Product Description

Praise for EXCHANGE TRADED FUNDS and E-MINI STOCK INDEX FUTURES

"The publishing of Exchange Traded Funds and E-mini Stock Index Futures provides investors, retail and institutional alike, great insight as to the structural advantages and applications of these two innovative investment and trading instruments. The launch of these products continues the trend of democratization of index investing empowering more investors to capitalize on the virtues of indexing. Mr. Lerman’s book is a great reference tool to gain a better understanding of these exciting products."–Nick Lopardo, Vice Chairman, State Street Corporation, and Chairman & CEO, State Street Global Advisors

"This book is a must-read for anyone thinking of investing/trading in Exchange Traded Funds (ETFs) and E-mini stock index futures! Lerman combines excellent research with practical examples to provide a comprehensive analysis of one of the fastest growing products in all of finance."–Jay Baker, Vice President of Exchange Traded Funds Marketing, Spear, Leeds & Kellogg

"David is one of the most powerful communicators in the industry. His succinct style and practical examples make this book a must-read for anyone thinking of investing in ETFs and E-mini stock index futures. Standard & Poor’s is proud to have played a role in the success of these innovative and exciting new products."–Shirley Petersen, Vice President, Global Licensing, Standard & Poor’s Corp.

"Here’s a great guide for those looking to get started in index investing and to learn how

by using Wall Street’s most successful new investment vehicles–exchange traded funds and E-mini stock index futures."–Erin Arvedlund, Staff Writer, Barron’s magazine

"The ownership of index funds is a must for all long-term investors. David Lerman has done a terrific job of explaining everything you need to know in order to take advantage of the broad array of index fund products on the market. He shows just how simple it is to be a participant in funds that routinely outperform nearly every money manager in existence."–Lawrence G. McMillan, author of McMillan on Options and President, McMillan Analysis Corp.

Product Details

• Amazon Sales Rank: #767473 in Books
• Published on: 2001-09-14
• Original language: English
• Number of items: 1
• Binding: Hardcover
• 288 pages

Review
The publishing of Exchange Traded Funds and E-mini Stock Index Futures provides investors, retail and institutional alike, great insight as to the structural advantages and applications of these two innovative investment and trading instruments. The launch of these products continues the trend of democratization of index investing empowering more investors to capitalize on the virtues of indexing. Mr. Lermans book is a great reference tool to gain a better understanding of these exciting products. (Nick Lopardo, Vice Chairman, State Street Corporation, and Chairman & CEO, State Street Global Advisors)

This book is a must-read for anyone thinking of investing/trading in Exchange Traded Funds (ETFs) and E-mini stock index futures! Lerman combines excellent research with practical examples to provide a comprehensive analysis of one of the fastest growing products in all of finance. (Jay Baker, Vice President of Exchange Traded Funds Marketing, Spear, Leeds & Kellogg)

David is one of the most powerful communicators in the industry. His succinct style and practical examples make this book a must-read for anyone thinking of investing in ETFs and E-mini stock index futures. Standard & Poors is proud to have played a role in the success of these innovative and exciting new products. (Shirley Petersen, Vice President, Global Licensing, Standard & Poors Corp.)

Heres a great guide for those looking to get started in index investing and to learn how by using Wall Streets most successful new investment vehiclesexchange traded funds and E-mini stock index futures.(Erin Arvedlund, Staff Writer, Barrons magazine)

The ownership of index funds is a must for all long-term investors. David Lerman has done a terrific job of explaining everything you need to know in order to take advantage of the broad array of index fund products on the market. He shows just how simple it is to be a participant in funds that routinely outperform nearly every money manager in existence. (Lawrence G. McMillan, author of McMillan on Options and President, McMillan Analysis Corp.)

From the Publisher
"The publishing of Exchange Traded Funds and E-mini Stock Index Futures provides investors, retail and institutional alike, great insight as to the structural advantages and applications of these two innovative investment and trading instruments. The launch of these products continues the trend of democratization of index investing empowering more investors to capitalize on the virtues of indexing. Mr. Lerman's book is a great reference tool to gain a better understanding of these exciting products." (Nick Lopardo, Vice Chairman, State Street Corporation, and Chairman & CEO, State Street Global Advisors)

"This book is a must-read for anyone thinking of investing/trading in Exchange Traded Funds (ETFs) and E-mini stock index futures! Lerman combines excellent research with practical examples to provide a comprehensive analysis of one of the fastest growing products in all of finance." (Jay Baker, Vice President of Exchange Traded Funds Marketing, Spear, Leeds & Kellogg)

"David is one of the most powerful communicators in the industry. His succinct style and practical examples make this book a must-read for anyone thinking of investing in ETFs and E-mini stock index futures. Standard & Poor's is proud to have played a role in the success of these innovative and exciting new products." (Shirley Petersen, Vice President, Global Licensing, Standard & Poor's Corp.)

"Here's a great guide for those looking to get started in index investing and to learn how by using Wall Street's most successful new investment vehicles—exchange traded funds and E-mini stock index futures."(Erin Arvedlund, Staff Writer, Barron's magazine)

"The ownership of index funds is a must for all long-term investors. David Lerman has done a terrific job of explaining everything you need to know in order to take advantage of the broad array of index fund products on the market. He shows just how simple it is to be a participant in funds that routinely outperform nearly every money manager in existence." (Lawrence G. McMillan, author of McMillan on Options and President, McMillan Analysis Corp.)

