The Ultimate Guide to Trading ETFs: How To Profit from the Hottest Sectors in the Hottest Markets All the Time

by Don Dion, Carolyn Dion

Overview

Exchange-traded funds (ETFs) have experienced strong growth over the last decade, and with attributes such as transparency, liquidity, and low costs, they continue to be one of the best investment options in the market.

While there are a wide range of ETF choices to help put your long- and short-term investment ideas to work, you need to be particularly discerning when searching for funds that will meet your investment objectives. Nobody understands this better than authors Don and Carolyn Dion—both of whom have made ETFs a centerpiece of their professional lives—and now, with The Ultimate Guide to Trading ETFs, they skillfully demystify the process of choosing ETFs and reveal how to effectively incorporate them into a profitable portfolio.

Whether you're just becoming familiar with ETFs or are well versed in them, this reliable resource contains the insights and advice you need to navigate the various sectors and strategies found within this arena. You'll quickly become familiar with everything today's ETFs encompass—from a broad-based index such as the S&P 500 and industry sectors such as biotech to particular countries/geographic regions such as emerging markets.

Divided into three comprehensive parts, The Ultimate Guide to Trading ETFs touches upon some of the most important issues in this field and will help you:

• Discover the numerous types of ETFs currently available and choose the ones that may be right for you
• Utilize ETFs to build a portfolio of longer-term holdings or trade shorter-term positions to take advantage of evolving opportunities
• Become familiar with ETFs that can protect you from inflation or allow increased access to certain investments such as commodities and currencies
• And much more

ETFs are nothing short of revolutionary, particularly for individual investors looking to customize their market exposure. They are cost-effective and offer a high level of transparency to specific stocks and industry sectors. If you're looking to make exchange-traded funds a part of your portfolio, take the time to read The Ultimate Guide to Trading ETFs and discover how to profitably put them to work for you.

Product Details

ISBN-13:	9780470915219
Publisher:	Wiley
Publication date:	11/23/2010
Sold by:	JOHN WILEY & SONS
Format:	eBook
Pages:	224
File size:	7 MB

About the Author

DON DION is the publisher of the Fidelity Independent Adviser (fidelityadviser.com) family of newsletters. He is also President and founder of Dion Money Management (dionmm.com), a fee-based investment advisory firm to affluent individuals, families, and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios, and overseeing the performance of client accounts. Dion began his career as a certified public accountant with Ernst and Young and holds a law degree from the University of Maine and an LLM in taxation from Boston University.

CAROLYN DION is an analyst and associate editor for the Fidelity Independent Adviser family of newsletters, Dion Money Management's affiliate newsletter company. In addition to her role as analyst and editor, she is Vice President of Dion Money Management, where she assists in the development of ETF strategies. Before joining Dion Money Management, Carolyn worked as an ETF market maker for Kellogg Specialist Group on the New York Stock Exchange and American Stock Exchange. Dion received a bachelor's degree from Bowdoin College in Brunswick, Maine.

Read an Excerpt

Click to read or download

Table of Contents

Preface.

Acknowledgments.

Part I: ETFs – A New Way to Invest and Trade.

Chapter 1: Taking an Active Approach with ETFs.

Understanding ETFs.

Basic Tenets of ETF Investing.

Active Investing Approach.

Three Must-Know Types of ETFs.

The ETF Investor.

Portfolio Approach.

Conclusion: the Discerning, Active Investor.

Chapter 2: Judging ETFs.

Launching a Fund.

A Book Is More than the Proverbial Cover.

Beware of Zombies.

Nontraditional ETFs.

Keep Your Eyes Open.

Chapter 3: Understanding Indexing: New Options for Investors.

Traditional ETFs.

Targeting Sectors with Cap-Weighted Indexes.

Beating the Market with Customized Index ETFs.

Dynamic ETFs.

Lifecycle and Hedge Fund ETFs.

Currency Carry Trade ETF.

Active ETFs.

Looking Ahead.

Part II: Asset Allocation Strategies.

Chapter 4: Building a Portfolio Using ETFs.

The Super Hands-On Active Trader.

The High-Touch Satellite Investor.

The Portfolio Builder.

Investment Continuum.

The Importance of Diversification: Nothing to Excess.

Intelligent Diversification with ETFs.

Chapter 5: Trading: Navigating the Storm.

Placing Your Trades.

Be Aware of the International Disconnect.

All about Liquidity.

When Newer Isn't Necessary Better.

Big Picture and Short-Term View.

Chapter 6: International Investing.

Gaining Exposure through Regional Funds.

Single-Country Promise and Pitfalls.

Commodity Plays.

ADRs vs. Ordinaries.

Target Shifting Things.

New Offerings Ahead.

Chapter 7: Gaining Exposure to Commodities.

Physical Commodity ETFs – Panning for Profits.

Equity-Based Commodity Exposure.

Beware the Futures-Backed Commodity Fund.

Using ETNs to Gain Access to Commodities.

Commodity Exposure, a Cautionary Table.

Chapter 8: Staying Current with TIPs and Currencies.

Dealing with Inflation.

Currencies.

Summing It Up.

Part III: Tying It All Together.

Chapter 9: Looking Ahead: A Changed Landscape.

Victims of Their Own Success.

Searching for Opportunity.

It's Time for a Change.

Back to the Future.

Appendix A.

Appendix B.

Appendix C.

Appendix D.

About the Authors.

Index.