High Customer Satisfaction Helps This ETF Strategy Stand Out

High customer satisfaction has helped U.S. companies grow and out compete their competition. As a way to capitalize on this phenomenon, investors can look to a recently launched smart beta exchange traded fund.

ETF Trends publisher Tom Lydon spoke with Kevin Quigg, Chief Strategist at ACSI Funds, at S&P Dow Jones Indices, at the Inside ETFs conference that ran Jan. 22-25, 2017 to talk about a strategy that capitalizes on the outperformance in companies that value its customers.

“The premise is simple – companies whose customers are pleased with the products and services they receive tend to out compete their competitors with customers that are less involved,” Quigg said. “The work comes in quantifying customer satisfaction.”

Research has revealed customer satisfaction allows firms to outperform what many market observers believed would be the company’s near-term performance as traders react to information once made public, which suggests that the markets may be underpricing or not factoring in customer satisfaction when valuating company stock prices.