Advisory and asset allocation firm Koris International has launched a ratings service for Europe-listed exchange traded funds (ETFs), allowing investors another way to carry out more detailed due diligence on passive vehicles.
The French firm’s platform, called TrackInsight, has developed ratings for 520 ETFs in Europe, out of a total 650 ETFs on the platform, awarding each fund between three and five stars. Analysis includes tracking difference and tracking error, as well as looking at the long-term persistence of excess returns.
Each rated fund must have a track record of at least three years and have at least €50 million assets under management to receive a rating. The rated funds fall under one of 11 categories, spanning from developed market Europe large cap equities to emerging market bonds.
Jean-René Giraud, CEO and co-founder of Koris International, said in a statement: “The success of the TrackInsightTM platform has shown an investor appetite for improved understanding of the quality of the funds they are using. The rating methodology that we are introducing today now makes this comparison and selection a powerful tool available to everyone.”
The ETF ratings can be seen at www.trackinsight.com
The launch follows the likes of FE Trustnet, which launched a UK-listed ETF ratings service on 22 April, analysing performance, liquidity and fund size across 250 ETFs and index funds. Rayner Spencer Mills Research is also considering launching a ratings service for ETFs after looking first at passive index trackers.
Another helpful source for investors is the ETF search tool, which was launched last month by Twenty20 Investments and lists all ETFs on the London Stock Exchange.