Higher returns with lower costs

www.ebook3000.com Investing with ExchangeTraded Funds Made Easy www.ebook3000.com www.ebook3000.com Investing with ExchangeTraded Funds Made Easy Higher Returns with Lower Costs—Do It Yourself Strategies Without Paying Fund Managers Marvin Appel Upper Saddle River, NJ • New York • London • San Francisco • Toronto • Sydney Tokyo • Singapore • Hong Kong • Cape Town • Madrid Paris • Milan • Munich • Amsterdam www.ebook3000.com Vice President, Editor-in-Chief: Tim Moore Executive Editor: Jim Boyd Editorial Assistant: Susie Abraham Development Editor: Russ Hall Associate Editor-in-Chief and Director of Marketing: Amy Neidlinger Cover Designer: Chuti Prasertsith Managing Editor: Gina Kanouse Project Editor: Christy Hackerd Copy Editor: Karen A Gill Indexer: Lisa Stumpf Compositor: Scan Design, Inc Manufacturing Buyer: Dan Uhrig © 2007 by Pearson Education, Inc Publishing as FT Press Upper Saddle River, New Jersey 07458 FT Press offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales For more information, please contact U.S Corporate and Government Sales, 1-800-382-3419, corpsales@pearsontechgroup.com For sales outside the U.S., please contact International Sales at international@pearsoned.com Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners All rights reserved No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher Printed in the United States of America First Printing: October 2007 ISBN: 0-13-186973-6 Pearson Education LTD Pearson Education Australia PTY, Limited Pearson Education Singapore, Pte Ltd Pearson Education North Asia, Ltd Pearson Education Canada, Ltd Pearson Educatión de Mexico, S.A de C.V Pearson Education—Japan Pearson Education Malaysia, Pte Ltd Library of Congress Cataloging-in-Publication Data Appel, Marvin Investing with exchange traded funds made easy: higher returns with lower costs—do it yourself strategies without paying fund managers / Marvin Appel p cm ISBN 0-13-186973-6 (hardback : alk paper) Exchange traded funds Stock index futures I Title HG6043.A67 2006 332.63’27—dc22 2006019379 www.ebook3000.com To my children—Emily, Caroline, and Alexandra You brighten my world just by being yourselves www.ebook3000.com This page intentionally left blank www.ebook3000.com CONTENTS Chapter Exchange-Traded Funds (ETFs): Now Individuals Can Invest Like the Big Players ETFs Are a Special Type of Mutual Fund ETFs Avoid the Expense of Fund Managers ETFs Are Traded on Exchanges ETF Investors Have Hidden Costs Through the Bid-Ask Spread The Creation/Redemption Process Keeps ETF Share Prices Close to the Market Value of the Underlying Shares 16 ETF Performance Is Not Weighed Down by Transaction Costs 21 ETF Shares Are Often More Tax-Efficient Than Mutual Funds 21 Special Risks of ETFs 22 Conclusion 23 Endnotes 24 Chapter The Multifaceted Stock Market: A Guide to Different Investment Styles 25 The First Decision: Stocks, Bonds, or Cash 26 Size Matters 29 Each Investment Style Has Multiple ETFs 34 Midcap ETFs 35 All-Cap or Total-Market ETFs Growth and Value ETFs 39 37 Conclusion 40 Endnotes 40 vii www.ebook3000.com viii Chapter CONTENTS A One-Step Strategy for Selecting Superior Investments: Indexing 43 Investments That Track Market Indexes Have Outperformed Most Mutual Funds 46 The Evidence in Favor of Indexing 47 Indexing Has Delivered Greater Profits Than the Average Mutual Fund, Except in the Small-Cap Area 49 How a Few Mutual Fund Managers Have Beaten the Indexes 50 Conclusion 52 Appendix 3—Index Construction Methodologies 53 Example of Index Construction—Equal Weighting 53 Example of Index Construction—Price Weighting 53 Example of Index Construction—Capitalization Weighting 54 The Newest Indexing Scheme—Free-Float Weighting 55 Endnotes Chapter 56 Investment Risk: A Visit to the Dark Side 57 Drawdown—An Intuitive Measure of Investment Risk 58 How to Use Drawdown 59 A 40-Year History of Bear Markets 64 What if Your Investment Was Not Around During a Bear Market? 