A
- AARP, 354
- account, creating yours for ETFs, 48–52
- active investing, 14, 26, 39–42, 101, 263, 409
- active managers, 41, 262, 263, 267, 327
- actively managed funds
- according to McGuigan, 327
- actively managed, or quasi-actively managed, commodity funds, 244–245
- active-passive middle ground, 269–270
- allure of, 40–41
- as compared to indexed counterparts, 17–18, 32–33
- consideration of swapping out of, 268–270
- deciding whether or not to get active, 263
- getting practical about, 264
- hypotheses on why active ETFs in the aggregate have been duds, 262–263
- number of ETFs to choose from, 261
- some of most popular ones, 265–268
- AdvisorShares Dorsey Wright Micro-Cap ETF (DWMC), 121
- aggregate bond, 214, 274
- all-in-one ETFs, 271–279
- all-world bond/stock funds, 272–275
- all-world-stock-and-bond-combined funds, 272, 275–279
- Ally, 56
- alpha, defined, 409
- American Century, 269
- American Savings Education Council, Employee Benefit Research Institute, 354
- American Stock Exchange, 66
- Ameristock, 240
- Amplify Investments, 64
- annuities, 68, 375–376
- ARK, 64
- ARK Autonomous Technology & Robotics ETF (ARKQ), 158
- ARK Genomic Revolution ETF (ARKG), 158
- ARK Innovation ETF (ARKK), 265–266
- ask price, 52, 409
- asset allocation funds, 275–279
- asset class, defined, 409
- Association of Investment Management, 36
- average investor, tale of, 320–323
- The Beardstown Ladies’ Common-Sense Investment Guide, 325
- benefit corporations, 258
- Bengen, William P. (financial planner), 362–363, 364
- Berkshire Focus Fund, 240
- beta, as risk measurement tool, 78, 409–410
- Betterment, 303
- bid price, 50, 410
- Bittman, Jim (instructor with Chicago Board Options Exchange’s Options Institute), 349
- BlackRock, Inc., 10, 14, 19, 32, 57, 65, 140, 163–164, 243, 255
- BlackRock Future Tech ETF (BTEK), 58
- BlackRock iShares, 62
- BlackRock iShares/BlackRock Financial Management iShares, 58–59
- BlackRock S&P 500 stock fund (IVV), 59
- BlackRock Treasury Bond fund (SGOV), 59
- BLDRS Emerging Markets 50 ADR (ADRE), 248
- Bloomberg, 66, 139
- Bloomberg Cocoa Subindex Total Return, 377
- Bloomberg-Barclays U.S. Aggregate Bond Index, 38
- BNY Mellon Bank, 30, 31, 64
- BNY Mellon Core Bond ETF (BKAG), 31, 215, 307, 309, 310, 312, 314, 354
- Bogle, John (visionary), 16
- bond ETFs, 73, 75–76, 188, 190, 193, 195, 201. See also bond investing; corporate bond ETFs; treasury bond ETFs
- bond investing
- advantage of bond funds over individual bonds, 193
- aggregate bond, 214
- bond ratings, 211–212
- as compared to stock investing, 192
- core bond, 214
- corporate bond ETFs, 210–214
- determining optimal fixed-income allocation, 195–199
- emerging-market bonds, 226–228
- in entire U.S. bond market, 214–217
- foreign bonds, 222–226
- high-yield bonds, 210, 211
- junk bonds, 210, 211
- maturity-date ETFs, 229
- in modern era, 188, 192
- municipal bonds, 203, 219–222
- portfolio protection when you need it most, 189–191
- risks of, 190
- SEC 30-Day Yield, 202
- TIP (U.S. Treasury Inflation-Protected Securities), 207–208
- total bond, 214
- tracing track record of bonds, 188–193
- treasury bonds, 203–206
- U.S. agency bonds, 209
- ways of, 193–195
- Bond Investing For Dummies (Wild), 193, 202
- brokerage houses/broker-dealers, 52–57. See also specific brokerage houses
- buffer ETFs, 286–287, 410
- Buffet, Warren (investor), 105, 106–107
- BulletShares, 229
- buying on margin, 49
C
- Cambria, 64, 140
- Cambria Cannabis ETF (TOKE), 153, 292
- Cambria Global Value ETF (GVAL), 148, 357
- Canada, 10, 321
- cannabis ETFs, 153, 291–292
- cap size, defined, 410
- CAPE (cyclically adjusted price-to-earnings ratio), 139
- capital gains taxes, as hardly existing with ETFs, 11, 33, 35
- capitalization (cap), 93, 152
- Cboe Global Markets, Inc., 66, 67
- Cerulli Associates, 39, 54
- Charles Schwab, 15, 25, 45, 48, 54, 55, 57, 58, 62, 63, 65, 140, 384, 404. See also Schwab funds
- Cheat Sheet, 6
- China, 138, 142
- closed-end funds, 373, 376, 377, 410
- closed-end mutual funds, 376
- closet index fund, 40, 410
- commercialization, impact of, 19–20
- commissioned brokers, as wannabe middlemen, 67–68
- commissions, 42, 54
- commodities investing
- according to Malkiel, 246
- actively managed, or quasi-actively managed, commodity funds, 244–245
- general commodity index funds, 242–244
- gold investing, 234–237
- Keynes on commodity futures, 240
- new developments in, 245–246
- oil and gas investing, 239–242
- playing commodity market indirectly, 246–247
- silver investing, 237–239
- tapping into commodity companies, 246–248
- tapping into commodity-rich countries, 248
- commodity pool, 239
- communication services sector, 153, 315, 316
- Communication Services Select Sector SPDR (XLC), 161
- Conserving Client Portfolios During Retirement (Bengen), 362–363
- consumer discretionary sector, 153, 156, 315, 316
- Consumer Discretionary Select Sector SPDR (XLY), 161
