December 18, 2012 – 10:14 am
Why are there so many ETFs? The answer is: because ETF providers are making lots of money selling them. The number of ETFs has little to do with serving investors’ best interests. Here are three red flags investors can use to avoid the worst ETFs…
By David Trainer
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Posted in ETF Research
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Also tagged DIG, Financial Select Sector SPDR, Free Archive, J&J, JNJ, Johnson and Johnson, Materials Select Sector SPDR, PowerShares Lux Nanotech, PowerShares S&P SmallCap Cons Stpls, PowerShares S&P SmallCap Energy, PowerShares S&P SmallCap Indust., PowerShares S&P SmallCap Materials, ProShares Ultra Consumer Goods, ProShares Ultra Health Care, ProShares Ultra Oil & Gas, ProShares Ultra Semiconductors, ProShares Ultra Technology, PSCC, PSCE, PSCI, PSCM, PXN, ROM, RXL, SCHH, Schwab U.S. REIT ETF, Simon Property Group, SPDR Homebuilders ETF, SPDR S&P Biotech ETF, SPG, UGE, USD, Utilities Select Sector SPDR, Vanguard REIT ETF, Vanguard Telecom ETF, VNQ, VOX, XBI, XHB, XLB, XLF, XLU
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November 20, 2012 – 10:49 am
Our research with ETFs is very unique because we’re actually basing our ETF ratings on the stocks that the ETF holds.
MSFT gets my best rating because the company’s ROIC, at 72%, ranks 8th in the S&P 500 while its stock price (~$31.52/share) implies the company’s profits will permanently decline by about 20%. High profitability and low valuation create excellent risk/reward in a stock. Here is my free report on MSFT.
From the start, avoid any ETFs below a $100 million market cap. Anything smaller puts you at risk of inadequate liquidity, too large a bid/ask spread and tracking error. Even $100 million can be too low. The bigger the market cap the less trading risk. There are plenty of free services that allow you to screen out the smaller ETFs and minimize your trading risk.
The focus of this article, however, is investing risk or the relative investment potential of the ETF.
By David Trainer
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Posted in ETF Research
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Also tagged AT&T, DRN, etf screener, financial sector ETFs, fudn screener, Large Cap Value ETFs, predictive ETF ratings, SPG, SPYV, stock screener, T, VNQ
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First, you need to determine the category or sector to which you want exposure.
Then, you determine which ETFs, within the category or sector you like, are the best …this can be the hard part.
By David Trainer
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Posted in ETF Research
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Also tagged AAPL, etf screener, fund screener, IVW, IWF, IWY, IYW, MSFT, QQQ, SOXX, stock ratings, stock screener, vgt, VUG, xlk
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March 20, 2012 – 12:16 am
My ratings on ETFs are unique because they are based on my stock ratings for each of a fund’s holdings.
Analyzing and rating an ETF based on its holdings delivers many interesting insights:
November 23, 2011 – 9:53 am
QUESTION: Why should fund investors rely on backward-looking NAV trends?
ANSWER: They should not.
By David Trainer
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Posted in Investing 101, Mutual Fund Research
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Also tagged best etf ratings, best fund ratings, etf screen, etf screener, fund ratings, fund screener, mutual fund screener, portfolio management rating, Predctive fund rating, predictive ETF rating, Total Annual Costs rating
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Retail HOLDRS (RTH) is our top pick for consumer discretionary sector ETFs. RTH is one of 51 ETFs that gets… Read more >>
By David Trainer
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Posted in ETF Research, Stock Picks and Pans
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Also tagged attractive Rating, CBS, CBS Corp, DIS, Disney, ETF long and short ideas, ETF Research, F, Ford, HOT, MCD, McDonalds, NetFlix, NFLX, Nike, NKE, PBS, PowerShares Dynamic Media, predictive ETF ratings, Retail HOLDRS, RTH, Select Sector SPDR-Consumer Discretionary, SPDR S&P Homebuilders ETF, SPDR S&P Retail ETF, Starwood Hotels & Resorts Worldwide, Target, TGT, Vanguard Consumer Discretionary Index Fund, VCR, XHB, XLY, XRT
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Select Sector SPDR-Consumer Staples (XLP) is our top pick for consumer staples sector ETFs. XLP is one of four ETFs, out of the 270 we currently cover, to get our very attractive rating. We also rate the investment merit of the top five consumer staple sector ETFs.
By David Trainer
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Posted in ETF Research, Stock Picks and Pans
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Also tagged BG, Bunge, CL, Clorox, ETF long/short ideas, ETF Research, fundamental ETF rating, PBJ, PG, PowerShares Dynamic Consumer Staples Sector, PowerShares Dynamic Food and Beverage, PowerShares S&P SmallCap Consumer Staples Portfolio, predictive ETF ratings, Proctor and Gamble, PSCC, PSL, Select Sector SPDR-Consumer Staples, UNFI, United Natural Foods, Vanguard Consumer Staples Index Fund, VDC, Wal-Mart, WFM, Whole Foods Market, WMT, XLP
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We recommend investors avoid all energy sector ETFs. We found no ETFs in the sector that offer investors attractive investment merit and acceptable structural integrity. We also rate the investment merit of the top-9 energy sector ETFs.
By David Trainer
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Posted in ETF Research, Stock Picks and Pans
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Also tagged Baker Hughes, BHI, Chevron, CVX, ETF Research, exchange traded funds, Exxon MObil, IEZ, iShares Dow Jones US Energy, iShares Dow Jones US Oil Equipment & Services, IYE, OIH, Oil Service HOLDRS, PowerShares S&P SmallCap Energy Portfolio, predictive ETF rating, PSCE, Rydex S&P Equal Weight Energy, RYE, Select Sector SPDR-Energy, SLB, Slumberger, SPDR S&P Oil & Gas Equipment & Services ETF, SPDR S&P Oil & Gas Exploration & Production ETF, Vanguard Energy Index, VDE, XES, XLE, XOM, XOP
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