NFO Fund Description

The Guggenheim Insider Sentiment ETF tracks an equal-weighted index of the 100 U.S. stocks selected by increases in earnings estimates and publicly available buying trends of corporate insiders.

NFO ETF.com Insight

NFO chooses 100 names from all US-listed stocks using a rules-based index that selects by two main factors: trading in company stock by corporate insiders and earnings estimates. Corporatehas decent assets and can be traded fairly insiders should know more about their firm than anyone, so the idea is to watch public filings to see when officers and directors buy company shares, then mimic their actions. More specifically, the index looks at the number of insiders buying shares (more is better), and the relative size of the purchase. The index uses insider sentiment only for the buy decision, not the sell decision. It also considers forward earnings estimates as a reality check and attempts to keep sector exposure somewhat in check. The portfolio takes on extra market risk–small- and micro-caps dominate the basket, but it has failed to deliver any outperformance. NFO charges 0.65%, has decent assets and can be traded fairly. (Insight updated 08/26/2014)

  • 1 Month
  • 3 Months
  • YTD
  • 1 Year
  • 3 Years
  • 5 Years
  • Max
Performance [as of 10/21/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
NFO -4.18% -4.26% -1.19% 5.54% 14.79% 13.05% --
NFO (NAV) -4.06% -4.18% -0.99% 5.68% 16.11% -- --
Sabrient Insider Sentiment Index -4.00% -4.02% -- 6.41% 16.80% -- --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

NFO Top 10 Countries

NFO Top 10 Sectors

NFO Top 10 Holdings View All

NFO Summary Data

Guggenheim

A company that produces and manages ETFs.

09/21/06

The first date of a fund's operations, as documented by the issuer.

Open-Ended Fund

The organizational structure of the fund or ETN.

0.65%

The net total annual fee a fund holder pays to the issuer.

$159.95 M

The market value of total assets that a fund has accumulated and now manages on behalf of investors.

$716.03 K

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

0.09%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent.

NFO Portfolio Data

$17.63 B

Describes the average of each stock's market cap (share price x shares outstanding) scaled by its weight in the portfolio.

23.84

Weighted average ratio of prices of a fund’s stocks to trailing earnings of underlying stocks.

2.34

Weighted average ratio of prices of a fund’s stocks to the book value of underlying equity.

0.97%

The ratio of distributions paid by the fund over the past 12 months, divided by the fund’s NAV.

12/24/14

The date on which a security's price excludes an upcoming dividend.

100

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

NFO Index Data

Sabrient Insider Sentiment
Index

This is the benchmark an ETF is desigend to track or replicate.

Equal

A set of rules that the underlying index provider follows to weight its constituent securities.

Proprietary

A set of rules that the underlying index provider follows to select its constituent securities.

MSCI USA Investable Markets

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

Related ETFs to NFO

KNOW, PKW, TTFS

ETFs from within the same segment or closely related segments with similar investment objectives or market exposures.

NFO ETF.com Efficiency Insight

NFO's 0.65% annual fee is roughly on par with other alpha-seeking funds but not cheap for US equities. The fund's $200M asset base may seem unremarkable, but it's higher than many competing funds, and more importantly, it keeps closure risk low. The issuer actively lends underlying stocks and returns all net proceeds to the fund. (Insight updated 08/26/2014)

Total Return - 10/21/2014
  • 1 Month
  • 3 Months
  • YTD
  • 1 Year
  • 3 Years
  • 5 Years
  • Max
Performance [as of 10/21/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
NFO -4.18% -4.26% -1.19% 5.54% 14.79% 13.05% --
NFO (NAV) -4.06% -4.18% -0.99% 5.68% 16.11% -- --
Sabrient Insider Sentiment Index -4.00% -4.02% -- 6.41% 16.80% -- --
MSCI USA Investable Markets -3.40% -1.55% 5.22% 11.45% 18.15% 14.41% --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

NFO Portfolio Management

0.65%

The net annual fee a fund holder pays to the issuer.

-0.79%

Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results.

-0.30%

Largest deviation in a positive direction of a fund's returns vs. its underlying index over the past 12 months.

-0.88%

Largest deviation in a negative direction of a fund's returns vs. its underlying index over the past 12 months.

NFO Tax Exposures

20.00% / 39.60%

The maximum long-term and short-term U.S. tax rates applicable to a realized capital gain.

0.00%

The average capital gains paid out to shareholders in the past 36 months, measured as a percent of net asset value (NAV) at the time.

Qualified dividends

IRS treatment of the majority of the fund's distributions.

No

ETFs that are structured as commodities pools and classified as limited partnerships by the IRS will issue K-1 forms to holders.

NFO Fund Structure

Open-Ended Fund

The organizational structure of the fund or ETN.

No

An indicator of whether a fund uses over-the-counter derivatives such as swaps or forwards to achieve its objectives.

Yes

An indicator of whether or not a fund actively lends its portfolio holdings.

100% / 0%

The division of securities lending revenue between the fund and the issuer.

N/A

The institution responsible for providing the return of the stated index and whose credit is the sole backing of the ETN.

N/A

The risk of default by the ETN counterparty.

Low

The likelihood that an issuer will shut down a fund for business or regulatory reasons.

Daily

The frequency of an issuer's disclosure of all fund holdings.

NFO ETF.com Tradability Insight

NFO trades with so-so liquidity. For small and medium size orders, spreads are volatile but average only 9 bps on median daily volume of roughly $350K. While insufficient for active traders, NFO's liquidity should still allow investors to trade in and out fairly with a bit of care. Costs for large trades using a liquidity provider are decent but one notch low probably due to NFO's generous small-cap exposure. (Insight updated 08/26/2014)



Average Spread
Premium/Discount
Volume

NFO ETF.com/ Block LiquidityAs of 10/22/2014

5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of NFO. NFO is rated a 5 out of 5.

NFO Tradability

15,228

It is the daily number of shares traded, averaged over the past 45 trading days.

$716.03 K

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

10,814

Median number of shares traded over the past 45 trading days.

$515.7 K

Median dollar value of shares traded over the past 45 trading days.

0.09%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent.

$0.04

The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars.

0.02%

The middle value in the ranked set of all premium/discount values over a maximum 12-month period.

0.36% / -0.30%

The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a maximum 12-month period.

None

This flags whether there is currently a systemic issue that has restricted the ability to create or redeem shares of the fund. This may be imposed by the fund's issuer, or by external circumstances.

100.00%

The percent of time that the underlying securities of an ETF are open to trading while US exchanges are open.

50,000

The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund.

0.22

The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots.

0.02%

The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit.

0.14%

This metric serves as a way of understanding the impact of executing 1 creation unit worth of an ETF in terms of the volume of its underlying components.

--

The total number of net outstanding options contracts for an ETF.

$46.35

The total market value of the assets that an ETF holds less fund expenses.

5

An estimate of liquidity for the underlying baskets of securities, scaled 1 to 5.

NFO ETF.com Fit Insight

NFO's index picks stocks using public information on purchases of company stock by firms' officers and directors. The fund's sector biases–toward consumer cyclicals and industrials and away from healthcare–aren't radical in the context of the space. But by firm size, the fund diverges from the market even more, with about 40% in small- and micro-caps combined, which may explain NFO's high beta (1.15) to the market. The fund has lagged the broad US market, so the only alpha we found was indeed negative. (Insight updated 08/26/2014)

NFO Sector/Industry Breakdown

NFO Segment Benchmark
17.20% 19.17%

13.60% 18.14%

13.25% 16.70%

17.05% 13.91%

12.30% 12.67%

9.12% 8.14%

3.10% 4.12%

3.16% 3.13%

NFO Geographic ExposureView All

NFO Segment Benchmark
99.69% 100.00%

0.10% --

0.00% --

0.02% --

0.04% --

0.02% --

0.07% --

0.01% --

0.01% --

0.04% --

NFO Segment Benchmark
99.71% 100.00%

0.10% --

0.16% --

0.02% --

99.98% / 0.02% 100.00% / --

NFO Performance Statistics

0.88

The degree to which the fund and its segment benchmark move up and down in unison.

1.15

The sensitivity of the returns of the fund to the movement of the ETF.com segment benchmark. Beta of 1.0 means magnitude of fund returns equals that of IU benchmark returns.

-6.75%

The excess return of fund relative to ETF.com segment benchmark on a risk adjusted basis. Only reported if statistically significant.

1.04

The comparison of a fund's return to our benchmark's for days when the benchmark is up. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

1.13

The comparison of a fund's return to our benchmark's for days when the benchmark is down. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

0.31%

A measure of the variability between the fund's returns and the ETF.com segment benchmark returns on days when the fund underperforms the benchmark.

MSCI USA Investable Markets

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

NFO Benchmark Comparison

NFO
100 Holdings
Segment Benchmark
2473 Constituents
Shared Holdings
97 (Count)
 
6.75% (Weight)
NFOSegment Benchmark
$103.84 B$17.63 B

The average market capitalization of the firms in the portfolio based on each firm’s weighting in the portfolio.

The breakdown of the portfolio’s holdings into each market capitalization bucket based on each firm’s weighting in the portfolio.

76%29%
18%36%
6%28%
1%7%
20.9823.84

Weighted average ratio of prices of a fund’s stocks to trailing earnings of underlying stocks.

2.632.34

Weighted average ratio of prices of a fund’s stocks to the book value of underlying equity.

1.80%1.76%

The weighted average of the current yield on the portfolio’s holdings.

2473100

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

LowLow

The level of return contribution attributable to the average portfolio constituent.