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iMoney: Profitable ETF Strategies for Every Investor

Book Description

The Up-to-the-Minute Guide to ETF Investing: Pick the Right ETFs for Your Unique Goals!

“The authors cover the ETF waterfront. Whether you are a young investor just starting out or a seasoned stock veteran looking for new investment opportunities, this book is a valuable resource.”

Sam Stovall, Chief Investment Strategist, Standard & Poor’s Equity Research

"Finally! Lydon and Wasik objectively analyze exchange traded funds for the average person. We particularly liked iMoney's comparisons with more familiar mutual funds, the clear discussions about risks, and the varying viewpoints from some of the industry's smartest minds."

Alan Lavine and Gail Liberman, syndicated columnists for and authors of Quick Steps to Financial Stability.

Smart investors have made ETFs today’s hottest investment. iMoney is the only ETF investment guide with up-to-the-minute advice that reflects today’s ETF marketplace: advice that is fully customized to your specific investment goals.

The authors explain exactly how ETFs fit into today’s investment universe. Even better, they present specific roadmaps, strategies, and model portfolios for a wide range of investors, from recent college graduates through retirees.

You’ll learn how to build and monitor your ETF portfolio; choose among the fast-growing array of ETFs; and profit from changing global market trends. The authors discuss domestic and foreign stock ETFs; sector, commodity, and currency ETFs; fixed income ETFs, long/short ETFs, and even “actively managed” ETFs. They preview emerging industry trends, and objectively assess the key criticisms that have recently been leveled at ETFs.

·   Tomorrow’s ETF book, not yesterday’s!

    Reflects the newest ETFs and strategies, and prepares you for emerging market trends

·   By two of the world’s leading ETF experts...

    ...Tom Lydon, founder of, the nation’s #1 consumer ETF site, and John F. Wasik, global personal finance columnist

·   Provides specific strategies and portfolio recommendations

    Not just theory! Discover what to buy, based on your unique investment profile

·   Covers every major type of ETF...

    ...including overseas, sector, commodity, currency, and bond ETFs...even long/short ETF strategies!

Table of Contents

  1. Copyright
    1. Dedication
  2. Acknowledgments
    1. Acknowledgments for Tom Lydon
    2. Acknowledgments for John Wasik
  3. About the Authors
  4. Preface
    1. ETFs for Everyone
    2. A Multipurpose Tool
  5. Introduction: A New Investment Strategy
    1. Investors Want More
    2. Enter the ETF, the Younger, Sleeker Cousin of the Mutual Fund
    3. Profit with Prudence, Avoid the Hype
    4. How to Use This Book
  6. 1. Busted: The Failure of Mutual Funds and Birth of ETFs
    1. Brain Freeze: We Listen to Bad Vibes
    2. A Brief History of Mutual Fund Folly
    3. Bubble Mania: Falling to Earth Again
    4. After the Bubble Burst: Salt in the Wounds
    5. Bad Performance: The Final Straw
    6. Index Investing Writ Large: How ETFs Can Be Employed
  7. 2. The Art of Indexing Using the iMoney Plan
    1. The Granddaddy Dow: A Brief History of Indexing
    2. Enter the S&P 500
    3. The Stock Index Universe
    4. Not All Index Funds Are the Same
    5. The Closet Index Peril
    6. What Difference Does It Make?
    7. Index Types
    8. The Old Guard Shouts Back
    9. Equal vs. Fundamental Weighting: The Battle Continues
    10. P/E and PEG and Your ABCs
  8. 3. Investing in Domestic Shares: U.S. Stock Index ETFs
    1. Big Caps: The Blue Whales of the Stock Market Ocean
    2. The Middle Path: Mid-cap Companies Show Promise
    3. Small-Caps: The Little Guys Grow Fast
    4. The Smallest of the Small: Micro/Minis
    5. Growth vs. Value: The Age-Old Question
  9. 4. Overseas Exposure: Foreign Stock ETFs
    1. It’s a Small World After All
    2. Emerging Markets Provide Growth
    3. Foreign ETF Expenses Are Low
    4. Adding More Growth to Your Portfolio
    5. The Chinese Dragon
    6. Watch the Index
    7. Up-and-Comers
  10. 5. Slicing and Dicing: Sector ETFs
    1. Picking a Winner and Scratching Your Head?
    2. A Growing Segment
    3. Buying Commercial Real Estate: REIT ETFs
    4. Who’s Winning the Popularity Contest?
    5. Not Diversified Enough to Be Single Holdings
    6. Taking a Thin Sector Slice: The Downside
  11. 6. Gold, Silver, and Oil: Commodity ETFs
    1. Hedging Inflation: Still a Concern
    2. The Wayback Machine: A History of Commodities
    3. How Futures Work
    4. Down on the Farm: Food-Based Commodities
    5. Knowing the Risks
    6. How Commodity ETFs Work
    7. Tax Treatment Different for Commodity ETFs
    8. The Golden Ticket: Precious Metals ETFs
  12. 7. A Buck Isn’t Worth a Dollar: Currency ETFs
    1. A Brief History of Currency ETFs
    2. Back to Basics
    3. Making It Personal
    4. How Currencies Are Valued
    5. Turn Dollars into Lemonade
  13. 8. Getting Chunks of the Bond Market: Fixed-Income ETFs
    1. Slow to Take Off
    2. Why Bonds?
    3. Municipal Bonds
    4. Federal Government Bonds
    5. Corporate Bonds
    6. Putting It All Together
    7. Exchange Traded Notes
  14. 9. Retire with Dignity: The 401(e) Plan
    1. A Reality Check
    2. Boomers May Go Bust
    3. Black Box Retirement Plans: Costs Are Not Transparent
    4. The Next Step: The 401(e)
    5. ETFs Offer New Alternatives to Investing
    6. 401(e) Providers Use New Technology
    7. Not for Everyone
    8. ETFs with an Expiration Date
    9. ETFs in Your IRA Accounts
    10. And We Come Full Circle
  15. 10. Hedging Your Bets: Long and Short ETFs
    1. The Hedging Strategy
    2. Short Selling’s Dark History
    3. Short Selling Beyond Stocks
    4. Selling Short with ETFs
    5. Trading Strategies
    6. How Margin Accounts Work: Some Pitfalls
  16. 11. What Lies Ahead: The Future of ETFs
    1. Enter the Actively Managed ETF
    2. But What About Costs and Transparency?
    3. What’s in Store?
    4. Active Management vs. Mutual Funds
    5. ETF of ETFs: The Latest Package
    6. The Evolution Continues
    7. The “Height of Esoterica”?
  17. 12. iMoney ETF Portfolios
    1. The Rules Everyone Should Follow
    2. Do You Track Trends?
      1. A Brief History of the Moving Average Strategy
    3. Going Your Own Way: Using the 200-Day Moving Average
    4. Spread It Around: Asset Allocation
    5. Don’t Want to Do It Yourself? Find a Fiduciary
    6. Finding a Model Portfolio for You
    7. Model Portfolios
      1. The Go-Getter (Aggressive)
      2. The Whoa, Slow Down a Little (Moderately Aggressive)
      3. The In-Betweener (Moderate)
      4. The Almost There (Moderately Conservative)
      5. The I’m Outta Here (Conservative)
    8. Too Much of a Good Thing
  18. References
    1. Introduction
    2. Chapter 1
    3. Chapter 2
    4. Chapter 3
    5. Chapter 4
    6. Chapter 5
    7. Chapter 6
    8. Chapter 7
    9. Chapter 8
    10. Chapter 9
    11. Chapter 10
    12. Chapter 11
    13. Chapter 12
  19. Resources
    1. Books
    2. Services
    3. Websites
    4. List of ETFs as of November 27, 2007
    5. A Sampling of ETFs Currently in Filing
  20. Glossary