stockju (< 20)

ETF Trading at discount

April 23, 2010 – Comments (0) | RELATED TICKERS: PPH , ITB , JKF

One way to pick a potential price performer ETF is to compare its fairvalue to current price, i.e., valuation characteristics of its underlying holdings.

To compute this ratio, aggregate market price for the ETFs underlying holdings is calculated and divided by the asset-weighted fair value estimate of those stocks. Above 1.0 equals overvalued, where market price exceeds fair value and under 1.0 says the ETF is trading at a discount.

We especially like, RYH (Rydex S&P Equal Weight Health Care), it has a 10% plus sales growth, trading at a discount, and with an alpha of 8, i.e., it has so far outperformed its benchmark index (S&P Equal weight health care) by 8%. We also like the healthcare sector investment.

Check out our remaining top ETF selection here 

http://www.stockjupiter.com/ETFStep1/Discount_Price-Fairvalue_ETF.html

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www.stockjupiter.com

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