From the Inside Flap
Why invest in individual stocks when you can invest in a basket of stocks that track the major domestic and global indices as well as important sectors such as technology, energy, or financial issues? The emergence of index products–first mutual funds, then index futures, and now exchange traded funds–has resoundingly answered this question with their profitability and widespread acceptance over the last few years.

Arguably the most popular new products in the investment world, exchange traded funds (ETFs) and E-mini stock index futures (the "E" standing for electronic market access) have achieved more success than even the most radically optimistic forecaster could have predicted. Industry executive and expert in the field, David Lerman, reveals the intricacies of these products, how to use them, and what the future holds for these exciting investment vehicles.

Launched in 1993, the first exchange traded fund–the S&P 500 Depositary Receipts (SPDRs, affectionately known as "Spiders")–combined low costs, greater tax efficiencies, and superb liquidity for investors. This book explains dozens of new ETFs, including the popular QQQs, iShares, and streetTRACKS, and will teach you how these tools are used for long-term and short-term strategies in broad-based and sector indices. It also discusses in depth how the E-mini S&P 500 and other E-mini Nasdaq-100 futures allow traders to profit on the direction of indexes.

Exchange Traded Funds and E-mini Stock Index Futures offers investors, traders, investment advisors, and brokers a full-scale examination of these extraordinary products including:

• The nuts and bolts of ETFs and E-mini stock index futures, including the advantages and attributes of each product, the basics of stock index futures from the clearinghouse to performance bond margins, and contract specifications
• How ETFs and E-mini stock index futures can fit into nearly any investor’s portfolio and reduce costs, increase returns, and alleviate the tax burdens commonly associated with traditional mutual funds
• Blending active management and indexing to create "core-satellite" strategies widely implemented by institutions
• How to use E-mini stock index futures for trading and spreading strategies, hedging, and other risk management strategies

With numerous charts, graphics, and case studies, Exchange Traded Funds and E-mini Stock Index Futures is a valuable resource for anyone looking to understand these tools and obtain superb results.

Customer Reviews

An introduction for beginners
If you are new to the world of ETF's and E-Mini index futures, this book will shed much light on these instruments. If, however, you are a trading veteran with knowledge of these markets, you have no need for this book as it simply introduces the instruments in basic format and details.

Investors and Traders Will Love This Book
I've attended several of Mr. Lerman's stock index seminars that he has done for the Chicago Mercantile Exchange--I agree with one of the endorsers that stated that he is a powerful communicator. He has translated his gift for teaching investment/trading principles into written form. Exchange Traded Funds and E-mini Stock Index futures was not only highly educational, it will help boost my investment returns and help save thousands of dollars in annual fees/expenses as well. I particularly liked the asset allocation section and appreciated how easy it is to construct portfolios with Spiders, QQQs and other ETFs. The best parts though were the multitude of strategies for basic investors all the way up to the more advanced trader. The sections on hedging portfolios against a bear market and spreading small/midcaps vs. large caps were easy to comprehend and implement. With small and mid-sized stocks outperforming the large caps YTD 2001, and in 2000, these types of strategies are very germaine. There are also tons of great statistics, graphs and an excellent section on Risk--the most ignored factor in investing. For the advanced investor he also explains fair value and index arbitrage in very easy to comprehend language. Overall, great job...well worth the time and money spent!

Excellent Read
I happened to pick up this wonderful book while in Chicago recently. In browsing through the introductory pages, I smiled at the references to both Warren Buffett and Jack Bogle. Now here, I thought, is someone who "gets it". Buy this book and read it. It is worth every penny. Amidst today's cacaphony of financial marketing, Lerman's voice emerges from these pages with refreshing honesty, simplicity, and reason.
Those trying to educate themselves in the area of personal finance and investment should read this book carefully. For conservative investors as well as for those inclined to a bit of speculation on occasion, this book is very well written and informative.
Following up on the themes that, in the long run (emphasis), economic fundamentals drive returns; that larger, well-established, actively traded markets are, over time (emphasis), highly efficient; and that costs matter greatly when assessing net performance over extended periods; Lerman does an excellent job of explaining the rapidly developing role of ultra low-cost, exchange traded funds (ETFs) as part of any core indexing program. At the same time, he carefully exposes the many hidden (and, unfortunately, rising) costs lurking in most mutual funds today.
Still, Lerman wisely acknowledges, in the short term things can and do happen. While over long periods of time certain markets may be extremely efficient, the difference between that and what may happen in the near term is, as Buffett points out, the difference between day and night. After all, we are inescapably human, and fear and greed will never be completely expunged from our collective psyche. Sudden, unexpected events can result in major market and/or sector security specific swings, and it is during those times that patient investors as well as prudent speculators can occasionally reap outsized returns. Here again, ETFs (as well as the related E-Mini Stock Index Futures for more enterprising individuals) can help.
In short, by building a long-term, broadly-based core portfolio around low-cost ETFs and perhaps a few well-chosen securities and/or money managers (particularly in less efficient markets), and by then (for the enterprising investor) complementing such a portfolio with the occasional, more speculative foray, whether by utilizing ETFs, E-Mini Stock Index Futures, or other means, an intelligent individual should be able to navigate successfully today's choppy financial waters.