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| Exchange-Traded Funds (ETFs): Now Individuals Can Invest Like the Big Players | |
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| ETFs Are a Special Type of Mutual Fund | |
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| ETFs Avoid the Expense of Fund Managers | |
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| ETFs Are Traded on Exchanges | |
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| ETF Investors Have Hidden Costs Through the Bid-Ask Spread | |
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| The Creation/Redemption Process Keeps ETF Share Prices Close to the Market Value of the Underlying Shares | |
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| ETF Performance Is Not Weighed Down by Transaction Costs | |
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| ETF Shares Are Often More Tax-Efficient Than Mutual Funds | |
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| Special Risks of ETFs | |
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| Conclusion | |
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| Endnotes | |
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| The Multifaceted Stock Market: A Guide to Different Investment Styles | |
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| The First Decision: Stocks, Bonds, or Cash | |
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| Size Matters | |
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| Each Investment Style Has Multiple ETFs | |
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| Midcap ETFs | |
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| All-Cap or Total-Market ETFs | |
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| Growth and Value ETFs | |
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| Conclusion | |
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| Endnotes | |
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| A One-Step Strategy for Selecting Superior Investments: Indexing | |
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| Investments That Track Market Indexes Have Outperformed Most Mutual Funds | |
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| The Evidence in Favor of Indexing | |
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| Indexing Has Delivered Greater Profits Than the Average Mutual Fund, Except in the Small-Cap Area | |
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| How a Few Mutual Fund Managers Have Beaten the Indexes | |
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| Conclusion | |
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| Index Construction Methodologies | |
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| Example of Index Construction-Equal Weighting | |
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| Example of Index Construction-Price Weighting | |
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| Example of Index Construction-Capitalization Weighting | |
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| The Newest Indexing Scheme-Free-Float Weighting | |
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| Endnotes | |
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| Investment Risk: A Visit to the Dark Side | |
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| Drawdown-An Intuitive Measure of Investment Risk | |
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| How to Use Drawdown | |
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| A 40-Year History of Bear Markets | |
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| What if Your Investment Was Not Around During a Bear Market? | |
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| Example of Risk Assessment: An Emerging Market ETF | |
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| Market Risks and Planning for Your Future | |
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| Where to Find Quantitative Investment Risk Information | |
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| Calculation of Drawdown with a Spreadsheet | |
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| Volatility of Past Returns as a Risk Measure | |
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| Endnotes | |
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| How Well Are Your Investments Really Doing? Risk-Adjusted Performance | |
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| The First Risk-Adjusted Performance Measure-Annual Gain-to-Drawdown Ratio | |
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| Another Risk-Adjusted Performance Measure-The Sharpe Ratio | |
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| Risk-Adjusted Performance Review | |
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| Conclusion | |
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| Calculation of the Compounded Annual Rate of Return | |
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| Calculation of the Sharpe Ratio | |
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| Endnote | |
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| Diversification: The Only Free Lunch on Wall Street | |
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| Reduce Risk, Not Profits, with Diversification | |
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| Diversification Versus Picking Only the Best | |
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| How to Determine What Should Be in the Optimal Portfolio | |
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| Example-Determining a Good Mix of Stocks and Bonds | |
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| Interpretation of the Sharpe Ratio | |
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| The Uncertainty of Future Investment Returns | |
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| Conclusion | |
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| Endnote | |
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| The One-Decision Portfolio | |
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| A Risk-Reducing Investment Mix | |
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| Indexes Used to Test the One-Decision Portfolio | |
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| Performance History for the One-Decision Portfolio | |
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| The One-Decision Portfolio for Less-Conservative Investors | |
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| ETFs You Can Use to Create Your Own One-Decision Portfolio | |
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| Rebalancing | |
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| Why Only U.S. Investments Are Included in the One-Decision Portfolio | |
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| Conclusion | |
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| A Brief Discussion of the Bond Market | |
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| Credit Risk | |
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| Interest Rate Risk | |
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| Intermediate-Term Bond ETFs | |
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| Endnotes | |
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| When to Live Large: An Asset Allocation Model for Small- Versus Large-Cap ETFs | |
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| Why Market Capitalization Matters | |
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| Trading Rules | |
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| Results | |
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| Real-World Implementation with ETFs | |
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| Conclusion | |
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| ETF Distributions and Taxes | |
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| ETF Share Prices Drop by the Amount of a Distribution | |
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| Endnotes | |
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| Boring Bargains or Hot Prospects? Choosing Between Growth and Value ETFs | |
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| The Concept of Relative Strength | |
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| History of Relative Strength Changes Between Growth and Value | |
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| Recognizing the Emergence of a New Trend Using the Relative Strength Ratio | |
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| Results with Small-Cap Value Versus Growth | |
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| Results with Large-Cap Value Versus Large-Cap Growth | |
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| Real-World Implementation with ETFs | |
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| Conclusion | |
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| Endnotes | |
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| When Is It Safe to Drink the Water? International Investing | |
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| How to Identify Whether the Long-Term Trend Favors U.S. or Foreign Stocks | |
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| Results of Using the EAFE/S&P 500 Asset Allocation Model | |
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| Outlook for International Investing | |
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| Conclusion | |
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| Endnotes | |
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| What Bonds Can Tell You About Stocks: How to Use Interest Rates | |
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| A Basic Introduction to the Bond Market | |
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| Why Rising Interest Rates Have Usually (But Not Always) Been Bad for Stocks | |
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| An Indicator of Rising Interest Rates | |
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| Yield Curve Indicator | |
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| Interest Rates and the Implied Economic Forecast | |
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| The Rules for the Yield Curve Indicator | |
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| Track Record for the Yield Curve Indicator | |
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| Composite Interest Rate Indicator | |
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| Conclusion | |
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| Endnotes | |
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| It's a Jungle Out There: Selecting from Among Different ETFs with Similar Investment Objectives | |
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| The Drawdown Chart-A New Tool | |
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| Small-Cap ETFs | |
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| Growth Versus Value ETFs | |
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| Utility Sector ETFs | |
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| Conclusion | |
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| Endnotes | |
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| The Ultimate ETF Investment Program in Just 30 Minutes Per Month | |
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| The Ultimate ETF Investment Program | |
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| Diversification | |
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| Decide Whether International or U.S. Stocks Are Favored; If U.S. Stocks Are Favored, Evaluate the Interest Rate Climate | |
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| Select the Best Investment Style from Large-Cap Value, Small-Cap Value, Large-Cap Growth, or Small-Cap Growth | |
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| Results of the Ultimate ETF Strategy | |
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| Conclusion | |
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| Endnotes | |
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| Internet Resources for ETF Investors | |
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| ETF Sponsor Websites | |
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| General ETF Websites | |
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| Index Provider Websites | |
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| Current and Historical Market Data | |
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| Fundamental Economic Data | |
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| Index | |