The answer: not yet.
The question: Has TheStreet.com Ratings' quantitative evaluation model recently found any financial-services exchange-traded funds with "buy" recommendations?
With most financial ETFs battered by the fallout from the credit implosion triggered by the subprime debacle, the best ETFs from that sector hold marks in the "C" range, equivalent to a "hold" recommendation, from TheStreet.com Ratings.
The five-highest-rated and five-lowest-rated financial ETFs are summarized in the accompanying table.Investors are cautioned not to buy the ProShares Ultra Short Financials (SKF), which has risen sharply because its inverse movements to financial stock prices are amplified by leverage. If the industry recovers, it will head down at an equally geared velocity, as the performance of its "mirrored image" sibling, the ProShares Ultra Financials (UGY) aptly demonstrates. With hundreds of performance and risk measures available, identifying worthwhile investments can be a daunting task. TheStreet.com Ratings' quantitative model condenses all available fund data into a single composite opinion of risk-adjusted performance. There are also "reward" and "risk" grades. While there is no guarantee of future performance, TheStreet.com Ratings' grades provide a solid framework for making informed investment decisions. The grades can be interpreted as follows: A is "excellent" or "buy." B is "good" or "buy." C is "fair" or "hold." D is "weak" or "sell." And E is "very weak" or "sell." A plus or minus sign designates that a fund is in the top or bottom third of funds with the same letter grade. The column of "Performance Ratings" in the accompanying table is based on a computerized evaluation of a fund's performance for a number of time periods, up to three years. More weight is given in the calculations to more recent time periods.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV