Organizing the ETF Universe with Index Strategy Boxes

ETF Index StrategiesETFguide’s Index Strategy Boxes categorize exchange-traded funds (ETFs) and related products into nine grid shapes with each shape representing a specific index strategy. (See graphic image to the right.)

The vertical axis groups index strategies into three broad methods for selecting securities: passive, screened, and quantitative. The horizontal axis categorizes index strategies into three broad security weighting methods: market capitalization, fundamental, and fixed/equal weight.

Index Strategy Boxes enables investors to quickly identify and distinguish the differences between indexing strategies. This user friendly tool is easily applied to equity, fixed income and commodity indexes.

ETFguide’s Strategy Boxes are a powerful visual aid to quickly identify and distinguish index strategies. The purpose of Index Strategy Boxes is to help you see the ETF marketplace with clarity.

Investors can now compare the cost and performance of indexing strategies for ETFs in various fund categories. For example, which index strategies in the large cap blend category are performing the best? Is it passive market cap? Or, is it screened fundamental? Index Strategy Boxes tells you the answer. Large cap blend ETFs have nine possible index strategies and can now be analyzed according to their Strategy BoxT classification.

By using ETFguide’s online Strategy BoxT database, you can search, sort, and compare ETFs by their actual index strategy – not by how fund marketers have labeled these products.

This powerful financial tool lays the groundwork for accurate investment decisions and better portfolio construction. It’s rigorous, uniform, and easy to understand for both individual and professional investors. Add it to your arsenal today.


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