A fundamentally different approach

Most ETF research is really warmed-over mutual fund research that focuses on past performance and fees. We take a totally different approach by evaluating ETFs based on fundamentals. Because the holdings of an ETFs are transparent, it is possible to answer all the questions you'd normally ask before buying a stock, such as:

  • What are expectations for sales and earnings and are they believable?
  • Are estimates being slashed or raised as economic conditions change?
  • What's happening on the balance sheet?
  • How is it valued, both in absolute terms and relative to competitors?

The result of this fundamentally-driven analysis is a forward-looking view of an ETF based on its investment merit, no just its past performance. Ultimately, this enables you to make better, more informed investment decisions for yourself and your clients:

Be forward-looking

Past performance is not indicative of future results, so why base your analysis on it? It makes even less sense for an ETF where there is no active manager making decisions on your behalf (and hence no one to evaluate). Our focus on fundamentals is forward-looking—just like the market itself.

Tailor the search to your objectives

Evaluating ETFs on their investment merit allows you to tailor your search according to your objectives. Want to find the international ETF with the fastest earnings growth? Or the domestic fund with the lowest P/E ratio? Don't just guess...we know.

Take advantage of changing markets

Market conditions and expectations change all the time. We update the numbers in our Online Tools daily so you can stay on top of changing market conditions, not just learn what happened after the fact.

Compare across categories

Ratings based on past performance generally evaluate returns relative to other funds in the same category, so ratings are not comparable across categories. Our approach allows comparisons not only within a certain category but across all categories as well. More details...

Use the latest and greatest

Nearly half the ETFs currently listed in the U.S. were not available 18 months ago. So an approach that requires three or more years of history in order evaluate a fund is unable to offer an opinion on anything new. Our forward-looking approach allows us to initiate coverage on day one.