- consumer staples sector, 153, 156, 315, 316
- Consumer Staples Select Sector SPDR (XLP), 161
- contango, 241–242, 245
- Cook, Jackie (Morningstar researcher), 255
- copycat ETFs, 292–294
- core, use of term, 371
- core bond, 214
- corporate bond ETFs, 210–214
- correlation, defined, 410
- correlation coefficient, 84–85, 131–132
- Correlation Tracker, 163
- COVID-19 pandemic, financial impacts of, 72, 75, 85, 96, 329
- Cramer, Jim (“Mad Money”), 326
- Credit Suisse, 40
- Credit Suisse Global Investment Returns Yearbook 2020, 143
- CRSP (The Center for Research in Security Prices), 65
- cryptocurrencies, investing in, 290–291
- Current Yield ETF (YYY), 39
D
- Dalbar, 38
- day traders, ETFs they love the most, 323
- day trading, author’s rules for, 330–331
- decumulation phase (of investing career), 337
- defined-outcome ETFs, 3, 63, 286–287, 395, 410
- Dent Tactical ETF (DENT), 262
- derivatives, 344
- Deutsche Bank, 189, 279
- developed markets, defined, 141
- DFA funds, 269
- DIAMONDS Trust Series (DIA), 24
- “The Difficulty of Selecting Superior Mutual Fund Performance” (McGuigan), 327
- Dimensional, 25, 64, 140, 269, 373
- Dimensional Core Equity Market ETF (DFAI), 143
- Dimensional Emerging Core Equity Market ETF (DFAE), 146, 147
- Dimensional U.S. Core Equity Market (DFAU), 307, 308, 311
- Dimson, Elroy (professor), 143
- Direxion, 65, 284
- Direxion Daily Junior Gold Miners Bear 2X Shares ETF (JDST), 167
- Direxion Daily Natural Gas Related Bear 2X Shares (FCGS), 282
- Direxion Daily Natural Gas Related Bull 3X Share (GASL), 167
- Direxion Daily S&P 500 High Beta Bull 3X Shares (HIBS), 283
- Direxion Daily Semiconductor Bear 3X Shares (SOXS), 282
- Direxion Russell 1000 Value Over Growth ETF (RWVG), 111
- discount, selling at, 43
- diversification
- in bonds as compared to in stocks, 194
- defined, 410
- fixed-income diversification with foreign bonds, 222–226
- with global investing, 131–132
- importance of, 36
- seeking low correlations for added diversification, 158
- dividends, 89, 106, 171–172, 180–182
- Dodd, David (author), 105
- domestic stock, defined, 135
- Dow 36,000: The New Strategy for Profiting from the Coming Rise in the Stock Market (Glassman and Hassett), 325
- Dow Jones U.S. Select REIT Index, 170, 171
- duration, defined, 202–203
E
- E*Trade, 54, 56
- EAFE index, defined, 410
- earnings growth, 89, 106
- economic self-sufficiency, aiming for in retirement years, 352–358
- Efficient Frontier, 84, 86
- efficient market, 16, 305
- ELEMENTS S&P CTI ETN (LSC), 245
- Ellevest, 303
- emerging markets, defined, 410
- Emerging Markets iShares MSCI ETF (EEM), 345
- Emerging Markets SmallCap Dividend Fund (DGS), 180
- emerging-market bonds, 226–228
- emerging-market stock ETFs, 144–145, 147
- Employee Benefit Research Institute (American Savings Education Council), 354
- energy sector, 88, 153, 156, 247, 315, 316
- Energy Select Sector SPDR (XLE), 161, 239, 247, 323, 340
- Engine No. 1 Transform 500 ETF (VOTE), 256, 310, 314
- ESG benchmarks, 65
- ESG funds, defined, 250
- ESG integration, 251
- ESG investing, 251–254, 275–276
- ESG rating, 250, 251
- ETF Deathwatch, 21
- Europe, strengths and weaknesses of, 142
- Europe SmallCap Dividend Fund (DFE), 180
- EventShares U.S. Legislative Opportunities ETF (PLCY), 262
- exchanges, where ETFs are traded, 386
- exchange-traded derivatives, 344
- exchange-traded fund(s) (ETFs). See also specific categories of ETFs
- amount of money required to invest in, 383
- benefits of to individual investors as compared to institutional traders, 14
- best place for buying, 384
- buying very narrow ETFs, 289–290
- choosing between classic and new indexes, 25–26
- as compared to stocks, 48
- controversies about, 26
- cost advantage of, 30–33
- crazy ETFs, 167
- deciding if they are for you, 42–45
- differences between mutual funds and ETFs, 374
- disadvantages of, 385
- distinguishing of from mutual funds, 27–28
- diversification and, 12
- folding of, 20–21
- as forcing down prices on other investment vehicles, 15
- forecasts about future of, 393–399
- as giving investment amateurs professional edge, 37–38
- as huge part of options market, 345
- introduction of in Canada, 10, 321
- introduction of in US, 10–11, 19, 261
- lack of scandals regarding, 12, 37
- largest ones, 19
- legal structure of, 34–35
- leveraging of, 25
- as mirroring various indexes, 24
- number of (2000), 12
- number of (2021), 9
- number of industry-sector ETFs (2021), 152
- options for with large-growth stocks, 97–101
- phenomenal growth of, 13
- popularity of, 12–15
- preference of over individual stocks, 26–27
- suppliers/providers of, 57–64, 404–405
- timing of buying, 385
- use of to fund retirement years, 351–367
- where to start in choosing, 383–384
- why they appeal to individual investors, 30–37
- why they appeal to largest investors, 28–29
- exchange-traded grantor trusts, 34
- exchange-traded notes (ETNs), 26, 243–245, 377
