Create Your Own ETF Hedge Fund: A Do-It-Yourself ETF Strategy for Private Wealth Management

As a private investor and manager for several family offices in the US and overseas, I became a subscriber to Mr. Fry's ETF Digest newsletter back in 1993 by default because initially, even though exchange traded funds were starting to gain popularity as trading vehicles, certainly the brokerage community wasn't ready for ETFs --even till this day. Our financial advisors were earning high commission rates then, and preferred to sell single stocks to their clients instead of something that offered broad diversification in one trade. That was the start of my ETF education. Mr. Fry's newsletter and blog have since provided me with the tools and knowledge to be well-positioned to take advantage of trading opportunities presented by today's volatile fast-moving market conditions. Quite simply, a big time bear market is something to be dealt with and not run away from. His book is a recommended read. I have purchased several, kept one for myself and gave the the rest as gifts to my "Johnnie-come-lately" colleagues who are just now discovering the world of etfs. The book goes into the history and the mechanics of buying and selling these funds and the different types of ETF portfolio construction strategies and allocations given your experience level and trading style. Even with a good grasp on fundamental trends, there is a lot of technically-based trading in ETF's which he explains in several chapters that's easy to understand and follow. The author shares a lot of his personal market experience with Wall Street especially having created and managed several of his own hedge funds back in the 1980's. Of practical interest to me is the topic of leveraged and unleveraged issues and its issuing providers since these are a regular allocation segment in our current portfolio holdings. The decision is whether to go long, short or levered in one direction or another. Mr. Fry continues to educate his subscribers and book readers successfully without the BIAS and double-speak that you find with so many other investment book authors and financial bloggers out there. Finally, there is no substitute for becoming a knowledgeable investor and ultimately a profitable one given the government manipulation of the markets because in the end, no one is going to save you.

I have been a subscriber to Mr. Fry's ETF Digest newsletter for the past 4 years. His insight and commentary have been extremely helpful in guiding me, along with his subscribers, on how to maneuver thru this volatile market minefield. One needs to be nimble and open and those who wish to protect their long-term purchasing power cannot afford to park funds exclusively in CDs and money markets anymore. Mr. Fry's book provides its readers an education and understanding of the world of ETFs. Highly recommended. Those who understand volatility, market breadth data, and other related subjects and who can combine that information with a fundamental + technical approach have a much greater chance of success than those who ignore market sentiment. [Regrettably, the lowest mark given by one reviewer is entirely undeserved and marred by an elitist viewpoint. A disservice at best.] The author's book and blog must be read in tandem. Principal protection must become the primary focus in order to preserve capital to fight another day.

Dave Fry writes about the essential approaches of global macro long/short and aggressive growth strategies in constructing and building your personal hedge fund using ETFs -- one that can take advantage of both bullish and bearish conditions in today's market environment. Good section on the resources and tools for the novice trader who wants to become more active and market-street savvy. Chapter 10's discussion on the use of both technical and fundamental approaches, as well as trend following, to achieve the alpha that most investors seek is particularly relevant. Anything exposed to a market has a behavior because of the human element driving the market entity, and TA facilitates in understanding that behavior. Ignoring it is careless. I highly recommend this book. Further, his annotated charts and commentary on his Dave's Daily ETF Blog is extremely valuable. I've been following it now for the last two years and he has been right on the money. His blog is a must read.

It has useful nuggets of information for the novice investor as well as some concepts that I believe every professional investor/financial advisor should be aware of in this volatile one world market. The author offers short-term or long-term approaches and methodologies to using ETFs in the construction of your own portfolio. Very helpful and he presented it in a straightforward manner that was easy to read and understand. Not one of those authors that "talks down" to the reader and tries to impress you with their self-inflated and more often these days, highly-conflicted opinions. Definitely worth a spot on the shelf if you are inclined to read investment books!

Disclaimer: I'm a subscriber to Mr. Fry's investment website. Outside of my 401k I stick to dollar cost averaging into low cost index funds. It's proven and good for the 'lazy' investor. But in the tax sheltered setting of my 401k I use some knowledge and a bit of common sense to invest wisely and avoid needless fund fees that sap returns. Dave's methodology has opened a new and exciting door to investing. Dave has good practical advice on how to 'hedge' in the traditional sense using currency, commodities, and other unique ETF solutions. This has proven particularly useful in the current economic environment. His broad experience in the world of personal investing comes through clearly in a well written and witty text. That said, I think the book is geared as an explanation of the new world of ETFs and a companion to the subscriber website and not an investment 'cookbook' solution in and of itself. (I take my direction through 'consensus' of several sources and Dave is more often on the mark than not.) Yet, if you've marveled at the choices in ETFs recently, and are looking for some guidance on how to utilize them, then this is a worthy read. You will come away with new and viable ideas on how to invest. Even if you're not a fan of technical analysis, Dave's daily blog (links above) offers some insight into current market conditions with easy to understand charts and comments. Also you'll find Dave's comments on ETFs and financial markets in articles on many of the top financial websites. Regards,