NEW YORK (
) -- TheStreet.com Ratings initiated coverage of 40 exchange-traded funds, or ETFs, that accrued a sufficient track record of risk and performance data by the end of August 2011. 16 of the 40 newly rated exchange-traded funds start out in the 'Buy' range. 11 begin at 'Hold' while 13 earned initial grades in the 'Sell' range.
Three of the newly rated funds that opened for business by August of 2010 received our highest possible rating of A+, or Excellent. Of these, the best performer,
iShares MSCI Indonesia Investable Market Index Fund
, returned 24.4% in the last year.
This emerging market fund seeks investment results that correspond generally to the price and yield performance of the MSCI Indonesia Investable Market Index. The index is designed to measure the performance of equity securities in the top 99% by market capitalization of equity securities listed on stock exchanges in Indonesia.
The other two funds rated at A+ are both Schwab ETFs holding U.S. government debt instruments. Returning 12.2% in a year, the
Schwab US TIPS ETF
seeks investment results that track the price and yield performance of the Barclays Capital U.S. Treasury Inflation Protected Securities Index. U.S TIPS are securities issued by the U.S. Treasury that generate principal and interest payments designed to adjust for and help protect against inflation.
Schwab Intmdt-Term US Treasury ETF
targets investment results that track the price and yield performance of the Barclays Capital U.S. 3-10 Year Treasury Bond Index. The Fund invests in U.S Treasury securities that have a remaining maturity of three to ten years, are rated investment grade, and have $250 million or more of outstanding face value. Returning 7.3% in the last year, this ETF earned the top rating of A+ by avoiding volatility experienced by other funds.
The best newly rated equity ETF,
MSCI ACWI ex US Health Care Sector Index Fund
gained 16.9% in a year. The fund seeks investment results that correspond generally to the price and yield performance of the MSCI All Country World ex USA Health Care Index. The Underlying Index is designed to measure the combined equity market performance of the health care sector of developed and emerging markets countries excluding the US. Foreign healthcare companies held include
TheStreet.com Ratings condenses the available fund performance and risk data into a single composite opinion of each fund's risk-adjusted performance. This allows the unbiased identification of those funds that have historically done well and those that have underperformed the market. While there is no guarantee of future performance, these Investment Ratings provide a solid framework for making informed, timely investment decisions. The funds listed below have reached their one year anniversary.
Funds rated A or B are considered "Buy" rated based on a track record of higher than average risk-adjusted performance. Funds at the C level are rated as "Hold," while underperformers at the D and E levels our model ranks as "Sell."
-- Reported by Kevin Baker in Jupiter, Fla.
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Kevin Baker became the senior financial analyst for TheStreet Ratings upon the August 2006 acquisition of Weiss Ratings by TheStreet.com, covering equity and mutual fund ratings. He joined the Weiss Group in 1997 as a banking and brokerage analyst. In 1999, he created the Weiss Group's first ratings to gauge the level of risk in U.S. equities. Baker received a B.S. degree in management from Rensselaer Polytechnic Institute and an M.B.A. with a finance specialization from Nova Southeastern University.