All about Exchange Traded Funds

✍ Scribed by Jr., Archie Richards

• Publisher: McGraw-Hill
• Year: 2002
• Tongue: English
• Leaves: 306
• Edition: 1
• Category: Library

✦ Synopsis

Everything You Need to Know About Exchange-Traded Funds — How ETFs Work, Which are Right for You, and More!Exchange-traded funds, similar to standard mutual funds but traded like common stocks, are today's hottest investment vehicles. But what are ETFs? How do they allow you to effortlessly diversify among industries and countries? Can you use ETFs to hedge risks in your overall portfolio?All About Exchange-Traded Funds gives you the nuts-and-bolts information you need to understand ETFs. Spiders ... Diamonds ... QQQ ... With well over 200 ETFs to choose from, you can find one to track virtually any major index or industry and efficiently round out any portfolio. Look to All About Exchange-Traded Funds for detailed information on this exciting new investment class, including: * Tax advantages of ETFs over traditional mutual funds * Diversification advantages of ETFs over individual stocks * Names, holdings and other reference information for popular ETFs Whether you are an experienced stock market investor or a beginner, look to All About Exchange-Traded Funds to learn more about: * Three basic categories of ETFs * How and where to buy ETFs * ETFs versus index funds * Short-selling ETFs * Investment approaches to avoid * ETFs and asset allocation * ETFs and retirement accounts * And much more

✦ Table of Contents

Copyright......Page 5
Contents......Page 9
Acknowledgments......Page 11
CHAPTER 1 What Are ETFs?......Page 13
HAVING A LOT LATER ON......Page 14
CREDIT CARDS......Page 16
THE HOUSE......Page 17
THE BASEMENT: FINANCE......Page 18
THE FIRST FLOOR: STOCKS......Page 19
BONDS......Page 22
SPECIFIC RISK VERSUS MARKET RISK......Page 25
AVERAGES AND INDEXES......Page 26
CHAPTER 3 Mutual Funds......Page 31
OPEN-END MUTUAL FUNDS......Page 32
CLOSED-END MUTUAL FUNDS......Page 34
ADVANTAGES OF MUTUAL FUNDS......Page 35
DISADVANTAGES OF MUTUAL FUNDS......Page 40
INDEX FUNDS......Page 51
CHAPTER 4 The Basics of Exchange- Traded Funds......Page 55
SPIDERS......Page 56
THE CREATION AND REDEMPTION OF SPIDERS......Page 58
SECONDARY MARKETS FOR ETFS......Page 61
THE ANTECEDENT OF ETFS: WAREHOUSE RECEIPTS......Page 62
CHARACTERISTI S OF ETFS......Page 63
CHAPTER 5 Keeping ETFs on the Straight and Narrow......Page 67
SPECIAL PROBLEMS REGARDING VARIANCES......Page 74
CHAPTER 6 The Costs of Exchange- Traded Funds......Page 77
INVESTMENT GOALS......Page 85
LONG-TERM PROSPECTS AT THE BEGINNING OF 2002......Page 93
CHAPTER 8 Setting up a Brokerage Account to Buy ETFs......Page 99
CHAPTER 9 Investment Approaches to Avoid......Page 109
CHAPTER 10 The Ins and Outs of Day Trading ETFs......Page 125
WEB SITES......Page 129
STRATEGIES......Page 130
SPECIALISTS......Page 131
ORDERS......Page 135
OPTIONS......Page 137
QUICKIES......Page 140
REALITY......Page 144
CHAPTER 11 The Best Way to Go About It—Asset Allocation......Page 145
THE PROPER MIX......Page 156
STOCKS IN GENERAL......Page 157
INTERNATIONAL STOCKS......Page 158
BONDS......Page 159
A RECOMMENDED ASSET ALLOCATION PROGRAM......Page 160
REBALANCING......Page 163
IF INCOME IS NEEDED......Page 164
CHARACTERISTI S OF ALL IRAS......Page 167
TRADITIONAL IRAS......Page 169
ROTH IRAS......Page 171
VARIABLE ANNUITIES......Page 173
CHAPTER 13 Hedging Risk......Page 177
DIVERSIFYING SPECIFIC RISK......Page 179
HOW MUTUAL FUNDS ARE SUPERIOR TO EXCHANGE-TRADED FUNDS......Page 183
HOW EXCHANGE-TRADED FUNDS ARE SUPERIOR TO MUTUAL FUNDS......Page 184
HOW ETFS ALONE ARE SUPERIOR TO INDIVIDUAL STO KS......Page 185
SUGGESTIONS FOR EXCHANGE-TRADED FUNDS IN THE FUTURE......Page 186
SUMMARY......Page 188
APPENDIX Reference Information on Each Exchange-Traded Fund......Page 189
INDEX......Page 295