ETF Book

Stagflation-Fighting ETFs for Your Toolbelt

February 12, 2008
by Tom Lydon

131227483 Is there an exchange traded fund (ETF) to add to a portfolio that can offer protection against an evil greater than even that of inflation?

That's stagflation: a state of the economy in which prices keep rising as the economy continues to contract, reports John Wasik for Bloomberg.

Stagflation hasn't been seen in a generation and requires special investments to combat its punishing effects on a portfolio. In this situation, the conventional wisdom about recessions has to go out the window.

Major signs that we're headed for a state of stagflation include a stagnant GDP for the fourth quarter, consumer price inflation above 4%, gold at a record high of $929 an ounce, along with existing home sales dropping 13% and the United States actually losing jobs for the first time in four years.

If you're among those who believe we're on a path to stagflation, Wasik suggests two investments in particular: commodities and treasury inflation-protected securities (TIPS). These are investments that combine income and price appreciation, and they rise with inflation expectations.

For commodities exposure, check out:

  • PowerShares DB Commodity Index Tracking Fund (DBC)
  • PowerShares DB Agriculture (DBA)
  • Market Vectors Global Agribusiness (MOO)

And for TIPs exposure, have a look at:

  • iShares Lehman TIPS Bond (TIP)
  • SPDR Barclays Capital TIPS (IPE)

It's also worth noting that Mr. Wasik is my co-author on our ETF book, which will be out this spring! Stay tuned for more details soon.

Last Call for ETF Book Submissions!

November 08, 2007
by Tom Lydon

Toon_bookHi! Remember how we told you we were hard at work on a book about exchange traded funds (ETFs)? We weren't telling lies. We're in the home stretch and we have a few holes to plug and your help is needed.

We're looking for a few of our wise readers to give their thoughts on the following:

  • Currency ETFs
  • Bond ETFs
  • ETFs in 401k plans, and using them as part of your retirement planning in general
  • Long/short ETFs

We'd particularly like to hear from you lurkers who haven't yet spoken up. Don't be shy. Give us your thoughts, opinions and experiences and you may very well go down in literary history! You can, of course, remain anonymous in the book if you'd rather not have that kind of fame. Either way, please send us an e-mail or leave us a comment.

Thank you for all of your help!

The Roller Coaster That Is Commodities with ETFs

September 28, 2007
by Tom Lydon

Toon_bookLet's talk about exchange traded funds (ETFs) for the complex area of commodities for a moment. Are you invested in them? Which commodities have you focused on? Do you have reservations about investing in commodities at all? After all, they are not for the faint of heart.

What questions do you have about commodities?

If there's something you'd like to know, or if you've got a good story or two about your own experiences with commodities that we could include in the book, we'd love to hear them. Surely you know what to do by now -- drop us an e-mail or leave a comment!

Get Out the ETF Crystal Ball...

September 04, 2007
by Tom Lydon

Toon_book ...and tell us, what do you see for exchange traded funds (ETFs)? Tell us what magic the future holds! Do you see even more ETFs being offered in the coming months and years? Will they peak anytime soon, if ever? Where do you think things are headed for ETFs? We'd love to share your forward-looking thoughts with the readers of our forthcoming book.

While we have you, does your crystal ball have any hints about where Jimmy Hoffa could be? It's been keeping us up at night.

E-mail your futuristic predictions to us, or leave your comments below.

The Hot New Pick-Up Line: What's Your ETF Strategy, Baby?

August 29, 2007
by Tom Lydon

Toon_book We know the world of investing with exchange traded funds (ETFs) or any other type of investment isn't all sunshine and roses. When the markets start getting wacky, we have an exit strategy in place, and we stick to it.

We would like to hear what you do in situations like this. What do you do with your investments in the midst of market volatility? Are you holding onto your things and calmly riding it out? Or did you sell like crazy?

Whatever you did, did you stick to your original plan, or was it more of a by-the-seat-of-your-pants decision?

Please don't make us say "you never write...you never call..." and send us an e-mail or leave a comment below with your response.

The Active Lifestyle (With ETFs)

August 15, 2007
by Tom Lydon

Toon_bookAre you ready for actively managed exchange traded funds (ETFs)? Ready or not, they're in the works and could be coming soon to a provider near you once they get the all-clear.

If they arrive, will you be partaking as soon as possible, or do you plan to have a wait-and-see approach? What is your opinion on them? Are you excited or hesitant?