70 Example of Risk Assessment: An Emerging Market ETF 73 Market Risks and Planning for Your Future 77 Appendix 4A: Where to Find Quantitative Investment Risk Information 79 www.ebook3000.com CONTENTS ix Appendix 4B: Calculation of Drawdown with a Spreadsheet 79 Appendix 4C: Volatility of Past Returns as a Risk Measure 83 Endnotes 86 Chapter How Well Are Your Investments Really Doing? Risk-Adjusted Performance 87 The First Risk-Adjusted Performance Measure—Annual Gain-to-Drawdown Ratio 88 Another Risk-Adjusted Performance Measure—The Sharpe Ratio 91 Risk-Adjusted Performance Review 94 Conclusion 96 Appendix 5A—Calculation of the Compounded Annual Rate of Return 96 Appendix 5B—Calculation of the Sharpe Ratio 98 Endnote 101 Chapter Diversification: The Only Free Lunch on Wall Street 103 Reduce Risk, Not Profits, with Diversification 104 Diversification Versus Picking Only the Best 106 How to Determine What Should Be in the Optimal Portfolio 107 Example—Determining a Good Mix of Stocks and Bonds 108 Interpretation of the Sharpe Ratio 110 The Uncertainty of Future Investment Returns 110 Conclusion 113 Endnote 113 www.ebook3000.com This page intentionally left blank INDEX Symbols 10 percent rule, 162-164 10 percent threshold level, 165 10-year Treasury note yield, 199 90-day Treasury bill yield, 199 ask, asking price, Asset Allocation Model, EAFE/S&P 500, 184-186 authorized participants, 16 avoiding fund managers, A B ADRs (American Depository Receipts), 177 AGG (iShares Lehman Aggregate Bond Index Fund), 133 all-cap ETFs, 37-38 American Depository Receipts (ADRs), 177 American Stock Exchange website, 20, 239 analysis, fundamental and technical analysis, 41 annual gain-to-drawdown ratio, 88-90 balancing one-decision portfolios, 126-127 bear markets, 79 40-year history of, 64, 67-70 investments that have not been around during, 70-72 benchmark index performance versus mutual fund performance, 47-48 benchmarks, 44, 70 foreign stock benchmarks, 228 U.S stock benchmarks, 228 243 244 bid, bid-ask spread, ETFs, 7-9, 15-16 blend indexes, 39 bond market, 129-133 overview of, 192 bonds, 129 performance, 26-29 short-term bonds, 131 book value, 39, 214 book value per share, 222 Buffett, Warren, 106 Bureau of Economic Analysis website, 241 Bureau of Labor Statistics website, 241 C calculating compounded annual rate of return, 96-98 drawdown with spreadsheets, 79-82 Sharpe ratio, 98-101 capital gains, ETFs, 21-22 capitalization weighting, index construction, 54-55 cash, performance, 26-29 charts, drawdown charts, 208-210 companies, size of, 29-34 comparing mutual fund performance to benchmark index performance, 4748 composite interest rate indicator, 203-204 compounded annual rate of return, calculating, 96-98 currency risk, 175 custodians, 16 INDEX D deferred sales charge, deflation, 205 distributions, 143-144 share prices, 149 taxes and, 147-148 diversification, 113 creating a good mix of stocks and bonds, 108 reducing risk, not profits, 104-105 risk-reducing investment mix, 116-118 Sharpe ratio, 110 ultimate ETF investment program, 224-226 uncertainty of future investment returns, 110-112 versus picking only the best, 106-107 dividends, 148 Dow Jones Averages website, 240 Dow Jones U.S Utility Index Fund (IDU), 218 Dow Jones Utility Average, 71-72 drawdown, 58-64, 79, 208 annual gain-to-drawdown ratio, 88-90 bear markets (40-year history of), 64, 67-70 calculating with spreadsheets, 79-82 drawdown charts, 208-210 E EAFE (Morgan-Stanley Europe, Australasia, and Far East Index), 178, 182-183 Asset Allocation Model, 184-186 economic data, websites for, 241 INDEX EEM (iShares Morgan Stanley Capital International Emerging Market Index Fund), 73-76 EFA (iShares EAFE Index Fund), 227 emerging market stocks, 73-77 equal weighting, index construction, 53 ETF portfolios, maintaining, 232 ETF sponsored websites, 238 etfconnect.com, 239 ETFs, 1-2 avoiding the expense of fund managers, bid-ask