our approach to ETF analysis
Our unique approach helps readers evaluate ETFs on investment merit, not just past performance
Most ETF research is really warmed-over mutual fund research that focuses on past performance and fees. We take a totally different approach by applying the traditional tools of fundamental security analysis to each underlying constituent and aggregating that data up to the fund level..
process overview
One of the most important benefits of an ETF is its transparency
This enables us to perform an entirely different type of analysis. By applying the traditional tools of security analysis to each underlying constituent and aggregating that data up to the fund level, for every ETF we are able to calculate:
With this information readers can derive a forward-looking view of the ETF as a whole, based on its overall investment merit, not just past performance. The result is an objective but familiar analysis on which to base an investment decision.
Why the warmed-over mutual fund approach is flawed
Many firms analyze ETFs in the same manner as they do mutual funds, focusing primarily on past performance. While this may be appropriate for evaluating an active manager, ETFs are passive investments that simply track an index.
ETFs make no attempt to avoid overheated areas or bargain-hunt in attractive ones; that job falls to the ETF investor. As a result, past performance provides little if any insight into future investment performance, which is after all the purpose of fund analysis.
advantages
Putting investors in charge
Our unique approach to ETF analysis provides several advantages that together help investors decide which ETFs are right for them, freeing them from reliance on non-transparent, actively managed mutual funds. In short, we give investors the tools they need to take charge using ETFs.
Forward looking. Evaluate funds based on forward-looking fundamentals, to help answer the single most important question about any index fund: What is its investment potential?
Objective & familiar. We apply the traditional tools of security analysis to ETFs in a transparent, unbiased manner, and show you the results.
Timely. Daily updates keep you on top of changing markets, and not dependent on periodic updates.
Strategy-agnostic. Our approach allows you to find ETFs that fit your investment criteria, whatever that may be and however you define it.
Leading-edge. Because our analysis doesn't rely on a fund's price history our coverage includes many of the newest ETFs available.