Koris International has launched the TrackInsight ratings of the 520 most significant European ETFs. These ratings are available for professional investors on www.trackinsight.com, an ETF comparison and selection platform.
The rating system is based on a clear and transparent methodology, which establishes a rating based on the replication quality of ETFs, thus allowing investors to quickly select the investment vehicle which best fits their needs.
The rating process includes all of the ETFs listed on TrackInsight with access to at least 3 years historical data and 50 million euros of assets under management (or 520 funds out of a total of 650 on 31/05/2015). The funds satisfying these criteria were allocated to 11 categories belonging to three asset classes: equities, bonds and commodities.
The analysis applies to historical data, the quality of which was first independently checked by the TrackInsightTM team and is based on performance criteria relating to benchmarks:
• Difference of annualised performance (tracking difference)
• Volatility of excess returns (tracking error)
• Long-term persistence of excess returns (Hurst exponent)
• Width of extreme excess returns (kurtosis)
The detailed methodology is available on the platform website.
Moreover, the funds marked out by the best levels of tracking difference and tracking error are highlighted in the ‘TrackInsightTM A-List’. Professional investors now have a simple and robust tool to identify the investment vehicles which best respond to their assigned mission.
Pierre Guillemin, Head of Portfolio Management Asset Allocation & Equity at Swiss Life Asset Managers, says: “Rating is about measurement, calibration, comparison. We fully support and adhere to TrackInsight’s scientific approach, which gives the ETF world a real quality approach, which is so essential for the investor.”
Jean-René Giraud, CEO and co-founder of Koris International, says: “the success of the TrackInsightTM platform has shown an investor appetite for improved understanding of the quality of the funds they are using. The rating methodology that we are introducing today now makes this comparison and selection a powerful tool available to everyone.”