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.

Exchange-traded funds (ETFs) are revolutionizing the investmentindustry. From their introduction in 1993, ETFs have expandedexponentially over the past fifteen years. You, as an informedinvestor, need to know what makes ETFs unique, how they work, andwhich funds may help you achieve your financial goals. The updatededition provides the most current look at the ETF market, where thenumber of funds has doubled since the book first published inDecember 2007. A huge number of bonds funds, commodities fundscurrency funds, leverage and short funds have been introduced. Inaddition, actively managed ETFs are here now, and some major mutualfund companies, like Fidelity and PIMCO, are getting into themarket. Remarkably, the terminology in the ETP marketplace is alsoevolving at a rapid pace. The acronym ETP for exchange-tradedproduct has become an industry standard. The term did not exist twoyears ago.Written by veteran financial professional and experienced authorRichard Ferri, The ETF Book, Updated Edition gives you a broad anddeep understanding of this important investment vehicle andprovides you with the tools needed to successfully integrateexchange-traded funds into any portfolio.This detailed, yet clearly articulated guide contains the mostup-to-date information on navigating the growing number of ETFsavailable in today's marketplace. Divided into four comprehensiveparts, this guide addresses everything from ETF basics and in-depthfund analysis to the tax benefits of using ETFs. Included are avariety of portfolio management strategies using ETFs and examplesof different model portfolios that you can easily adapt to your owninvestment endeavors.Whether you're just getting started or are a seasoned ETF investorThe ETF Book, Updated Edition will help enhance your understandingof this evolving field by:* Examining the fundamental differences between exchange-tradedportfolios* Highlighting how to effectively implement a wide selection ofETFs?from* Exploring specific ETF strategies?from buy and hold to markettiming and sector rotation* Introducing Index Strategy Boxes?a new way to understand indexconstruction and how a fund is investing your money* And much moreEach chapter of The ETF Book, Updated Edition offers concisecoverage of various issues. It is filled with in-depth insights ondifferent types of ETFs and practical advice on how to select andmanage them. The appendixes are an added benefit, offering an ETFResource List, which will point you to more places for informationon these structures, and a detailed Glossary to help you withindustry-specific definitions.The ETF Book, Updated Edition is an invaluable road map fordeveloping a winning investment strategy. Armed with the knowledgefound throughout these pages, you'll be prepared to build a solidportfolio of ETFs that will benefit you for years to come.

Foreword ixAcknowledgments xiiiIntroduction xvPART I ETF BASICSChapter 1 ETFs from Evolution to Revolution 3Chapter 2 The Nuts and Bolts of ETFs 23Chapter 3 Types of Exchange-Traded Portfolios 41Chapter 4 ETF Benefits and Drawbacks 57Chapter 5 Actively Managed ETFs 73PART II INDEXES THAT ETFs FOLLOWChapter 6 Benchmark Indexes and Strategy Indexes 81Chapter 7 Index Strategy Boxes 93Chapter 8 Index Security Selection 107Chapter 9 Index Security Weighting 127PART III ETF STYLES AND CHOICESChapter 10 Broad U.S. Equity and Style ETFs 149Chapter 11 Global Equity ETFs 171Chapter 12 Industry Sector ETFs 189Chapter 13 Special Equity ETFs 209Chapter 14 Fixed Income ETFs 231Chapter 15 Commodity and Currency ETFs 247PART IV PORTFOLIO MANAGEMENT USING ETFsChapter 16 Portfolio Management Strategies 269Chapter 17 Passive ETF Portfolios 277Chapter 18 Life Cycle Investing 293Chapter 19 Active Portfolio Management with ETFs 307Chapter 20 Special Portfolio Strategies 325Chapter 21 Operational Tips for ETF Investors 335Appendix A Index Strategy Box Abbreviation Guide 347Appendix B ETF Resource List 349Glossary 353Index 367About the Author 376