Give us your candid, no-holds-barred opinion in the comments or via e-mail, if you prefer. We hope to hear from you soon!

Got Free Time? Think About ETFs This Weekend

August 03, 2007
by Tom Lydon

Toon_bookWe know your weekend schedule is already jam-packed with errands and grand plans to escape the heat and take advantage of movie theater air-conditioning, even if it means suffering through "No Reservations," but take a few moments to think about these things:

1) Sector ETFs: What are your favorites? What is the weirdest one you own? And what made you invest in it?

2) Currency ETFs: In which foreign exchanges are you investing? Why have you added currency to your portfolio? If you haven't done it, why not?

When you've got a minute, we'd love to hear from you in the comments or via e-mail.

Bringing It All Back Home With Domestic ETFs

July 17, 2007
by Tom Lydon

Toon_bookWe're looking at domestic exchange traded funds (ETFs) for our next chapter. What do you like? When it comes to the various cap sizes, do you have any hesitation or concerns with them? In what areas have you seen success? Share your stories with us via e-mail or by leaving a comment!

Do You Walk the Line or Take a Walk On the Wild Side With Your ETFs?

July 09, 2007
by Tom Lydon

Toon_bookWhen it comes to you and your exchange-traded funds (ETFs), what indexes do you like? As you look around for an index to follow, are you more of a traditionalist who seeks out those indexes weighted by market cap? Or are you more of a renegade? If you're walking on the wild side, what kinds of weighting methods do you like? And no matter what kind of weighting method you prefer, tell us how it's working out for you and what led you to it. Surely, you know the drill by now...leave a comment or shoot us an e-mail!

Show Us What You've Got

June 29, 2007
by Tom Lydon

Toon_bookWe’re hard at work on a new chapter – an exploration of the exchange-traded fund (ETF) universe. What’s in your wallet? What are some of the more bizarre ETFs in your portfolio? What is just plain interesting? What have been some of your biggest surprises? Which ones would you tell others to look out for, both good and bad?

Shout, shout, let it all out, via e-mail or in the comments.

The Mutual Fund Scandals and ETFs

June 19, 2007
by Tom Lydon

Toon_book_2Chapter one of our ETF book is already well under way.

We're focusing on the mutual fund scandals and we want to know: Were any of you affected by the scandals of the early 2000s? Were your investments with any of the companies that were implicated?

How did you deal with the fallout? Did you dump your shares? Or merely scale back your involvement in mutual funds? Did you get into ETFs (exchange-traded funds) as a direct result of the scandals? We want to hear your stories.

As usual, you can drop us a line at any old time via e-mail, or leave us a comment. We know you've got some good material, so let's hear it. We're on the edge of our seats in anticipation.

And let us know if you'd prefer to remain anonymous.

How Do ETFs Work for You?

June 15, 2007
by Tom Lydon

Toon_bookThe ETF book ball is rolling. We're plugging away at the introduction, a key portion of our book that will clue our readers in as to where we're taking them. Before we can really get started, though, we need to know a few things about you and investing. Why are you investing in ETFs? What is the appeal for you? Why are you investing at all? What do you hope to achieve? What other investment experiences have you had? Think about it for a little while (but not too long -- we do have deadlines), then drop us an e-mail with your thoughts. If you'd like to remain anonymous in the book, please specify.

We're Writing a Book!

June 12, 2007
by Tom Lydon

Toon_bookAnd it isn't your father's ETF book. Simply put, our book will be geared toward everyone. That's right: novices, pros, ETF investors and industry insiders. We want to create the most comprehensive and entertaining guide to one of the hottest investment vehicles in the world. We want to take a look at the ins and outs, investing today and how you can put ETFs to work for you. We want you to be able to use our book for something other than a surefire cure for insomnia.

But -- you knew there was a "but," right? -- we can't do it without all of you. We're looking for your thoughts, your criticism, your personal experiences. What do you have to say about ETFs? Or do you simply have a story to share? A bold opinion? The good, the bad, the ugly -- we want it all, and we don't want you to hold back.

In the coming weeks and months, we'll be hitting you up for your input on specific topics. But in the meantime, feel free to shoot us an e-mail or make a comment below and give us your thoughts. What would you like to see covered in the book? Be like Pat Benatar: Hit us with your best shot.