{"product_id":"the-exchange-traded-funds-manual-isbn-9780470482339","title":"The Exchange-Traded Funds Manual","description":"\u003cb\u003eFull coverage of ETF investments from an expert in the field\u003c\/b\u003e  \u003cp\u003eThe initial edition of Gary Gastineau's \u003ci\u003eThe Exchange-Traded Fund Manual\u003c\/i\u003e was one of the first books to describe and analyze ETFs. It made the case for the superiority of the structure of investor-friendly ETFs over mutual funds and helped investors select better funds among the ETFs available.\u003c\/p\u003e \u003cp\u003eWith this new edition\u003ci\u003e,\u003c\/i\u003e Gastineau provides comprehensive information on the latest developments in ETF structures, new portfolio variety, and new trading methods. With a realistic evaluation of today's indexes, Gastineau offers insights on actively managed ETFs, improved index funds, and fund and advisor selection.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eDiscusses how to incorporate ETFs into an investment plan\u003c\/li\u003e \u003cli\u003eOffers updated coverage of new ETFs, including full-function actively managed ETFs, and a valuable chapter on trading ETFs\u003c\/li\u003e \u003cli\u003eWritten by the leading authority on exchange traded funds\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eExchange-traded funds offer you diversification and participation in markets and investment strategies that have not been available to most investors. If you want to understand how to use ETFs effectively, the \u003ci\u003eSecond Edition\u003c\/i\u003e of \u003ci\u003eThe Exchanged-Traded Fund Manual\u003c\/i\u003e can show you how.\u003c\/p\u003e \u003cp\u003ePreface ix\u003c\/p\u003e \u003cp\u003eAcknowledgments xi\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 An Introduction to Exchange-Traded Funds 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eExchange-Traded Funds Were Introduced as “Something to Trade” 1\u003c\/p\u003e \u003cp\u003eShareholder Protection 3\u003c\/p\u003e \u003cp\u003eTax Efficiency 7\u003c\/p\u003e \u003cp\u003eCost Transparency is Desirable, But Trading Transparency is Costly 9\u003c\/p\u003e \u003cp\u003eIntraday ETF Trading 10\u003c\/p\u003e \u003cp\u003eComparing ETF and Mutual Fund Economics 11\u003c\/p\u003e \u003cp\u003eConclusion 17\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 The History and Structure of Exchange-Traded Funds—and Some of Their Competitors 19\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSome Major Financial Market Developments (1975 to 2000) 19\u003c\/p\u003e \u003cp\u003eDeclining Trading Costs Increase Financial Engineering Opportunities, and Financial Engineering Reduces Trading Costs in the New Millennium 23\u003c\/p\u003e \u003cp\u003eA Brief History of ETFs 25\u003c\/p\u003e \u003cp\u003eOther Tradable Basket Products 34\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 The Regulatory Framework and Mechanics of the Open-End ETF 43\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eU.S. Fund Regulation Has Played a Major Role in the Structure of ETFs Introduced around the World 43\u003c\/p\u003e \u003cp\u003eThe Investment Company Act of 1940 45\u003c\/p\u003e \u003cp\u003eExemptions from the Investment Company Act of 1940\u003c\/p\u003e \u003cp\u003eHave Been Granted to Permit Issuance of Open-End ETFs 47\u003c\/p\u003e \u003cp\u003eETF Developments Outside North America 50\u003c\/p\u003e \u003cp\u003eProposed Rule 33-8901 and Limitations on ETF\u003c\/p\u003e \u003cp\u003eTrading Transparency 53\u003c\/p\u003e \u003cp\u003eThe Mechanics of ETF Creation and Redemption In-Kind 53\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Taxation of ETFs and Their Shareholders 65\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTaxation of Investment Companies: Subchapter M and Regulated Investment Company (RIC) Requirements 65\u003c\/p\u003e \u003cp\u003eThe Mechanics of RIC Shareholder Capital Gains Taxation 73\u003c\/p\u003e \u003cp\u003eThe Wash Sale Rule 81\u003c\/p\u003e \u003cp\u003eOther Pass-Through Collective Investment Vehicles 82\u003c\/p\u003e \u003cp\u003eThe Relative Tax-Efficiency of Mutual Funds, Exchange-Traded Funds, and Portfolio Baskets 90\u003c\/p\u003e \u003cp\u003eDeferral of Long-Term Capital Gains 93\u003c\/p\u003e \u003cp\u003eOutlook for Changes in Investment Company Taxation 98\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 The Economics of