Actionable and Forward-Looking ETF Ratings
At Valuentum, we think the best exchange traded funds (ETFs) are those that have low or reasonable expense ratios, have holdings that are collectively underpriced, and have technical and momentum indicators that are currently exhibiting bullish trends.
We embrace forward-looking thinking, and our ETF ratings consider the forward-looking fair values of an ETF's holdings, using our robust equity valuation process and the Valuentum Buying Index as a guide. Other research firms may not even calculate a fair value estimate for an ETF's holdings, leaving us to wonder how they can possibly form an opinion on the future direction of an ETF's fundamental value. And surprisingly, the ratings of other well-known independent ETF research providers aren't even used to select their favorite funds. So what are investors to do?
Well, we believe the future is all that matters in investing, and comparing and ranking the historical performance of an ETF versus peers in the past is a sure way to guarantee random results in the future. The age-old adage that past performance does not guarantee future results resonates with our subscriber base. Our ETF reports are designed to serve the needs of individual investors and financial advisors.
In each ETF report, we tell you what we think of the ETF's potential excess return, the timeliness of it as an investment based on an overall technical assessment, and compare its expense ratio versus peers. We can't see another meaningful way to evaluate an ETF, and you can rest assured that our ratings actually mean something and aren't just a scorecard of an investment's performance using the rear-view mirror as the playing field. The Financial Crisis has taught us that rear-view-mirror investing is a recipe for disaster.
In addition to our ETF analysis, with a subscription to the website, you gain access to all of our in-depth stock and dividend reports, premium commentary/articles on our site, receive our market-beating Best Ideas Newsletter and Dividend Growth Newsletter in your inbox every month (including email transaction alerts), and have access to our analyst team.
If you're new to the site, please be sure to also access our stock research (click here) and dividend research (click here) as part of your membership. Our stock and dividend reports together provide a complete picture of each firm's investment potential, from value through income through momentum strategies. To request a report of an ETF we do not currently cover, please contact us.
About Our Name
But how, you will ask, does one decide what [stocks are] "attractive"? Most analysts feel they must choose between two approaches customarily thought to be in opposition: "value" and "growth,"...We view that as fuzzy thinking...Growth is always a component of value [and] the very term "value investing" is redundant.
-- Warren Buffett, Berkshire Hathaway annual report, 1993
At Valuentum, we take Buffett's thoughts one step further. We think the best opportunities arise from a complete understanding of all investing disciplines in order to identify the most attractive stocks at any given time. Valuentum therefore analyzes each stock across a wide spectrum of philosophies, from deep value to momentum investing. And a combination of the two approaches found on each side of the spectrum (value/momentum) in a name couldn't be more representative of what our analysts do here; hence, we're called Valuentum.
Valuentum has developed a user-friendly, discounted cash-flow model that you can use to value any operating company that you wish. Click here to buy this individual-investor-friendly model now! It could be the best investment you make.
Our Best Ideas Newsletter and Dividend Growth Newsletter are for information purposes only and should not be considered a solicitation to buy or sell any security. Valuentum is not responsible for any errors or omissions or for results obtained from the use of our newsletters, reports, and other publications and accepts no liability for how readers may choose to utilize the content. Valuentum is not a registered investment advisor and does not offer brokerage or investment banking services and adheres to professional standards and abides by formal codes of ethics that put the interests of clients and subscribers ahead of their own. Valuentum, its employees, and affiliates may have long, short or derivative positions in the stock or stocks mentioned on this site.