“We’re leveraging the biggest benefit of ETFs, which is that they’re transparent,” he says. That transparency – the ability to see what any ETF holds at any given time – is used to evaluate stocks within each fund using fundamental criteria, such as sales, earnings, valuation multiples, to create an overall picture of the ETF. From there, an investor has the necessary information to determine whether that product is right for his or her portfolio.
The analysis ETF Research Center does doesn’t mean it runs a bunch of numbers that lead to a magical rating, but rather, “we are providing as much data and analysis as we can to enable financial advisors to make intelligent, informed decisions.”
Krause’s company runs numbers on 535 plain vanilla equity ETFs.
ETF Research Center’s service is aimed primarily at advisors because that market is primarily buying lots of ETFs for a wide variety of clients with varying goals. Access to the website costs $99 a month.
Visit the ETF Research Center for more information or to subscribe.