Richard A. Ferri 
The ETF Book 
All You Need to Know About Exchange-Traded Funds, Updated Edition

Exchange-traded funds (ETFs) are revolutionizing the investment
industry. From their introduction in 1993, ETFs have expanded
exponentially over the past fifteen years. You, as an informed
investor, need to know what makes ETFs unique, how they work, and
which funds may help you achieve your financial goals. The updated
edition provides the most current look at the ETF market, where the
number of funds has doubled since the book first published in
December 2007. A huge number of bonds funds, commodities funds,
currency funds, leverage and short funds have been introduced. In
addition, actively managed ETFs are here now, and some major mutual
fund companies, like Fidelity and PIMCO, are getting into the
market. Remarkably, the terminology in the ETP marketplace is also
evolving at a rapid pace. The acronym ETP for exchange-traded
product has become an industry standard. The term did not exist two
years ago.

Written by veteran financial professional and experienced author
Richard Ferri, The ETF Book, Updated Edition gives you a broad and
deep understanding of this important investment vehicle and
provides you with the tools needed to successfully integrate
exchange-traded funds into any portfolio.

This detailed, yet clearly articulated guide contains the most
up-to-date information on navigating the growing number of ETFs
available in today’s marketplace. Divided into four comprehensive
parts, this guide addresses everything from ETF basics and in-depth
fund analysis to the tax benefits of using ETFs. Included are a
variety of portfolio management strategies using ETFs and examples
of different model portfolios that you can easily adapt to your own
investment endeavors.

Whether you’re just getting started or are a seasoned ETF investor,
The ETF Book, Updated Edition will help enhance your understanding
of this evolving field by:

* Examining the fundamental differences between exchange-traded
portfolios

* Highlighting how to effectively implement a wide selection of
ETFs?from

* Exploring specific ETF strategies?from buy and hold to market
timing and sector rotation

* Introducing Index Strategy Boxes?a new way to understand index
construction and how a fund is investing your money

* And much more

Each chapter of The ETF Book, Updated Edition offers concise
coverage of various issues. It is filled with in-depth insights on
different types of ETFs and practical advice on how to select and
manage them. The appendixes are an added benefit, offering an ETF
Resource List, which will point you to more places for information
on these structures, and a detailed Glossary to help you with
industry-specific definitions.

The ETF Book, Updated Edition is an invaluable road map for
developing a winning investment strategy. Armed with the knowledge
found throughout these pages, you’ll be prepared to build a solid
portfolio of ETFs that will benefit you for years to come.

Inhaltsverzeichnis

Foreword ix

Acknowledgments xiii

Introduction xv

PART I ETF BASICS

Chapter 1 ETFs from Evolution to Revolution 3

Chapter 2 The Nuts and Bolts of ETFs 23

Chapter 3 Types of Exchange-Traded Portfolios 41

Chapter 4 ETF Benefits and Drawbacks 57

Chapter 5 Actively Managed ETFs 73

PART II INDEXES THAT ETFs FOLLOW

Chapter 6 Benchmark Indexes and Strategy Indexes 81

Chapter 7 Index Strategy Boxes 93

Chapter 8 Index Security Selection 107

Chapter 9 Index Security Weighting 127

PART III ETF STYLES AND CHOICES

Chapter 10 Broad U.S. Equity and Style ETFs 149

Chapter 11 Global Equity ETFs 171

Chapter 12 Industry Sector ETFs 189

Chapter 13 Special Equity ETFs 209

Chapter 14 Fixed Income ETFs 231

Chapter 15 Commodity and Currency ETFs 247

PART IV PORTFOLIO MANAGEMENT USING ETFs

Chapter 16 Portfolio Management Strategies 269

Chapter 17 Passive ETF Portfolios 277

Chapter 18 Life Cycle Investing 293

Chapter 19 Active Portfolio Management with ETFs 307

Chapter 20 Special Portfolio Strategies 325

Chapter 21 Operational Tips for ETF Investors 335

Appendix A Index Strategy Box Abbreviation Guide 347

Appendix B ETF Resource List 349

Glossary 353

Index 367

About the Author 376

Über den Autor

Richard A. Ferri, CFA, is the founder and CEO of the investment firm Portfolio Solutions, LLC. An author of four previous books on low-cost investing, Ferri earned a bachelor of science degree in business administration from the University of Rhode Island and a master of science degree in finance from Walsh College. He worked at two major Wall Street firms for ten years before starting Portfolio Solutions in 1999. The company manages $1 billion in separate accounts using ETFs and index funds. Clients include individuals, nonprofit organizations, and corporate pension plans.