Full coverage of ETF investments from an expert in the field
The initial edition of Gary Gastineau's The Exchange-Traded
Fund Manual was one of the first books to describe and analyze
ETFs. It made the case for the superiority of the structure of
investor-friendly ETFs over mutual funds and helped investors
select better funds among the ETFs available.
With this new edition, Gastineau provides comprehensive
information on the latest developments in ETF structures, new
portfolio variety, and new trading methods. With a realistic
evaluation of today's indexes, Gastineau offers insights on
actively managed ETFs, improved index funds, and fund and advisor
selection.
* Discusses how to incorporate ETFs into an investment plan
* Offers updated coverage of new ETFs, including full-function
actively managed ETFs, and a valuable chapter on trading ETFs
* Written by the leading authority on exchange traded funds
Exchange-traded funds offer you diversification and
participation in markets and investment strategies that have not
been available to most investors. If you want to understand how to
use ETFs effectively, the Second Edition of The
Exchanged-Traded Fund Manual can show you how.
Autorentext
GARY L. GASTINEAU is principal of ETF Consultants LLC, which provides specialized exchange-traded fund consulting services to ETF issuers, exchanges, and investors. He is also a managing member and cofounder of Managed ETFs LLC, a firm that has developed new ETF trading systems and new actively managed ETFs. Preceding a position as managing director for ETF product development at N veen Investments, Gastineau directed product development at the American Stock Exchange for approximatel five years. He is also the author of the first edition of The Exchange-Traded Funds Manual and Someone Will Make Money on Your Funds—Why Not You? (both published by Wiley) and The Options Manual, as well as coauthor of the Dictionary of Financial Risk Management. Gastineau is an honors graduate of Harvard College and Harvard Business School.
Klappentext
The original edition of Gary Gastineau's The Exchange-Traded Funds Manual was one of the first books to describe and analyze ETFs. It made the case for the superiority of investor-friendly ETFs over mutual funds and helped investors select the best ETFs—which now hold more than $1 trillion of investor assets worldwide.
But much has changed—in both the ETF marketplace and the general investment environment—since that time. That is why Gastineau has filled this Second Edition of The Exchange-Traded Funds Manual with new insights and expert advice. This new edition provides comprehensive coverage of the latest ETF offerings, evaluation techniques, regulatory and tax changes, and trading cost reduction methods.
Page by page, this reliable resource offers a realistic evaluation of today's index ETFs; valuable insights on actively managed ETFs and new, improved index funds; as well as guidance in fund and advisor selection. Gastineau skillfully addresses these essential issues, as well as:
- The historic and continuing development of ETFs and how they stack up against other financial products that compete with them
- How to understand ETF applications as an individual investor or advisor and incorporate them into an effective investment plan
- The tax treatment of investment company ETFs and other exchange-traded instruments
- Fund ratings and the evaluation of ETFs
- The best ways to minimize the cost of trading ETFs
- And much more
Exchange-traded funds offer diversification and opportunities to participate in market segments and investment strategies that have not been available to most investors. If you want to make ETFs a productive part of your portfolio, the Second Edition of The Exchanged-Traded Funds Manual will show you how.
Zusammenfassung
Full coverage of ETF investments from an expert in the field
The initial edition of Gary Gastineau's The Exchange-Traded Fund Manual was one of the first books to describe and analyze ETFs. It made the case for the superiority of the structure of investor-friendly ETFs over mutual funds and helped investors select better funds among the ETFs available.
With this new edition, Gastineau provides comprehensive information on the latest developments in ETF structures, new portfolio variety, and new trading methods. With a realistic evaluation of today's indexes, Gastineau offers insights on actively managed ETFs, improved index funds, and fund and advisor selection.
- Discusses how to incorporate ETFs into an investment plan
- Offers updated coverage of new ETFs, including full-function actively managed ETFs, and a valuable chapter on trading ETFs
- Written by the leading authority on exchange traded funds
Exchange-traded funds offer you diversification and participation in markets and investment strategies that have not been available to most investors. If you want to understand how to use ETFs effectively, the Second Edition of The Exchanged-Traded Fund Manual can show you how.
Inhalt
Preface ix
Acknowledgments xi
Chapter 1 An Introduction to Exchange-Traded Funds 1
Exchange-Traded Funds Were Introduced as Something to Trade 1
Shareholder Protection 3
Tax Efficiency 7
Cost Transparency is Desirable, But Trading Transparency is Costly 9
Intraday ETF Trading 10
Comparing ETF and Mutual Fund Economics 11
Conclusion 17
Chapter 2 The History and Structure of Exchange-Traded Fundsand Some of Their Competitors 19
Some Major Financial Market Developments (1975 to 2000) 19
Declining Trading Costs Increase Financial Engineering Opportunities, and Financial Engineering Reduces Trading Costs in the New Millennium 23
A Brief History of ETFs 25
Other Tradable Basket Products 34
Chapter 3 The Regulatory Framework and Mechanics of the Open-End ETF 43
U.S. Fund Regulation Has Played a Major Role in the Structure of ETFs Introduced around the World 43
The Investment Company Act of 1940 45
Exemptions from the Investment Company Act of 1940
Have Been Granted to Permit Issuance of Open-End ETFs 47
ETF Developments Outside North America 50
Proposed Rule 33-8901 and Limitations on ETF
Trading Transparency 53
The Mechanics of ETF Creation and Redemption In-Kind 53
Chapter 4 Taxation of ETFs and Their Shareholders 65
Taxation of Investment Companies: Subchapter M and Regulated Investment Company (RIC) Requirements 65
The Mechanics of RIC Shareholder Capital Gains Taxation 73
The Wash Sale Rule 81
Other Pass-Through Collective Investment Vehicles 82
The Relative Tax-Efficiency of Mutual Funds, Exchange-Traded Funds, and Portfolio Baskets 90
Deferral of Long-Term Capital Gains 93
Outlook for Changes in Investment Company Taxation 98
Chapter 5 The Economics of Indexing, Trading Transparency, and Limited-Function Active Management of ETFs 101
Indexing Works Best When Approached with Common Sense 102
The Continuum: From Passive to Active 108
Benefits from a Decline in ETF Trading Transparency 110
How Trading Plans Become Transparent 112
Effect of Transparency Costs on Fund Performance 121
Silent (Nontransparent) Indexes 124
A Battle of Contrasting Index Fund Management Strategies 126
Chapter 6 Fund Ratings and RankingsThe Evaluation and Selection of ETFs and Mutual Funds 131
An Introduction …