spread, 7-9, 15-16 distributions, share prices, 149 emerging market stocks, 73-77 growth and value, 39 growth ETFs, 152 versus value ETFs, 214-217 investment styles, 34 large-caps versus small-caps, 135, 145-147 results, 139-142 total returns, 144 trading rules, 138-139 midcap, 35-36 Morningstar style indexes, 234 one-decision portfolio, 125-126 performance, transaction costs, 21 real-world implementations, 143-145, 170-171 risks, 22 share prices, creation/redemption process, 16-20 taxes and, 21-22 total market ETFs, 37-38 total returns, 144 trading on exchanges, 4-7 utility sector ETFs, 218-220 value ETFs, 152 245 etfzone.com, 239 examples growth verus value ETFs, 214-217 small-cap ETFs, 211-213 utility sector ETFs, 218-220 exchange-traded funds (ETFs), 1-2 avoiding the expense of fund managers, bid-ask spread, 7-9, 15-16 distributions, share prices, 149 emerging market stocks, 73-77 growth and value, 39 growth ETFs, 152 versus value ETFs, 214-217 investment styles, 34 large-caps versus small-caps, 135, 145-147 results, 139-142 total returns, 144 trading rules, 138-139 midcap, 35-36 Morningstar style indexes, 234 one-decision portfolio, 125-126 performance, transaction costs, 21 real-world implementations, 143-145, 170-171 risks, 22 share prices, creation/ redemption process, 16-20 taxes and, 21-22 total market ETFs, 37-38 total returns, 144 trading on exchanges, 4-7 utility sector ETFs, 218-220 value ETFs, 152 exchanges, trading ETFs, 4-7 ExxonMobil (XOM), 215-216 246 F fair value, 19 fast markets, 22 FCNTX (Fidelity Contrafund), 50 Federal Reserve, website, 241 Fidelity, money market funds, 40 Fidelity Contrafund (FCNTX), 50 Fidelity Magellan, 50 finding quantitative investment risk information, 79 foreign investments, 175-181 currency risk, 175 EAFE/S&P 500 Asset Allocation Model, 184-186 future of, 187-188 identifying whether long-term trends favor U.S or foreign stocks, 181-184 versus U.S stocks, ultimate ETF investment program, 227 foreign stock benchmarks, 228 free-float weighting, index construction, 55 fund managers, avoiding expense of, fundamental analysis, 41 funds, large-cap growth mutual funds, 52 future, planning for market risks, 77-78 FVINX (Vanguard’s S&P 500 Index Fund), G Gateway Fund (GATEX), 50 GPA (gain per annum), 88 growth ETFs, 39 versus value, 228-230 large-cap, 169 small-cap, 166-168 INDEX growth ETFs, 152 versus value ETFs, 214-217 growth indexes, 39, 152 growth stocks, 152-153 versus value stocks, history of relative strength, 156-161 growth versus value rule, 162 H Holding Company Depository Receipts (HOLDRS) website, 238 HSGFX (Hussman Strategic Growth), 50 I ICF (iShares Cohen and Steers Realty Majors Index Fund), 225 IDU (Dow Jones U.S Utility Index Fund), 218 implementing ETFs, 170-171 index construction capitalization weighting, 54-55 equal weighting, 53 free-float weighting, 55 price weighting, 53-54 index provider websites, 239 indexes, 44 benchmarks, 44 blend indexes, 39 Dow Jones U.S Utility Index Fund (IDU), 218 EAFE (Morgan-Stanley Europe, Australasia, and Far East Index), 178, 182-183 growth indexes, 39, 152 iShares EAFE Index Fund (EFA), 227 Lehman Aggregate Bond Index, 108, 133 INDEX market indexes, 44 tracking investments, 46-47 mutual fund managers, beating the indexes, 50-52 NAREIT Equity REIT Index, 225 Russell 1000 Index, 139-142 Russell 2000 Index, 51, 139-140, 142 Russell 2000 Index Fund, 211213 S&P 500 Growth Index, 216 S&P 500/Citigroup Value Index, 216 S&P 600 Small-Cap Index Fund, 211-213 S&P Value Index, 214 testing one-decision portfolio, 119 U.S Dollar Index, 176 value indexes, 39, 152 Indexfunds.com, 20 indexing, comparing mutual fund performance to benchmark index performance, 47-48 small-cap, 49 Indicative Optimized Portfolio Value (IOPV), 19 indicators composite interest rate indicator, 203-204 relative strength indicator, 173 of rising interest rates, 196 yield curve indicators, 198 interest rates and implied economic forecast, 