- exchange-traded open-end mutual funds, 34
- exchange-traded unit investment trusts, 34
- expense ratio comparison, 62
- expense ratio, defined, 410–411
- expiration date (on options), 344
F
- Fama and French, 95
- Federal National Mortgage Association (Fannie Mae or FNMA), 209
- fee-based, defined, 14
- fee-only, defined, 14
- fees
- cost advantage of ETFs, 30–33
- maintenance fees, 56
- management fees, 15, 30, 39, 44, 52, 57, 59, 60
- mutual fund fees, 11, 20
- no fees, 31
- rock-bottom-priced ETFs, 31
- trading fees, 11, 27, 50–51
- Fidelity Investments, 15, 32, 45, 48, 54, 55, 64, 166, 376, 384
- Fidelity Magellan Fund, 36
- Fidelity MSCI Real Estate Index ETF (FREL), 176
- financial news, advice, and education, websites for, 407
- financial professional, use of, 382–383
- Financial Select Sector SPDR ETF (XLF), 321, 323
- financial supermarkets, websites for, 405
- financials sector, 153, 156, 315, 316
- FIRECalc, 354
- First Trust, 58, 62, 63–64, 220. See also First Trust funds
- First Trust funds
- Dow Jones Select MicroCap Index Fund (FDM), 120
- Hedged BuyWrite Income ETF (FTLB), 63
- IPOX-100 Index Fund (FPX), 287–288
- Large Cap Growth AlphaDEX (FTC), 101
- Large Cap Value AlphaDEX Fund (FTA), 111
- Long/Short Equity ETF (FTLS), 267
- Merger Arbitrage ETF (MARB), 63
- Morningstar Dividend Leaders Index Fund (FDL), 180
- North American Energy Infrastructure Fund (EMLP), 287
- S&P International Dividend Aristocrats ETF (FID), 180
- US Equity Opportunities ETF, 287–288
- FlexShares, 180
- Forbes, Malcolm R, III (founder of Berkshire Focus Fund), 240
- Forbes magazine, 106
- forecasts about future of ETFs and personal investing, 393–399
- foreign bonds, 222–226
- foreign currencies, investing in, 291
- foreign ETFs, 133, 134, 137, 149, 225
- foreign stocks, 83, 130–136, 139. See also global investing
- 401(k), curing blues from, 358–361
- Franklin Templeton, 64, 269
- frontier markets, 146
- FTSE China 25 Index (FXI), 132
- FTSE Russell, 65, 152
- fundamental analysis, 92, 411
- funds of funds, as wannabe middlemen, 68
G
- general commodity index funds, 242–244
- Glassman, James K. (author), 325
- global ETFs, as holding U.S. as well as international stocks, 137
- Global ex-U.S. Real Estate ETF (VNQI), 160
- global investing
- annual growth rate (2011 to 2021), 130
- author’s philosophy about, 88
- choices for, 139–149
- decisions regarding, 137–139
- ETFs as great tool for, 136
- finding your best mix of domestic and international, 133–136
- number of ETFs to choose from, 137
- rationale for, 131
- 10-year annualized return of (as of mid-2011), 129
- ups and downs of, 130–133
- U.S. stock markets versus non-U.S. stock market performance (1975 to 2021), 131
- Global Sustainable Investment Alliance, 249
- Global X funds
- Cannabis ETF (POTX), 292
- MLP & Energy Infrastructure ETF (MLPX), 287
- MSCI Next Emerging & Frontier ETF (EMFM), 146
- Nasdaq 100 Covered Call ETF (QYLD), 350
- Nifty India Financials ETF (INDF), 167
- Oil Equities ETF (XOIL), 247
- Pure Gold Miners ETF (GGGG), 247
- Russell 2000 Covered Call ETF (RYLD), 350
- S&P 500 Covered Calls ETF (XYLD), 350
- Silver Miners ETF (SIL), 247
- glossary, 409–414
- gold investing, 235, 236, 238. See also mining ETFs
- Goldman Sachs, 269
- Government National Mortgage Association (Ginnie Mae or GNMA), 209
- Graham, Benjamin (investment legend), 105, 337
- grand scale risks, 75
- grid investing, sector investing as compared to, 87
- growth, as compared to value, 93–94
- growth fund, defined, 411
- growth stocks, value stocks as historically outperforming growth stocks, 106, 108
- Guggenheim, 61
H
- Hale, Jon (director of ESG strategies for Morningstar), 255
- Hassett, Kevin A. (author), 325
- Health Care Select Sector SPDR (XLV), 161
- healthcare sector, 88, 153, 156, 315, 316
- hedge funds, 377
- hedging, 225, 411
- high-yield bonds, 210, 211
- Humankind Investments, 258
- Humankind U.S. Stock ETF (HKND), 257–258
- hypothetical investing, 319
I
- I Bonds, 375
- Ibbotson Associates, 87, 155
- iBonds, 229
- icons, explained, 5–6
- immediateannuities.com, 376
- index, as blueprint on which ETF is based, 64
- Index Investing for Dummies (Wild), 262
- index investing, pros and cons of, 39–40
- Index Investment Trust fund, 16
- index mutual funds, 16, 45
- indexed managed funds, as compared to actively managed funds, 17–18, 32–33
- indexers, familiarizing yourself with, 64–66
- indexes, websites for people who create them, 406
- indexing, defined, 411
- individual investors, 30–37, 381
- Industrial Select Sector SPDR (XLI), 161
- industrials sector, 153, 156
- industry sectors. See also specific sectors
- crazy ETFs in, 167
- ETFs as mirroring of, 24, 87–88
- for growth stocks, 106
- latest arrivals of ETFs in, 158
- for value stocks, 106
- inflation risk, as systemic risk, 75
- information technology sector, 88, 153, 156, 315, 316
- initial public offerings ETFs, 287–289
- Innovator, 64
- Innovator S&P Buffer ETF (BJUL), 286
