Alert HQ's ETF Analysis - trend and performance rankings for over 2000 ETFs
Welcome to our ETF analysis pages. Here we will try to answer some of your questions regarding ETFs and hopefully identify some good investment opportunities in the ETF space.
We are often asked the following questions:
"ETF vs index fund" - what's the difference? Not much! ETFs are generally based on an index that has been developed, often by a third party, and the ETF's managers work to make the ETF a good representation of the index by buying all the same stocks listed in the index. Following an index rather than actively picking stocks is known as passive investing.
"ETF vs mutual fund" - how are they different? ETFs can be traded throughout the day but mutual funds trade only at the end of the day. Many mutual funds have active management, whereas most ETFs are based on an index as described above. In the case of active management, invest managers follow their own investment processes rather than simply following an index. Note, however, the mutual fund world is quite complicated and some mutual funds do follow indexes (just like ETFs) and others don't. Fees is another area where there can be differences. In general, ETF fees are lower than mutual fund fees because the ETF passive investing style is cheaper to implement and the savings are passed on to investors. It must be said that investors must beware of fees in both ETFs andmutual funds. The more complicated the investment process, the higher the fees. For example, some ETFs write covered calls and some implement a fund-of-funds approach. These kinds if ETFs can have much higher fees that a plain vanilla ETF or mutual fund.
"What kinds of ETFS are out there?" These days there are ETFS targeting almost every imaginable investment need.
- Need an ETF for a bear market? - Inverse ETFS like those from ProShares or Direxion are available in a number of different styles. They go up when the underlying index goes down. They also come in 2X and 3X leveraged varieties.
- Want an ETF for Vietnam or Brazil? - there are dozens of country specific ETFs as well as ETFs that bundle stocks from multiple countries into ETFs that focus on emerging markets, for example, or the whole European market
- How about an ETF for income? - there are many ETFs to choose from. Some focus simply on companies with strong dividends, some focus strictly on bonds. Some ETFs contain preferred shares. Some use leverage. You can choose between funds that invest in junk bonds or corporate investment grade bonds or U.S. government bonds or foreign government bonds.
- Want to trade commodities? - There are ETFs for gold, oil, agricultural products, even water.
- What about hot sectors? - lately, the hottest sector has been technology. The good news is that there are ETFs that correspond to all sectors: financial, technology, health care, energy, industrial, consumer discretionary, etc., etc.
- I don't want to be so specific. Are there more general ETFs? - There are many general ETFs. Some invest in the all the stocks in the Russell 3000, for example, which would give you exposure to essentially most of the U.S. stock market. Another popular choice are the ETFs that invest only in the S&P 500 index. There are what is known as "style" ETFs that invest in Growth stocks or Value stocks or Low Volatility stocks regardless of industry sector or market cap.
What ETF to buy? Use our analysis to guide your ETF trading
Alert HQ's ETF Analysis covers over 1600 index funds. Our comprehensive technical analysis provides a set of special stock screens that focus on:
- Trend analysis:
- Trend Scorecards
- Changes in Trend
- Sector and Style analysis based on popular iShares ETFs
- Week-to-week Price Performance
- This is the home of the "Trend Performance Score"
Great ways to use our ETF rankings:
- Find top ETFs
- Find ETFs you may never have heard of
- See which ETFs are showing the strongest trends and ride their momentum
- See which ETFs are showing the weakest trends and avoid them!
- Identify the top performing best ETFs in the strongest sectors
- Look for bargains in the weakest sectors
- Identify buy list candidates by finding ETFs that are moving up in the rankings