The fast and easy way to get a handle on ETFs
Exchange-traded funds (ETFs) have a strong foothold in the marketplace, because they are less volatile than individual stocks, cheaper than most mutual funds, and subject to minimal taxation. But how do you use this financial product to diversify your investments in today's fast-growing and ever-changing market?
Exchange-Traded Funds For Dummies shows you in plain English how to weigh your options and pick the exchange-traded fund that's right for you. It tells you everything you need to know about building a lean, mean portfolio and optimizing your profits. Plus, this updated edition covers all of the newest ETF products, providers, and strategies, as well as Commodity ETFs, Style ETFs, Country ETFs, and Inverse ETFs.
Create the stock (equity) side of your portfolio
Handle risk control, diversification, and modern portfolio theory
Manage small, large, sector, and international investments
Add bonds, REITs, and other ETFs
Invest smartly in precious metals
Work non-ETFs into your investment mix
Revamp your portfolio to fit life changes
Fund your retirement years
Plus, you'll get answers to commonly asked questions about ETFs and advice on how to avoid mistakes that many investors—even the experienced ones—make. It provides forecasts of the future for ETFs and personal spending and also provides a complete list of ETFs and Web resources to assist your investment. With Exchange-Traded Funds For Dummies, you'll soon discover what makes ETFs the hottest investment on the market!
Table of contents
- Table of Contents
- Title Page
Part I: The ABCs of ETFs
- Chapter 1: The (Sort of Still) New Kid on the Block
Chapter 2: What the Heck Is an ETF, Anyway?
- The Nature of the Beast
- Choosing between the Classic and the New Indexes
- Preferring ETFs over Individual Stocks
- Distinguishing ETFs from Mutual Funds
- Why the Big Boys Prefer ETFs
- Why Individual Investors Are Learning to Love ETFs
- Getting the Professional Edge
- Passive versus Active Investing: Your Choice
- Do ETFs Belong in Your Life?
- Chapter 3: Getting to Know the Players
Part II: Building the Stock (Equity) Side of Your Portfolio
- Chapter 4: Risk Control, Diversification, and Some Other Things You Need to Know
- Chapter 5: Large Growth: Muscular Money Makers
- Chapter 6: Large Value: Counterintuitive Cash Cows
- Chapter 7: Small Growth: Sweet Sounding Start-ups
- Chapter 8: Small Value: Diminutive Dazzlers
- Chapter 9: Going Global: ETFs without Borders
- Chapter 10: Sector Investing: ETFs According to Industry
- Chapter 11: Specialized Stock ETFs
Part III: Adding Bonds, REITs, and Other ETFs to Your Portfolio
- Chapter 12: For Your Interest: The World of Bond ETFs
- Chapter 13: Real Estate Investment Trusts (REITs): Becoming a Virtual Landlord
- Chapter 14: All That Glitters: Gold, Silver, and Other Commodities
- Chapter 15: Working Non-ETFs and Active ETFs into Your Investment Mix
Part IV: Putting It All Together
- Chapter 16: Sample ETF Portfolio Menus
- Chapter 17: Exercising Patience: The Key to Any Investment Success
- Chapter 18: Exceptions to the Rule (Ain't There Always)
- Chapter 19: Using ETFs to Fund Your Golden Years
Part V: The Part of Tens
Chapter 20: Ten FAQs about ETFs
- Are ETFs Appropriate for Individual Investors?
- Are ETFs Risky?
- Do I Need a Financial Professional to Set Up and Monitor an ETF Portfolio?
- How Much Money Do I Need to Invest in ETFs?
- With Hundreds of ETFs to Choose From, Where Do I Start?
- Where Is the Best Place for Me to Buy ETFs?
- Is There an Especially Good or Bad Time to Buy ETFs?
- Do ETFs Have Any Disadvantages?
- Does It Matter Which Exchange My ETF Is Traded On?
- Which ETFs Are Best in My IRA, and Which Are Best in My Taxable Account?
Chapter 21: Ten Mistakes Most Investors (Even Smart Ones) Make
- Paying Too Much for an Investment
- Failing to Properly Diversify
- Taking on Inappropriate Risks
- Selling Out When the Going Gets Tough
- Paying Too Much Attention to Recent Performance
- Not Saving Enough for Retirement
- Having Unrealistic Expectations of Market Returns
- Discounting the Damaging Effect of Inflation
- Not Following the IRS’s Rules
- Failing to Incorporate Investments into a Broader Financial Plan
Chapter 22: Ten Forecasts about the Future of ETFs and Personal Investing
- ETF Assets Will Continue to Grow . . . for Better or Worse
- More Players May Enter the Field, but Only a Few
- Investors Will Get Suckered into Buying Packaged Products
- ETF Investors Will Have More, and Better, Options
- The Markets Will (Unfortunately) See Greater Correlation than in the Past
- Asset Class Returns Will Revert toward Their Historic Means
- Taxes Will Rise
- Inflation Will Remain Tame
- Private Pensions (of Sorts) May Emerge from the Rubble
- Hype Will Prevail!
- Chapter 20: Ten FAQs about ETFs
Part VI: Appendixes
Appendix A: Great Web Resources to Help You Invest in ETFs
- Independent, ETF-Specific Websites
- Websites of ETF Providers
- Retirement Calculators
- Financial Supermarkets
- Stock Exchanges
- Specialty Websites
- Where to Find a Financial Planner
- Regulatory Agencies
- The People Who Create the Indexes
- Good Places to Go for General Financial News, Advice, and Education
- Yours Truly
- Appendix B: Glossary
- Appendix A: Great Web Resources to Help You Invest in ETFs
- Title: Exchange-Traded Funds For Dummies®, 2nd Edition
- Release date: December 2011
- Publisher(s): For Dummies
- ISBN: 9781118214503
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