ETF Daily News’ proprietary ratings system for ETFs is called SMART Grades (SMART is an acronym standing for Superior Market Analysis Ranking Tool). We developed this unique system to give investors and traders a dependable indicator of whether an ETF’s price is likely to go up or down in the near future.
Sample SMART Grade
XYZ – SMART Grade™
Overall SMART Grade™
XYZ has a real-time SMART Grade™ of A (Strong Buy).
XYZ – SMART Components
What’s in a SMART Grade?
An ETF’s overall SMART Grade is comprised of four distinct components:
- Trade Grade – This metric includes technical indicators like proximity to various moving averages, recent price performance, analyst sentiment, bullish and bearish news flow, and more. Simply put, a Trade Grade represents the short-term bullish or bearishness of an ETF.
- Buy & Hold Grade – This metric looks at an ETF’s proximity to its 52-week high, among other factors. The Buy & Hold Grade measures the long-term bullish or bearishness of an ETF.
- Peer Grade – This metric compares an ETF’s performance versus other ETFs in its category.
- Category Grade – This metric compares the performance of the ETF’s category versus all other categories.
SMART Grades are the new standard
The past is over
Most ETF ratings represent the opinion of a single analyst. Wall Street is rife with corruption and conflicts of interest, however, so analyst ratings have never been of much use to investors. How valuable is a single person’s opinion about an ETF, anyway?
The future is now
SMART Grades, on the other hand, are fully automated and are calculated on a daily basis using our proprietary algorithm. Our unique blend of pricing and technical data, relative performance, and categorization provides a much more useful and reliable look at how worthy an ETF is of your investment dollars.