- institutional class shares, 14
- institutional investors
- appeal of ETFs to, 28–29
- vast majority of ETF trades as made by, 321
- Intellidex indexes, 25
- Interactive Brokers, 56
- interest rate risk, as systemic risk, 75
- Internal Revenue Service, “wash rule,” 340
- International Dividend ex-Financials Fund (DOO), 180
- international ETFs, 73, 137
- International Real Estate ETF (RWX), 163
- international stocks. See global investing
- inverse ETFs, 281–283
- Invesco, 57, 58, 61–62, 65, 164–166, 220, 229, 270, 404. See also Invesco funds
- Invesco funds
- Aerospace & Defense (PPA), 165
- Balanced Multi-Asset Allocation ETF (PSMB), 278
- California AMT-Free Municipal Bond ETF (PWZ), 373
- Conservative Multi-Asset Allocation ETF (PSMC), 278
- CurrencyShares, 291
- CurrencyShares Australian Dollar ETF (FXA), 135
- Dividend Achievers ETF (PFM), 180
- Dow Jones Industrial Average ETF (DJ), 180
- Dynamic Building & Construction (PKB), 164
- Dynamic Energy & Exploration (PXE), 164
- Dynamic Food & Beverage (PBJ), 164
- Dynamic Large Cap Growth ETF (PWB), 25, 101
- Dynamic Leisure & Entertainment (PEJ), 164
- Dynamic Media (PBS), 164
- Dynamic Networking (PXQ), 165
- Dynamic Pharmaceuticals (PJP), 165
- Dynamic Software (PSJ), 165
- Global Clean Energy ETF (PBD), 165
- Global Water Index (CGW), 165
- Growth Multi-Asset Allocation ETf (PSMG), 278
- International Corporate Bond ETF (PICB), 225–226
- International Dividend Achievers ETF (PID), 180
- Moderately Conservative Multi-Asset Allocation ETF (PSMM), 278
- New York AMT-Free Municipal Bond ETF (PZT), 373
- PowerShares, 25
- PureBeta SM US Aggregate Bond ETF, 31
- QQQ (QQQ), 73, 323
- QQQ Trust Series (QQQ), 24, 100
- S&P 500 BuyWrite ETF (PBP), 350
- S&P 500 Equal Weight Consumer Staples ETF (RHS), 166, 270
- S&P 500 Equal Weight Energy ETF (RYF), 166
- S&P 500 Equal Weight Health Care ETF (RYH), 166
- S&P 500 Equal Weight Real Estate ETF (EWRE), 166
- S&P 500 Equal Weight Technology ETF (RYT), 166, 270
- S&P 500 Equal Weight Utiities ETF (RYU), 166
- S&P 500 High Dividend Low Volatility ETF (SPHD), 180
- S&P 600 SmallCap Pure Value (RZV), 127
- Solar (TAN), 165
- Water Resources (PHO), 165
- WilderHill Clean Energy (PBW), 165
- investing
- investment advice, wild, wacky world of, 325–326
- Investment Company Institute, 12, 20, 30
- Investment News, 40
- investment pornography, 324–327
- investment success, key to, 317
- investor class shares, 14
- iPath commodity ETNs, 243–244
- iPath Dow Jones
–
USB Commodity Index Total Return ETN (DJP), 243, 244
- iPath Pure Beta Broad Commodity ETN (BCM), 245
- iPath S&P GSCI Total Return Index ETN (GSP), 243
- IRA (traditional), 361–362
- iShares, 25, 58, 220, 229, 279, 404, 411
- iShares funds
- Barclays 1
–
3 Year Treasury Bond Fund (SHY), 73, 74
- Barclays 7
–
10 Year Treasury Bond Fund (IEF), 74, 85, 194
- Barclays Aggregate Bond Fund (AGG), 365, 366
- California Muni Bond ETF (CMF), 373
- China Large-Cap ETF (FXI), 138
- COMEX Gold Trust (IAU), 237
- Core Aggressive Allocation ETF (AOA), 275
- Core Conservative Allocation ETF (AOK), 275
- Core Dividend Growth ETF, 180
- Core Growth Allocation ETF (AOR), 275
- Core MSCI Emerging Markets (IEMG), 145, 357
- Core MSCI Total International Stock ETF (IXUS), 140
- Core S&P 500 ETF (IW), 138, 293
- Core U.S. Aggregate Bond ETF, 31
- Dow Jones Select Dividend Index Fund (DVY), 357
- Dow Jones U.S. Basic Materials (IYM), 248
- Dow Jones U.S. Energy Sector ETF (IYE), 36, 37, 247
- Dow Jones U.S. Oil Equipment & Services Index Fund (IEZ), 247
- Dow Jones Utilities Sector, 85
- Emerging Markets Infrastructure (EMIF), 164
- ESG Aware 1
–
5 Year USD Corporate Bond ETF (SUSB), 214, 307, 309, 310, 314, 358
- ESG Aware Aggressive Allocation ETF (EAOA), 276
- ESG Aware Conservative Allocation ETF (EAOK), 276
- ESG Aware Growth Allocation ETF (EAOR), 276
- ESG Aware Moderate Allocation ETF (EAOM), 276
- Global Consumer Staples ETF (KXI), 164, 314
- Global Energy (IXC), 164
- Global Green Bond ETF (BGRN), 274–275, 314
- Global Materials (MXI), 164
- Global REIT ETF (REET), 178, 354
- Global Timber & Forestry (WOOD), 164
- Global Utilities (JXI), 164
- Gold Trust (IAU), 237
- India 50 ETF (INDY), 59
- International Developed Small Cap Value Factor ETF (ISVL), 149
- International Treasury Bond ETF (IGOV), 223–224
- Japan ETF (EWJ), 225
- J.P. Morgan USD Emerging Markets Bond ETF (EMB), 226–227, 228
- Micro-Cap ETF (IWC), 119–120
- Morningstar Large-Cap Growth ETF (ILCG), 99
- Morningstar Small-Cap Growth ETF (ISCG), 117
- Morningstar Small-Cap Value Index (ISCV), 126
- Morningstar Value ETF (ILCV), 109–110
- MSCI Brazil ETF (EWZ), 323, 345
- MSCI EAFE, 59
- MSCI EAFE Index Fund (EFA), 73, 74
- MSCI EAFE Value (EFV), 309, 312
- MSCI Emerging Markets Index (EEM), 248, 323
- MSCI Europe Financials (EUFN), 164
- MSCI Frontier and Select EM ETF (FM), 146
- MSCI International Value Factor ETF (IVLU), 147
- MSCI Japan Index Fund (EWJ), 25, 85, 132
