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

With thousands of ETFs outstanding, and more being added every day, an important starting point for navigating the ETF universe is to use a filtering mechanism to narrow your options. The main <FUND> page provides a search engine and screening tools that you can use to find ETFs that focus on a particular asset class, market sector or geographic location. Once you have used these filters to narrow your ETF universe down to a manageable number of funds, you can then use Bloomberg's other tools to begin analyzing those ETFs. Evaluating ETFs
As with most other asset classes, the best place to begin your evaluation of an ETF is by reviewing the description function (<DES>.) This function offers a wealth of information, including what index the ETF tracks, which exchange the ETF is listed on, and the contact info for the ETF provider. The description pages also offer details such as the bid-ask spread, the market capitalization of the ETF and the average daily trading volume which can be used for evaluating how liquid the ETF in question might be.

SEE: A Guide To ETF Liquidation

Additional pages within the description function provide guidance about the holdings of an ETF. The basic page view shows the top ten holdings, while a submenu allows you to access the full holdings. This tool can be useful when evaluating similar ETFs (for example, two large cap stock funds), so that you can see how much overlap there may be between the two funds.

The holdings of the ETF are also aggregated by asset class, sector and geography. This information can be particularly valuable when evaluating market sectors with multiple index providers. For example, in the emerging market space, different indexes might have vastly different country or sector weightings, so by looking at the geographic and sector breakouts for different ETFs you can see which fund better provides the exposure you are looking for.

Figure 2 - Description function



How To Analyze ETFs With Bloomberg: Comparing ETFs
Related Articles
  1. Tech

    How To Pick The Best ETF

    Of the hundreds of exchange-traded funds on the market, some are bound to fail. Learn how to pick the best of the bunch.
  2. Investing

    Building An All-ETF Portfolio

    Balance is the key when selecting an all-ETF portfolio that will hedge against market volatility.
  3. Investing

    4 Ways to Evaluate ETFs Before Buying

    Learn four areas in which to evaluate an ETF investment to be sure that the investor has a clear understanding of the security being purchased.
  4. Investing

    4 Things to Know Before Choosing an ETF

    ETFs are a low-cost way to get exposure to different markets. But they're not all the same. Investors should research the following key information regarding the ETF before buying it.
  5. Investing

    5 ETFs Flaws You Shouldn't Overlook

    Despite their popularity, exchange traded funds have some drawbacks that investors should know about.
  6. Investing

    The Main Attractions of ETF Investing (SPY)

    As the popularity of ETFs soar, a look at the main benefits of these investment vehicles.
  7. Investing

    Guide To ETF Providers

    The exact number of ETFs on the market at any one time ebbs and flows, these twelve ETF providers offer hundreds of popular ETFs.
  8. Investing

    4 Trends in the ETF Market to Date in 2016 (SPY)

    Learn about four emerging ETF trends in 2016, including what they signal about broader trends in investing and the financial services industry.
Frequently Asked Questions
  1. How did the ABX index behave during the 2008 subprime mortgage crisis?

    Read about the disastrous performance of the various ABX indexes in the subprime mortgage crisis of 2008 during the middle ...
  2. How did moral hazard contribute to the 2008 financial crisis?

    Learn about moral hazard, how it can affect outcomes and how it contributed to the conditions that led to the 2008 financial ...
  3. Which mutual funds made money in 2008?

    Read about the only mutual fund that turned a profit in 2008. Learn about risk-averse investment strategies and the financial ...
  4. Were Collateralized Debt Obligations (CDO) Responsible for the 2008 Financial Crisis?

    Collateralized debt obligations are exotic financial instruments that can be difficult to understand, Learn the role they ...
Trading Center