Product Description
Want to know how to trade the hottest new investment vehicle? This book reveals the secrets of profiting from a new and growing investment vehicle the Exchange-Traded Fund. Pulling from experts in the field like Linda Bradford Raschke and Steve Palmquist, this book has all the information you need to begin trading ETFs for profit: Learn the basics of ETFs; how they work, why they re growing in popularity, and how you can get your share of the profits. Discover the way to apply classic techniques to leverage your ETF investments for both the short-term and long-term. Study simple but highly effective mechanical ETF rotation techniques (style, sector, and international) that are now available to the individual investor. ETF Trading Strategies Revealed doesn t end there. Learn from long-time trader and founder of AIQ Systems, Dr. J.D. Smith, what it takes to mentally be the best. When you have the emotional discipline to follow his techniques, you ll find increased profits aren t far behind.
Customer Reviews:
Strategy can be improved.......2007-10-18
Without a doubt, this is a solid, easy to follow investment model that will blow the socks off of many investing/trading strategies. One gripe I have about this book, however, is the fact that Vomund doesn't add market timing. I have conducted many backtests using my own timing model with a 2ETF portfolio with much better results with no timing. 2002 is a good example of how timing would of kept you out of the market until late 2002, when the market started to base. Additionally, portfolio size is critical. I've found a 1ETF portfolio (yes, higher risk) performs exceptional better than a 2 ETF portfolio. I'm sure Vomund incorporates these two areas in his on investing. I just wish he would of addressed them in the book.
Great strategy for your long term money.......2007-09-05
This book is FANTASTIC! If you are looking for a way to do better than the market in a relaxed and simple way, this is it. This is not a trading strategy, its an investment strategy which has given me all of the answers I've needed for investing our nest egg. It is perfect for 401Ks, education accounts, and retirement accounts. Thanks to David Vomund for sharing this with us!!!
Yawn .......2007-08-13
You can get more information from the select sector spyders website, you can even get up to date analysis. The book is a joke, why do people insist on writing such garbage!. Don't waste your time here.
Very useful yet simple to use methods for ETF investing.......2007-07-28
David Vomund has written this book with simplicity and clarity.His approach is very methodical and practical.Novice as well seasoned investors can adopt his method without spending too much time.It is a small book but thoroughly focussed on its principal objective.
David's methodology is very mechanical and its strength lies in its ease of use.
I recommend this book to anyone who is thinking of ETF investing
Rashmi Shah
sleep at night strategy.......2007-05-11
I have followed these traders, espicially D Vomond! He offers very good investment advice, and you do not have to trade every day, hanging on the markets every little or big movement!
Just check things once every week or two and upgrade if needed! takes maybe 10- 15 minutes a week!
I also subscribe to his newsletter service! check my e-mail on the weekend, enter the trade on trade trggers, and off to my life for the rest of the week!
you allways know what ETF's have the most momentum international, sector, or index small, mid, or large cap, groth or value!
Customer Reviews:
Too long-winded.......2007-07-10
Not as clear or as useful an introduction as the 'Dummies' series book on ETFs, but a good additional introduction if you have no knowledge of statistics and time-series etc, and want a little more detail patiently explained to you.
If you already know basic statistics and correlation, you don't need this text - as the explanations are rather long-winded and, at times, irritating.
More than ETF.......2007-03-15
The book covers ETF for investors - new or not - and does a very good job at explaining risk and volatility. From my point of view, it's more than just ETF and "how to", but also a good background on historical behavior of markets and a review of "well known facts".
For example, read the following excerpt from page 69:
"Since the start of 1941 - a period of 65 years - there have been 35 market corrections of 10 percent or more in the S&P 500, representing one correction every 1.9 years on the average..."
Conclusion page 70:
"Identify the worst period for each of the investments you are comparing..."
and a question (page 70):
"What if your investment was not around during a bear market?" (like the new ETF's offered)
In addition, there are data tables and graphs (for the ones inclined to look at hard data).
By the way, if you assume that investing in ETF's is superior to a mutual fund investment, think again. See page 22:
"As already discussed, ETF share prices are sensitive to the balance between supply and demand - a risk absent from regular mutual funds.
----
"The result is that at the time you are most anxious to sell, you might not be able to get a fair price (relative to the value of the underlying shares) as you thought you would."
All in all, a good reading on markets and new investment vehicles like ETF's.
Nice addition to your library on financial planning........2007-02-11
After having read a few books by other notable authors such as Bernstein, Ferri, Bogel, Gibson and Edleson that describe the virtues of low cost-investing and targeted asset allocation, I found that Appel's book added new information on the practical use of Exchange Traded Funds. Specifically, their use will permit you to cut internal investment costs significantly relative to mutual funds and even relative to index funds. His writing is technical, but can easily be understood. He does stray into some areas that suggest the use of certain market metrics to determine what investment types will be better and when (market timing and asset class selection). You will need to determine for yourself if his suggested tactics will work for you. Nonetheless, I found his concepts new and interesting and consider myself more informed having read them. In summary, a good addition to your reading materials on the subject.
Sensible ETF Investing Strategy Revealed.......2006-11-17
The growth of Exchange Traded Funds (ETFs) to more than 300 valued at over $350 billion with another 300 in registration, coupled with exploding investor interest in these funds, has resulted in a handful of books being published on the subject. Dr. Marvin Appel's new 13- chapter book is the best of the bunch from all perspectives. He is the son of Gerald Appel (the developer of the MACD indicator and his business partner. Gerald has also just penned his newest book titled "Opportunity Investing" which is a perfect complement to Marvin's book.
The author first explains how ETFs work and how they are different from traditional mutual funds, and then reviews the different types (fixed income; large, small, and madcap growth and value). Appel then provides detailed insight into investment risk and risk-adjusted performance. Diversification is next up, and Appel illustrates the performance of an ETF portfolio consisting of REITs, S&P 500 F and small cap from 1997-2005. Additionally, he delineates a six-step process to produce an optimal ETF portfolio.
