Expanding Our Research to Cover ETFs

publication date: May 16, 2012
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author/source: Valuentum Editorial Staff
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At Valuentum, we think the best exchange traded funds (ETFs) are those that have a low or reasonable expense ratio, have holdings that are collectively underpriced, and have technical and momentum indicators that are currently exhibiting bullish trends.

We embrace forward-looking thinking, and our ETF ratings consider the forward-looking fair values of an ETF's holdings, using our robust equity valuation process and the Valuentum Buying Index as a guide. Other research firms may not even calculate a fair value estimate for an ETF's holdings, leaving us to wonder how they can possibly form an opinion on the future direction of an ETF's fundamental value. And surprisingly, the ratings of other well-known independent ETF research providers aren't even used to select their favorite funds. So what are investors to do?

Well, we believe the future is all that matters in investing, and comparing and ranking the historical performance of an ETF versus peers in the past is a sure way to guarantee random results in the future. The age-old adage that past performance does not guarantee future results resonates with our subscriber base. Our ETF reports are designed to serve the needs of individual investors and financial advisors.

In each ETF report, we tell you what we think of the firm's potential excess return, the timeliness of it as an investment based on an overall technical assessment, and compare its expense ratio versus peers. We can't see another meaningful way to evaluate an ETF, and you can rest assured that our ratings actually mean something and aren't just a scorecard of an investment's performance using the rear-view mirror as the playing field. The Financial Crisis has taught us that rear-view-mirror investing is a recipe for disaster.

We currently cover a variety of ETFs in each major category, and we expect to expand our coverage universe rapidly in coming months.

<< Search Our ETF Reports Now


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