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Friday, July 13, 2012

Roadmap to the Best & Worst Sectors for ETFs & Mutual Funds

English: The Mutual Fund Store office, 37308 S...
English: The Mutual Fund Store office, 37308 Six Mile Road, Livonia, Michigan (Photo credit: Wikipedia)
Each quarter, we provide the most comprehensive review of equity ETFs and mutual funds available. We review the Best & Worst ETFs and Mutual Funds by sector and style. We also identify the overall best sectors and investment styles for ETFs and for mutual funds. We begin the 3Q12 series with our Sector Roadmap report. Over the next two weeks, we will publish 20+ reports on each sector and style. We will also publish a Style Roadmap report and a review of how well investors allocate assets to the best ETFs & funds.
Only one sector, Consumer Staples, earns my Attractive rating. See Figure 1 for my rankings of all ten sectors. My sector ratings are based on the aggregation of my fund ratings for every ETF and mutual fund in each sector.
Investors looking for quality sector funds that hold quality stocks should look no further than the Consumer Staples, Information Technology and Health Care sectors. These three sectors house 33 of the 37 Attractive-or-better rated funds. Figures 4 and 6 provide details. The primary drivers behind an Attractive fund rating are good portfolio management, or good stock picking, and low total annual costs.
See Figures 4 through 13 for a detailed breakdown of ratings distributions by sector. See my free ETF & mutual fund screener for rankings, ratings and free reports on 7000+ mutual funds and 400+ ETFs. My fund rating methodology is detailed here. ... Continue to read.
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