Appel provides investors with a very conservative "one-decision" portfolio requiring a minimal time commitment. Performance date from 1981-2005 is presented which illustrates the compound annual return of 10.7%. This ETF portfolio's composition was 30% US T-bills (cash equivalent), 20% investment grade bonds, 20% S&P 500, 20% REITs and 10% small caps. Interestingly, the only losing years were 1990 (-1.5%) and 2002 (-2.3%). Appel recommends rebalancing after one year and one day to gain favorable long-term capital gains tax treatment.
Additionally, he advocates switching on a yearly basis between the Russell 1000 (large cap) and Russell 2000 (small cap) to take advantage of a stronger trend in place from the prior year for the stronger of the two indices. Using this approach adds 2.2-2.7% a year to the returns which when compounded produces significant incremental returns not attainable by just sticking with one index all the way. To complete the ETF selection process, he shows how to select between growth and value ETFs using a common relative strength approach (dividing one index by the other to see which is stronger) for small, midcap and large cap ETFs.
Finally in chapter 10, Appel adds international ETFs into the mix. He explains the intricacies, risks and costs of investing in this ETF category. Investors should be aware of the high correlation of international and domestic ETFs which sometimes does not add value in a declining market environment. However, there are periods when international ETFs perform better than the S&P 500 for example, and it pays to use relative strength analysis to stay with the outperforming category until the trend reverses.
According to Appel, interest rates play a critical role in stock market performance over time. The key is to determine if rates are rising or falling and whether the U.S. Treasury is borrowing short- or long-term. He explains how the yield curve works and its impact on stock market performance during yield curve inversion. He provides a composite interest rate indicator with specific rules to help investors know when to be invested.
Appel ends the book with a terrific chapter titled "The Ultimate ETF Investment Program" and provides a detailed three-step approach that requires 30 minutes a month to complete. He provides back-tested results of his Ultimate ETF Strategy (UES) from 1979-April 30, 2006 (with and without a bond component) illustrating an annual compounded return of 17.1% for the UES, 15.2% for UES with bonds compared to a 13.4% return for the S&P 500 buy-and-hold benchmark. He also includes a very easy-to-follow flow chart of the decision-making steps to get you to the UES.
In summary, self-directed investors who understand ETFs and want to construct a well-diversified, low-cost, ETF portfolio with a methodology to track the performance and make periodic changes, as necessary, will find Appel's ETF methodology well worth their time.
Investing with Exchange Traded Funds Made Very Easy!.......2006-11-10
Dr. Marvin Appel has written a wonderful book that explains the basics of an ETF, talks about its difference between a mutual fund, and goes into diversification amongst ETFs and complete investment strategies. This book includes large amounts of historical data to back up his ideas as well as easy to follow strategies that will apply to many different investors. Although some of his examples do not include total transaction costs, they serve an important purpose of explaining the value of active asset allocation. Altogether this is an excellent book that I would recommend to all investors wanting to take charge of their investments and see how they can do better with ETFs!
Book Description
Praise for the exchange-traded funds manual
"Exchange-traded funds are the hottest finance innovation of the past decade. Gary Gastineau, who played a critical role in their development, demystifies the working of these instruments, lucidly describes their advantages and disadvantages, and guides investors on their use. This gem of a book will be the ETF bible for years to come."
-Burton Malkiel, Chemical Bank Chairman's Professor of Economics, Princeton University
"This is the first comprehensive book on exchange-traded funds.The author displays an institutional and practical knowledge of exchange-traded funds that makes this book necessary reading for not only the knowledgeable investor but for the professional researcher seeking to understand these relatively new investment vehicles."
-Martin J. Gruber, Nomura Professor of Finance
Stern School of Business, New York University
"Gary Gastineau is a national treasure. Exchange-traded funds are the wave of the future, and Gary has been instrumental in their development from day one. His knowledge is encyclopedic, and his style and subtle humor make it all accessible to the reader."
-Wayne H. Wagner, Chairman, Plexus Group, Inc.
"In Gary Gastineau's brilliant work in illuminating the reader on exchange-traded funds, he provides rich insights into the process and methodology of adding value and cites a convergence of market forces that creates a compelling story for the use of ETFs for those who choose to add value."
-Stephen C. Winks, Publisher, Senior Consultant
"The introduction of exchange-traded funds was one of the success stories of
Wall Street in the 1990s. Gary Gastineau was a key contributor to this success, and his book is an important benchmark on both the current status of this important new category and the vast potential of its next-generation products."
-Salvatore Sodano, Chairman and Chief Executive Officer
American Stock Exchange
Customer Reviews:
Not readible.......2007-06-28
It is clear that the author is an expert in this subject, but the book is not very readible, (ex: many of the sentences exceed 6 lines). It took me a very long time to finally finish reading the thing, my favorite was the last chapter when he compared ETFs against conventional mutual funds.
Unless you work for a firm that constructs ETFs for a living, (iShares, Vanguard, WisdomTree, etc.) then recommend that you not purchase this book,
Jim
Not a manual, but a discussion of ETFs.......2006-04-10
This is not a manual for practitioners, or for ordinary people interested in ETFs. It is a discussion of the authors views of ETFs, and why they are generally superior to other investment vehicles.
A bit long. And it's too expensive.
Two stars.
A comprehensive guide to ETFs.......2004-10-26
As a consultant to the industry, if you are going to buy one book on ETFs, this is it. Written in a clear and concise manner, this book addresses the needs of institutional investors and professionals alike.
Good practical reference work.......2003-03-17
Gary Gastineau, a managing director at Nuveen Investments and the author of The Options Manual (1988), has written the most detailed account available in print of open-ended exchange-traded funds: how they work, what are their distinctive characteristics, who trades them (largely, specialists, market makers, and hedge funds), who owns them (largely, brokerage firms clearing and carrying the ETF shares for specialists, market makers, or hedge funds), and what are their advantages and disadvantages over other sorts of investment for various investors.
This is no gripping page-turner, in the league of Jack Schwager's "Wizards" series. But it doesn't need to be. Mr. Gastineau's manual is directed chiefly at investment advisers and financial planners as a reference volume, and it serves that purpose quite well. Advisers and planners, and of course their clients, face a bewildering variety of issues pertaining to these relatively new vehicles-issues of tax efficiency, risk management, trading costs and spreads, etc. In many offices, this book will be a welcome aid in sorting out all of that.
