How To Analyze ETFs With Bloomberg: Navigating The ETF Universe
  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: Navigating The ETF Universe

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

  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. Synthetic ETF

    An investment that mimics the behavior of an exchange-traded ...
RELATED FAQS
  1. Besides stocks, what other asset classes can I invest in through ETFs?

    Discover the extremely far-reaching range of investment asset classes that are available to investors through exchange-traded ... Read Answer >>
  2. Do ETFs pay capital gains?

    Learn about exchange-traded funds (ETFs), which can generate capital gains for their shareholders due to occasional and substantial ... Read Answer >>
  3. What types of fees are incurred by purchasing ETFs?

    Understand all the various costs, both explicit and hidden, involved in trading exchange-traded funds, or ETFs, and see how ... Read Answer >>
  4. Are ETFs required to pay out a percentage of income as dividends?

    The exchange-traded fund (ETF) is a relatively new investment vehicle, hitting the market in 1993. A fund company can create ... Read Answer >>
  5. What companies are positioned to grow from the popularity of ETFs? (VHT, DSUM)

    Discover reasons for the growing popularity of exchange-traded funds (ETFs) and some of the types of companies benefiting ... Read Answer >>
  6. Are there ETFs that track the drugs sector?

    Find out whether pharmaceutical exchange traded funds (ETFs) are available for investment. Learn more about how ETFs track ... Read Answer >>

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