- MSCI Peru ETF (EPU), 59
- MSCI South Korean Index Fund (EWY), 73, 74
- MSCI USA ESG Select ETF (SUSA), 252
- National Muni Bond ETF (MUB), 221–222
- New York Muni ETF (NYF), 373
- Russell 2000 (IWM), 323
- S&P 500 Growth, 85
- S&P 500 Growth Index Fund (IVW), 25, 132
- S&P 500 Value, 85
- S&P 500 Value Fund (IVE), 340
- S&P Global Energy Index Fund (IXC), 247
- S&P Moderate Allocation ETF (AOM), 275
- S&P National Municipal Bond Fund (MUB), 357
- S&P North American Natural Resources (IGE), 248
- S&P Small Cap 600 Growth, 85
- S&P Small Cap 600 Value, 85
- S&P Small-Cap 600 Growth ETF (IJT), 118
- S&P Small-Cap 600 Value Index (IJS), 127
- S&P/TSX 60 Index ETF (XIU), 10
- Silver Trust (SLV), 237, 323
- Transportation Average (IYT), 163
- U.S. Basic Materials Index (IYM), 163
- U.S. Consumer Goods Index (IYK), 163
- U.S. Consumer Services (IYC), 163
- U.S. Energy Index (IYE), 163
- U.S. Financial Sector Index (IYF), 163
- U.S. Financial Services (IYG), 163
- U.S. Healthcare (IYH), 163
- U.S. Industrials (IYJ), 163
- U.S. Real Estate (IYR), 163
- U.S. Technology (IYW), 163
- U.S. Telecommunications (IYZ), 163
- U.S. Utilities (IDU), 163
J
- James Purpose Based Investment ETF (JPBI), 262
- Janus Henderson Long-Term Care ETF (OLD), 175
- Japan, 133, 142
- Japan SmallCap Dividend Fund (DFJ), 180
- John Hancock, 269
- JPMorgan, 269
- JPMorgan BetaBuilders U.S. Equity ETF, 31
- JPMorgan Chase, 64
- JPMorgan Ultra-Short Income ETF (JPST), 266
- junk bonds, 210, 211
K
- K-1 forms, 242
- Katz, James (CEO of Humankind), 258
- Keynes, John Maynard (economist), 240
- KFA Value Line Dynamic Core Equity Index ETF (KVLE), 111
- KraneShares CSI China Internet ETF (KWEB), 153
- KraneShares Global Carbon ETF (KRBN), 259–260, 267–268
L
- Large-Cap Growth, 87, 92
- large-cap stocks, small-cap stocks as outperforming, in last century, 115
- Large-Cap Value, recent performance of, 87
- large-growth stocks/large-cap stocks, 95–101
- large-value stocks, 104–111
- Legg Mason, 269
- leverage, defined, 411
- leveraged ETFs, 284–286, 382
- leveraged investment, options as prime example of, 344–345
- life insurance products, as wannabe middlemen, 68
- lifecycle funds/lifecycle ETFs, 279
- limit order, 29, 51, 52, 386
- limited correlation, 82–84, 117, 171, 191, 238
- limited partnerships, 377
- liquidity, defined, 411
- listed, as compared to traded, 66
- loads, defined, 11, 411
- long position, defined, 411
- Long-Term Anticipation Securities (LEAPS), 347
- long-term bond ETFs, volatility of, 73
- low correlation, 82
M
- Mairs & Power Minnesota Municipal Bond ETF (MINN), 373
- Malkiel, Burton G. (investment guru), 17, 246
- margin buying, defined, 49
- market capitalization, defined, 114
- market makers, 34
- market order, 29, 51, 386
- market risk, as systemic risk, 75
- Market Vectors Gold Miners ETF (GDX), 247
- Marsh, Paul (professor), 143
- materials ETFs, 247–248
- materials sector, 153, 156, 315, 316
- Materials Select Sector SPDR (XLB), 161, 248
- maturity-date ETFs, 229
- McGuigan, Thomas P. (author), 327
- Merger Fund (MERFX), 312, 314, 373–374
- Merlyn.AI SectorSurfer Momentum ETF (DUDE), 262
- micro cap, 93, 118–121
- mid caps, 127
- middlemen, 66–68
- minimum required distributions, taking of, 366
- mining ETFs, 247
- Mirae Asset Global Investments, 64
- mistakes investors make, 387–391
- MLP ETFs, 287
- Modern Portfolio Theory (MPT), 81, 84–85, 304, 382, 411
- momentum investors, 154–155
- Morgan Stanley, 56
- Morningstar, 17, 30, 31–32, 404
- Morningstar Direct, 98, 152, 261
- Morningstar Style Box, 86
- MSCI (formerly Morgan Stanley Capital International), 65
- MSCI U.S. Broad Market Index, 152
- multiple, defined, 93
- municipal bonds
- defined, 203
- as having mostly tax-free income, 219–220
- national muni ETFs, 220
- state-specific muni ETFs, 220–221
- state-specific tax-free municipal bonds, 373
- mutual fund companies, operating costs of, 32
- mutual fund fees, 11, 20
- mutual funds
- adding of to your portfolio, 373–374
- choosing of, 17
- closed-end mutual funds, 376
- as compared to ETFs, structurally, 34–35
- distinguishing ETFs from, 27–28, 374
- dominance of, 16
- value of, 15
N
- nano cap (con aglio), 93
- NASDAQ, 66, 67
- NASDAQ QQQ Invesco ETF, 345
- national muni ETFs, 220
- natural resources ETFs, 247–248
- New York Life, 64
- New York Stock Exchange, 66
- non-Select Sector SPDRs, 162
- nonsystemic risk, defined, 74
- Nuveen, 255
- Nuveen ESG Emerging Markets Equity (NUEM), 257
- Nuveen ESG International Developed Markets Equity (NUDM), 257
- Nuveen ESG Large-Cap Growth ETF (NULG), 100, 357
- Nuveen ESG Large-Cap Value ETF (NULV), 107, 110–111
- Nuveen Pennsylvania Quality Municipal Income Fund (NQP), 373
- NYSE Arca, 66, 67, 386
- “off track” ETF investing, 43
- oil and gas investing, 239–242, 246–247
- options, consideration of, 344–350
- orders, placing order to buy, 50–51
P
- Pacific Rim, economic glory of, 142
