How We Rate ETF and Mutual Fund Holdings
The Portfolio Management Rating of an ETF or a fund is based on the aggregated stock ratings of the securities it holds as well as its overall Asset Allocation rating. The Portfolio Management Ratings and the Total Annual Costs ratings combine to determine our Predictive Fund Ratings. New Constructs’ stock ratings are regularly featured as among the best by Barron’s over the past three years. Figure 1 displays the criteria and thresholds that go into the Portfolio Management Rating of every ETF, mutual fund or portfolio we cover. Note that the Portfolio Management Rating is the same as a stock rating except that it incorporates our rating on the fund’s Asset Allocation.
Figure 1: Portfolio Management Rating Table
Sources: New Constructs, LLC