THE CASE FOR FUNDAMENTAL ANALYSIS OF ETFs

ETFs trade like stocks, but should they be analyzed as such? Yes, says Michael Krause, who runs AltaVista Independent Research, a boutique firm that specializes in ETF analysis. Your editor interviewed Krause in the February issue of Wealth Manager magazine, where he explains his research methodology and the general case for applying fundamental analysis to ETFs. Here’s a sample of his thinking: “If you were considering buying shares of General Electric or IBM, you’d want to look at more than a price chart; you’d want to know the earnings growth and so on,” he says in the article. “I don’t see any reason why you’d go from fundamentally analyzing one or two stocks to ignoring such questions for a basket of stocks in an ETF.”
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