At the beginning of each quarter, we rank each of the twelve ETF and Mutual Fund “style” categories from best to worst with our Style Ratings Report. These rankings are forward-looking and indicate how each style should perform going forward.
This analysis is available to Professional and Institutional members and enables investors to better allocate capital by identifying which funds to buy and which funds to avoid. More reliable & proprietary fundamental data, as shown in The Journal of Financial Economics, provides a new source of alpha and drives our research. Our Robo-Analyst technology[1] empowers our unique ETF and mutual fund rating methodology, which leverages our rigorous analysis of each fund’s holdings.[2]
Some of the best funds include Alpha Architect US Quantitative Value ETF (QVAL), ProShares Ultra Energy (DIG), Hennessy Cornerstone Value Fund (HICVX), and Royce Small-Cap Special Equity Fund (RSEIX). Some of the worst funds include Yorktown Capital Appreciation Fund (APIGX), Camelot Event-Driven Fund (EVDAX), Motley Fool Small Cap Growth ETF (TMFS), and Direxion Daily Real Estate Bull 3X Shares (DRN).
Last quarter’s Style Ratings can be found here. Last quarter’s Style Recap is available here.
The following are our style analyses for the third quarter of 2023.
- All Cap Blend
- All Cap Growth
- All Cap Value
- Large Cap Blend
- Large Cap Growth
- Large Cap Value
- Mid Cap Blend
- Mid Cap Growth
- Mid Cap Value
- Small Cap Blend
- Small Cap Growth
- Small Cap Value
This article was originally published on July 20, 2023.
Disclosure: David Trainer, Kyle Guske II, Hakan Salt, and Italo Mendonça receive no compensation to write about any specific stock, sector, style, or theme.
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[1] Harvard Business School features the powerful impact of our research automation technology in the case New Constructs: Disrupting Fundamental Analysis with Robo-Analysts.
[2] See how our models and financial ratios are superior to Bloomberg and Capital IQ’s (SPGI) analytics in the detailed appendix of this paper.