Review
“Investors interested in ETFs will find this book an extremely useful resource. Virtually every topic related to ETFs is covered, in an unbiased, comprehensive, and easy-to-understand manner.” (Advisor Perspectives, December 2007) “The ETF Book is an excellent compendium of the background, structural drivers, pros and cons of ETFs, as well as the strategies that can be advanced using them. Years from now, this book will be noted for introducing index strategy boxes as …
Buy The ETF Book: All You Need to Know About Exchange-Traded Funds at Amazon
Let me say at the outset that I am NOT a professional investor, that I HAVE invested in individual securities as well as mutual funds for forty years, that I now, as a retiree, restrict myself to annuity income and mutual fund investments (mostly passive), and that I have not yet purchased ETFs, though Ferri’s book convinces me ETFs could perform a useful function in my portfolio.
If, like me, you have not yet invested in ETFs but want to know how they are constructed, how they function, and what role they might serve in your portfolio, then Rick Ferri’s book is the FIRST place you should go for a comprehensive guide to understanding ETFs.
Ferri’s book can be read in, or through depending on the reader’s interests. By this I mean his book divides into four free-standing, but continuous, parts. The first part deals with ETF Basics–the history, mechanics, and potential benefits and drawbacks. Part Two, a real eye-opener for this reader, focuses on index construction and provides an index strategy box akin to how Morningstar analyses mutual funds. Part Three broadens the discussion to styles and choices–from broad domestic/global indexes to equivalents of slice and dice strategies. Part Four shows, in detail, how investors can incorporate ETFs into their asset allocation plan–whether they are inclined to passive, active, or a combination of portfolio strategies.
Thankfully, Rick Ferri goes to great pains to communicate clearly with his readers. To my mind, he has no axe to grind, although as a professional portfolio manager he advocates passive investing. Ferri provides many alternative portfolios (passive, active, combo) spread along a continuum of life-cycle investing.
It certainly speaks well of this fine book that it receives the ringing endorsements of the likes of Don Phillips, David Blitzer, and Anthony Rochte, Senior Managing Director of State Street Global Advisors. Robert Uphaus
I love ETF investing. This book is a must-read if you’re interested in investing in ETFs. You’ll no doubt want to read other books too. But this is the cornerstone of the library of the ETF investor.
The book is well written and arranged nicely. It’s a good read and a great reference.
It gives you some sample life cycle investing portfolios, which I find most useful.
You’ll find the benefits and the drawbacks of ETF investing. You’ll learn about the different types of ETFs.
You’ll also learn about the different management styles available.
I would have liked more information on fixed income investing. I find there’s not much available on that. I also find there isn’t anything about defensive investing, which we need right now.
There is help with asset allocation but I suspect you’ll want to buy a book that devotes itself entirely to that subject.
I keep the book near my left hand as I readjust my portfolio and when I’m considering a fund.
I highly recommend this great book.
Rick Ferri has done it again. I got this book as I was looking actively for a good “introductory” book on ETFs. I already read Rick’s “All About Asset Allocation” and like it very much. So I did not hesitate to preorder this book.
This book does a great job in INTRODUCING indexing and ETF’s. It covers a lot of ground about various types of ETFs their pros and cons. There are lot of finer points spread throughout the book which are interesting for people starting new and are hard to come across on web for an average web user like me – eg: pros and cons of Vanguard ETF (VIPER) structure where its ETFs are another class of shares of its index mutual funds. I would have rated this 5 stars except for some repetition of text multiple times in multiple chapters about types of indexing etc in Parts II and Part III of the book. Model portfolios section could have been dealt better.