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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
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  • Best & Worst ETFs & Mutual Funds: Information Technology Sector

    The Information Technology sector ranks third out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report. It gets my Neutral rating, which is based on aggregation of ratings of 27 ETFs and 144 mutual funds in the Information Technology sector as of July 15, 2014. Prior reports on the best & worst ETFs and mutual funds in every sector arehere.

    Figures 1 and 2 show the five best and worst-rated ETFs and mutual funds in the sector. Not all Information Technology sector ETFs and mutual funds are created the same. The number of holdings varies widely (from 24 to 425). 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 worstETFs and mutual funds within the Information Technology sector, investors need a predictive ratingbased 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 Information Technology 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 free mutual fund and ETF screener.

    End of Preview Subscribers: 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 14 5:07 PM | Link | Comment!
  • What We're Reading This Morning — August 14, 2014
    August 14:
    • Are you being curious enough? - (The Reformed Broker)
    • Ackman's Sales Pitch for His Hedge Fund, and His I.P.O. - (Dealbook)
    • Nearly a third of the worst performers each year start out at expensive valuations - (Yahoo Finance)
    • The importance of understanding your general portfolio framework - (Pragmatic Capitalism)
    • Amazon wants to get into another low (or negative) margin business - (New York Times)
    • Three Ballmer Buys That Were Crazier Than the Clippers - (Businessweek)
    Aug 14 10:02 AM | Link | Comment!
  • Best And Worst ETFs And Mutual Funds: Health Care Sector

    The Health Care sector ranks sixth out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report. It gets my Neutral rating, which is based on aggregation of ratings of 22 ETFs and 82 mutual funds in the Health Care sector as of July 14, 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 Health Care sector ETFs and mutual funds are created the same. The number of holdings varies widely (from 20 to 310). 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 Health Care 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 Health Care 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 Preview Subscribers: 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 3:13 PM | Link | Comment!
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