This strong ranking over the medium to long-term underscores the value of the highly rigorous work we do for every stock and fund we cover. Focusing on reversing accounting distortions and discounted cash flow analysis after incorporating key data from the Financial Footnotes enables us to deliver research of unrivaled quality and accuracy.
Our ETF and mutual fund ratings are based on the same successful system used to identify the Most Attractive stocks. For more on our ETF and mutual fund research, click here. As detailed in Barron’s “The Danger Within“, investors need to know the quality of the stocks in any ETF or mutual fund BEFORE they invest.
New Constructs is the ONLY firm to provide investors with ETF and mutual fund research that is comparable in quality to stock research. In addition, no other firms (that I know of) can apply a successful stock rating system to ETFs and mutual funds.
I am confident we will continue to out-perform over the medium and long terms just as we have in the past. Note that we are not yet eligible for the 5yr ranking period. I am disappointed that we did not also rank well in the last six or 12 months, but my confidence in our approach to equity analysis is unwavering. One period of under-performance does not concern me. I prefer to focus on our improvement from 3rd place to 2nd place in the 3-yr contest despite an unusually low performance in the 1st half.
For more details on our uniquely rigorous approach to equity research click here and download reports highlighting some of the major adjustments we make to reported financials based on data we unearth from Financial Footnotes.