Let’s Mine for ETFs
After months of development work and we are excited to unveil the ETF Miner.
Its purpose is to efficiently scan through the world of exchange traded products. An ETF is an exchange traded fund which is a subset of exchange traded products. ETFs which usually own underlying securities, are the subset of this blog. Exchange traded products that are not ETFs have different structures which tie to a particular index or are based on the required performance by the issuer. When you are ready to choose, review the particular structure to see if it is right for you.
We start by asking questions to our users to see what is desired with an aim to deliver highly targeted results. Before delivering the results, the ETF Miner also reviews a proprietary element which covers topics such as performance, replication structure, number of holdings etc. This element is undertaken solely by Threadvest to streamline the user experience.
The data in finance is growing each day. The ETF Miner captures 20Mbs of data each day from an institutional quality database and stores them on the server for your use.
What does Miner exactly do?
Currently there are more than 2000 US issued ETFs, and this number is growing constantly. The Miner is supposed to deliver an ETF that fits the user’s interests by asking two simple questions. Once your selections are made, the ETF Miner will try to present you with three options where available. It is basically seeking to find:
What interests you?
What is important to you?
The two specific questions are –
- What is your area of interest? For example, you may choose Cannabis stocks.
- What are your priorities when it comes to investing? The user will force rank four criteria from #1 to #4: Fee, Tenure, Size and Spread.
Fee is the size of the expense ratio which is how much you pay the issuer of the ETF.
Tenure means how long the ETF has been in existence.
Size is the market value of the amount of assets that are in the ETF.
Spread is the difference between the Bid and the Ask which could speak to the liquidity and/or potential volatility in the movement of the ETF price which is quoted intra-day, like a stock.
Answer these and we’ll find an ETF that could be the one that meets your interests.