Fund holdings affect fund performance more than fees or past performance. A cheap fund is not necessarily a good fund. A fund that has done well in the past is not likely to do well in the future. Yet, traditional fund research focuses only on low fees and past performance.
With so many ETFs out there, investors cannot simply look at ETF labels. They need in-depth research of the ETFs holdings and costs. New Constructs offers this kind of research.
My last recommendation was new to the value-investing club (see Buy CSCO: A Treat For Value Investors). This week, I bring back a classic value stock: Phillip Morris (PM).
As discussed in “The Real Earnings Season Starts Now”, annual reports are the best source for developing investment ideas. I provided my clients with dozens of insights in 2011 that delivered impressive returns, and I continue that trend with my recommendation of MO.