crude
      1. Oil: A Slippery, Yet Profitable Slope
      2. Turning Trends into Profits
      3. Owning Your Share of Commodities
      4. Agriculture
      5. Energy
      6. Metals (Precious, Base, and Industrial)
      7. Broad-Based Commodity ETFs
      8. Going the Roundabout Way
      9. Commodities: A Valuable Part of Your Portfolio
    15. Chapter 11. The World of Currencies
      1. Monitoring the Ups and Downs of Money
      2. The Dollar Bucks Its Trend—Will It Last?
      3. Making the Most Out of Currency ETFs
      4. Squeezing the Most from Your Dollars
    16. Chapter 12. Trends in Fixed Income
      1. Factors to Consider
      2. The Yield Curve
      3. Recent Trends Spotted
      4. Taxes and Municipal Bond Trends
      5. High-Yield Opportunity
      6. Fixed-Income ETFs
      7. Who Wants Bonds?
      8. How to Choose Bond ETFs
    17. Chapter 13. Getting Leverage in the Markets
      1. The Long and Short of ETFs
      2. Pumping Up Returns
    18. Chapter 14. Conclusion: Let’s Get to Work
      1. Switching from Mutual Funds to ETFs
      2. Working with Your Advisor
      3. Wrap–Up
    19. Glossary
    20. References and Resources
      1. References
      2. Resources
    21. Financial Times Press
  4. Buy—DON’T Hold: Investing with ETFs Using Relative Strength to Increase Returns with Less Risk
    1. Contents
    2. Foreword
    3. Gregory L. Morris
    4. Acknowledgments
    5. About the Author
    6. Introduction
      1. My Early Beginnings in the Stock Market
      2. My Investment Experience Spans Over 50 Years
      3. The Purpose of This Book
      4. Managing Your Financial Affairs Is Critical
      5. Endnotes
    7. Chapter 1. The Stock Market Roller Coaster
      1. Secular Bull and Bear Markets
      2. Historical Market Returns Are Not a Forecast of Future Returns
      3. Forget About Relying on Investment Books with Outrageous Titles
      4. Stock Market Facts
      5. Arguments For and Against Buy-and-Hold (BAH)
      6. Mutual Fund Managers Do Not Practice Buy-and-Hold
      7. In the Stock Market Expect the Unexpected
      8. Investing in the Stock Market Is a Very Risky Proposition
      9. Endnotes
    8. Chapter 2. Understanding the Concept of Risk
      1. Risk Tolerance Questionnaires Have Major Shortcomings
      2. Recent Market Decline Has Brought Risk to the Forefront
      3. Protecting Your Principal Is Paramount
      4. Final Point
      5. Endnotes
    9. Chapter 3. Personal Investing Plan: Six-Step Road Map to Success
      1. Step 1: Determine Your Current Risk Level
      2. Step 2: Review Your Existing Investment Portfolios
      3. Step 3: Assess the Stock Market’s Condition
      4. Step 4: Invest in a Selected Universe of ETFs
      5. Step 5: Select Top-Ranked ETFs Based on Relative Strength Analysis
      6. Step 6: Protect Your Portfolio Using Stops
      7. Investing for Retirement
      8. Endnotes
    10. Chapter 4. Exchange-Traded Funds—The Most Suitable Investment Vehicles
      1. Investing in Actively Managed Mutual Funds Is Not Recommended
      2. ETFs Are the Preferred Investment Vehicle
      3. ETF Benefits Are Extensive
      4. ETF Risks
      5. ETF Allocation for Different Investor Types
      6. Recommended ETFs
      7. Appendix 4.1: Discount and Full-Service Brokerage Firms
      8. Appendix 4.2: ETF Resources
      9. Endnotes
    11. Chapter 5. The Stock Market Dashboard—Key Stock Market Indicators to Gauge the Market’s Direction
      1. Pay No Attention to Wall Street Experts
      2. Introducing the Stock Market Dashboard
      3. Detailed Indicator Review
      4. Scoring System for Indicators
      5. Endnotes
    12. Chapter 6. Using Relative Strength Analysis to Determine Where to Invest
      1. The Basic Premise of Relative Strength Analysis
      2. Relative Strength Investing with ETFs—A Great Combination
      3. Using www.etfscreen.com to Rank ETFs
      4. Using www.etftable.com to Rank ETFs
      5. Appendix 6.1: Listing of ETF Symbols for Composite Performance and Ranking Tables
      6. Endnotes
    13. Chapter 7. Subscription Software for Ranking the ETF Universe
      1. High Growth Stock Investor Software (HGSI)
      2. VectorVest Software
      3. Endnotes
    14. Chapter 8. Putting It All Together
      1. Step 1: Determine Your Risk Tolerance and Investor Profile
      2. Step 2: Examine Existing Portfolios for Possible Reallocation
      3. Step 3: Evaluate the Stock Market’s Condition
      4. Step 4: Invest in the Recommended Universe of ETFs
      5. Step 5: Select Top-Ranked ETFs Based on Relative Strength Analysis
      6. Step 6: Protect Your Portfolio Using Stops
      7. Four Interesting Insights to Ponder
      8. A Last Word
      9. Appendix 8.1: October 2007 Dashboard Scores
      10. Endnotes
    15. Bibliography
    16. Index
    17. FT Press Financial Times
  5. Investing with Exchange-Traded Funds Made Easy: A Start-to-Finish Plan to Reduce Costs and Achieve Higher Returns, Second Edition
    1. Contents
    2. Praise for Investing with Exchange-Traded Funds Made Easy, Second Edition
    3. Acknowledgments
    4. About the Author
    5. 1. Exchange-Traded Funds (ETFs): Now Individuals Can Invest Like the Big Players
