NEW YORK -- TheStreet a leading digital financial media company and publisher of this Web site, debuted today its 2011 awards for the best mutual funds and best exchange traded funds.

The 2011 awards, kicking off a new annual event, are being given to the top-rated stock mutual funds, bond mutual funds and ETFs in a variety of categories, including sectors and investing styles of greatest interest to investors.

Using a proprietary model developed by the company's award-wining TheStreet Ratings independent research business, winning and runner-up investment funds were given awards based on their performance, fees and relative risk during a performance period ending December 31, 2010.

A complete list of all the winners is available at: www.TheStreet.com/TopFunds, a special section that will feature video interviews with winning fund managers, articles on winners in the larger categories and interactive tools for investors to more easily make informed decisions when deciding how to evaluate and choose among the thousands of mutual funds and ETFs available today.

"These rankings are a natural extension of our mission to provide analysis and insight that helps investors understand the risks and opportunities in the markets," said Glenn Hall, editor in chief of TheStreet. "With the explosion in ETFs alongside an already vast array of mutual funds, investors need these kinds of tools and analysis in order to make informed decisions about the funds they choose for their investment portfolios, IRAs, 401(k)s, college savings accounts, and other savings and retirement accounts."

“We recognize how difficult it can be for investors to navigate today’s uncertain and volatile markets, whether for short term trading profits or with an eye towards building long term wealth,” said TheStreet’s CEO, Daryl Otte. “With literally thousands of mutual funds and ETFs to choose from, it can be a daunting task to find those that have demonstrated superior risk-adjusted performance. As a core element of TheStreet’s brand is to provide valuable, independent analysis and investment ideas, we are pleased to highlight for our audience of millions of monthly unique visitors, those mutual funds and ETFs that our award-winning ratings team has determined to be exceptional.”Otte said, “Congratulations to all of the 2011 recipients of TheStreet’s first annual mutual fund and ETF awards. There is an incredible amount of competition in the market and for your funds to be recognized as the best of the best is truly an accomplishment.”

Otte noted that TheStreet Ratings itself is a frequent award recipient of ConvergEx’s Jaywalk Independent Research Provider Performance Awards, most recently for the fourth quarter of 2010, which marked the third consecutive quarter that TheStreet’s independent research business was honored by ConvergEx.

The methodology for determining TheStreet’s Best Mutual Funds and ETFs annual awards is summarized below:
  • An open-end mutual fund must have had at least a 3-year history at 12/31/10 and must have been open at 12/31/10 to new assets with a minimum investment not exceeding $100,000. Different share classes of a fund were evaluated separately. Closed-end funds and ETFs must have had at least a 1-year history at 12/31/10.
  • Approximately half of the rating is based upon performance metrics, including total return less expenses, measured over a variety of periods to 12/31/10, with longer periods given greater weighting.
  • Approximately half of the rating is based upon risk metrics, including standard deviation, size of peak-to-trough (drawdown factor) and semi-standard deviation or duration. The lower the risk, the better the ranking.
  • The top two mutual funds and ETFs (the winner and runner-up) in a variety of categories – including 21 categories for stock mutual funds, 9 categories for bond mutual funds and 27 categories for ETFs – were selected based on the above criteria.

TheStreet Ratings

TheStreet Ratings is a primary supplier of independent, unbiased investment research. Its ratings are derived from a quantitative model that integrates multiple factors, including fundamental and technical inputs, as well as valuation factors and risk assessment. This model is supplemented by qualitative analysis from an experienced staff of analysts who provide their insight and sector expertise.

This article was written by a staff member of TheStreet.