Exchange-Traded Funds For Dummies

Become an ETF expert with this up-to-date investment guide

Want to expand your portfolio beyond stocks and mutual funds? (Of course you do, you smart investor you.) Then take a look at exchange-traded funds (ETFs)! A cross between an index fund and a stock, they're transparent, easy to trade, and tax-efficient. They're also enticing because they consist of a bundle of assets (such as an index, sector, or commodity), so diversifying your portfolio is easy. You might have even seen them offered in your 401(k) or 529 college plan.

Exchange-Traded Funds For Dummies is your primer on ETFs. It gives you an insider (the legal kind!) perspective on the investment process, starting with an overview of ETFs and how they differ from stocks and mutual funds. The book also helps you measure risk and add on to your portfolio, and offers advice on how to avoid the mistakes even professionals sometimes make. Throughout, you'll also find plenty of tips, tricks, and even sample portfolios to set you up on the right path for investment success.

With Exchange-Traded Funds For Dummies, you will:

• Find out exactly what exchange-traded funds are and why they make good investments
• Mix and match stock portfolios to diversify yours
• Go beyond stocks for maximum diversification: bonds, real estate, and commodity ETFs
• Maintain your portfolio for future growth

With the tricks of the trade in Exchange-Traded Funds For Dummies, you can easily apply the knowledge you gain to turn good investments into great ones. Happy earning!

Auteur

Russell Wild, MBA, is the author or coauthor of nearly two dozen books, including Index Investing For Dummies and Bond Investing For Dummies. He has a master's degree in business administration and a graduate certificate in personal financial planning. Wild is also an associate of NAPFA.

Texte du rabat

Become an ETF expert with this up-to-date investment guide Want to expand your portfolio beyond stocks and mutual funds? (Of course you do, you smart investor you.) Then take a look at exchange-traded funds (ETFs)! A cross between an index fund and a stock, they're transparent, easy to trade, and tax-efficient. They're also enticing because they consist of a bundle of assets (such as an index, sector, or commodity), so diversifying your portfolio is easy. You might have even seen them offered in your 401(k) or 529 college plan. Exchange-Traded Funds For Dummies is your primer on ETFs. It gives you an insider (the legal kind!) perspective on the investment process, starting with an overview of ETFs and how they differ from stocks and mutual funds. The book also helps you measure risk and add on to your portfolio, and offers advice on how to avoid the mistakes even professionals sometimes make. Throughout, you'll also find plenty of tips, tricks, and even sample portfolios to set you up on the right path for investment success. With Exchange-Traded Funds For Dummies, you will: Find out exactly what exchange-traded funds are and why they make good investments Mix and match stock portfolios to diversify yours Go beyond stocks for maximum diversification: bonds, real estate, and commodity ETFs Maintain your portfolio for future growth With the tricks of the trade in Exchange-Traded Funds For Dummies, you can easily apply the knowledge you gain to turn good investments into great ones. Happy earning!

Contenu

Introduction 1

Part 1: The ABCs of ETFs 7

Chapter 1: No Longer the New Kid on the Block 9

Chapter 2: What the Heck Is an ETF, Anyway? 23

Chapter 3: Getting to Know the Players 47

Part 2: Building the Stock (Equity) Side of Your Portfolio 69

Chapter 4: Risk Control, Diversification, and Some Other Things You Need to Know 71

Chapter 5: Large Growth: Muscular Money Makers 91

Chapter 6: Large Value: Counterintuitive Cash Cows 103

Chapter 7: Small Growth: Sweet Sounding Start-ups 113

Chapter 8: Small Value: Diminutive Dazzlers 123

Chapter 9: Going Global: ETFs without Borders 129

Chapter 10: Sector Investing: ETFs According to Industry 151

Chapter 11: Real Estate Investment Trusts: Becoming a Virtual Landlord 169

Chapter 12: Dividend Funds: The Search for Steady Money 179

Part 3: Adding Bonds (Fixed Income) to Your Portfolio 185

Chapter 13: For Your Interest: The World of Bond ETFs 187

Chapter 14: Your Basic Bonds: Treasuries, Agency Bonds, and Corporates 201

Chapter 15: Moving Beyond Basics into Municipal and Foreign Bonds 219

Part 4: Specialized ETFs 231

Chapter 16: All That Glitters: Gold, Silver, and Other Commodities 233

Chapter 17: Investing for a Better World 249

Chapter 18: Going Active with ETFs 261

Chapter 19: All-In-One ETFs: For the Ultimate Lazy Portfolio 271

Chapter 20: Proceed-with-Caution ETFs 281

Part 5: Putting It All Together 295

Chapter 21: Sample ETF Portfolio Menus 297

Chapter 22: Exercising Patience: The Key to Any Investment Success 317

Chapter 23: Exceptions to the Rule (Ain't There Always) 333

Chapter 24: Using ETFs to Fund Your Fun (Retirement) Years 351

Chapter 25: Marrying ETFs and Non-ETFs to Make an Optimal Portfolio 369

Part 6: The Part of Tens 379

Chapter 26: Ten FAQs about ETFs 381

Chapter 27: Ten Mistakes Most Investors (Even Smart Ones) Make 387

Chapter 28: Ten Forecasts about the Future of ETFs and Personal Investing 393

Part 7: Appendixes 401

Appendix A: Great Web Resources to Help You Invest in ETFs 403

Appendix B: Glossary 409

Index 415