Research

IndexUniverse launches ETF Analytics

IndexUniverse has launched IndexUniverse ETF Analytics, the only institutional-calibre research tool designed specifically for exchange-traded funds.

IndexUniverse ETF Analytics helps investors identify the best funds in more than 400 specific categories, drawn from traditional asset classes such as equities and fixed income as well as commodities, currencies, and more.

The online service relies on a multifactor quantitative model, backed by an independent ETF analyst team, to provide complete ratings, rankings, and analysis of ETFs.

“This product provides professional investors with the tools they need to choose the best ETFs for their clients,” says IndexUniverse founder and chief executive Jim Wiandt. “With more than 1,400 ETFs on the market, making that choice is not easy, and the differences between similar-looking funds are often enormous. In our experience, investors and advisors often buy the most popular ETF, without taking the time to ask, ‘Is it really the right fund for me? They could be leaving one per cent, five per cent or even 30 per cent per year on the table.”

The San Francisco-based firm evaluates ETFs on three core measures:

• Efficiency: Does the fund deliver the returns it promises, with no hidden risks?

• Tradability: Can the fund be traded easily in both retail and institutional quantities?

• Fit: How well does the fund capture the investment theme it claims to be targeting?

“We’ve gathered and analysed mountains of data on each fund and distilled it into clean, concise reports written in plain English,” says Matt Hougan, president of ETF Analytics. “We evaluate each fund individually and also head-to-head against competing funds, allowing advisors to make the right investment selection the first time.”

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