      1. ETFs Are a Special Type of Mutual Fund
      2. ETFs Avoid the Expense of Fund Managers
      3. ETFs Are Traded on Exchanges
      4. ETF Investors Have Hidden Costs Through the Bid-Ask Spread
      5. The Creation/Redemption Process Keeps ETF Share Prices Close to the Market Value of the Underlying Shares
      6. ETF Performance Is Not Weighed Down by Transaction Costs
      7. ETF Shares Are Often More Tax-Efficient Than Mutual Funds
      8. Special Risks of ETFs
      9. Conclusion
      10. Endnotes
    6. 2. The Multifaceted Stock Market: A Guide to Different Investment Styles
      1. The First Decision: Stocks, Bonds, or Cash
      2. Size Matters
      3. Each Investment Style Has Multiple ETFs
      4. Conclusion
      5. Endnotes
    7. 3. A One-Step Strategy for Selecting Superior Investments: Indexing
      1. Investments That Track Market Indexes Have Outperformed Most Mutual Funds
      2. The Evidence in Favor of Indexing
      3. Indexing Has Delivered Greater Profits Than the Average Mutual Fund, Except in the Small-Cap Area
      4. How a Few Mutual Fund Managers Have Beaten the Indexes
      5. Conclusion
      6. Appendix to Chapter 3—Index Construction Methodologies
      7. Endnotes
    8. 4. Investment Risk: A Visit to the Dark Side
      1. Drawdown—An Intuitive Measure of Investment Risk
      2. A 43-Year History of Bear Markets
      3. What if Your Investment Was Not Around During a Bear Market?
      4. Example of Risk Assessment: An Emerging Market ETF
      5. Market Risks and Planning for Your Future
      6. Appendix A to Chapter 4: Where to Find Quantitative Investment Risk Information
      7. Appendix B to Chapter 4: Calculation of Drawdown with a Spreadsheet
      8. Appendix C to Chapter 4: Volatility of Past Returns as a Risk Measure
      9. Endnotes
    9. 5. How Well Are Your Investments Really Doing? Risk-Adjusted Performance
      1. The First Risk-Adjusted Performance Measure—Annual Gain-to-Drawdown Ratio
      2. Another Risk-Adjusted Performance Measure—The Sharpe Ratio
      3. Risk-Adjusted Performance Review
      4. Conclusion
      5. Appendix A to Chapter 5—Calculation of the Compounded Annual Rate of Return
      6. Appendix B to Chapter 5—Calculation of the Sharpe Ratio
      7. Endnote
    10. 6. Diversification: The Only Free Lunch on Wall Street
      1. Reduce Risk, Not Profits, with Diversification
      2. Diversification Versus Picking Only the Best
      3. How to Determine What Should Be in the Optimal Portfolio
      4. Example—Determining a Good Mix of Stocks and Bonds
      5. Interpretation of the Sharpe Ratio
      6. The Uncertainty of Future Investment Returns
      7. Conclusion
      8. Endnote
    11. 7. The One-Decision Portfolio
      1. A Risk-Reducing Investment Mix
      2. Indexes Used to Test the One-Decision Portfolio
      3. Performance History for the One-Decision Portfolio
      4. The One-Decision Portfolio for Less Conservative Investors
      5. ETFs You Can Use to Create Your Own One-Decision Portfolio
      6. Rebalancing
      7. Why Are Only U.S. Investments Included in the One-Decision Portfolio?
      8. Conclusion
      9. Appendix to Chapter 7—A Brief Discussion of the Bond Market
      10. Endnotes
    12. 8. When to Live Large: An Asset Allocation Model for Small- versus Large-Cap ETFs
      1. Why Market Capitalization Matters
      2. Trading Rules
