Everything you needed to know about ETFs

Book review: The Ultimate ETF Guidebook How ETFs evolved from simple funds that tracked the main indices to more complex smart-beta funds that attempt to beat the market.

938-books-The-Ultimare-ETF

A Comprehensive Guide to the World of Exchange-Traded Funds

Harriman House (£35)

Buy on Amazon

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.

Recommended

When ETFs can’t work miracles
Analysis

When ETFs can’t work miracles

Bond ETFs can be cheap and liquid, but tracking high-yield debt is more difficult than tracking stocks.
20 Jan 2020
Why it pays to take cries of “bubble” with a pinch of salt
Sponsored

Why it pays to take cries of “bubble” with a pinch of salt

Many observers are pointing to a stockmarket “bubble” – especially in US tech stocks. But, says Max King, just because a lot of people are saying it, …
13 Oct 2020
Why the underperforming Temple Bar investment trust will deliver again
Investment trusts

Why the underperforming Temple Bar investment trust will deliver again

Temple Bar, the value-focused investment trust, has had a dreadful year, but new managers should turn it around.
13 Oct 2020
MoneyWeek’s investment trust portfolio – should we keep the Law Debenture trust?
Investment trust model portfolio

MoneyWeek’s investment trust portfolio – should we keep the Law Debenture trust?

The MoneyWeek’s investment trust portfolio has been performing well. But one trust – Law Debenture – has performed particularly poorly. Merryn Somerse…
6 Oct 2020

Most Popular

The Bank of England should create a "Bitpound" digital currency and take the world by storm
Bitcoin

The Bank of England should create a "Bitpound" digital currency and take the world by storm

The Bank of England could win the race to create a respectable digital currency if it moves quickly, says Matthew Lynn.
18 Oct 2020
What would negative interest rates mean for your money?
UK Economy

What would negative interest rates mean for your money?

There has been much talk of the Bank of England introducing negative interest rates. John Stepek explains why they might do that, and what it would me…
15 Oct 2020
Negative interest rates and the end of free bank accounts
Bank accounts

Negative interest rates and the end of free bank accounts

Negative interest rates are likely to mean the introduction of fees for current accounts and other banking products. But that might make the UK bankin…
19 Oct 2020