ETFs: It’s Not Just About Fees, BAML ExplainsRupert Hargreaves
No fees are commonly cited as investors' main attraction to passive investments. ETFs, in particular, have drawn a tremendous amount of money from actively managed mutual funds, which generally charge significantly more for what in some cases is a similar strategy.
According to a new report from Bank of America Merrill Lynch, the expense ratio should not be the only factor investors consider when looking at ETFs. The report, titled "ETF evaluation process & rating system," considers the current state of the ETF market, and seeks to provide a framework for ETFs that may provide some level of alpha over peers.
Mary Ann Bartels and Elias Lanik, BoA's ETF analyst behind the report, use a fusion of technical and fundamental analysis to try to uncover the market's best ETF plays. The acronym that used to describe this process is "ETF." As per the report:
This content is exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here
If you are subscribed and having an account error please clear cache and then cookies if that does not work email firstname.lastname@example.org and we will get back to you as quick as humanly possible