With so many ETFs out there, investors cannot simply look at ETF labels. They need in-depth research of the ETFs holdings and costs. New Constructs offers this kind of research.
Finding the best ETFs is an increasingly difficult task in a world where a new ETF seems to be born every 10 seconds.
I have a pair trade (i.e. long/short) ETF strategy for investors who want to maximize upside potential and minimize downside risk in Technology stocks.
The Information Technology sector ranks 3rd out of the ten sectors as detailed in my sector roadmap. It gets my Neutral rating, which is based on aggregation of ratings of 28 ETFs and 151 mutual funds in the Information Technology sector as of April 16th, 2012.
Having too many choices can be intimidating. And there are definitely lots of choices when it comes to ETFs. For example, in the equity market alone, there 30+ technology sector ETFs, or 35 ‘large cap value’ and 20 financial ETFs. A very healthy selection abounds for every category of ETF.
The problem is that these ETFs are not made the same even though they may be in the same category. There are major differences in methodologies between funds, which results in drastically different holdings even within a given sector. See Figure 1.