Combining portfolio analysis with forward-looking intelligence.
‘Forward-looking, quantitative ETF ratings’
ABSTRACT:Exchange-Traded Funds (ETFs) have become a preferred investment vehicle for institutional and individual investors as shown by the approximately $3.4 trillion in assets held by US-listed ETFs at the end of 2018. Choosing among the many ETFs offered for each investment goal can be difficult. Chaikin Analytics has applied its expertise in multi-factor analysis to create Chaikin Power Gauge ETF Ratings. Our ETF ratings are powered by Chaikin Analytics, whose market-tested methodology has been rating US stocks for more than ten years. These Ratings combine fundamental and technical analysis and have been shown in rigorous backtesting to empower investors to successfully differentiate among ETFs on the basis of probable relative future performance. The biggest differentiator from other ratings is that the Chaikin ETF Power Gauge ETF Rating evaluates the individual constituents of equity ETFs utilizing our stock ratings. We are not using past performance, but rather we are looking at a rollup of individual stocks ratings that are designed to predict a stock’s potential performance 3 to 6 months into the future. The final piece of the rating is a technical factor which can capture market phenomenons such as momentum and oversold conditions. Ratings for non-equity ETFs (such as fixed income ETFs) and non-US ETFs utilize that technical factor which has been shown to be a strong indicator of performance by itself. Background, construction, and performance of this model are detailed further in this White Paper.
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