Financial Times Guide

What are Exchange Traded Funds and why are they having such an impact with investors? http://www.dropshippers.co.za/

How can you make ETFs work in your investment portfolio and what are the risks? http://www.dropshippers.co.za/

Exchange Traded Funds are an investing revolution that have challenged modern investment principles such as individual stock selection and the need to hire a fund manager. By tracking an index, focusing on themes and sectors and helping assess risk they are fast becoming a key investment vehicle. http://www.dropshippers.co.za/

The Financial Times Guide to Exchange Traded Fundsis a comprehensive and authoritative introduction to this new way of running an investment portfolio. It explains what index tracking funds are, how they work, compares different fund types and provides a coherent investing master plan. Proving that the best investment strategies really are based on easy to understand principles, The Financial Times Guide to Exchange Traded Funds: http://www.dropshippers.co.za/

· Shows you how to use ETFs, what to watch out for and advises on the very real risks http://www.dropshippers.co.za/

· Suggests actual portfolios of mixed ETFs for you to start with http://www.dropshippers.co.za/

· Gives you 25 essential indexes that you should be following http://www.dropshippers.co.za/

Exchange Traded Funds (EFTs) are a rapidly-growing investment strategy, forcing the traditional mutual funds sector on to the back foot. ETFs are not a complicated idea - it’s all about tracking the right index, working out the important sectors, improving your international diversification, investigating alternative assets and assessing the risk of the fund and the underlying index. http://www.dropshippers.co.za/

The Financial Times Guide to Exchange Traded Funds covers: http://www.dropshippers.co.za/

• A Quick Primer on the Theory
• Structuring the Revolution
• Investing In Commodities Using Index Funds
• The Notty Gritty By ETF journalist Paul Amery
• The New Fundamental Indexing Revolution by fund manager Rob Davies
• On Portfolios by financial planner James Norton
• Big Theme Investing And Index Funds by Dr Stephen Barber
• Active Portfolios Using ETFs by analysts Tarquin Coe And Mark Glowrey
• Putting It All Together
• The Master Portfolios
• The Essential 25
• List of All London Listed Etfs
• Major Index Returns
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Using index tracking Exchange Traded Funds will change your investing behaviour and change it for the better. http://www.dropshippers.co.za/

About the authors http://www.dropshippers.co.za/

David Stevenson is a columnist for the Financial Times Weekend edition, and authors the Adventurous Investor section where he writes about everything from investing in Mongolia through to using ETFs in your portfolio. He’s also a columnist for the Investors Chronicle (based around his SIPP) and before that was a columnist for Citywire. David writes extensively about ETFs for the FT and has developed a series of Master Portfolios that make use of index tracking funds for the Investors Chronicle . http://www.dropshippers.co.za/

Table of Contents

Table of Contents

• INTRODUCTION – By Matthew Vincent, FT
• CHAPTER 1 – Investing 2.0 The Revolution Begins
• · Decline of the stockpicker and now the decline of active fund manager
• · Need to emphasize cost in this low return world
• · Investors waking to the reality that they have to diversify especially after bear markets
• · The rise of asset class investing, related to but separate from ETfs and index funds
• · The rise of the dreaded term beta…
• CHAPTER 2 – A BIT OF THEORY
• Where it all came from academically. The academic revolt
• The efficient markets theory
• The fundamentalists wade in
• The first ETF structures and index funds. The legendary John Bogle and the Vanguard Phenomena
• CHAPTER 3 – WHAT ARE INDEX OR TRACKER FUNDS?
• Index mutual funds and how they developed from these into these…
• Exchange Traded funds, US Style
• European ETFs – the rise of the swap
• ETNs in the US and certificates in Europe
• ETCs (commodities) and synthetic ETFs
• The mechanics – full replication, partial replication, fully synthetic replication
• Comparing ETFs vs traditional mutual funds vs index mutual funds
• Advantages of different structures and the regulatory structure
• New innovations – inverse ETFs, multi-ETF portfolios, actively managed ETFs
• CHAPTER 4 – THE FIDDLY DETAIL….RISKS, CAVAETS and the INIDICES
• What to watch out for – premiums/discounts, tax complications, tracking error, charging (some are expensive – the 1% rule)
• Counter Party Risk
• Why the index matters – not all indices created equally. Some are too concentrated, carry currency risks, aren’t very liquid, and some are just pointless
• CHAPTER 5 – THE RISE OF THE FUNDAMENTALISTS
• Guest writer – Rob Davies, fund manager of the Munro Fund, a fundamental index fund
• The academic theory surrounding fundamental indexing
• Does it work ? The results so far
• How to implement it via a fund – black boxes, dividends and the measures used
• Will it work in the future – might value investing be dead ?
• CHAPTER 6 – BIG THEME INVESTING AND INDEX FUNDS
• Guest Writer – Stephen Barber, Head of Research at Selftrade
• Momentum investing works and particularly a focus on big themes, big structural changes
• Emerging Markets
• Alternative Assets
• New Energy and Green markets
• Infrastructure and utilities
• Commodities
• CHAPTER 7 – RUNNING A PORTFOLIO : SOME BASICS
• Guest Writer – James Norton, Head of investment at Evolve Financial Planning
• A passive portfolio – why it matters vs Active
• Buy and Hold
• Asset Allocation explained – correlation and diversification
• Inflation
• Income investing
• Long Term returns ?
• The GlidePath
• CHAPTER 8 – ACTIVE PORTFOLIOS USING ETFS
• Guest Writer – Mark Glowrey, Investors Intelligence
• How to combine ETFs into an active portfolio using technical analysis
• The measures sued
• Running the portfolio
• CHAPTER 9 – PUTTING IT ALL TOGETHER INTO A PORTFOLIO THAT WORKS FOR YOU !
• Asset Class Investing
• Value vs Growth vs Momentum – all work but difficult to capture these strategies
• Importance of international diversification
• Lazy Portfolios and why they’re so useful
• The idea behind building your own MASTER PORTFOLIOS
• Lifeycle Investing
• Our MASTER PORTFOLIOS – the assumptions
• ULTRA LOW RISK INCOME portfolio
• LOW RISK portfolio
• ABSOLUTE RETURNS portfolio
• ADVENTUROUS HIGH RISK portfolio
• GLOBAL GROWTH portfolio
• CHAPTER 10 – THE ESSENTIAL TOP 30
• Our top 30 funds that should form the building blocks of any portfolio over the long term
• BGI data on the growth of the ETF sector and their analysis
• Glossary
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