Exchange Traded Funds and E-Mini Stock Index Futures

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.

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.

Outstanding for biginners in ETFs and Emini futures:
This is a well written book and easy to read about the history of ETFs and Emini futures. The author describes the creation of the likes of SPY, QQQ, SMH. Why is it important to know about these instruments, how they get created, who manages them, their cost effective investing over regular mutual funds. He goes in great detail by listing all EFTs available today with their tickers as well, till the point I don't need to keep going to the internet. I started trading the EFTs for profit and for hedging in particular after reading this book. The introduction about the Emini futures is useful and gave me a good start in this subject.

E-BOOK HAS PROBLEMS:
I recently purchased the e-book since I'm located overseas (in Saudi Arabia) and postage is sometimes more than the cost of the books. It also takes in excess of 3 weeks to get mail here from the States. I purchased and downloaded the e-book and was all set to print. I could only print the first 14 pages and then was notified by the Abode print driver that I could not print any more pages that day. After doing some checking I found that permissions were set by the publisher that only allowed printing 35 pages every 7 days - what a rip off!!! By the time I can finally print the last pages we'll be celebrating July 4th 2004 (well maybe not that long). But the idea that printing is being restricted after purchase is outrageous. I have written Amazon to inform them. At the very least the publisher should advise of this practice BEFORE YOUR PURCHASE. I will not purchase any e-books until this practice by Wiley is discontinued.

good book for beginner:
good book for beginner who wants to know about ETFs (like me). helped me in reviewing my holdings. satish paul