Frush - The Strategic ETF Investor: How to Make Money with Exchange Traded Funds: How to Make Money with Exchange Traded Funds

Books by Scott Paul Frush

All About Exchange-Traded Funds

Commodities Demystified

Hedge Funds Demystified

Optimal Investing

Understanding Hedge Funds

Understanding Asset Allocation

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ISBN: 978-0-07-179020-8
MHID: 0-07-179020-9

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There are a number of excellent people I would like to thank for their generous assistance with various concepts and parts of this book. Thank you to Michael Cafiero of Knight Trading, Scott Krase of ProFunds, Richard Ranck of Invesco PowerShares, Siddharth Jain of KBR, Jason Smull and Rebecca OKusky of Vanguard, Jay Gragnani of Dorsey, Wright & Associates, and Craig Lazzara of S&P Indices for your valuable insights on the complex intra workings of the index and ETF creation process, order execution tips, and tax treatment nuances.

Thank you to my past and present editors, Morgan Ertel and Mary Glenn, for helping make thismy sixth book with McGraw-Hillnot only possible but also truly rewarding for me. Also to Scott Kurtz for facilitating such an efficient editing and refining process. For their inputeven in the face of exceptionally busy work and personal schedulesI express my gratitude to James Sands, David Bloink, and my wife, Christina.

Scott Paul Frush

The guiding principle of this book is to arm investors with the knowledge and tools necessary to engineer and sustain portfolios by using exchange-traded funds (ETFs) as their backbone investments. If you are looking for a book on how to day trade or follow the trends on ETFs to make millions overnight, then stop reading now, as this is not the book for you. However, if you are the type of investor who recognizes that millions of dollars cannot be made overnight using a revolutionary type of wealth-without-risk gimmick, then continue to read on. Youll find the structure of this book to highlight both the concepts of ETFs from a nuts-and-bolts perspective to the full use and application of ETFs to build a winning investment portfolio from a strategic long-term approach.

As you will read throughout the book, the use of the label ETFs is not completely accurate and appropriate to describe all exchange-traded portfolios (ETPs), which is a more suitable label from a hierarchical perspective. Nonetheless, given the widespread acceptance and generic use of the label ETFs, this book will defer to ETFs rather than ETPs when there is no practical reason to distinguish between the two terms. In addition, this book will emphasize passively managed ETFs but does provide detailed information on actively managed ETFs when comparisons and contrasts are appropriately needed.

Time and time again I encourage people to manage their portfolio before it manages them. The effort always begins with younever give up control and oversight carte blanche to someone else even if you are working with a trusted and capable investment professional. When it comes to your investments, you really have two options: accomplish those tasks that will help you manage your portfolio with success or simply forgo them and let your portfolio manage you, for better or worse. Since you are already reading this book, you have demonstrated your ability and willingness to be proactive about managing your portfolio. Consider this book an invaluable tool to help you with this endeavor.

The Strategic ETF Investor presents the basics of ETFs and how best to use that knowledge to engineer and sustain your own winning ETF portfolio. Although a good deal of technical information on ETFs is included in this book, my aim has never been to turn off a reader by presenting highly complex topics so that we lose sight of the big picture. There are a couple of books in the marketplace tailored to highly sophisticated investors and portfolio managers that can offer more granularity on the high-level mathematics and complex details of ETFs. The aim of this book is to educate the reader on whats important about ETFs, why they are so beneficial to your investing plan, and how to employ them for the best long-term results.