Chapter 3

Getting to Know the Players

In This Chapter

arrow Setting up an account for your ETFs

arrow Meeting the brokerage houses

arrow Finding out who supplies ETFs to the brokers

arrow Introducing the indexers

arrow Distinguishing between the exchanges

I love to shop on Christmas Eve. It’s the only time the entire year when men — husbands and boyfriends who finally realize that they need to buy a gift, quickly — outnumber women at the mall. I see these hulking figures, some in bright orange hunting jackets, walking the halls of the Lehigh Valley Mall, looking themselves like scared prey. “Where’s the lingerie?” they ask, eyes to the ground.

Sometimes, when I suggest to a client that he buy a few ETFs for his portfolio, I see the same look of dire trepidation. I need to reassure him that buying ETFs isn’t that difficult. In this chapter, I want to do the same for you.

This chapter is something of a shopper’s guide to ETFs — a mall directory, if you will. I don’t suggest which specific ETFs to buy (I will, I ...

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