The ETF Handbook: How to Value and Trade Exchange Traded Funds

Professional-level guidance on effectively trading ETFs in markets around the world

The ETF Handbook is a comprehensive handbook for using Exchange Traded Funds, designed specifically for institutional investors and professional advisors seeking to improve ETF profitability. While ETFs trade like stocks, they are not stocks—and the differences impact every aspect of their use. This book provides full guidance toward effectively monitoring, analyzing, and executing ETFs, including the technical details you won’t find anywhere else. You’ll learn how they work, where they fit, and who is using them, as well as the resources that exist to provide access for investors. This new second edition includes updated coverage on how business has moved from niche to mainstream, ETF performance and issuers around the world, and changes to the users of ETFs in the US. The companion website features instructional video, as well as ready-to-use spreadsheets for calculating NAV and IIV.

Most of the literature surrounding ETFs is geared toward individual investors or traders, but this book is written from the professional perspective—complete with the deeper mechanical information professionals require.

• Learn the analysis and execution methods specific to ETFs
• Discover why ETFs require a sophisticated level of skill
• Consider how ETFs perform in different market environments
• Examine the impact of managed ETF portfolio growth

ETFs are incredibly flexible and valuable tools, but using them effectively demands a more sophisticated skillset, even among professional money managers and traders. Daily volumes and spreads do not tell the full story regarding availability and liquidity, and treating ETFs just like stocks can dramatically impact profits. The ETF Handbook is the professional’s guide to the ETF markets worldwide with expert insight on the technical details that matter.

Table of Contents

Part One: Introduction to the ETF Market Place
Chapter 1: How Did We End Up Here?
Chapter 2: Steps for Developing an ETF
Chapter 3: Giving an ETF Life in the Markets

Part Two: ETF Trading and Execution
Chapter 4: Trading Volumes and ETF Liquidity
Chapter 5: Volume ≠ Liquidity—Understanding ETF Implied Liquidity
Chapter 6: Execution
Chapter 7: Market Participants and Their Trading Strategies
Chapter 8: Market Structure and ETFs—Protecting Your Portfolio from Flash Crashes

Part Three: ETF Valuation
Chapter 9: ETFs with Domestic Holdings
Chapter 10: ETFs with International Constituents
Chapter 11: Fixed-Income and Currency ETFs
Chapter 12: Leveraged, Inverse, and Commodity Products
Chapter 13: Structure of an ETF

Appendix A: Bloomberg ETF Reference Guide
Appendix B: ETF Issuers
Appendix C: An Overview of the Japanese ETF Market
Appendix D: An Overview of European ETF Market