How To Analyze ETFs With Bloomberg: Comparing ETFs
AAA
  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. Factor Investing

    An investment strategy in which securities are chosen based on ...
  2. Reverse Gold ETF

    Exchange traded funds that are designed to trade in a direction ...
  3. Investment Fund

    A supply of capital belonging to numerous investors that is used ...
  4. Short Gold ETF

    An exchange traded fund that seeks to profit from negative changes ...
  5. Shariah-Compliant Funds

    An investment fund which meets all of the requirements of Shariah ...
  6. Total Annual Fund Operating Expenses

    For a mutual fund or other type of fund management structure, ...
  1. What are the regulations involved in releasing an ETF on the open market?

    Learn how an exchange traded fund comes to life, and find out about regulations surrounding ETF release from the Investment ...
  2. Are there leveraged ETFs that track the oil & gas drilling sector?

    Explore the investing options that are available through leveraged ETFs that can be used to track the oil and gas drilling ...
  3. Are there leveraged ETFs that track the utility sector?

    Discover leveraged ETFs tracking the utilities sector, and learn the advantages and disadvantages they present to investors.
  4. Is a REIT a type of ETF?

    Learn the differences between real estate investment trusts, or REITs, and exchange-traded funds, or ETFs, to see how the ...

You May Also Like

Related Tutorials
  1. Mutual Funds & ETFs

    Top ETFs And What They Track: A Tutorial

  2. Retirement

    Analyzing The Best Retirement Plans And Investment Options

  3. Mutual Funds & ETFs

    Guide To ETF Providers

  4. Mutual Funds & ETFs

    Complete Guide To Investment Companies, Funds And REITs

  5. Mutual Funds & ETFs

    Exchange-Traded Funds (ETFs)

Trading Center