How To Analyze ETFs With Bloomberg: Comparing ETFs
  1. How To Analyze ETFs With Bloomberg: Introduction
  2. How To Analyze ETFs With Bloomberg: Navigating The ETF Universe
  3. How To Analyze ETFs With Bloomberg: Comparing ETFs
  4. How To Analyze ETFs With Bloomberg: Trading ETFs

How To Analyze ETFs With Bloomberg: Comparing ETFs

In addition to comparing the holdings of different ETFs, Bloomberg can also be used to compare the price performance of ETF's. The best function for this is the comparison function - <COMP>. There are two main types of performance you might want to analyze. The first analysis you might want to perform is a comparison of the performance of an ETF with its underlying index. For example, you might want to analyze the performance over the last five years for the SPDR S&P 500 ETF with the underlying S&P 500 index. This will give you a good idea of what the tracking error of the ETF has been over time. This exercise is less important with large, liquid ETFs that track well-known indexes such as the S&P 500. However, evaluating tracking errors may be vital for more esoteric ETFs, such as leveraged or inverse funds, as well as some country- or sector-specific funds.

SEE: How To Pick The Best ETF

The second type of performance comparison that you might want to do with the <COMP> function would be between two ETFs. For example, you might want to look at the relative performance of two well-known high yield bond ETFs - HYG and JNK. In this scenario, you may want to choose the one that has done better over an extended period, or you may be more interested in an ETF that did well during a particular market cycle.

How To Analyze ETFs With Bloomberg: Trading ETFs

  1. How To Analyze ETFs With Bloomberg: Introduction
  2. How To Analyze ETFs With Bloomberg: Navigating The ETF Universe
  3. How To Analyze ETFs With Bloomberg: Comparing ETFs
  4. How To Analyze ETFs With Bloomberg: Trading ETFs
RELATED TERMS
  1. ETF Of ETFs

    An exchange-traded fund (ETF) that tracks other ETFs rather than ...
  2. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  3. Inverse ETF

    An exchange-traded fund (ETF) that is constructed by using various ...
  4. Stock ETF

    A security that tracks a particular set of equities, similar ...
  5. Index ETF

    Exchange-traded funds that follow a specific benchmark index ...
  6. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for ...
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  3. Besides stocks, what other asset classes can I invest in through ETFs?

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  4. Are there ETFs that track the drugs sector?

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