Exchange traded funds (ETFs) are investment funds that hold a basket of stocks, bonds, commodities, etc. and trade on an exchange. Globally, ETFs have been an "overnight" revolution and now represent nearly every asset class. Indian investors are very familiar with gold ETFs, with an ever greater variety of ETFs becoming increasingly available.

An ETF is much like a mutual fund but has many terrific advantages besides being exchange traded. Their complete transparency enables ETF investors to get a continuous fix on their positions and easily readjust their portfolios. Also, ETFs are cheap to buy and own and their instant liquidity ensures flexibility of investment strategy.

This book reveals how ETFs provide both investors and traders a unique set of benefits:

• What an ETF is and the different types of ETFs

• How ETFs score over mutual funds and stock picking

• How ETFs make asset allocation easy

• How to select a suitable investment strategy using ETFs

• How to build and manage a diversified equity portfolio with ETFs

• Why ETFs have become such a favourite of traders

• Special uses of ETFs, including hedging against possible losses

• How to guard against the top 10 mistakes made by beginners.

 

Martha Maeda is an economic historian. After graduating from Northwestern University, she lived and worked in Australia, Japan, Latin America, and several African countries before settling in the United States. She has a particular interest in microeconomics and in the effects of globalization on the lives and businesses of people all over the world.