Book Synopsis
Get up to speed on the booming innovation surrounding institutional ETF usage.
The Institutional ETF Toolbox is the institutional investor's guide to utilizing exchange-traded funds and taking full advantage of the innovative new products in their expanding repertoire. The ETF toolbox is expanding rapidly with nearly one new ETF launching every day this decade so far. As with any financial innovation, this phenomenon brings both opportunity and concerns, as well as a dire need for clarity and strong due diligence skills.
This book is both reference and resource, providing data-driven explanations backed by real-world market examples--alongside valuable insight from leading practitioners. Coverage includes an examination of the advantages and growth of ETFs as well as current and future uses of ETFs, emerging markets, and the strategic and tactical perspectives you need to effectively use ETFs to optimal effect. The major concerns surrounding ETFs are addressed in full to give you the background you need to formulate a better ETF strategy.
ETF allocations are expected to keep growing rapidly across all institutional types, and new and emerging products are becoming more and more liquid allowing easier expression of investment opinion. This book shows you how any investors can utilize these tools to strengthen your portfolio and safely expand into particularly appealing areas.
- Understand how the ETF ticks and the how to take advantage of all the myriad of advantages
- Learn how to perform effective due diligence using exposure, cost, liquidity, risk and structure
- Utilize ETFs for cash equitization, portfolio rebalancing, liquidity management, and more
- Learn how ETFs are expanding into equities, fixed income, emerging markets, and alternatives
- Learn how to avoid unwanted costs, liquidity issues and hidden complexities
ETF usage is climbing with assets growing by about 25 percent per year, and those who use them expect to expand their usage quickly. The Institutional ETF Toolbox provides the actionable information institutions need to identify and adopt the most suitable approach.
From the Back Cover
It is widely known that exchange-traded funds (ETFs) have democratized investing by giving the little guy (retail) the same access as the big guy (institutions). While that is very true, the less-told story is that many institutions have also turned to ETFs for a wide variety of purposes. This detailed look at ETFs by Bloomberg's top ETF authority, Eric Balchunas, focuses on the fundamentals, best practices, and latest ETFs specifically useful to institutional investors. Professional-level guidance will help you understand, use, and perform due diligence on the diverse choice of ETFs available today. A range of examples, as well as valuable insight from leading practitioners, illustrate how some institutions went outside the norm to use ETFs in innovative and profitable ways. Cutting-edge coverage also includes new perspectives on liquidity and trading that reveal a wide range of possibilities for institutions.
The first section looks at why ETFs are so popular, where they came from, how they work, all the ways different institutions are using them, and what it takes to research and vet them. The second part gives you a categorical overview of the breadth of ETF choices available and enables you to dig down into the specifics of each one. You'll turn to this section again and again for its:
- In-depth look at various asset classes, including equities, fixed income, and alternatives
- Expanded coverage on such hot-topic areas as smart beta, currency hedging, and liquid alts
- Insider's perspective on trading ETFs, including how to consider premiums and discounts
Case studies in each section are carefully selected to provide an analytic edge when evaluating ETFs, making this reference endlessly useful in practice.
The Institutional ETF Toolbox is the institutional investor's guide to utilizing exchangetraded funds and taking full advantage of the innovative new products in their expanding repertoire. The ETF toolbox is expanding rapidly with nearly one new ETF launching every day this decade. As with any financial innovation, this phenomenon brings both opportunity and concerns, as well as a dire need for clarity and strong due diligence skills. In The Institutional ETF Toolbox, the professional money manager can take another look at ETFs, one of the most powerful and fastest-growing investing options available today.
About the Author
ERIC BALCHUNAS is a senior ETF analyst at Bloomberg, where he has more than a decade of experience working with ETF data, designing new functions, and writing ETF research for the Bloomberg terminal. He also writes articles, feature stories, and blog posts on ETFs for Bloomberg.com and appears each week on Bloomberg TV and Radio to discuss ETFs.