      3. Results
      4. Real-World Implementation with ETFs
      5. Conclusion
      6. Appendix to Chapter 8—ETF Distributions and Taxes
    13. 9. Boring Bargains or Hot Prospects? Choosing between Growth and Value ETFs
      1. The Concept of Relative Strength
      2. History of Relative Strength Changes between Growth and Value
      3. Recognizing the Emergence of a New Trend Using the Relative Strength Ratio
      4. Results with Small-Cap Value versus Growth
      5. Results with Large Cap Value versus Large Cap Growth
      6. Real-World Implementation with ETFs
      7. Conclusion
    14. 10. When Is It Safe to Drink the Water? International Investing
      1. How to Identify Whether the Long-Term Trend Favors U.S. or Developed-Country Foreign Stocks
      2. Results of Using the EAFE/S&P 500 Asset Allocation Model
      3. Emerging Market ETFs—Investing for the Future
      4. Outlook for International Investing
      5. Conclusion
    15. 11. What Bonds Can Tell You about Stocks: How to Use Interest Rates
      1. A Basic Introduction to the Bond Market
      2. Why Rising Interest Rates Have Usually (But Not Always) Been Bad for Stocks
      3. An Indicator of Rising Interest Rates
      4. Yield Curve Indicator
      5. Composite Interest Rate Indicator
      6. Conclusion
    16. 12. It's a Jungle Out There: Selecting from Among Different ETFs with Similar Investment Objectives
      1. The Drawdown Chart—A New Tool
      2. Example 1—Small-Cap ETFs
      3. Example 2—Growth Versus Value ETFs
      4. Example 3—Utility Sector ETFs
      5. Conclusion
      6. Endnotes
    17. 13. The Ultimate ETF Investment Program for 30 Minutes per Month
      1. The Ultimate ETF Investment Program
      2. Results of the Ultimate ETF Strategy
      3. Conclusion
    18. 14. ETF Strategies for Investment Income
      1. The Ideal Income Investment—A Payout That Grows over Time
      2. If You Want High Dividends, You Have to Like Financial Stocks
      3. Where to Find High-Dividend ETFs
      4. A Unique High-Dividend Portfolio
      5. Preferred Stock ETFs
      6. Conclusion
    19. 15. The Hottest Investments Around: Commodity ETFs
      1. Primer on Commodity Investing
      2. Absentee Ownership of Precious Metals
      3. Become a Futures Trader
      4. A Virtual Commodity Investment
      5. How to Invest in Commodity ETFs
      6. The Outlook for Commodities
      7. Conclusion
    20. Appendix. Internet Resources for ETF Investors
      1. ETF Sponsor Web Sites
      2. General ETF Web Sites
      3. Index Provider Web Sites
      4. Current and Historical Market Data Web Sites
      5. Fundamental Economic Data Web Sites
    21. Index
    22. FT Press Financial Times
  6. Three Paths to Profitable Investing: Using ETFs in Healthcare, Infrastructure, and the Environment to Grow Your Assets
    1. Contents
    2. Acknowledgments
    3. About the Authors
    4. Introduction: Three Paths to a Prosperous Future
      1. The Way Forward
    5. 1. Understanding ETFs and Why They Beat Mutual Funds
      1. What Is an ETF?
      2. What Is an Index?
      3. How Does an Index Work?
      4. How Did Indices Change the Fund Management Business?
      5. Origins of ETFs
      6. Why Invest with ETFs?
      7. Risks of Investing with ETFs
      8. Conclusion
      9. Notes
    6. 2. Get Rid of the Middleman, Take Charge of Your Portfolio, and Invest in the Future with ETFs