A brilliant, comprehensive and readable compendium on ETFs.......2002-05-09
Exchange Traded Funds are simply the biggest development for the average retail investor in the past decade. No more need to pay huge fees for opaque mutual funds/unit trusts. Just go to an exchange, buy the fund and hey presto you can track indices and have total price transparency for as long as the exchange is open.
I championed ETFs in my book "Capital Market Revolution" and I am delighted to see that ETF pioneer Gary Gastineau has produced a terrific, comprehensive book on every aspect of Exchange Traded Funds.
If you have any questions about ETFs, they will be answered by this book...
Patrick L Young
author "Capital Market Revolution"
CEO, erivatives.com
Book Description
It seems like every week Wall Street comes up with some new, exotic investment idea that puts your money at risk. Thankfully, exchange-traded funds (ETFs) are less volatile than individual stocks, cheaper than most mutual funds, and subject to minimal taxation. But how do you use this wonderful product to diversify your investments in today’s fast-growing and ever-changing market?
Exchange-Traded Funds For Dummies shows you in plain English how to weigh your options and pick the exchange-traded fund that’s right for you. It tells you everything you need to know about building a lean, mean portfolio and optimizing your profits. This hands-on guide will give you the power to use ETFs to:
- Create the stock (equity) side of your portfolio
- Handle risk control, diversification, and modern portfolio theory
- Manage small, large, sector, and international investments
- Add bonds, REITs, and other ETFs
- Invest smartly in precious metals
- Work non-ETFs into your investment mix
- Revamp your portfolio to fit life changes
- Fund your retirement years
In addition, this book covers commonly asked questions about ETFs and mistakes that many investors, even the experienced ones, make. It provides forecasts of the future for ETFs and personal spending and also provides a complete list of ETFs and Web resources to assist your investment. With Exchange-Traded Funds For Dummies, you’ll soon discover what makes ETFs the hottest investment on the market!
Customer Reviews:
Really excellent.......2007-07-10
I started knowing nothing, and finished being very sure of how to select - and why to purchase specific ETFs. I've not found a better introductory book on the subject (and I hope Vanguard are paying the author a good sum for plenty of free advertising!)
Excellent intermediate level read.......2007-04-06
Mr. Wild is an entertaining writer, who breaks down what is appropriate for small, medium and wealth investors. My only wish is his chapter on sample portfolios were more detailed. I would have liked to see sample portfolios optimized for cost, risk tolerance, equity only and for those nearing and in retirement. Vanguard should consider giving away this book out to anyone opening an account with them, given how much he repeatedly triumphs Vanguard's nearly universal low fees!
Highly Recommended Introductory Guide to ETFs.......2007-03-18
Reading this 338-page book will make you a very intelligent ETF investor. Whether or not you will be successful depends on you. Russell Wild, the author, provides a solid, entertaining, and comprehensive analysis of ETFs - the latest Wall Street craze. ETFs have grown to over $400 billion in assets with over 438 ETFs in existence.
Wild begins with the history of ETFs. Then he compares ETFs to stocks and mutual funds including the tax implications of selling ETFs, and the differences in annual expense ratios. A comparison to closed-end funds would have also been helpful, since many investors are not familiar with that useful investment category.
One chapter introduces the need to open a brokerage account to buy and sell ETFs, and then focuses on the major firms offering them. Next, the author delves into the riskiness of ETFs, how risk is measured, and discusses beta and correlation. Many investors will learn a great deal about risk in this chapter, which they often neglect in making investment decisions.
The author has multiple chapters on the basic ETFs, including large and small caps focusing separately on value and growth, and then reviews sector ETFs, REIT ETFs, and commodity ETFs.
In one of the closing chapters, Wild provides sample ETFs portfolios for different risk levels, suggest that buy-and-hold is the way to go, and then provides a few exceptions to that approach. He also includes a chapter on using ETFs in retirement plans, as well as has chapters on the 10 most common questions about ETFs, and the 10 biggest mistakes investors make.
Wild includes a 12-page appendix from www.etfguide.com that contains a listing of 300 ETFs by broad categories, their name, ticker symbol, expense ratio and exchange. Since there are now 438 ETFs, this appendix is out-of-date and useless, wasting twelve pages. The reader can go directly to the website to get the latest listings.
Another appendix contains a cross section of ETF and other useful websites. Another excellent website to add to his list is www.etfscreen.com, which provides current short-term performance data after each day's market close on all the ETFs. The 6-page glossary of terms and the 14-page index all provide helpful information
In conclusion, this is simply the best introductory book on ETFs. The author provides many useful tables, charts and diagrams to bring home his key points. For those investors looking to actively trade or invest in ETFs, or are searching for profitable back-tested strategies the next book they should buy after this one is Marvin Appel's Investing With Exchange-Traded Funds Made Easy (see my review of this book on AMAZON). If investors/traders want to use a simple relative strength approach, then they should consider David Vomund's ETF Trading Strategies Revealed paperback recently released.
Best book on the subject on the market for individual investors.......2007-03-12
I am an investment advisor preparing to teach an adult education class on Index Investing. This book is by far the most current, concise and informative text available today. It is not only complete but easy to read. Mr. Wild's sense of humor makes every chapter a delight to read. Mr. Wild knows his subject. Read the book and you will too.
More than just ETFs.......2007-01-14
Even though this book is focused on ETFs, it is far more than just that. It actually covers investment strategy in an easy-to-understand manner. It compares ETFs to other investment vehicles, and demonstrates how to balance a portfolio to meet specific investment goals. What I found particularly valuable was Chapter 16 - Sample EFT Portfolio Menus. It is broken down by investment goals (i.e. - "Racing toward riches: a portfolio that may require a crash helmet.") and has specific ETFs and the proportions to meet the stated goal.
This is the best book I have ever seen for intermediate level investors. It informs without lecturing and provides specific, actionable recommendations.
Book Description
Discover a practical trading strategy that combines options and ETFs.