- passive investing, 14, 39–42, 411, 412
- Pastor, Lubos (finance professor), 17
- patience, as key to investment success, 327–329
- paycheck, withdrawing funds to replace, 364–367
- P/B ratio, 105
- PE 10 Ratio, 139
- perfect match, 40
- personal investing, forecasts about future of, 393–399
- Physical Precious Metals Basket Shares (GLTR), 239
- PIMCO, 220, 269
- PIMCO Commodity Real Return Strategy Fund (PCRDX), 246
- PIMCO Enhanced Short Maturity Active ETF (MINT), 266
- political risk, as systemic risk, 75
- portfolios
- determining how much risk you can handle, 298–303
- finding perfect portfolio fit, 306–316
- keys to optimal investing, 304–306
- looking beyond well-rounded ETF portfolio, 372–377
- marrying ETFs and non-ETFs to make optimal one, 369–377
- middle-of-the-road portfolios, 309–312
- minimizing costs in, 304–305
- racing toward riches, 307–309
- revamping of, 341–344
- Russell’s “Today and Tomorrow” portfolio modeling technique, 310
- shifting portfolio balance, 335–336
- striving for tax efficiency in, 305
- taking the safer road, 312–314
- timing of your investments, 305–306
- tinkering with existing stock or mutual fund portfolio, 370–372
- ushering yours into retirement readiness, 362–363
- PowerShares, 323
- PowerShares DB Commodity Index Tracking Fund (DBC), 243
- PowerShares Dynamic Energy Exploration & Production (PXE), 247
- PowerShares ETFs, 62, 68
- PowerShares Insured National Municipal Bond Portfolio (PZA), 357
- precious metals, 234–239
- premium, as payment for option, 344–345
- premium, selling at, 43
- price/earnings (P/E) ratio, 93–94, 105, 138–139, 337–339, 412
- price/earnings multiples (P/E), as source of returns from stock, 89
- price-to-book ratio (P/B), 93
- proceed-with-caution ETFs, funds that (supposedly) thrive when market takes dive, 281–283
- ProShares, 64, 65, 180, 281–282, 291. See also ProShares funds
- ProShares funds
- Short Basic Materials ETF (SBM), 167
- Short Dow30 (DOG), 282, 283
- Short MidCap400 (MYY), 282
- Short QQQ fund (PSQ), 282, 283
- Short S&P500 (SH), 282, 283
- Ultra Dow30 (DDM), 284
- Ultra MidCap400 (MVV), 284
- Ultra Oil & Gas ETF (DIG), 285–286
- Ultra QQQ (QLD), 284
- Ultra Real Estate ETF (URE), 175
- Ultra S&P500 (SSO), 284, 285
- UltraPro QQQ (TQQQ), 323
- UltraPro Short QQQ (SQQQ), 323
- UltraShort Consumer Goods ETF (SZK), 282
- Ultrashort Oil & Gas (DUG), 286
- ProSports Sponsors ETF (FANZ), 262
- Pure Beta indexes, 245
- Putnam, 269
- puts and calls, 346
Q
- Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL), 266–267
- qubes, defined, 412
- quick riches, lure of, 322
- Quinn, Jane Bryant (financial journalist), 324
- A Random Walk Down Wall Street (Malkiel), 17
- real estate investment trusts (REITs), 170–178, 412
- real estate sector, 88, 153, 315, 316
- Real Estate Select Sector SPDR (XLRE), 161
- rebalancing, 236, 319, 334–337
- regulatory agencies, websites for, 406
- Rekenthaler, John (Morningstar VP), 323
- retirement calculators, 354
- retirement plans, 353
- retirement years, using ETFs to fund, 351–367
- risk
- defined, 412
- determining how much risk you can handle, 298–303
- with ETFs, 73–80, 382
- as good thing, 72
- investment risk, 72
- measurement of, 76–81
- safety versus return, 72–73
- smart risk, foolish risk, 74–76
- time as ingredient in determining appropriate levels of, 73
- risk-return continuum, 73, 74
- robo-advisors, 303
- Roth 401(k), 360–362
- Roth IRAs, 35, 386
- r-squared, 40
- Russell 1000, 65
- Russell 1000 Growth Index, 108
- Russell 1000 Value Index, 108
- Russell 2000, 65
- Russell 2000 iShares ETF (IWM), 345
- Russell 3000, 65
- Rydex, 61
S
- S&P 500, 64
- S&P Depositary Receipts Trust Series 1 (SPDR) (Spider) S&P 500, 10–11
- S&P Dow Jones indexes, 64–65
- S&P/TSX 60 Index, 10
- satellite, use of term, 371
- Schwab funds
- 1000 Index ETF, 31
- Intelligent Portfolios, 303
- Intermediate-Term U.S. Treasury (SCHR), 205, 358
- International Dividend Equity ETF (SCHY), 180
- Long-Term U.S. Treasury ETF (SCHQ), 206, 358
- Short-Term U.S. Treasury ETF (SCHO), 204, 358
- U.S. Aggregate Bond ETF (SCHZ), 63
- U.S. Broad Market, 31
- U.S. Dividend Equity ETF (SCHD), 180
- U.S. Large-Cap, 31
- U.S. Large-Cap ETF (SCHX), 63
- U.S. Large-Cap Growth ETF (SCHG), 99
- U.S. Large-Cap Value ETF (SCHV), 107, 110
- U.S. Mid-Cap ETF (SCHM), 171
- U.S. REIT ETF (SCHH), 176, 354
- U.S. TIPS ETF (SCHP), 207–208, 310, 314
- SDPR S&P Global Natural Resources ETF (GNR), 162
- sector investing. See also industry sectors
- calculating optimal sector mix, 155–156
- cautions with, 88
- choices of ETFs among, 159–167
- as compared to grid investing, 87
- defined, 412
- dividing up either conservatively or aggressively by, 315–316
- doing sector investing right, 155–159
- seeking risk adjustment with high- and low-volatility sectors, 156
- selecting stocks by sector, 152–153
- speculating on the next hot industry, 154–155
- Sector Tracker, 163
- Securities Investor Protection Corporation (SIPC), 53