198-199 rules for, 199-200 track record for, 201-203 inflation, 199, 226 interest rates and, 226 risk, 198 247 interest rates bond market, 192 composite interest rate indicator, 203-204 implied economic forecast and yield curve indicator, 198-199 indicators of rising interest rates, 196 inflation and, 226 stocks and, 193-195 U.S stocks, ultimate investment program, 227 yield curve indicators, 197 interest rates and implied economic forecast, 198-199 rules for, 199-200 track record for, 201-203 international investing, 175-181 currency risk, 175 EAFE/S&P 500 Asset Allocation Model, 184-186 future of, 187-188 identifying whether long-term trends favor U.S or foreign stocks, 181-184 versus U.S stocks, ultimate ETF investment program, 227 inverted yield curve, 197-199 investment risk, 58 bear markets (40-year history of), 64, 67-70 currency risk, 175 drawdown, 58-64 calculating with spreadsheets, 79-82 emerging market stocks, 73-77 finding quantitative investment risk information, 79 inflation, 198 investments that have not been around during a bear market, 70-72 248 large-cap value ETFs, 217 planning for future, 77-78 reducing with diversification, 104-105 utility sector ETFs, 220 volatility of past returns, 83-85 investment styles, ETFs, 34 investment transparency, investments international investing currency risk, 175 EAFE/S&P 500 Asset Allocation Model, 184-186 future of, 187-188 identifying whether long-term trends favor U.S or foreign stocks, 181-184 versus U.S stocks, ultimate ETF investment program, 227 tracking with market indexes, 46-47 ultimate ETF investment program, 224 diversification, 224-226 international versus U.S stocks, 227 results of, 231 small-cap versus large-cap, growth or value, 228-230 IOPV (Indicative Optimized Portfolio Value), 19-20 iShares Cohen and Steers Realty Majors Index Fund (ICF), 225 iShares Dow Jones Total Market Index Fund (IYY), 37 iShares EAFE Index Fund (EFA), 227 iShares Lehman 1-3 Year Treasury Index fund, 26 INDEX iShares Lehman Aggregate Bond Index Fund (AGG), 133 iShares Morgan Stanley Capital International Emerging Market Index Fund (EEM), 73-76 iShares Russell 1000 Growth, 234 iShares Russell 3000 Index Fund (IWV), 37 iShares Russell Microcap Index Fund (IWC), 30 iShares website, 144, 238 IWC (iShares Russell Microcap Index Fund), 30 IWV (iShares Russell 3000 Index Fund), 37 IYY (iShares Dow Jones Total Market Index Fund), 37 J-K JDS Uniphase (JDSU), 215 L large-cap growth mutual funds, 52 large-cap value ETFs, risk and profit summary, 217 large-caps (large companies), 29 growth versus value, relative strength, 158 versus small-caps, 135, 145-147 results, 139-142 total returns, 144 trading rules, 138-139 ultimate ETF investment program, growth or value, 228-230 value versus growth, 169 Legg Mason Value Trust (LMVTX), 45-46 INDEX Lehman Aggregate Bond Index, 108, 133 liquidity, 32 LMVTX (Legg Mason Value Trust), 45-46 LVB (Steinway Musical Instruments Company), 31 M market capitalization, 136-137 market indexes, 44 tracking investments, 46-47 markets, bond market, 129-133 microcap, 30-32 mid-sized companies (midcap), 29 midcap (midsized companies), 29 ETFs, 35-36 money market funds, 26, 40 moneycentral.msn.com, 240 Morgan-Stanley Europe, Australasia, and Far East Index (EAFE), 178, 182-183 Morningstar style indexes, 234 mutual fund managers, beating the indexes, 50-52 mutual funds, comparing performance to benchmark index performance, 47-48 tracking investments with market indexes, 46-47 trading on exchanges, N NAREIT Equity REIT Index, 225 NASDAQ Composite, 71 noise, 165 Nuveen Investments, 239 249 O one-decision portfolio, 27, 115, 128-129 ETFs, 125-126 for less conservative investors, 123-124 performance history, 119-122 rebalancing, 126-127 risk-reducing investment mix, 116-118 testing with indexes, 119 U.S investments, 127-128 P passive management, performance bonds, 26-29 cash, 26-29 ETFs, transaction costs, 21 long-term performance