Create Your Own Hedge Fund explains how exchange-traded funds can be used in conjunction with an options strategy to attain steady growth. Beginning with a tutorial on options and ETFs, the book goes on to describe both investment approaches in great detail providing you with a trading strategy that generates higher returns than buy-and-hold investing -- and allows you to reduce risk by adopting a hedging strategy. Filled with in-depth insights and expert advice, this book is intended for you if you're a sophisticated individual investor or a professional investor, trader, or other money manager looking to update your arsenal of investment tools.
Order your copy today!
Download Description
Discover a practical trading strategy that combines options and ETFs.
Create Your Own Hedge Fund explains how exchange-traded funds can be used in conjunction with an options strategy to attain steady growth. Beginning with a tutorial on options and ETFs, the book goes on to describe both investment approaches in great detail providing you with a trading strategy that generates higher returns than buy-and-hold investing -- and allows you to reduce risk by adopting a hedging strategy. Filled with in-depth insights and expert advice, this book is intended for you if you're a sophisticated individual investor or a professional investor, trader, or other money manager looking to update your arsenal of investment tools.
Order your copy today!
Customer Reviews:
misleading title and limited strategy.......2007-03-14
Hedge funds have been in the news lately. Since for the last few years, some have done very well. So it's quite a hot topic. Also true of ETFs, which have proliferated. Wolfinger's title invokes both, in an attempt to attract as large a readership as possible. Alas, the title is somewhat misleading.
The text gives next to nothing about how hedge funds tend to operate. Instead, it is mostly about explaining what ETFs are, and why you might want to own them. One key reason, as furnished by the text, is that you can then write (i.e. sell) covered calls on them. This increases the short term income you can garner from owning an ETF.
Commendably, the author does not recommend buying of options. He says, correctly, that on average, this is a losing game. It is reassuring to read this, for it means that the book is not one of these breathless tales about how to make money quickly.
The explanation of options could have been made 20 years ago. It is fairly limited; meant for a reader with little previous experience in finance. The only truly new material concerns describing ETFs.
The author's strategy is conservative. But in its own way, also limited. To the extent that an efficient market exists for the pricing of the underlying stocks in an ETF, then the covered calls will be priced fairly accurately by Black-Scholes. But if there is an unexpected upside, then your ETF will be sold when the call expires in the money. While if there is an unexpected downside, you retain your ETF and get the call income to reduce your losses. The problem is that if you do this method long enough, you relinquish the unexpected gains. And you end up holding losers.
Good book, bad title........2005-11-04
This book is entirely useful for those with limited knowledge on Options and Exchange Traded Funds. I have to confess that before this book when I first heard ETF I thought it was one more of those great Wall Street inventions that only serves their own evil purposes.
I don't understand why people keep investing in Mutual Funds while paying high commissions for supposed great management. Most mutual fund managers are not capable to beat the darts thrown at the Wall Street Journal. People should dump their Stock Mutual Funds and put their money in ETFs.
This book will help you understand Options, so next time someone talks about Naked Calls or Covered Puts you might join the conversation and look smart.
I'm thankful with Mark Wolfinger for answering the ton of questions I had regarding this book.
The only thing I question about the book is the title, which I think is a little pretentious and when he says that most Covered Calls expire worthless, I have doubts on that.
Should be "Exchange Traded Funds 101".......2005-06-05
The newest craze in investment publishing involves something about "hedge funds." These mysterious investment vehicles (to the unsophisticated public) are seen as the investment of choice for the "rich" investor looking for outsized market gains, or a reduction in risk.
The author seemed to be taking advantage of this when he titled the book. In actuality, there is nothing more here than a basic (and I do mean basic), primer on Exchange Traded Funds, and basic options trading strategies (covered calls and short puts).
The first few chapters involve wasted pages on Modern Portfolio theory, the advantage of index funds over mutual funds, and the benefits of ETF's over traditional index funds. Anyone who is knowledgable enough to be interested in hedge fund strategies (ie. statistical arbitrage, relative value, market neutral, etc.) will find nothing here that he or she doesn't already know.
The second half on trading options on ETF's is similarly light on any interesting information. Much basic information on covered calls and short puts is covered. It wouldn't be unfair to call it simplistic.
Unfortunately, the author did not discuss the important concept of implied volatility when discussing writing strategies on ETF's. This makes certain option strategies, that normally are equivalent, less than equal when used on an ETF.
The book correctly states short puts are equivalent to covered calls, when the puts are secured by cash. If you are going to buy 500 shares and write 5 calls, it is simpler to just sell 5 puts, and hold cash to back them up.
But the author neglects to mention that options on indexes often trade at what is called an IV skew. Out of the money calls on ETF's are generally underpriced, while the puts are overpriced. This makes short puts backed by cash superior to covered calls on an ETF. But Lord help you if the market gets caught in a huge sell off, or implied volatility increases.
There was no discussion of identifying when it is prudent to sell options and when it is wise to remain unhedged. It didn't address the various follow ups to covered call/short put strategies when the stock moves adversely.
If you know absolutely nothing about ETF's, and options trading strategies, then you might find this useful. If you are looking for information on hedge fund techniques, look elsewhere.
This book has changed my outlook on investing .......2005-02-28
The market has always intrigued me. However, following the advice of well meaning, financially secure friends never brought me the success I sought. It turns out that it's much harder to pick winning stocks than I expected. Even the mutual funds I owned were disappointing. "Create Your Own Hedge Fund" really opened my eyes with insight and clear step-by-step guidance in teaching me a profitable, yet safer, way to invest.
The best two skills I gained from this book were: How to build a portfolio and how to make money using one rather simple strategy. This book gave me the necessary confidence to take control of my own finances and provided compelling reasons for doing so. I learned that ETFs (exchange traded funds) are much less expensive to own than what Wolfinger calls 'traditional mutual funds' ...and, on average, make more money.
Wolfinger clearly outlines exactly how to use ETFs and options - a topic that had always scared me. His detailed explanation of how options work convinced me that options are indeed doable. I was also pleasantly surprised to discover that I've been using "options" for years - rain checks at the grocery and auto insurance policies are both essentially options. And the best part - another surprise to me - is that options actually lessen risk. My chances of losing money are now less than they were before.
