Winning with ETF Strategies: Top Asset Managers Share Their Methods for Beating the Market

1. The Evolution of ETFs

The Exchange Traded Funds (ETF) world has exploded since I wrote a book on ETFs about 12 years ago. Then there were only 32 ETFs, and the amount invested in them was about $65 billion. The original ETFs included the following:

• The Nasdaq-100 Index ETF (symbol QQQQ). This index is made up of the 100 largest domestic and international non-financial companies listed on the Nasdaq Stock Market, and the sizes are based on market capitalization. The portfolio is rebalanced quarterly and reconstituted annually. There are no portfolio managers deciding which stocks go into the index; instead, the stocks put into the index are automatic.

• The Dow Jones Industrial Average ETF (symbol DIA). The stocks put into DIA are chosen ...