histories for U.S stocks, bonds, and cash, 26 mutual fund performance versus benchmark index performance, 48 risk-adjusted performance, 94-96 annual gain-to-drawdown ratio, 88-90 review of, 94 Sharpe ratio, 91-93, 98-101 stocks, 26-29 performance history for onedecision portfolio, 119-122 picked off, 20 planning for your future, market risks, 77-78 portfolios creating a good mix of stocks and bonds, 108 creating the optimal portfolio, 107 250 ETF portfolios, maintaining, 232 one-decision portfolio, 27, 115, 128-129 ETFs, 125-126 for less conservative investors, 123-124 performance history, 119-122 rebalancing, 126-127 risk-reducing investment mix, 116-118 testing with indexes, 119 U.S investments, 127-128 PowerShares Zacks Microcap Portfolio (PZI), 30 powershares.com, 238 Pradhuman, Satya, 136 price weighting, index construction, 53-54 price-to-book ratio, 214-215 profit summary for two large-cap value ETFs, 217 PZI (PowerShares Zacks Microcap Portfolio), 30 R ratios annual gain-to-drawdown ratio, 88-90 price-to-book ratio, 214-215 Sharpe ratio, 91-93, 108-110 calculating, 98-101 real estate investment trust (REIT), 104-105 rebalancing one-decision portfolios, 126-127 recession, 206 recognizing the emergence of new trends using relative strength ratio, 161-166 REIT (real estate investment trust), 104-105, 224-226 INDEX relative strength, 154-156 history of changes between growth and value, 156-161 recognizing emergence of new trends, 161-166 relative strength indicator, 173 resources, websites ETF sponsored websites, 238 for economic data, 241 general ETF websites, 239 index provider websites, 239 for market data, 240 results of ultimate ETF program, 231 returns, uncertainty of future investment returns, 110112 risk bear markets (40-year history of), 64, 67-70 currency risk, 175 drawdown, 58-64 calculating with spreadsheets, 79-82 emerging market stocks, 73-77 finding quantitative investment risk information, 79 inflation, 198 investments that have not been around during a bear market, 70-72 large-cap value ETFs, 217 planning for future, 77-78 reducing with diversification, 104-105 utility sector ETFs, 220 volatility of past returns, 83-85 risk-adjusted performance, 96 annual gain-to-drawdown ratio, 88-90 INDEX review of, 94 Sharpe ratio, 91-93 calculating, 98-101 risk-reducing investment mix, 116-118 Rogers, Will, 162 RSP, 35-36 rules 10 percent rule, 162-164 growth versus value rule, 162 for yield curve indicator, 199-200 Russell 1000 Index, 139-142 Russell 2000 Index, 51, 139-142 Russell 2000 Index Fund, 211-213 Russell Indexes website, 240 Rydex Funds, 35 S S&P 500 Asset Allocation Model, 184-186 history from 1941-2005, 67-69 S&P 500 Depository Receipts (SPY), 227 S&P 500 Growth Index, 216 S&P 500 Value Index, 214 S&P 500/Citigroup Value Index, 216 S&P 600 Small-Cap Index Fund, 211-213 sales charge, sales loads, Select Utility Sector SPDR (XLU), 218 share prices creation/redemption process, 16-20 distributions, 149 Sharpe ratio, 91-93, 108-110 calculating, 98-101 251 short-term bonds, 131 SHY (iShares Lehman), 26 size of companies, 29-34 small companies (small-cap), 29-30, 33 small-cap (small companies), 29-30, 33 small-cap ETFs, 211-213 small-cap growth, relative strength history, 156 small-cap stocks, 43 indexing, 49 market capitalization, 136-137 versus large-caps, 135, 145-147 results, 139-142 total returns, 144 trading rules, 138-139 ultimate ETF investment program, growth or value, 228-230 value versus growth, 166-168 spreadsheets, calculating drawdown, 79-82 SPY (S&P 500 Depository Receipts), 227 Standard & Poor’s Depository Receipts (SPDRs) website, 238 Standard and Poor’s website, 240 Steinway Musical Instruments Company (LVB), 31 stock market crash of October 1987, 116 stocks growth stocks, 152-153 interest rates and, 193-195 performance, 26-29 relative strength history of changes between growth and value, 156-161 252 size of company, 29-34 value stocks, 152-153 StreetTracks