The author skillfully enables his readers to understand the rationale behind trading decisions with a multitude of examples that make the lessons come to life.
The book also contains useful background information, references and statistics to support the author's ideas. I tried it, and so far, it really works. I make my own decisions now and am happy with the results. Don't be afraid - if I can do it, so can you. As Wolfinger says, I feel like I'm running my own small fund.
Book Description
THIS BOOK HAS BEEN RECENTLY UPDATED TO INCLUDE ALL OF THE NEWEST ETFs OFFERED AND AN UPDATE ON THOSE ETFs FOR WHICH COVERED CALL WRITING IS NOW AVAILABLE.
"COVERED CALL WRITING WITH EXCHANGE TRADED FUNDS (ETFs)" is a tutorial investment program designed for investors who utilize Exchange Traded Funds (ETFs) and who desire to learn about and implement a covered call writing strategy to achieve conservative double-digit returns. It is primarily for investors who have some knowledge of stock market and Exchange Traded Fund investing but are new to covered call writing. As a companion book to "COVERED CALL WRITING DEMYSTIFIED" for ETF investors, it simplifies, fully explains, and instructs investors on how to use covered call option writing on ETFs. The program outlined in the book offers perhaps the single best opportunity to achieve double-digit investment returns in the slow growth or no growth stock market expected by many experts in the future. This strategy works best in such a market environment. The investment approach of writing covered call options, a more conservative investment strategy than just owning ETFs alone,! has been available for decades. Until now, however, it has often been unknown or misunderstood by many investors, especially its use in conjunction with ETFs.
Why is "COVERED CALL WRITING WITH EXCHANGE TRADED FUNDS (ETFs)" needed? Many nationally recognized investment experts believe that the U.S. stock market in the future will most certainly produce significantly lower returns than the high returns of the past for many years to come. Some noteworthy examples:
* "The long-term prospects for equities in general is far from exciting." - Warren E. Buffett, The Chairman's Letter, Berkshire Hathaway, Inc. 2000 Annual Report, Page 3
* "Over the next century you should expect your share prices to average 6% (return) a year. Over the next five years, ten years, I think you'll be lucky to come out even on share prices." - Sir John Templeton, pioneer in the mutual fund industry, Business Center, CNBC TV Interview; October 1, 2001
* "The Dow has gone absolutely nowhere for three, coming on four years now. I think this will last maybe for another ten years." - John Bollinger, noted technical analyst and creator of the "Bollinger Bands," CNBC TV Interview; October 29, 2001
"COVERED CALL WRITING WITH EXCHANGE TRADED FUNDS (ETFs)" is unique because:
(1) A list by category of all Exchange Traded Funds is provided, specifically indicating those ETFs that offer covered call writing. Each ETF on which covered call writing is available is ranked according to the extent of call option writing choices available and the volume of option trading to assist investors with selection of the best alternatives for covered call writing. Other information about each ETF is also provided.
(2) A detailed investment program is outlined for personal implementation to assist investors in achieving consistent double-digit returns utilizing covered call writing on Exchange Traded Funds. This investment strategy is most effective in a slow growth or no growth stock market, the kind of market projected in the future by so many investment experts.
(3) The entire subject matter is centered on a focused area of standardized options...covered call writing on ETFs an investor owns or acquires in the future.
(4) A complete education on the subject is provided.
(5) Unlike other books about options, it is easy to understand by any investor.
(6) Easy-to-use Microsoft® Excel templates for PC use as well as manual worksheets are provided to assist in making specific investment decisions regarding which covered calls to write on ETFs, to effectively track results, and for other planning purposes.
Customer Reviews:
Useful For Those New to Call Writing.......2006-12-11
As noted in the other reviews, this book is for investors who are new to covered call writing. The text is an easy read - I finished the book in two hours. If you have any experience at all with writing covered calls, it is my opinion that you will not learn anything new from this book.
A fundamental contradiction.......2006-12-09
I bought this book as an investor heavily involved in ETFs/Index funds that broadly cover the US and Global markets. I was investing for long-term growth and bought this book hoping to increase my returns using covered call writing. So far, this is on par with what this book is about.
BUT, as I read through the methods put forth, there was a slow and subtle shift in perspective/ideology that in fact subverts the whole foundation of the goals of ETF/Index funds. No longer are we building upon the foundation of broadly-based ETFs for long-term growth, we are now looking for ETFs that are compatible with the Covered Call Writing strategy, ETFs that I discovered had very different characteristcs and met different criteria altogether. "IVV", for example, does not fit the Covered Call Writing model very well. But the premise of the book was to use one's established ETF portfolio and enhance it, not reject our whole basic strategy and go fortune hunting.
So, I ask the question for this strategy, why use ETFs at all? Because we can use our existing ETF portfolio/strategy? But if we implement the proposed Covered Call Writing strategy then we would have to gradually abandon our initial ETF strategy. So if we're interested in options, we should just go back to the basics of options and build a different strategy based on those fundamentals.
The book was easy to read and not very expensive so I don't regret buying it. It did make me think a bit.
Covered Call Writing with Exchange Traded Funds.......2006-11-10
This most basic document is tied with new vehicle to benefit from that exposure, offering little in way of what strategies lend themselves to that vehicle. A better title would have been "How Options Work". It relates to ETFs, DIA, or agricultural or metals options equally in its weak connection.
Excellent intro to Writing CC's.......2006-05-10
Very good book for people new to writing covered calls. I learned alot from the book and have put the theory into practice by writing several CC's. Unfortunately I have not found many good CC opportunities around ETFs, most have been in the 1.5-2% range one to two months out. On the other hand I found many exceptionally good opportunties on regular stocks. My only major problems so far (and it's a good one to have) is that in 4/5 cases, the stocks for which I wrote CC's have gone well beyond the strike prices. In response I have "rolled up" a few CC's to take advantage of the increased capital appreciation opportunity. This has worked fairly well but is far more complex than just letting the CC ride until expiration. My only suggestions to improve this book would be to add a section on guidelines for rolling up and down in response to stock price swings, and maybe something on writing ITM CC's instead of just OTM calls. Overall an excellent and concise book, certainly one of the most immediately useful and practical investment books that I own. Very nice job.
