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. Investing

    A Look At the Growth Of the ETF Industry

    Explore the phenomenal growth rate of the ETF industry, and learn some of the principal reasons why ETFs are projected to continue to grow at a rapid pace.
  2. Investing

    The Advantages of ETFs Compared to Index Funds

    With the ongoing ETF boom, ETFs gain more variety and increased competition in the market leads to further investors' advantages compared to index funds.
  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. Financial Advisor

    What All Investors Should Know About ETFs

    ETFs have become popular for their versatility and variety, but that doesn't mean they're always the right choice and that they're all created equal.
  7. Investing

    The Main Attractions of ETF Investing (SPY)

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

    5 Reasons to Pick ETFs Over Mutual Funds

    Discover five reasons why average investors and sophisticated hedge funds choose ETFs instead of mutual funds to meet their investment goals.
Frequently Asked Questions
  1. Who are Monsanto's main competitors?

    Learn about Monsanto Company's two main operating divisions and its main competitors within each sector, including The Mosaic ...
  2. What is an assumable mortgage?

    The purchase of a home is a very expensive undertaking and usually requires some form of financing to make the purchase possible. ...
  3. Do I have to complete all exams within a certain period of time to receive the CFA charter?

    According to the CFA Institute, a candidate can take as much time as necessary to complete all three levels of the CFA program.Therefore, ...
  4. What is a reasonable amount of debt?

    It really depends on numerous factors - what stage of life you are at, your spending and saving habits, the stability of ...
Trading Center