Exchange-Traded Funds For Dummies

Colin Davidson · Russell Wild

Sept 2011 · Sold by John Wiley & Sons

About this eBook

Diversify your investments with today's fastest growing financial product

Exchange-traded funds (ETFs) offer access to a range of investments in a single trade, are usually less volatile than individual stocks, cheaper than most managed funds and more tax-effective. But how do you pick the one that's right for you? This straightforward book helps you weigh up your options, build an effective portfolio and maximise your profits.

• Get to know the major players in Australia and New Zealand — find a broker, open an account and familiarise yourself with suppliers and indices

• Understand risk control and diversification — learn the importance of a diversified, lowly correlated portfolio, and how ETFs can help you achieve this

• Invest smartly in commodities and precious metals — tap into the returns offered by the Australian mining boom

• Manage small-cap, large-cap, sector and international investments — take advantage of returns in local markets and invest directly in US-listed ETFs

• Add bonds, REITs and other ETFs — secure consistent yields and add property to your investment portfolio

• Work non-ETFs into your investment mix — improve returns through careful selection of active managed funds

• Fund your retirement years — determine how much you need for retirement, and how ETFs can get you there

Open the book and find:

• Advice on choosing ETFs over options, CFDs and warrants

• Sample portfolios

• Tips on revamping your portfolio based on life changes

• How to avoid mistakes that even experienced investors make

• Forecasts for the future of ETFs in Australia and New Zealand

• A complete listing of Australian and New Zealand ETFs

• Great online resources to help you invest in ETFs

Learn to:

• Diversify your investment portfolio

• Lower your investment costs and reduce your tax liabilities

• Take advantage of Australia's mining boom by investing in commodities

• Invest in international markets

About the author

Colin Davidson has been involved in finance for over 20 years. A freelance financial journalist, he previously worked for one of Australia's largest stockbrokers, managing its financial planning and superannuation business. Colin is also the author of Managed Funds For Dummies.

Russell Wild, MBA, an expert in ETFs, is a fee-only investment advisor and the principal of Global Portfolios.