Customer Reviews:
Showing reviews 1-5 of 21
 The ETF Book December 30, 2007
Robert W. Uphaus
24 out of 26 found this review helpful
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
An excellent book for the ETF investor January 13, 2008
Susanna Hutcheson (Midwest U.S.A.)
20 out of 24 found this review helpful
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.
Great New Bible of ETF Investing March 2, 2008
Dale C. Maley (Fairbury, IL United States)
10 out of 12 found this review helpful
I am a big fan of Rick Ferri's books, and his postings on the Diehards dot Org website (Amazon does not allow links or web site addresses in these reviews).
I am also a big fan of Larry Swedroe's books, and his postings on the Diehards dot Org website.
I used this book.....plus Larry's books to contrast and compare Rick's asset class recommendations to Larry Swedroe's recommendations.
Both Rick and Larry agree on which asset classes investors should use in their portfolios with a few exceptions.
Rick is ok with using Vanguard's Total Bond fund (VBMFX). Larry does not like Vanguard's Total Bond fund (VBMFX) because it contains 33% Mortgage Backed Securities (MBS). Larry would recommend other Vanguard short term bond funds which do not include any MBS like the Short Term Bond Index fund (VBISX) and the Intermediate Term Bond Index fund (VBIIX).
I already knew Larry was an advocate of including commodities in the form of PCRIX in your portfolio. Rick Ferri contends that commodities should not be included in your portfolio because they lower your portfolio return. Rick contends commodity funds have 0% return, have high expense ratios, and poor tax efficiency.
Larry also disagrees with two other Ferri recommendations, high yield (junk) bonds like Vanguard's High Yield fund (VWEHX) and emerging market bonds like Payden's PYEMX. Larry contends the rewards of junk bonds are not worth the risk and emerging market bonds behave too much like stocks.
My hat is off to Rick for the tremendous number of hours it must have taken to compile the exhaustive data on ETF's for the book. Rick is one of the few people brave enough to make long term forecasts for asset class returns as well.
If you are looking for the Bible of ETF investing, this book is it.
In this age of full disclosure, it can be noted that I am the author and publisher of the book INDEX MUTUAL FUNDS: HOW TO SIMPLIFY YOUR LIFE AND BEAT THE PROS. This book is an introduction to the concept of index funds is and is sold on Amazon. I am also a contributing author to the book THE BOGLEHEADS GUIDE TO RETIREMENT PLANNING available from Amazon with an estimated release date of October 2009. I have also written 21 short stories on investing which are also available on Amazon.
If you want practical ideas on long term passive investing, read some of the books below:
The Richest Man in Babylon
Bogle on Mutual Funds: New Perspectives for the Intelligent Investor
The Millionaire Next Door
The Four Pillars of Investing: Lessons for Building a Winning Portfolio
A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing, Ninth Edition
The Coffeehouse Investor: How to Build Wealth, Ignore Wall Street, and Get On With Your Life
The Bogleheads' Guide to Investing
The Definitive ETF Guide! April 7, 2008
VegasTricia (las vegas, nv United States)
3 out of 3 found this review helpful
The ETF Book: All You Need to Know About Exchange-Traded Funds
I have been a long-term fan of low-cost, passive investing (i.e. index funds) and have read all of Mr. Ferri's books. Recently, I have begun using ETFs in place of index funds.
Mr. Ferri's book is a well-researched, complete guide to ETFs. I believe it will be viewed as the definitive ETF book because of its wide-ranging coverage of everything from how ETFs can be used in a portfolio to details of ETF construction.
The practical tips (e.g. don't trade an ETF at the beginning or end of a trading day) alone are worth the price of the book. Also, I really like the detailed information on how various ETFs (e.g. gold ETFs) are constructed.
Great resource for individual investors as well as for professionals!
Excellent Educational book on ETFs December 29, 2007
David K. Walatka (Sterling,VA)
1 out of 1 found this review helpful
A super book by Rick Ferri. The book goes into the nitty gritty of ETFs and the different types of composition. The information is well written so someone with a just a basic knowledge of investments can understand. Too many investment books written these days are just full of marketing hoola and are useless. This book could be used in a college class with the detail of information presented.
Showing reviews 1-5 of 21
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