Revolutionary strategy coupled with clear, concise tactics.......2004-02-24
The thoughts discussed in this book are nothing short of revolutionary in terms of investment strategy and expected return implications. This book was obviously written by a practitioner who really "gets it". Mr. Kadavy explains his arguments and tactics in a very easy to understand manner -- much thanks for the cutting-edge piece which will certainly change many investors' portfolio strategies and returns!
Product Description
This little book contains specific directions to build a portfolio of securities using index and exchange traded funds to conform to Modern Portfolio Theory used by 25% of pension funds and trusts and 10% of individual investors. In the book you will find web sites where you can pose your questions and receive answers from individual investors who follow passive investment techniques. The system is endorsed by academics and noted journalists. It has a record of producing returns that exceed those of actively managed mutual funds and individual stock recommendations.
Customer Reviews:
It truly is never too late.......2007-05-22
Had I come across this book 5 years ago, I would not have read it. BECAUSE...
I was bent on making my fortune NOW, trading TODAY. I had recently lost my job, had all the time in the world, and a little "trading" money. You may read my condensed confession... or not.
I began seeking to make my fortune in commodities, and lucky for me after a few months understood that in commodity trading the small investor is the commodity! It's a pure sucker's game - no ands, no ifs, no buts about it. I decided I must move on, but now with BOTH EYES WIDE OPEN.
I then pursued trading stock options with "gurus" - for very hefty annual fees, cause these guys do just great, cause they always trade with the odds in their favor. This trading arena proved to be somewhat ok, but I truly wasn't making any money for the time and effort required. So I cancelled my annual subscription after 5 months into the year, cause I felt I could do better.
Well, commodities were out, guru stock option trading was out, so why not go directly into stock trading. This would require much more study and work on my part, as I knew little about stock trading. My employment prospects were still non-existent as the "economy" was much worse now than when I lost my job about 1 year ago.
So, let's go make money in stocks (even though I had been told that the real money was in commodity trading - but I knew what commodity trading was all about via personal experience ). So, I ventured into the stock arena. I spent considerable time doing the "stock" trading thingy. But now I felt I needed stock trading advisor newsletter subscriptions, stock trading computer software programs (there are thousands - or so it seems), also now joining stock trading rooms, attending trading group monthly meetings, and so forth, like stock data feeds as opposed to commodity data feeds. And, what to my pleasant surprise did I discover? Simply this, that no one was really making any money!! Most people were losing money, and some I met had lost many thousands, and I distinctly recall hearing about an investor telling another investor how he had made 1 million dollars in the stock market. In essence he stated that he made 1 million dollars in the market by letting his broker trade his account - and his account had several million before he "made" 1 million. I did not verify this, it may have just been a story, but from what I observed, there was definitely some truth to the story. Lucky for me I never had much money to "trade". By now I was spending most of mine observing, simply observing and filing away information. I must say though that In the process I met lots of real nice people, and made several good friends. But again I must state that I experienced that no one was truly making any money. And, I attended several groups doing completely different types of stock trading and stock market analysis.
And yet somehow, deep inside of me a voice kept saying " Surely there HAS TO BE MONEY BEING MADE IN THE MARKETS - THERE SIMPLY HAS TO BE.
So, after considerable time spent stock trading, the next place I parked my presence was with "day-trading" groups trading the E-Minis. Once again, so much time and some money spent - books, software, software simulators, trading rooms, chat rooms, trading systems, mechanical trading systems, trading rules, market analysis all of which resulted in 12-14 hour days, etc, etc, and etc. Spending time following and analyzing one day trading guru, then another day trading guru, then another, then this day trading system, this day trading indicator, MACDs, RSIs, Moving Averages, Volatility Stop indicators, Fibonacci Ratios, it goes on and on and on and on.
Yet the same general result - no one really making any real money on a regular basis - NO ONE!!
Au contraire, most traders were losing, and some losing big. I day traded the mini SP, mini Dow, and thought of day trading the e-mini Russell, but realized it was to no avail. I was simply too dumb to beat the system. But, I do know that the Russell does trend much better than the SP!!!
I could truly elaborate on all of this, but then everyone reading this would know that I truly am "cracked" and many still would not believe that I actually "did" all of this. But, that's not the point.
My point is this - that in the past 5 years I never did meet, nor did I hear about 2 persons in any 1 group that I participated in that were making any kind of profit on a regular and consistent basis, NOT 2.
Yes I have day traded the markets, and yes, I was not very smart, and I did not make any money. And, yes I "lost" money, and yes I spent money "learning" to make money in the markets.
DO YOURSELF A BIG FAVOR - read this little book one time, then read it again. If after reading my comments, and reading this little book you still feel you can do better, then let me know, and I WILL CHEER YOU ON. Just because I may be too dumb and too stupid to make a living trading does not imply that you.
There are thousands of books and web sites dedicated to "trading". They tell you that you can do it, and make great money. Buy their books, subscribe to their letters, follow their systems, use their indicators, scanners, etc. Enjoy, have fun.
As for myself, I have read this little book 4 times. And, I have also read 2 of the books which Mr. Eade recommends. And, I have set up 2 of my accounts using ETF's. And, believe it or not, I have slept much better this last week.
Do yourself a favor. Skip lunch today, and with your lunch money send for this book. Read it.
If you don't like what you read then I'll gladly sell you one of my $175 trading books.
Oh, so glad I remembered. I have cancelled my real time data feed subscription. It will not renew next month. I hope to fill the "live data feed" void in my life with something more worthwhile. Like spending more time outside with my grandson riding bikes and tossing a football.
And I am likely, very likely, to read each and every book recommended by Mr. Eade. This stuff is fascinating, simply fascinating - yet so elusive.