Indexing, Trading Transparency, and Limited-Function Active Management of ETFs 101\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIndexing Works Best When Approached with Common Sense 102\u003c\/p\u003e \u003cp\u003eThe Continuum: From Passive to Active 108\u003c\/p\u003e \u003cp\u003eBenefits from a Decline in ETF Trading Transparency 110\u003c\/p\u003e \u003cp\u003eHow Trading Plans Become Transparent 112\u003c\/p\u003e \u003cp\u003eEffect of Transparency Costs on Fund Performance 121\u003c\/p\u003e \u003cp\u003eSilent (Nontransparent) Indexes 124\u003c\/p\u003e \u003cp\u003eA Battle of Contrasting Index Fund Management Strategies 126\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Fund Ratings and Rankings—The Evaluation and Selection of ETFs and Mutual Funds 131\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAn Introduction to Fund Ratings 131\u003c\/p\u003e \u003cp\u003eWanted: A Comprehensive But Eclectic Approach to Fund Evaluation and Analysis 140\u003c\/p\u003e \u003cp\u003eMeasuring and Comparing Fund Performance 141\u003c\/p\u003e \u003cp\u003eA Perspective on the Limitations of Fund Analysis Today 142\u003c\/p\u003e \u003cp\u003eElementary Fund Economics 146\u003c\/p\u003e \u003cp\u003eThe Largest Cost for Most Funds is Not Reported to the Fund’s Investors 149\u003c\/p\u003e \u003cp\u003eWhat is Tracking Error? 155\u003c\/p\u003e \u003cp\u003eNet Tracking Error as a Framework for Fund Performance Evaluation 161\u003c\/p\u003e \u003cp\u003ePositive (Value-Added) Elements 168\u003c\/p\u003e \u003cp\u003eeXtensible Business Reporting Language (XBRL): The New Data Standard 170\u003c\/p\u003e \u003cp\u003eThere is a Wide Range in the Quality of Fund Touts, Tools, and Techniques 172\u003c\/p\u003e \u003cp\u003eFund Governance 179\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 How Will Full-Function Actively Managed ETFs Work? 183\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe SEC Concept Release and Limited-Function Actively Managed ETFs 183\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 How to Minimize Your Cost of Trading ETFs 197\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eETF Trading is Different from Stock Trading 197\u003c\/p\u003e \u003cp\u003eETF Intraday Net Asset Value (NAV) Proxies 200\u003c\/p\u003e \u003cp\u003eThe Brave New World of High-Frequency Electronic Trading 202\u003c\/p\u003e \u003cp\u003eETF Trading Volume is Huge, Growing, and Highly Concentrated 207\u003c\/p\u003e \u003cp\u003eHow to Trade ETFs Efficiently 208\u003c\/p\u003e \u003cp\u003eMarket-on-Close (MOC) Transactions in ETFs 210\u003c\/p\u003e \u003cp\u003eIntroducing NAV–Based Trading in Exchange-Traded Funds 218\u003c\/p\u003e \u003cp\u003eConclusion 224\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Economics and Market Effects of ETF Short Selling 227\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUnderstanding the Risks of Selling ETFs Short 227\u003c\/p\u003e \u003cp\u003eThe Implications of ETF Short Selling 231\u003c\/p\u003e \u003cp\u003eETF Short Selling for Traditional Investors 234\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Leveraged Long and Inverse Exchange-Traded Funds 245\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTrading Sardines 245\u003c\/p\u003e \u003cp\u003eHow Leveraged Long and Leveraged Inverse ETFs Construct Their Portfolios 246\u003c\/p\u003e \u003cp\u003eIs It Useful to Describe Leveraged Fund Returns as Path Dependent? 254\u003c\/p\u003e \u003cp\u003eLeveraged Fund Return Patterns 255\u003c\/p\u003e \u003cp\u003eTaxation and Distributions from Leveraged ETFs 259\u003c\/p\u003e \u003cp\u003eOther Issues Affecting Leveraged ETFs 260\u003c\/p\u003e \u003cp\u003eAnother Way to Obtain Leverage Without Borrowing 261\u003c\/p\u003e \u003cp\u003eThe Bottom Line on Leveraged ETFs 262\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 ETF Applications for Individual Investors and the Advisors Who Serve Them 263\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eShort-Term ETF Trading Sometimes Makes Sense 265\u003c\/p\u003e \u003cp\u003eETFs as Portfolios and as Components 266\u003c\/p\u003e \u003cp\u003eIntegrating Diverse Family Accounts 267\u003c\/p\u003e \u003cp\u003eTax Management 268\u003c\/p\u003e \u003cp\u003eOther Tax Issues 270\u003c\/p\u003e \u003cp\u003eThinking Outside the Box 274\u003c\/p\u003e \u003cp\u003eMeasuring the Comparative Economics of Trading and Holding