“They could be leaving 1 percent, 5 percent or even 30 percent per year on the table.”
IndexUniverse ETF Analytics offers the broadest and deepest coverage of ETFs, helping investors identify the best funds in more than 400 specific categories, drawn from traditional asset classes such as equities and fixed income as well as commodities, currencies, and more.
The online service relies on a multifactor quantitative model, backed by the largest independent ETF analyst team in the world, to provide complete ratings, rankings, and analysis of ETFs.
“This product provides professional investors with the tools they need to choose the best ETFs for their clients,” said IndexUniverse founder and CEO Jim Wiandt. “With more than 1,400 ETFs on the market, making that choice is not easy, and the differences between similar-looking funds are often enormous.
“In our experience, investors and advisors often buy the most popular ETF, without taking the time to ask, ‘Is it really the right fund for me?’” Wiandt continued, “They could be leaving 1 percent, 5 percent or even 30 percent per year on the table.”
The San Francisco-based firm evaluates ETFs on three core measures:
• Efficiency: Does the fund deliver the returns it promises, with no hidden risks?
• Tradability: Can the fund be traded easily in both retail and institutional quantities?
• Fit: How well does the fund capture the investment theme it claims to be targeting?
“We’ve gathered and analyzed mountains of data on each fund and distilled it into clean, concise reports written in plain English,” said Matt Hougan, president of ETF Analytics. “We evaluate each fund individually and also head-to-head against competing funds, allowing advisors to make the right investment selection the first time.”
Hougan continued, “We built ETF Analytics because we kept hearing from advisors that they were confused by their ETF choices and weren’t satisfied with existing analytics solutions. They needed a fast, thorough and reliable way to choose ETFs. This is it.”
Carlos Hermida of Miami-based RIA Cela Advisors agrees: “The presentation of the information is terrific and exactly what is needed for professionals in this field. The segment reports are the most important report any portfolio manager could have when selecting the right ETF.”
ETF investing has only gotten more complex with the explosive growth in the industry and hundreds of products introduced annually. Unfortunately, older systems developed in the heyday of mutual funds are no longer valid. For example, Morningstar assigns star ratings to ETFs based on past performance, essentially rewarding funds that were in the hottest segments of the market. In contrast, IndexUniverse ETF Analytics helps investors find the most efficient, tradable, and best-structured funds for any given investment strategy.
“The market has been crying out for an ETF-specific analytics solution that meets the needs of today’s financial advisors,” said Wiandt. “We’re excited about filling that need.”
Founded in 2001, IndexUniverse is the world’s leading independent authority on Exchange-Traded Funds (ETFs), indexes, and index funds. Its flagship service, IndexUniverse ETF Analytics, offers investors the only institutional-caliber research tool designed specifically for ETFs. IndexUniverse aims to provide the industry’s best news and insight both online (through IndexUniverse.com and IndexUniverse.eu) and in print (through the award-winning ETF Report, Journal of Indexes, and Journal of Indexes Europe). IndexUniverse also hosts the world’s largest events focused on ETFs and indexes, including Inside ETFs, Inside ETFs Europe, Inside Commodities, Inside ETFs Trading, and Inside Fixed Income.