How to Make Money in the Stock Market - Buy 2,500 Different Stocks - Pay no Commission.......2007-04-29
I am a real person and not connected with the author of this book in any way. I am writing this review because the book has been a wonderful help for me! (This book was the most helpful because it cut through all the hype and the smoke and mirrors often associated in the investment arena).
The only people who might be posting negative comments about Mr. Eades book are those who do not like the "TRUTH IN PRINT" and may be loosing business and commissions as their clients choose other viable options in the stock market.
I wanted to write you a quick note to let you know how very much I have enjoyed your book! You have done a wonderful job of taking something very complex (at least to me) and made it very understandable.
I read through the book rather quickly at first and now I am going back through it with yellow high-lighter in hand. I appreciate the fact that you provide very practical and to the point information. The various portfolio options are clear and concise.
Again thank you for writing a great little book. It is jam packed with just what I need to know. I purchased about 5 other books at the same time as I purchased yours through [...], some of which I see you have in your "Books to Read" list. But for myself some of those are beyond me at this point. Yours is at the head of the list!!
The information in this book can easily be validated by people taking the time to do a little due diligence and see that everything that is shared can be backed up by real historical data throughout the years.
I like the quick and to the point style of your book. I drive my car each day but I don't need to know how the engine works.
Terrific Book, Knowledgeable Author.......2007-03-31
This is a terrific, easy to read, and easy to understand book on how to get started making money in the stock market. I'd beware of any negative reviews here as they must be from brokers who don't want you saving money by paying no commission! That being said, if you are like me and have never done this before and have no idea how to get started and what to do, YOU WILL LOVE THIS BOOK! It is wonderfully straightforward and the author has a great deal of knowledge and experience on the subject. While reading, you feel that he puts you on the right track and keeps you there. I started investing too late in life, and this book was a comfort to me because I felt that the author had cut out a lot of the BS and got right to the point. This is a GREAT book, and good for him that he is a self-published author! I'm happy there are people out there like him who are motivated and who provide such insightful and useful services.
The author of this book should be ashamed........2007-03-21
Potential book buyer: read the reviews on this book very carefully. All positive reviews have been secretly written by the same person under different names. Just click on the user's name and look to see if they've written other reviews...nope, they haven't since ALL THE POSITIVE REVIEWS FOR THE BOOK HAVE CLEARLY BEEN WRITTEN BY THE AUTHOR.
Worse still, this guy shamelessly plugs his book by writing book "reviews" on the listings for more famous and far more useful books like Rich Dad, Poor Dad and the Millionaire Next Door.
Power Packed 64 Page Book.......2006-11-22
I purchased this book about a year ago and have purchased copies for my children and two friends at work. I will be retiring at the end of Dec 06 and wish that this book would have been available 35 years ago and I would have read it. It's not complicated and does a good job in explaining index and etf fund usage to build a portfolio and why you use them--cost, performance, supports MPT. I especially liked page 9 and 10 chart of 100k and it's growth over 30 years in an index and actively managed fund. Most charts just show percentage cost impact, this chart shows both percentage and dollars--what a wake up call.
Book Description
Discover How Investing in Exchange-Traded Funds Can Help You Build a Winning Financial Portfolio
"Archie Richards delivers the nuts and bolts of ETFs---and much more that the investor needs to know."
Gary L. Gastineau, early developer of exchange-traded funds, Managing Director of ETF Consultants, LLC
"ETFs are not a form of extraterrestrial, but they do remain a mystery to many. We should be grateful to Archie Richards for explaining everything about them and also offering mush useful advice. This is a timely and terrific book on one of today's hottest investment topics."
Hunter Lewis, Co-founder, Cambridge Associates, LLC
"Understanding exchange-Traded Funds is a no-nonsense approach to setting financial priorities, and a crash course on the basics of investing. Archie's description of various investments gives the information you need to become a wise investor."
Steve and Annette Economides, Authors of America's Cheapest Family Gets You Right on the Money
“Archie Richards is the go-to guru for ETFs, and Understanding Exchange-Traded Funds simply cements that reputation. If you're dipping your toe into the ETF waters for the first time, now you can jump right in instead. Understanding Exchange-Traded Funds is the investment life preserver you've been waiting for, and Archie Richards is the guy you want guiding you through the strokes.”
Angele McQuade, author of Investment Clubs for Dummies and book reviewer for Better Investing magazine
Turn to Understanding Exchange-Traded Funds for a quick, accessible overview of ETFs_the hottest and most significant investment tool of recent years. This expert guide explains why exchange-traded funds are important and why they work so well, highlighting the advantages of ETFs over traditional mutual funds and discussing all the new types of ETFs.
Keeping complex mathematics to a minimum, Understanding Exchange Traded Funds thoroughly covers:
- The key elements of ETFs: costs, redemption, the three basic categories, tax consequences, and more
- How to use ETFs for asset allocation or retirement accounts
- How and where to buy ETFs
- The ETFs offered by Barclays, Vanguard, State Street, and other companies
- Avoiding common ETF mistakes and misconceptions
Book Description
Shows how to use both ETFs and E-Minis for high-powered results
Exchange Traded Funds (ETFs) are a remarkable new tool for trading and investing in broad market segments or narrow sectors. ETF trading volume and asset growth continue to soar at record levels. Ideal for speculating in and hedging as well as long-term investing in the broader markets, these index products work together to diversify and balance any global portfolio. Now, one of the top executives (and experts) in the industry reveals the intricacies of the products, how to use them, and what the future holds. Readers will get sample index portfolios and strategies for all market participants--ranging from the short-term trader to the long-term investor; and from the risk taker to the conservative investor.
David Lerman (Chicago, IL) is the Senior Director of Equity Index Products Marketing at the Chicago Mercantile Exchange. He has traveled around the globe on behalf of the CME, giving seminars and workshops to retail and institutional audiences, including pension funds, corporations, banks and brokers on risk management/trading using equity index futures and options.
Customer Reviews:
E-BOOK HAS PROBLEMS.......2003-12-15
I recently purchased the e-book since I'm located overseas (in Saudi Arabia) and postage is sometimes more than the cost of the books. It also takes in excess of 3 weeks to get mail here from the States. I purchased and downloaded the e-book and was all set to print. I could only print the first 14 pages and then was notified by the Abode print driver that I could not print any more pages that day. After doing some checking I found that permissions were set by the publisher that only allowed printing 35 pages every 7 days - what a rip off!!! By the time I can finally print the last pages we'll be celebrating July 4th 2004 (well maybe not that long). But the idea that printing is being restricted after purchase is outrageous. I have written Amazon to inform them. At the very least the publisher should advise of this practice BEFORE YOUR PURCHASE. I will not purchase any e-books until this practice by Wiley is discontinued.
Outstanding for biginners in ETFs and Emini futures.......2002-12-20
This is a well written book and easy to read about the history of ETFs and Emini futures. The author describes the creation of the likes of SPY, QQQ, SMH. Why is it important to know about these instruments, how they get created, who manages them, their cost effective investing over regular mutual funds. He goes in great detail by listing all EFTs available today with their tickers as well, till the point I don't need to keep going to the internet. I started trading the EFTs for profit and for hedging in particular after reading this book. The introduction about the Emini futures is useful and gave me a good start in this subject.
good book for beginner.......2002-09-02
good book for beginner who wants to know about ETFs (like me). helped me in reviewing my holdings.
satish paul
Excellent Read.......2002-05-10
I happened to pick up this wonderful book while in Chicago recently. In browsing through the introductory pages, I smiled at the references to both Warren Buffett and Jack Bogle. Now here, I thought, is someone who "gets it". Buy this book and read it. It is worth every penny. Amidst today's cacaphony of financial marketing, Lerman's voice emerges from these pages with refreshing honesty, simplicity, and reason.
Those trying to educate themselves in the area of personal finance and investment should read this book carefully. For conservative investors as well as for those inclined to a bit of speculation on occasion, this book is very well written and informative.
Following up on the themes that, in the long run (emphasis), economic fundamentals drive returns; that larger, well-established, actively traded markets are, over time (emphasis), highly efficient; and that costs matter greatly when assessing net performance over extended periods; Lerman does an excellent job of explaining the rapidly developing role of ultra low-cost, exchange traded funds (ETFs) as part of any core indexing program. At the same time, he carefully exposes the many hidden (and, unfortunately, rising) costs lurking in most mutual funds today.
Still, Lerman wisely acknowledges, in the short term things can and do happen. While over long periods of time certain markets may be extremely efficient, the difference between that and what may happen in the near term is, as Buffett points out, the difference between day and night. After all, we are inescapably human, and fear and greed will never be completely expunged from our collective psyche. Sudden, unexpected events can result in major market and/or sector security specific swings, and it is during those times that patient investors as well as prudent speculators can occasionally reap outsized returns. Here again, ETFs (as well as the related E-Mini Stock Index Futures for more enterprising individuals) can help.
In short, by building a long-term, broadly-based core portfolio around low-cost ETFs and perhaps a few well-chosen securities and/or money managers (particularly in less efficient markets), and by then (for the enterprising investor) complementing such a portfolio with the occasional, more speculative foray, whether by utilizing ETFs, E-Mini Stock Index Futures, or other means, an intelligent individual should be able to navigate successfully today's choppy financial waters.
An introduction for beginners.......2002-02-13
If you are new to the world of ETF's and E-Mini index futures, this book will shed much light on these instruments. If, however, you are a trading veteran with knowledge of these markets, you have no need for this book as it simply introduces the instruments in basic format and details.
Book Description
Everyone desires to control their financial destiny; but many feel overwhelmed, fearful, or uncertain how this can be accomplished. Lectures on personal finance are rarely offered; and when "free" presentations--called seminars--are promoted, they are far from an educational experience. The underlying objective is to solicit sales of securities for which the presenter, a financial advisor, receives a commission. However acquired, the investment company is the investment of choice for the individual investor. Therefore, in The ABCs of Mutual Funds, author Robert Anthony Chechile explains the different investment company securities: mutual funds, contractual plans, hedge funds, exchange traded funds, folios, unit investment trusts, and variable annuities.
Mr. Chechile discusses the securities industry: the differences between full service and discount securities dealers and the role and legal obligations of stockbrokers, as well as financial planners, and investment advisors. For those seeking financial control, he explains how to minimize risk with capital allocation and diversification guidelines; and presents conventional wisdom investment strategies that can avoid being caught in the fear-greed trap. Finally, Mr. Chechile recommends investment guidelines and selection criteria, and uses these to construct a hypothetical investment company portfolio, the future performance of which is then critiqued 7½ years later.
Customer Reviews:
Tips, tricks, and techniques for avoiding costly mistakes.......2005-01-09
The ABCs Of Mutual Funds: Everything Your Consultant Really Doesn't Have Time To Explain is a thorough sourcebook for company securities written in plain terms for the lay reader. The ABCs of Mutual Funds explains precisely how mutual funds, contractual plans, hedge funds, exchange traded funds, folios, unit investment trusts, and variable annuities work, as well as the differences between full service and discount dealers, the legal obligations of stockbrokers, and much more. An absolute "must-read" for anyone new to the investment industry, in an era when so called "free" seminars are really just padded commercials with the objective of soliciting securities sales. Recommended investment guidelines and selection criteria ensure that The ABCs of Mutual Funds pays for itself, as its tips, tricks, and techniques for avoiding costly mistakes are worth their weight in green.
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- Gold Buckle: The Grand Obsession of Rodeo Bull Riders
- Gold Trading Boot Camp: How to Master the Basics and Become a Successful Commodities Investor
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- History: Fiction or Science? (Chronology, No. 1)
- History: Fiction or Science? (Chronology, No. 1)
- History: Fiction or Science? (Chronology, No. 1)
Books Index
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Futures
| Investing
| Business & Investing
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| Books
Investing with Exchange-Traded Funds Made Easy: Higher Returns with Lower Costs--Do It Yourself Strategies Without Paying Fund Managers
Sector Trading: A Year in Exchange Traded Funds
Exchange-Traded Funds For Dummies (For Dummies (Business & Personal Finance))
The 25% Cash Machine: Double Digit Income Investing
Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders
