Additional Analysis on ETFs
Please consider improving the information reported for ETF's by summarizing and reporting the RS,RV,GRT,EY etc values for the largest stock holdings of each ETF and report this as the RS,RV,GRT, EY value for the ETF.”
Consider partnering with a data provider already generating daily ETF analysis: eg ETF Global http://media.etfg.com/report/ETFG%20Dynamic%20Model%20Portfolios%20-%20Program%20Overview%20-%201.9.17.pdf
Randolph Tink commented
I noticed ETFs (SPY, BIB, TQQQ, TNA, for example) all have RV of 1.00 and RS of 1.00. Does this mean these values are not calculated for ETFs? Also how does this effect VST? Are they only valued by RT alone?
Ron Ingram commented
Since ETF holdings are published and the individual holdings have their own data that is already used by VV for calculating RS, RV, RT, GRT, EY, it would make sense to pursue this approach, calculating through a weighted average approach, to arrive at a more accurate representation. Since ETFs do from time to time shed component companies and add others, calculating this on the fly is essential.
One problem with this proposal is VV Canada doesn't look at stock data in US or Europe, etc, hence may be unable to resolve the parameters for a Cdn$ ETF comprising stocks in foreign markets (e.g. XIN,XSP).
ETFs of ETFs could be looked at this same way, although the data sources may be difficult. Overall I do agree ranking ETFs in the same grid with individual stocks that have been assessed under VV methodology, can be misleading, and improving on the current solution would be helpful to those of us who choose to include ETFs in our portfolios.
Harland Hendrickson commented
Yes, this would be very worth while for ETFs
Morningstar measures fair value of an ETF by comparing the market value to the sum of the components and other criteria. Whether by this or on a proprietary basis please develop an RV criterion for ETFs. Also please regularly add ETFs that meet a set threshold. As an alternative I concur with using a weighted average of the top percent of the ETF holdings. And keep working on industry and segment identification
Edward Popham commented
Agree, Say Top10 holdings.
Yes, much more analysis of ETFs. Fine tune the industry fields, add links in stocks to related ETF's. Add links to ETF external reports , holdings and ETF source. Enable subtotals (dollar & percent) by industry (all holdings)