This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

ETFs With A-Plus Ratings and 'Integrity'

NEW YORK ( TheStreet) -- Risk-adjusted returns are often the most important gauge of exchange traded funds.

The following five ETFs earned Ratings' highest rank of A-plus, or excellent, for risk-adjusted returns over the year ending Jan. 31, but also rated well in so-called structural-integrity factors such as expense ratio, bid/ask spread, tracking error, market impact and efficiency.

First Trust Mid Cap Core AlphaDEX (FNX) rose 47% and ranked in the 56th percentile of structural integrity, according to Marco Polo XTF.

The fund's three best structural accomplishments are low tracking error and concentration risk, and high efficiency. By maintaining a six-month tracking error of just 0.32% to the price-and-yield performance of its underlying benchmark, the S&P Defined Mid Cap Core Index, the ETF ranks in the 62nd percentile for tracking error. places the fund in the 88th percentile for concentration risk on low individual constituent weightings and high number of holdings, preventing over-exposure to individual stocks.

An efficiency ranking of 86% shows the fund managers' ability to generate alpha, returns in excess of its benchmark, with stock selections like Barnes & Noble (BKS - Get Report), Ralcorp Holdings (RAH) and Patriot Coal (PCX).

First Trust Health Care AlphaDEX (FXH) also did well, with low tracking error and concentration risk.

On top of this, the ETF ranks in the 59th percentile for average bid/ask ratio. The smaller the average spread between the bid price and the ask price, the more attractive the security becomes to traders. Tightening bid/ask ratios show a fund becoming more popular as average daily trading volumes increase.

The fund is seeking healthy returns from UnitedHealth Group (UNH), Tenet Healthcare (THC) and Humana (HUM).

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAXJ $64.00 0.00%
BKS $23.75 0.00%
FNX $54.58 0.00%
FTA $43.75 0.00%
FXH $67.02 0.00%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs