0Comments

“Index” Label Myths

The word “index” in an ETF label does not always mean that investors are getting the specific exposure they seek. Diligence on ETF holdings is necessary despite what the providers might have you believe. Below I dispel the following myths concerning index ETFs.
by David Trainer, Founder & CEO
New Constructs
0Comments

I Hate the Guts of This ETF: Sell URE

The guts of an ETF are its holdings. And an ETF’s guts are what drive my ETF ratings. As highlighted in Barron’s, the only truly diligent assessment of an ETF is based on its holdings. Research on an ETF’s holdings is important because an ETF’s performance is only as good as its holdings. Therefore, if you care about performance, you care about the ETF’s holdings.
by David Trainer, Founder & CEO
0Comments

Cheap Funds Dupe Investors: 3Q12

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 (e.g. 5-star kiss of death). Yet, traditional fund research focuses only on low fees and past performance.
by David Trainer, Founder & CEO
0Comments

Best & Worst Style ETFs & Mutual Funds

This report identifies the “best” ETFs and mutual funds based on the quality of their holdings and their costs. As detailed in “Low-Cost Funds Dupe Investors”, there are few funds that have both good holdings and low costs. While there are lots of cheap funds, there are very few with high-quality holdings.
by David Trainer, Founder & CEO
0Comments

Roadmap to the Best & Worst ETF & Mutual Fund Styles

None of the fund styles earn a rating better than Neutral. See Figure 1 for my rankings on all twelve investment styles. My style ratings are based on the aggregation of my fund ratings for every ETF and mutual fund in each style. Note that the attractive-or-better Predictive ratings do not always correlate with attractive-or-better total annual costs. This fact underscores that (1) low fees can dupe investors and (2) investors should invest only in funds with good stocks and low fees.
by David Trainer, Founder & CEO
0Comments

Best & Worst Sector ETFs & Mutual Funds

The best ETFs and mutual funds have high-quality holdings and low costs. As detailed in “Low-cost funds dupe investors”, there are few funds that have both good holdings and low costs. While there are lots of cheap funds, there are very few with high-quality holdings. The following is a summary of my top picks and pans for all sector funds. I will follow this summary with a detailed report on each sector.
by David Trainer, Founder & CEO