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:
- Stock-picking (Portfolio Management Rating) and
- 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.