Book review: The Ultimate ETF Guidebook

By Dr Matthew Partridge

published 21 March 2019

in Features

The Ultimate ETF Guidebook: A Comprehensive Guide to the World of Exchange-Traded Funds

By David Stevenson and David Tuckwell, published by Harriman House (£35)

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The last two decades have seen a dramatic move away from traditional actively managed funds in favour of passive investments, such as exchange-traded funds (ETFs), that can be bought and sold like shares on a stock exchange. This flexibility has won ETFs many fans. MoneyWeek contributor David Stevenson and David Tuckwell are among them.

The authors look at how ETFs have developed over the last 20 years, evolving from simple funds that tracked the main indices to more complex smart-beta funds that attempt to beat the market while keeping costs low. The pair then spend around 70 pages looking at the best ETFs for each major market and asset. Then they look at how to build a complete portfolio, concluding with a list of what they see as the best products.

The book is aimed at two types of readers: those who want to learn more about ETFs in general, and those who are looking to buy an ETF, but are unsure about which specific one to buy. The first type of reader will enjoy Stevenson and Tuckwell's simple, to-the-point explanations of the underlying concepts. However, even if you already understand the concepts, you will like the duo's frank commentary about the strengths and weakness of various indices and products. This is a useful book for both those new to investing and those who are more experienced.

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri