Ken Leon, Standard & Poor’s equity analyst, spent some time with Maria Bartiromo on CNBC last friday to discuss the S&P ETF rating system. S&P rates each etf on a scale from “overweight” to “underweight”. The three major factors they consider are performance, risk and cost. Using their formulas, Ken was gracious enough to present Maria with three of his picks.
Pick 1: iShares MSCI EAFE Growth Index (EFG) which seeks investment results that correspond generally, before fees and expenses, to the price and yield performance of the MSCI EAFE Growth index.
Pick 2: Vanguard Dividend Appreciation ETF (VIG) which seeks to track the performance of the Mergent Dividend Achievers Select index. The fund attempts to replicate the target index by investing all, or substantially all, of assets in the stocks that make up the index, holding each stock in approximately the same proportion as weighting in the index. The index measures the investment return of common stocks of companies that have a record of increasing dividends over time
Pick 3: iShares MSCI Canada Index (EWC) which seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the Canadian market, as measured by the MSCI Canada index.
See the video below: