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, which is defined here.  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 #1 by SumZero (details here). Harvard Business School proves our Stock Ratings outperform Wall Street stock ratings (details here).

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

You need a Stock Tracker 50 Membership or higher to view all the content on this page.

Already a member?

Learn more about our research here.

    7 replies to "Portfolio Management Rating: Methodology for Predictive Fund Ratings"

    • Harold.R.Soutier Sr

      David, if your going to write something, then present it so those whom read whatever site-Ex Marketwatch, may receive your message clear and to the point-Ex industry Utilities, then stocks specific, even if it puts you subject to rebuttal. Keep up the good work!

    • David Trainer

      Mr. Soutier:
      I am not sure I understand your point – are you looking for more explanation of methodology in my Best & Worst Funds articles?

    • […] its holdings than its costs. Figure 2 shows the ETFs within each style with the worst holdings or portfolio management ratings. The styles are listed in descending order by overall rating as detailed in my 4Q Style Rankings […]

    • Carol Martin

      I find your blog very compelling. Theoretically, using your methods could a large retirement Fund such as a state teachers retirement fund also be rated on its holdings, active management, etc.?

      Thank you

    • David Trainer

      Ms. Martin,
      Yes. We perform portfolio reviews for many of our clients.
      Our analysis can be applied to any group of stocks.

    • Daniel Flath

      Have you done any backtesting to see how this methodology has translated into excess returns or alpha? Apologies in advance if I missed this somewhere else on the site. Thanks.

    • Sam McBride

      We have not been able to do a full backtest of our methodology for all the stocks under our coverage, but you can see the long-term outperformance of our model portfolios here.

Leave a Reply

Your email address will not be published.