Different Components of an Index Arbitrage Complex 275\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 ETFs for Investors Living Outside the United States 279\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSome Features of the ETFs Described in This Book Are Not Universal 279\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 A Few Things Everyone Should Know about Investment Returns and Retirement 285\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Where to Look for Help in Using ETFs 293\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSources of Professional Help 293\u003c\/p\u003e \u003cp\u003eThe Advisory Relationship 296\u003c\/p\u003e \u003cp\u003eSources of ETF Information 298\u003c\/p\u003e \u003cp\u003eBibliography 303\u003c\/p\u003e \u003cp\u003eGlossary 313\u003c\/p\u003e \u003cp\u003eAbout the Author 351\u003c\/p\u003e \u003cp\u003eIndex 353\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eGARY L. GASTINEAU\u003c\/b\u003e is principal of ETF Consultants LLC, which provides specialized exchange-traded fund consulting services to ETF issuers, exchanges, and investors. He is also a managing member and cofounder of Managed ETFs LLC, a firm that has developed new ETF trading systems and new actively managed ETFs. Preceding a position as managing director for ETF product development at N veen Investments, Gastineau directed product development at the American Stock Exchange for approximatel five years. He is also the author of the first edition of \u003ci\u003eThe Exchange-Traded Funds Manual\u003c\/i\u003e and \u003ci\u003eSomeone Will Make Money on Your Funds—Why Not You?\u003c\/i\u003e (both published by Wiley) and \u003ci\u003eThe Options Manual\u003c\/i\u003e, as well as coauthor of the \u003ci\u003eDictionary of Financial Risk Management.\u003c\/i\u003e Gastineau is an honors graduate of Harvard College and Harvard Business School.   \u003c\/p\u003e\u003cp\u003eThe original edition of Gary Gastineau's \u003ci\u003eThe Exchange-Traded Funds Manual\u003c\/i\u003e was one of the first books to describe and analyze ETFs. It made the case for the superiority of investor-friendly ETFs over mutual funds and helped investors select the best ETFs—which now hold more than $1 trillion of investor assets worldwide. \u003c\/p\u003e\u003cp\u003eBut much has changed—in both the ETF marketplace and the general investment environment—since that time. That is why Gastineau has filled this \u003ci\u003eSecond Edition\u003c\/i\u003e of \u003ci\u003eThe Exchange-Traded Funds Manual\u003c\/i\u003e with new insights and expert advice. This new edition provides comprehensive coverage of the latest ETF offerings, evaluation techniques, regulatory and tax changes, and trading cost reduction methods. \u003c\/p\u003e\u003cp\u003ePage by page, this reliable resource offers a realistic evaluation of today's index ETFs; valuable insights on actively managed ETFs and new, improved index funds; as well as guidance in fund and advisor selection. Gastineau skillfully addresses these essential issues, as well as: \u003c\/p\u003e\u003cul\u003e \u003cli\u003eThe historic and continuing development of ETFs and how they stack up against other financial products that compete with them\u003c\/li\u003e \u003cli\u003eHow to understand ETF applications as an individual investor or advisor and incorporate them into an effective investment plan\u003c\/li\u003e \u003cli\u003eThe tax treatment of investment company ETFs and other exchange-traded instruments\u003c\/li\u003e \u003cli\u003eFund ratings and the evaluation of ETFs\u003c\/li\u003e \u003cli\u003eThe best ways to minimize the cost of trading ETFs\u003c\/li\u003e \u003cli\u003eAnd much more\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eExchange-traded funds offer diversification and opportunities to participate in market segments and investment strategies that have not been available to most investors. If you want to make ETFs a productive part of your portfolio, the \u003ci\u003eSecond Edition\u003c\/i\u003e of \u003ci\u003eThe Exchanged-Traded Funds Manual\u003c\/i\u003e will show you how.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990224650469,"sku":"NP9780470482339","price":85.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470482339.jpg?v=1761786975","url":"https:\/\/k12savings.com\/products\/the-exchange-traded-funds-manual-isbn-9780470482339","provider":"K12savings","version":"1.0","type":"link"}