Quality ratings for all ETFs!
"When it comes to ETFs that are supposed to be so easy, many investors often find that a wise selection with a quality rating could yield additional returns!"
XENIX has been maintaining an index and ETF database since 2009 with around 2,000 different indices and almost 3,000 ETFs. So we can classify ETFs into these three categories: Basic ETFs, Satellite ETFs and Specialist ETFs. We then evaluate the quality of each ETF on a multi-dimensional and quarterly basis: from overnight ETFs to Swiss gold ETFs. The rating is done in relation to the benchmark index of the ETF, but also to ETFs with identical or comparable indices.
Our approach
Overall, we can distinguish dozens of different ETF investment segments for each of the major asset classes: money market, bonds and equities. The qualitative ETF rating methodology takes into account the index, the construction of the ETF according to the prospectus, the actual replication quality of an ETF, and the price spreads in ETF trading on the respective reference exchange.The more transparent an ETF is, the bettertherefore we already consider the index methodology and the transparency of the index provider.The less expensive an ETF is, the betterbut for this you need to know various cost aspects. We primarily examine the tracking difference of an ETF to its benchmark index and the transaction costs of an ETF to assess how transparent and efficient the costs are.The higher trading volumes an ETF has, the bettertherefore we monitor per ETF the actual traded volumes on the reference exchange of the country where an ETF is listed.The more data points, the tighter an ETF rating isin total, we consider over 300 data points to assess the quality of an ETF. This distinguishes us from providers of rankings or comparison tables or consumer portals for ETFs.
Added value of our ETF ratings
Our qualitative ETF rating is therefore much more than a comparison of the historical performance of ETF groups with identical index or investment focus. The qualitative XENIX STARS ETF rating offers many added values for professional investors or intermediaries, including:
- unique 100% coverage - all ETFs are evaluated: classics that have been on the market for over 20 years, but also newcomers that have been launched recently.
- Ongoing update of ETF ratings - name changes, index changes, TER expense ratio changes, mergers of two ETF share classes, etc. - this is taken into account on an ongoing basis.
- we can customize our XENIX STARS ETF rating e.g. for asset managers, foundations and insurance companies according to individual specifications. With a so-called customized ETF rating, special reporting requirements and legal provisions for certain investor groups can be taken into account.
Test now without obligation how much the XENIX STARS rating system for ETFs differs from rankings and portal comparisons:
The XENIX STARS ETF Rating
The XENIX STARS ETF rating distinguishes five levels, which are symbolized by stars. Five XENIX STARS thus stand for outstanding quality, four XENIX STARS for above-average product quality of ETFs. We also describe these two STARS categories as above average ETFs, while three XENIX STARS represent average good performance. These results of our ETF rating for all asset classes and investment segments confirm that the measurable quality differences between the above-average ETFs (with four or five XENIX STARS) and the average ETFs with three XENIX STARS can in many cases amount to about double the cost differences known in advance per year! Thus, relying on independently audited quality ETFs basically increases the transparency, stability and also the results of an investor's portfolio.
Still have questions about ETF ratings? You can find answers here.
XENIX ETF Awards
Since 2019, XENIX, as an analysis and rating house, has been awarding the best ETFs in their respective peer groups in various countries. Outstanding quality products are awarded prizes. In addition, innovative newcomers in index funds and ETFs that represent true innovations are regularly recognized. The winners can receive their prizes in person at the respective ceremonies.