ETFs, website, 238 StreetTracks Total Market ETF (TMW), 37 T taxes distributions and, 147-148 ETFs and, 21-22 technical analysis, 41 terms, 192, 205 testing one-decision portfolio with indexes, 119 TMW (StreetTracks Total Market ETF), 37 total market ETFs, 37-38 Total Market Vipers (VTI), 37 total returns ETFs, 144 real-world implementation with ETFs, 143-145 track record for yield curve indicator, 201-203 tracking investments with market indexes, 46-47 trading costs, 34 trading on exchanges, 4-7 trading rules, large-caps versus small-caps, 138-139 transaction costs, ETF performance, 21 Treasury Bills, yield curve inversion from January 1965 to March 2006, 202 U U.S dollar, 187 U.S Dollar Index, 176 U.S investments, one-decision portfolio, 127-128 U.S stock benchmark, 228 INDEX ultimate ETF investment program, 224 diversification, 224-226 international versus U.S stocks, 227 results of, 231 small-cap versus large-cap, growth or value, 228-230 Utilities HOLDR (UTH), 71, 218-219 utility sector ETFs, 218-220 V value ETFs, 39 versus growth, 228-230 large-cap, 169 small-cap, 166-168 value ETFs, 152 versus growth ETFs, 214-217 Value Index ETFs, 234 value indexes, 39, 152 value stocks, 152-153 versus growth stocks, history of relative strength, 156-161 Vanguard, money market funds, 40 Vanguard S&P 500 Index Fund (VFINX), 4, 119 VFINX (Vanguard S&P 500 Index Fund), 119 Vinik, Jeffrey, 50 volatility as a risk measure, 83-85 VTI (Total Market Vipers), 37 W Wall Street Journal, 182 WalMart, free-float weighting, 55 websites ETF sponsored websites, 238 for economic data, 241 general ETF websites, 239 INDEX index provider websites, 239 for market data, 240 X XLU (Select Utility Sector SPDR), 218 XOM (ExxonMobil), 215-216 Y Yahoo!, finance website, 240 yield curve indicator, 198 interest rates and implied economic forecast, 198-199 rules for, 199-200 track record for, 201-203 253 This page intentionally left blank OTHER TITLES FROM FT PRESS FIRE YOUR STOCK ANALYST Analyzing Stocks On Your Own Harry Domash “This book is a must read for novice and expert investors alike.” —Richard H Driehaus, Driehaus Capital Management, Inc The author provides the insights, tools, and skills you need to pick your own winning stocks—and not depend on the advice of socalled “experts!” This book contains step-by-step strategies for both value- and growth-oriented investors Domash’s investing tutorial columns appear in the San Francisco Chronicle and the Santa Cruz Sentinel, and on MSN Money ISBN 0132260387 ■ © 2006 ■ 416pp ■ $16.99 US ■ $20.99 CAN OPPORTUNITY INVESTING How To Profit When Stocks Advance, Stocks Decline, Inflation Runs Rampant, Prices Fall, Oil Prices Hit the Roof, and Every Time in Between Gerald Appel “This is an investment guide that is second to none.” —Ike Iossif, President/Chief Investment Officer, Aegean Capital Group, Inc Learn high return, low risk, investment strategies—without buying individual stocks—using Mutual Funds, ETFs, and Real Estate Investment Trusts Gerald Appel is a world famous author and lecturer A frequent guest on television and radio, he has appeared on Wall Street Week with Louis Ruykeyser Articles written by, or about, Gerald Appel have appeared in Money Magazine, Barron’s, Stocks Options and Commodities, Wealth Magazine, the New York Times, Forbes, Kiplinger’s Magazine, and elsewhere ISBN 0131721291 ■ ©2007 ■ 384pp ■ $24.99 US ■ $29.99 CAN F o r m o r e i n f o r m a t i o n , v i s i t w w w f t p r e s s c o m T FR ry it EE ! 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Cataloging-in-Publication Data Appel, Marvin Investing with exchange traded funds made easy: higher returns with lower costs? ??do it yourself strategies without paying fund managers / Marvin Appel p cm... your transaction costs are likely to be greater with an ETF than with a no-load mutual fund purchased directly from the fund company For long-term shareholders, their transaction costs might ultimately