Visual Guide to ETFs

A Step-by-Step Introduction to Exchange-Traded Funds

The Visual Guide to ETFs by David J. Abner is a clear, concise, and visually rich handbook that demystifies exchange-traded funds for both new investors and seasoned professionals. Designed to be both educational and practical, this guide delivers a comprehensive look at the structure, mechanics, benefits, and risks of ETFs in today’s global markets.

Abner, a veteran ETF strategist, explains how ETFs differ from mutual funds, how they trade, and why they have become one of the most important financial innovations in modern investing. Using charts, diagrams, and step-by-step explanations, the book walks readers through ETF creation/redemption, liquidity, bid-ask spreads, tracking error, and strategies for building ETF portfolios.

This book is perfect for anyone who wants to truly understand how ETFs work and how to use them effectively for investment diversification, cost-efficiency, and tactical or strategic asset allocation.

✅ What You’ll Learn:

• The complete ETF structure: creation, redemption, and trading mechanics
• How ETFs provide intraday liquidity and market price transparency
• Key ETF metrics: NAV, premium/discount, spread, and tracking difference
• The advantages of ETFs over mutual funds and individual securities
• How to evaluate ETF liquidity and use volume and spreads to your advantage
• Portfolio strategies using ETFs: core-satellite, sector rotation, hedging, and more

💡 Key Benefits:

• Visually driven learning approach with real examples, diagrams, and breakdowns
• Provides both foundational knowledge and practical trading applications
• Covers advanced ETF topics including leveraged, inverse, and synthetic products
• Written by a respected industry expert with real-world ETF trading experience
• Helps investors avoid common mistakes and choose ETFs with confidence

👤 Who This Book Is For:

• Beginner to intermediate investors interested in building ETF portfolios
• Financial advisors and professionals seeking to educate clients on ETFs
• Traders and portfolio managers using ETFs for hedging or tactical exposure
• Anyone preparing for finance certifications involving ETF mechanics

📚 Table of Contents:

1. What Is an ETF?
2. How ETFs Are Created and Redeemed
3. Understanding ETF Liquidity
4. Tracking Error and Performance
5. Comparing ETFs and Mutual Funds
6. Trading and Execution Strategies
7. Using ETFs in Portfolios
8. Specialty ETFs: Leveraged, Inverse, and Synthetic
9. Risks and Misconceptions
10. Case Studies and Practical Applications