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David Trainer
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Follow me on Twitter: @NewConstructs David is CEO of New Constructs (www.newconstructs.com), an independent research firm that leverages proprietary technology to find key insights from the Financial Footnotes of 10Ks and 10Qs. Having analyzed over 70,000 annual reports and their Financial... More
My company:
New Constructs
My blog:
The Diligence Institute
My book:
The Valuation Handbook
View David Trainer's Instablogs on:
  • What We're Reading This Morning — July 18, 2014
    Aug 12 12:23 PM | Link | Comment!
  • Financials Sector

    The Financials sector ranks ninth out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report. It gets my Dangerous rating, which is based on aggregation of ratings of 46 ETFs and 232 mutual funds in the Financials sector as of July 15, 2014. Prior reports on the best & worst ETFs and mutual funds in every sector are here.

    Figures 1 and 2 show the five best and worst-rated ETFs and mutual funds in the sector. Not all Financials sector ETFs and mutual funds are created the same. The number of holdings varies widely (from 21 to 540). This variation creates drastically different investment implications and, therefore, ratings. The best ETFs and mutual funds allocate more value to Attractive-or-better-rated stocks than the worst ETFs and mutual funds, which allocate too much value to Neutral-or-worse-rated stocks.

    To identify the best and avoid the worst ETFs and mutual funds within the Financials sector, investors need a predictive rating based on (1) the stocks ratings of the holdings, (2) the all-in expenses of each ETF and mutual fund, and (3) the fund's rank compared to all other ETFs and mutual funds. As a result, only the cheapest funds with the best holdings receive Attractive or better ratings.

    Investors need not rely on backward-looking ratings. My fund rating methodology is detailed here. Investors seeking exposure to the Financials sector should buy one of the Attractive-or-better rated ETFs or mutual funds from Figures 1 and 2.

    Get my ratings on all ETFs and mutual funds in this sector on my mutual fund and ETF screener.

    End of PreviewSubscribers: login and access the report here.

    social-media-profile-logo-185x150

    Dear readers,

    We hope you've enjoyed free access to our excellent content over the past 4+ years.

    We are no longer offering all of our reports for free. You may have noticed that many of the top experts in the financial sector value our reports quite highly. Barron's has featured our best-in-market research seven times this year already as have USA Today, CNBC, MarketWatch.com, The Motley Fool, The Wall Street Journal, Abnormal Returns, Fox Business and the list goes on.

    For a limited time, you can get access to all our reports along with Most Attractive, Most Dangerous Stocks or Best & Worst ETFs & Mutual Funds newsletters for as little as $9.99/month.

    And you get access immediately, which can be a lot sooner than our syndication partners.

    To learn more about New Constructs offerings, take a Virtual Tour of our Site.

    Thank you for reading our blog,

    David Trainer, CEO of New Constructs, LLC

    Aug 12 12:21 PM | Link | Comment!
  • Best And Worst ETFs And Mutual Funds: Energy Sector

    The Energy sector ranks eighth out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report. It gets my Dangerous rating, which is based on aggregation of ratings of 20 ETFs and 94 mutual funds in the Energy sector as July 17, 2014. Prior reports on the best & worst ETFs and mutual funds in every sector are here.

    Figures 1 and 2 show the five best and worst-rated ETFs and mutual funds in the sector. Not all Energy sector ETFs and mutual funds are created the same. The number of holdings varies widely (from 23 to 167). This variation creates drastically different investment implications and, therefore, ratings. The best ETFs and mutual funds allocate more value to Attractive-or-better-rated stocks than the worst ETFs and mutual funds, which allocate too much value to Neutral-or-worse-rated stocks.

    To identify the best and avoid the worst ETFs and mutual funds within the Energy sector, investors need apredictive rating based on (1) the stocks ratings of the holdings, (2) the all-in expenses of each ETF and mutual fund, and (3) the fund's rank compared to all other ETFs and mutual funds. As a result, only the cheapest funds with the best holdings receive Attractive or better ratings. Investors need not rely on backward-looking ratings. My fund rating methodology is detailed here.

    Investors should not buy any Energy ETFs or mutual funds because none get an Attractive-or-better rating. If you must have exposure to this sector, you should buy a basket of Attractive-or-better rated stocks and avoid paying undeserved fund fees. Active management has a long history of not paying off. Here's the listof our top-rated Energy stocks

    Get my ratings on all ETFs and mutual funds in this sector on my free mutual fund and ETF screener.

    End of PreviewSubscribers: login and access the report here.

    social-media-profile-logo-185x150

    Dear readers,

    We hope you've enjoyed free access to our excellent content over the past 4+ years.

    We are no longer offering all of our reports for free. You may have noticed that many of the top experts in the financial sector value our reports quite highly. Barron's has featured our best-in-market research seven times this year already as have USA Today, CNBC, MarketWatch.com, The Motley Fool, The Wall Street Journal, Abnormal Returns, Fox Business and the list goes on.

    For a limited time, you can get access to all our reports along with Most Attractive, Most Dangerous Stocks or Best & Worst ETFs & Mutual Funds newsletters for as little as $9.99/month.

    And you get access immediately, which can be a lot sooner than our syndication partners.

    To learn more about New Constructs offerings, take a Virtual Tour of our Site.

    Thank you for reading our blog,

    David Trainer, CEO of New Constructs, LLC

    Aug 08 4:51 PM | Link | Comment!
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