Preface vii
Acknowledgments ix
About the Authors xi
Chapter 1 The Beauty of Simplicity – The Rise of Passive Investments 1
Outperformance – A Tough Challenge 1
Institutional Investors: A Small Change in Allocations, A Big Step for Passive Investments 2
Not All “Big Guys” Love ETFs 3
Chapter 2 The History of Indexing and Exchange-Traded Products 6
Frequent Pricing Thanks to Copper and Feather 6
Journalist Trio Pictures the Market 7
Indexation Across the Globe 7
Customized Indexing aka Smart Beta 8
Exchange-Traded Funds – A Unique All-rounder 15
Exchange-Traded Commodities – Heavy Metal Even for Lightweight Investors 46
Exchange-Traded Notes – The Underdog 53
Chapter 3 Index Evolution 57
Benchmark Indices 58
Smart Beta Indices (Second Generation of Indexing) 85
Next Generation Indices (Third Generation of Indexing) 104
Chapter 4 The Good, Bad and Ugly – A Critical Review of Today’s Indexing Approaches 127
Synthetic vs. Physical Replication 128
Second Generation Indexing Critique – The Bad Ones 129
Commodity/Energy/Oil ETP Products 133
Volatility ETPs 135
Chapter 5 Advantages Unlimited – Portfolio Application Strategies for Superior Index Investing 139
Never Underestimate the Importance of Investment Costs 139
Smart Beta Deconstruction 144
Conclusion 152
Mind the Behavioral Gap – Earning More by Avoiding Investing Errors 152
The Next Generation of Asset Allocation – Risk Factor Allocation Approach in Portfolio Construction 155
The Ultimate Question: Passive or Active? 163
Chapter 6 Unchaining Innovation – The Future of Active Investing in Passive Products 166
Alternative Investing 166
Environmental, Social and Governance (ESG)-Based Investments 180
Conclusion 190
Customized Indexing 192
Glossary 200
References 210
Index 215
GÖKHAN KULA is managing partner and CIO of MYRA Capital. Formerly he was managing director and Head of Asset Management of the Walser Privatbank Invest S.A., and a board member of several Luxembourg-based investment companies. He is a CFA and FRM Charterholder and a consistent voice in the financial media published in Germany, Austria and Switzerland.
MARTIN RAAB is executive director of Derivative Partners, Registered Investment Advisor, and a senior adviser to the board of MYRA Capital. He is the publisher and editor of several investment publications, a public speaker on financial products, and is regularly quoted by POLITICO, Bloomberg Brief and various other media.
SEBASTIAN STAHN is Treasury and Investment Manager at Wüstenrot Group. Formerly he worked as senior portfolio manager, fund manager and advisor to institutional clients at MYRA Capital and Walser Privatbank. He is a CFA charterholder and a renowned expert in efficient and rules-based investment strategies.
Ask a Question About this Product More... |