Introducing a remarkable, versatile new tool that's sweeping the trading world. ETF/E-mini trading volume has soared to record levels, as investors discover that it's ideal for speculating and hedging as well as long-term investing in the broader markets. These index products work together to diversify and balance portfolios – and now the Merc's foremost expert reveals every technique and strategy for trading them successfully. Whether you're short-term or long-term player, a risk taker or conservative investor – there's a strategy for you. Lerman's traveled the globe training investors of all levels to integrate ETF & E-minis into their trading mix. Be one of the first to get his breakthrough book – now at the lowest price anywhere.
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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 productsfirst mutual funds, then index futures, and now exchange traded fundshas 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 fundthe 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 investors 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.
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Table of Contents:
PART I: FROM RANDOM WALK TO A TRILLION-DOLLAR PHENOMENON.
From Random Walk to a Trillion-Dollar Phenomenon: Why Indexing Works So Well.
PART II: EXCHANGE TRADED FUNDS.
ETFs: Beginnings, Advantages, Attributes.
Details: ETF Structures, the Creation-Redemption Process.
General Strategies Using ETFs.
PART III: THE FASTEST-GROWING INDEX PRODUCTS: E-MINI S&P 500 AND E-MINI NASDAQ-100 FUTURES--APPLICATIONS AND CASE STUDIES.
E-Mini Stock Index Futures: The History and Basic Nomenclature.
E-mini Stock Index Futures: Contract Highlights, Trading Fundamentals, Basis, and Fair Value.
Short-Term Strategies Using E-mini Stock Index Futures and ETFs.
PART IV: ADVANCED TOPICS AND THE ROAD AHEAD.
Longer-Term Strategies: Asset Allocation with ETFs.
Risk: The Most Ignored Four-Letter Word.
ETFs Beyond the United States.
The Future of ETFs and E-mini Stock Index Futures: The Road Ahead.
Frequently Asked Question (and Answers) About ETFs and E-Mini Stock Index Futures.
Appendix 1: Electronic Trading Considerations.
Appendix 2: ETFs and Small-versus Large-Cap Cycles.
Appendix 3: Index Arbitrage and Program Trading.
Recommended Web Sites.
Answers to Quizzes.
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