ETF Strategies and Tactics: Hedge Your Portfolio in a Changing Market

by Laurence Rosenberg, Neal Weintraub, Andrew Hyman

Overview

In just a decade, the exchange-traded funds (ETFs) market has grown from one billion dollars to more than half-a-trillion dollars.

While previous books have provided introductions to and listings of ETFs, ETF Strategies and Tactics offers practical guidance on how to invest in these funds and use them to balance your portfolio.

Written by a powerhouse authorial team, ETF Strategies and Tactics thoroughly covers the ins and outs of ETFs, detailing how they work, their distinctive characteristics, who trades them, who owns them, and their advantages and disadvantages compared with other investment vehicles. As markets evolve, new ETFs come and go. This authoritative reference will keep you on top of your game by providing focused decision-making techniques that help determine the viability of any ETF, including its value in sector and international investing.

While laying out a proven, systematic ETF investment plan, ETF Strategies and Tactics covers such valuable topics as:

• ETFs vs. mutual funds
• How ETFs are developed, what types of indexes are used, and the costs that determine returns
• How ETF regulations can help investors spot red flags in a fund and avoid tax problems
• The underlying tools of every ETF that can contribute to effective trading and minimized costs and taxes
• The proper use of ETFs based on an investor's goals and his/her ability to manage risk
• The unique short-selling opportunities associated with ETFs
• ETF options
• How to trade ETFs in the European market
• Inverse ETFs that go up when the market goes down

Complete with one-on-one interviews with professionals from major ETFs, as well as a number of valuable appendixes, ETF Strategies and Tactics is a unique guide you will keep at your fingertips during your day-to-day activities.

Product Details

ISBN-13:	9780071642897
Publisher:	McGraw Hill LLC
Publication date:	04/20/2008
Sold by:	Barnes & Noble
Format:	eBook
Pages:	400
File size:	5 MB

About the Author

Laurence M. Rosenberg is former chairman of the Chicago Mercantile Exchange and served on the Exchange's Board for more than 20 years. He is currently involved in international consulting through his own Chicago-based company, LRosenberg Consulting.

Neal Weintraub teaches at the Chicgo Mercantile Exchange and is director of education and strategy for World Wide Associates, Ltd.. He is the author of Tricks of the Active Trader (McGraw-Hill).

Andrew S. Hyman

is marketing director at Fiske Walter Capital Management. He also holds institutional and public seminars on exchange-traded funds.

Table of Contents

Preface

ForewordI

ntroduction

Part I: ETF Fundamentals

Chapter 1: Basics of Exchange Traded Funds (ETFs)

1.Origins

2.Vanguard and Indexing

3.Growth of ETF Market

4.Implication of Rise of ETFs for investment market

Chapter 2: ETFs and Mutual Funds

5.Similarities

6.Differences

7.Continuous Pricing

Chapter 3: ETF Structures and Costs

8.How are they developed?

9.Indices

10.Costs

11.Different types of structures

Chapter 4: ETF Varieties and common examples

12.Index ETFs

13.Closed-End ETFs

14.Auction Rate Preferreds

Chapter 5: ETF Regulation

15.US ETF Regulation

16.SEC

17.NASD

18.Other

19.European ETF Regulation

20.Other regulation

Part II: Practical Aspects of Using ETFs

Chapter 6: ETF Selection

21.Aligning ETFs with investment strategy

Chapter 7: Intelligent ETF Purchasing and Selling

22.Looking at Costs

23.Looking at Structures

24.How to make and intelligent decision on which instruments to use

25.Execution

Chapter 8: Technical and Fundamental Analysis of ETFs

26.Fundamental analysis

27.Technical Analysis

Chapter 9: Trading Overseas ETFs

28.Practical Aspects

29.Foreign Exchange Risks

Part III: ETFs Place in Your Portfolio

Chapter 10: Assessing Investment Goals

30.Using ETFs requires understanding of investment goals

31.Determining investment goals

32.Risk management

Chapter 11: Using ETFs to manage portfolio risk

33.Markowitz and portfolio theory

34.Diversification

35.Hedging

Chapter 12: ETF Strategies

36.Long

37.Short

38.Spreading

Chapter 13: Understanding the uses and abuses of ETFs

39.Using and index fund vs. ETFs

40.John Bogle discussed how ETFs are the growing part of the index universe, while they appear to be used more for speculation

41.Does the user want a broad index that captures the market

Part IV: Advanced ETF Topics

Chapter 14: Options

42.Basic options principles

43.Options Strategies

44.Using ETF options

Chapter 15: Sector Investing

45.Sector investing strategies

46.Using ETFs to implement sector investing strategies

Chapter 16: Long Term Investing

47.Determining long range goals

48.Equity Bias

49.Diversification

50.Costs

Chapter 17: International Investing

51.Common ETFs

52.Legal aspects of trading outside US

53.Foreign exchange risk

54.Tax considerations

Chapter 18: Day Trading

55.Psychological profile necessary to day trade

56.Financial net worth

57.Technology and systems needed

58.When to get out

Chapter 19: Speculative Trading

59.Types of Speculative Trading

60.Time frames

61.Trading Plans

62.Risk Management

Part V: Conclusion

Chapter 20: The View Ahead

63.Growth

64.More overseas investment operations

65.Continued need for good advice

Appendix

Appendix A: ETF publications

Appendix B: ETF websites

Appendix C: Directory of ETF Providers