David A. Geracioti, Editor-In-Chief of Registered Rep magazine, recently invited me for an interview on why economic earnings matter when selecting stocks, mutual funds and ETFs.

Most investors do not realize the importance of analyzing the stocks held by ETFs or funds. For far too long, the dialogue on fund research has been about “star” ratings, which are entirely backward looking and provide no insight into future performance. As detailed in my article on our Predictive Fund Ratings, Intu­itively, there are two dri­vers of future fund performance:

  1. Stock-picking (Port­fo­lio Man­age­ment Rat­ing) and
  2. Fund expenses (Total Annual Costs Rat­ing) drive invest­ment performance

New Constructs is the only firm to provide investors with a consistent rating system for 3000+ stocks, 400+ ETFs and 6000+ mutual funds.

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