ETF Global Risk Reward Ratings
ETF Global ranks individual ETFs on two critical fronts: Risk and Reward. After rating each ETF within the universe of ETFs, using our proprietary model, ETFG assigns a corresponding number of diamonds to each rated ETF. The ETFG rating system is a relative rating system which evaluates each ETF relative to the overall universe of ETFs for a reasonable investment horizon, generally 6 – 12 months.
ETF Global Historical Risk & Reward Ratings: Since the launch of the ETFG ratings system in 2012, we have tracked a variety of metrics regarding the efficacy of the ETFG Risk and Reward Scores. Each month, we update these measures to reflect all the US-Listed ETFs for their respective Current, Last Quarter, Last Year, 3 Year and 5 Year Average ETFG Red Diamond Risk Rating and their respective Green Diamond Reward Rating. In addition, we reflect the number of times that an ETF has been selected to the ETFG Weekly Select List and in comparison show some ratings from outside firms.
- Please see here: 4.1.18 - ETF Global Risk & Reward Ratings - Historical
ETF Global 10 Red Diamond Risk Rating: An ETFG 10 Red Diamond Risk Rating represents the ETFs with the highest risk rating. A 1 Red Diamond Risk Rating represents the ETFs with the lowest risk ratings. ETFG’s Risk Rating measures two primary risk categories: Price Risk and Integrity Risk. Price and Integrity risk are equally weighted in the overall risk rating with Price Risk calculating 7 equally weighted underlying measurements covering such aspects as volatility and deviation. Integrity Risk calculates 8 equally weighted underlying measurements regarding the structure and trading characteristics of the security and its sponsor. The Overall Risk Rating Score is aggregated and carried to two decimal places to generate the ETFG Red Diamond Risk Rating. ♦♦♦♦♦♦♦♦♦♦
ETF Global 10 Green Diamond Reward Rating: An ETF Global 10 Green Diamond Reward Rating reflects an ETF with the most attractive reward rating and a Green Diamond Reward Rating of 1 reflects an individual ETF carrying the least attractive reward rating. ETFG’s Green Diamond Reward Rating System is calculated utilizing the ETFG proprietary Model measuring two primary reward categories: Fundamental and Behavioral. Fundamental and Behavioral are equally weighted and driven by ETFG’s proprietary algorithms in 25 underlying fields. The Overall Rating Score is aggregated and carried to two decimal places to generate the Reward Rating. ♦♦♦♦♦♦♦♦♦♦
For questions or inquiries regarding the ETF Global Ratings System, please call our subscription research support desk at (412) 407-4444 or e-mail our research support team at email@example.com