      1. Who Are All These Middlemen?
      2. Why Have We Turned Our Money Over to Others?
      3. Why Do We Have Our Current Investment Infrastructure with All These Middlemen?
      4. What to Do About the Financial Professionals in Your Life
      5. A Look Ahead
      6. Why Healthcare, Green, and Infrastructure Represent the Innovative Places to Put Your Money
      7. Conclusion
      8. Notes
    7. 3. The Healthcare Crisis in America—How We Got to Where We Are
      1. Demographics Drive the Case for Investing in Healthcare
      2. Looking at the Medical System through the Inverted U
      3. Healthcare Is Expensive and Not Getting Cheaper
      4. Relying on the Current Pharmaceutical Industry Won’t Cut Costs
      5. Pharma Can Be a Risky Investment—Or the Savior of Biotech
      6. Conclusion
      7. Notes
    8. 4. The Biotech Revolution Is Changing the Face of Healthcare: What It Means for Medicine and Investors
      1. How We Have Produced Drugs in the Past
      2. Molecular Targeting to Reduce Cancer Treatment Side Effects
      3. Helping the Body Make Up for Failure to Produce Needed Blood Cells
      4. RNA Interference Regulates Genetic Activity to Stop Diseases
      5. Enabling Technologies for Diagnostics and Therapeutics
      6. Regenerative Medicine
      7. Nanomedicine
      8. Pharmacogenomics Can Improve Treatments and Reduce Side Effects
      9. Theranostics
      10. The Case for Investing in Biotechnology
      11. Conclusion
      12. Notes
    9. 5. Understanding the Risks of Healthcare Investing
      1. Drug Approval Process Makes Biotech Investing Risky
      2. Understand the Time Frame and Risks
      3. The Drug Approval Process
      4. Healthcare Reform and Biotech Investing
      5. Conclusion
      6. Notes
    10. 6. Investing in Healthcare ETFs
      1. Pharmaceutical ETFs
      2. Healthcare ETFs
      3. Biotechnology
      4. Medical Devices
      5. Conclusion
      6. Notes
    11. 7. Climate Change and Understanding Green Investing
      1. Understanding Climate Basics
      2. Warming and Its Consequences
      3. The Meaning of the Changes
      4. Climate Change Could Happen Faster Than Expected
      5. What Needs to Be Done
      6. Focus on Reducing Greenhouse Gas Emissions
      7. Wind
      8. Solar
      9. Natural Gas
      10. Nuclear
      11. Clean Energy and Clean Technologies
      12. Risks That Span the Green Spectrum
      13. The Three Wild Cards
      14. Conclusion
      15. Notes
    12. 8. Green ETFs: Overview and Analysis
      1. Clean Energy
      2. Natural Gas
      3. Wind, Solar, and Nuclear Power
      4. Clean Technology
      5. Conclusion
    13. 9. Why We Need to Invest in Infrastructure and How to Do It
      1. What Is Infrastructure?
      2. Drinking Water
      3. Wastewater
      4. Aviation
      5. Bridges
      6. Rail
      7. Roads
      8. Transit
      9. Energy
      10. Investing in Infrastructure Could Have Major Payoffs for Society
      11. Understanding Infrastructure Investing with ETFs
      12. General Infrastructure Investing
      13. Materials
      14. Utilities
      15. Water
      16. REITS
      17. Transport
      18. Conclusion
      19. Notes
    14. 10. Infrastructure ETFs: Overview and Analysis
      1. Utilities
      2. Water
      3. General Infrastructure Funds
      4. Basic Materials
      5. Shipping and Logistics
      6. Real Estate
      7. Conclusion
    15. 11. Putting It All Together: Building a Three Paths ETF Portfolio
      1. Conclusion
    16. 12. Conclusion
      1. We’ve Seen This All Before—Travel in Time Back to 1980
      2. How Did We Get out of the Mess?
      3. 2010 Looks a Lot Like 1980
      4. IPOs Signal Renewal of Faith in Markets
      5. A Lot of Money Is Poised to Enter the Market
      6. Unsustainable Investments Undermine the Economy
      7. Innovation Is Still Happening
      8. Look Ahead—Not Backward—to See Where to Invest
    17. A. Healthcare and Biotech ETFs
      1. Pharmaceuticals
      2. Healthcare
      3. Biotechnology
      4. Medical Devices
    18. B. Green ETFs
      1. Clean Energy
      2. Natural Gas
      3. Wind Power
      4. Solar Energy
      5. Nuclear Energy
      6. Clean Tech
    19. C. Infrastructure ETFs
      1. Utilities
      2. Water
      3. Infrastructure
      4. Materials
      5. Transportation Infrastructure
    20. Index
    21. Financial Times Press

Product information

  • Title: ETF Trading and Investing Strategies (Collection)
  • Author(s): Tom Lydon, Leslie N. Masonson, Marvin N. Appel
  • Release date: December 2011
  • Publisher(s): Pearson
  • ISBN: 9780132938655