- Security Analysis (Graham and Dodd), 105
- Select Sector SPDRs, 160–161
- self-employment, retirement strategies for, 361–362
- separately managed accounts (SMAs), as wannabe middlemen, 68
- Sharpe, Bill (professor), 78
- Sharpe ratio (Sharpe measure), 78–80, 288, 412
- Shiller, Robert J. (economist), 337, 338
- Shiller P/E ratio, 139, 338
- short ETFs, 281–283
- short position, defined, 412
- short sale, as trading choice, 29
- short-term bond ETFs, volatility of, 73
- silver investing, 237–239. See also mining ETFs
- Simplify Volt Pop Culture Disruption ETF (VPOP), 262
- Sit Rising Rate ETF (SIT), 262
- sliver ETFs, 290
- slower-growing economies, as often seeing most robust stock market returns, 138
- Small-Cap Growth, recent performance of, 87
- small-cap growth stocks, as belonging in well-diversified portfolio, 115
- small-cap international stocks, 148–149
- small-cap investments, getting real about, 115–116
- small-cap stocks, as outperforming large-cap stocks in past century, 115
- Small-Cap Value, recent performance of, 87
- small-cap value stocks, 115, 124
- small-growth stocks, 114, 115, 116
- small-value stocks, 124, 125–127
- smart-beta ETFs, 270
- SoFi Invest, 303
- sophisticated investor, defined, 412
- Sortino ratio, 80
- sovereign bond, defined, 203
- SPDR funds
- Barclays Capital High Yield Bond ETF (JNK), 194
- Bloomberg Barclays Emerging Markets USD Bond ETF (EMHC), 227–228
- Dow Jones Global Real Estate ETF (RWO), 162, 163
- Dow Jones Industrial Average ETF Trust (DIA), 100
- Dow Jones International Real Estate ETF (RWX), 162
- FTSE International Government Inflation-Protected Bond ETF (WIP), 224
- Gold Shares (GLD), 237
- Map of the Market, 163
- Nuveen Barclays Capital Municipal Bond (TFI), 357
- Portfolio Developed World ex-US ETF (SPDW), 142–143
- Portfolio MSCI Global Stock Market ETF (SPGM), 140, 273
- Portfolio S&P 500 ETF (SPLG), 292–293
- Portfolio S&P 500 Index, 31
- S&P 500 (SPY), 11, 18, 19, 24, 60–61, 73, 79, 261, 284, 292, 293, 322, 323, 345, 350, 377
- S&P 600 Small Cap Growth ETF (SLYG), 117–118
- S&P Bank ETF (KBE), 161
- S&P Dividend ETF (SDY), 180, 357
- S&P Global Natural Resources ETF (GNR), 163, 248
- S&P Health Care Equipment (XHE), 162
- S&P Insurance (KIE), 161
- S&P International Dividend Equity ETF (DWX), 180
- S&P Metals and Mining ETF (XME), 247
- S&P Oil & Gas Equipment & Services (XES), 162
- S&P Oil & Gas Exploration & Production ETF (XOP), 162
- S&P Regional Banking ETF (KRE), 161
- SSGA Global Allocation ETF (GAL), 277
- SSGA Income Allocation ETF (INKM), 277
- SSGA Multi-Asset Real Return ETF (RLY), 277
- SPDRs, 220, 412. See also SPDR funds
- SPIVA Scorecard (2020), 19
- spread, defined, 412
- Sprott, 64
- Stambaugh, Robert F. (finance professor), 17
- Standard & Poor’s (S&P Global or S&P), 64–65
- standard deviation, 76–78, 79, 413
- State Street Global Advisors, 19, 57, 58, 60–61, 62, 65, 160–163, 236, 277, 404. See also SPDR funds
- state-specific muni ETFs, 220–221
- state-specific muni funds, 373
- Staunton, Mike (professor), 143
- stock ETFs, mixing and matching of, 86–89
- stock exchanges, websites for, 405
- stock markets
- buying into world’s stock markets in a flash, 272–273
- “flash crash” of 2010, 44
- history of in Europe, 141–142
- history of resiliency of, 329
- investing around the world, 83
- overall winners in last century, 143
- returns from, 89
- slower-growing economies as often seeing most robust stock market returns, 138
- unpredictability of, 327–328
- U.S. stock market, 129–131, 133, 138
- StockMarketTiming.com, LLC, 322
- stocks. See also specific types of stocks
- ETFs as compared to, 48
- styles of, 93
- stop-loss (or stop) order, as trading choice, 29
- strategic asset allocation, 108
- strike price, 344
- style box, 86–87
- style drift, 36, 413
- style grid, 86, 88, 104, 157
- style investing, 87, 93, 155, 156, 157, 413
- styles (of stocks), 93
- sub-sub-subsector ETFs, 153
- sustainable investing, 250–260
- systemic risk, 74–75
T
- T. Rowe Price, 45, 56, 269
- T. Rowe Price Blue Chip Growth ETF (TCHP), 268
- T. Rowe Price Blue Chip Growth Fund (TRBCX), 268
- tactical asset allocation, 337–340
- target-date funds, 279
- target-risk funds, 275
- tax efficiency, 30, 35, 40, 41, 42, 43, 59, 64, 107, 175, 263, 268, 270, 305, 355, 413
- tax friendliness, 34, 35
- tax-advantaged retirement account, 33, 175, 177, 208, 244, 352, 386
- tax-deferred vessels, 353
- taxes
- capital gains taxes, 11, 33, 35
- on dividends with REITs, 172
- foreign taxes, 134, 149
- when selling security, 51
- tax-free income, municipal bonds for mostly tax-free income, 219–222
- tax-loss harvesting, 340–341, 413
- TD Ameritrade, 15, 54, 55, 384
- technical analysis, defined, 413
- Technology Select Sector SPDR (XLK), 161
- TIAA, 56, 64
- ticket, defined, 413
- time, as ingredient in determining appropriate levels of risk, 73
- TIP (Toronto Index Participation Unit), 10
- TIP (U.S. Treasury Inflation-Protected Securities), 10, 207–208
- Toronto 35, 10
- Tortoise North American Pipeline Fund (TPYP), 287
- total bond, 214
- total market capitalization, 91
- tracking error, 43
- traded, as compared to listed, 66
- trading, like a pro, 51
- trading choices, for ETFs or stocks, 29
- transparency, 36, 37, 413
- treasury bond ETFs, 203–206
- treasury bonds
- claim to fame of, 203
- rating of, 211
- returns from in 2008, 189
- returns from in past 100 years as compared to stocks, 189
- TIP (U.S. Treasury Inflation-Protected Securities), 207–208
- Treynor, Jack (founder of Treynor approach), 80
- Treynor approach, 80
- turnover, defined, 413
- 25x Rule, 300–302, 354
- 2008 financial crisis
- bear market of, 18, 288, 304, 327
- impacts of, 33, 55, 72, 83, 84–85, 88, 106, 132, 190, 226, 227, 243, 261, 328, 329, 334, 396
- Tyson, Eric (author), 326
U
- unhedging, 225
- unit investment trusts (UITs), 377
- United States, 73, 138
- United States Natural Gas Fund (UNG), 241
- United States Oil Fund (USO), 239–241
- unloved assets, buying of, 340
- U.S. agency bonds, 209
- U.S. ETFs, volatility of, 73
- U.S. MidCap Dividend Fund (DON), 180
- U.S. Securities and Exchange Commission, 10, 29, 41, 58, 64, 68, 202, 255, 258, 262, 266, 290, 377, 407
- U.S. SmallCap Dividend Fund (DEM), 180
- U.S. stock market, 129–131, 133, 138
- USA Mutual VICE mutual fund (VICEX), 252
- utilities sector, 153, 156, 315, 316
- Utilities Select Sector SPDR (XLU), 161
V
- value, growth as compared to, 93–94
- value fund, defined, 413
- Value Line Mid Cap Focused Fund (VLIFX), 324
- Value Line, paradox of, 323–324
- Value Line Timeliness Selection ETF, 323
- value premium, 106, 147, 414
- value stocks, as historically outperforming growth stocks, 106, 108
- Van Eck Associates, 64
- VanEck, 180, 220
- VanEck Vectors Green Bond (GRNB), 259
- The Vanguard Group, 15, 16, 19, 25, 45, 48, 54–55, 57, 58, 65, 140, 220, 255, 376, 384, 404. See also Vanguard funds
- Vanguard funds
- Consumer Discretionary ETF (VCR), 159
- Consumer Staples ETF (VDC), 159
- Developed Markets Index ETF (VEA), 314
- Dividend Appreciation ETF (VIG), 180
- Emerging Markets Government Bond (VWOB), 227, 309
- Emerging Markets Index ETF (VWO), 145, 248, 314
- Energy ETF (VDE), 159, 239, 247, 340
- ESG U.S. Corporate Bond ETF (VCEB), 212–213
- ETFs, 59–60, 62
- Financials ETF (VFH), 159
- 4 Portfolio, 217
- FTSE All World ex-US ETF (VEU), 366
- FTSE All-World ex-US Small Cap Index (VSS), 148–149, 307, 309, 312
- FTSE Developed Markets ETF (VEA), 143, 357
- Global ex-U.S. Real Estate ETF (VNQI), 177
- Growth ETF (VUG), 98
- Health Care ETF (VHT), 159
- High Divided Appreciation ETF (VIG), 357
- High Dividend Yield ETF (VYM), 180
- Index Trust 500 Portfolio, 59
- Industrials ETF (VIS), 159
- Information Technology ETF (VGT), 160, 270
- Intermediate-Term Corporate Bond ETF (VCIT), 210, 212, 354
- Intermediate-Term Treasury Index ETF (VGIT), 205, 210, 358
- International High Dividend Yield Index Fund (VYMI), 60, 180
- International Real Estate ETF (VNQI), 309, 312
- Long-Term Treasury ETF (VGLT), 206
- Materials ETF (VAW), 160, 248
- Mega Cap 300 ETF (MGC), 306
- Mega Cap 300 Growth ETF (MGK), 98–99, 357
- Mega Cap Value Index ETF (MGV), 107, 109
- Mid Cap ETF (VO), 74
- Mortgage-Backed Securities ETF (VMBS), 209, 314
- Pennsylvania Long-Term Tax-Exempt Admiral (VPALX), 309, 373
- REIT Index ETF (VNQ), 160, 176–177, 309, 354
- S&P 500, 31
- S&P 500 ETF (VOO), 60, 293
- Short-Term Bond (BSV), 216–217
- Short-Term Corporate Bond Index (VCSH), 213, 358
- Short-Term Inflation-Protected Index Fund (VTIP), 207, 208
- Short-Term Treasury ETF (VGSH), 204–205
- Small Cap ETF (VB), 306, 307, 308, 311
- Small Cap Growth ETF (VBK), 117, 357
- Small Cap Value ETF (VBR), 126, 308, 310, 311, 314
- Tax-Exempt Bond ETF (VTEB), 221
- Telecommunications Services ETF (VOX), 160
- Total Bond Market ETF (BND), 215–216, 217
- Total International Bond ETF (BNDX), 217, 223, 312
- Total International Stock ETF (VXUS), 140, 147, 217, 307, 309, 310, 312, 365
- Total Stock Market ETF (VTI), 31, 60, 97, 217, 338, 365, 366
- Total Stock Market Index Fund Admiral Shares (VTSAX), 60
- Total World Bond ETF (BNDW), 274
- Total World Stock ETF (VT), 140, 273
- Utilities ETF (VPU), 160
- Value ETF (VTV), 107, 108–109, 340
- VICE mutual fund (VICEX), 252
- Victoria Bay Asset Management, LLC, 239, 240
- Victoria Bay United States Natural Gas Fund (UNG), 241
- volatility, 72, 76, 414
- Wealthfront, 303
- web resources, 403–407
- weed-buying strategy, 340
- Wells Fargo, 59
- WisdomTree, 25, 64, 65, 180, 291
- Wood, Cathie (CEO of Ark Invest), 158, 265
- World Gold Council, 64, 235, 236
X
- Xtrackers, 255
- Xtrackers International Real Estate ETF (HAUZ), 178
- Xtrackers S&P SmallCap 600 ESG ETF (SMLE), 256–257
Y
- yield, defined, 414
- YouTube, on “secrets” of ETF trading, 326–327
- YTD, defined, 414
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