Chaikin Analytics Resources Chaikin Analytics WebApp User Guide ETFs

ETFs (Exchange-Traded Funds)

Overview

Exchange-Traded Funds are a widely-used investment vehicle for investors who wish to place an aggregate bet on a basket of stocks rather than on individual stocks (or other instruments) grouped by Sector, Market Capitalization, Investment Style, Index, or other means.

This section describes the various ETF-related functionality in Chaikin Analytics, including a how to get ETF quotes, find ETFs by category, compare the strength of similar ETFs, see ETF constituents, and a read on which ETFs are likely to outperform using technical analytics and Buy/Sell Signals. This information can also be found in other individual sections of the User Guide.

ETF Coverage

Chaikin Analytics provide quotes, history, and technical analytics on all ETFs traded on NYSE or NASDAQ (around 1400).

Some of the most common equity ETFs are:

SPY SPDR S&P 500 ETF
EEM iShares MSCI Emerging Markets ETF
QQQ PowerShares NASDAQ 100 Index ETF
IWM iShares Russell 2000 ETF
GDX Market Vectors TR Gold Miners
XLF SPDR Financial Sector Select ETF

(Other SPDR Sector ETFs are XLB, XLE, XLI, XLK, XLP, XLU, XLV, and XLY)

See ETFdb.com’s list of the Top 100 ETFs by volume.

ETFs have limited Fundamental data and do not currently have Power Gauge Ratings, but you can use the technical analytics to identify ETFs which are likely to outperform or underperform the market.

Getting Quotes and Charts

Chaikin Analytics WebApp

If you know an ETF’s ticker symbol or name, just enter it into the Symbol entry box and press enter to see a quote and historical Chart  . Press  to add it to a custom Watchlist.

Seeing ETF Constituents

Chaikin Analytics WebApp

Chaikin provides constituents for long-only ETFs comprised of U.S. equities (around 400). These are grouped into 21 Categories, by Sector and Style, enabling you to compare ETFs with similar investment objectives.

  • By Sector: Communications, Consumer Cyclical, Consumer Defensive, Equity Energy, Financial, Health, Industrials, Natural Resources, Real Estate, Technology, Utilities, Misc.
  • By Style: Large Growth, Large Value, Large Blend, Mid-Cap Growth, Mid-Cap Value, Mid-Cap Blend, Small Growth, Small Value, and Small Blend.

To see an ETF’s constituents in the Watchlist:

  • Open the ETF section of the List Navigator
  • Open the ETF’s Category
  • Select the ETF

The ETF’s constituents will load as a list in the Watchlist area and a chart icon will display in the Watchlist header. Chaikin Analytics WebApp Press this to see a historical chart of the ETF.

ETF constituents are updated daily.

Ranking ETFs within a Category

Chaikin Analytics WebApp

Expand the List Navigator to see “Power Bars” for the current ETF Category. ETFs will be ranked strongest to weakest, showing which have the highest percentage of Bullish stocks. This can be a very useful tool when choosing between ETFs with a particular Style or Sector focus.

Press Chaikin Analytics WebApp to sort the current section alphabetically and Chaikin Analytics WebApp to sort Strongest to Weakest.

ETF Watchlist

In the “Chaikin HotLists” section of the List Navigator, the ETFs - Top 100 list contains the Top 100 ETFs by volume, updated monthly. This is a good place to find high-quality ETFs; you can arrow through ETF charts in this list to evaluate their performance potential.

ETF Signals

Press the “Signal” column heading to sort ETFs triggering Relative Strength Buy or Sell Signals today to the top of the ETF watchlist. This is a quick and effective way to find potentially actionable ETF investment ideas.

ETF Charts

Though they do not have Power Gauge Ratings, you can use the technical analytics on Chaikin charts to effectively identify strong and weak ETFs.

Bullish ETFs

The same technical criteria which make a stock a “Classic Bull” work for ETFs as well:

  • Price is above a rising long-term trend
  • Strong Chaikin Money Flow
  • Strong Relative Strength

Chaikin Analytics WebApp

The above chart of the SPDR Industrial Sector ETF (Symbol: XLI), shows these criteria all through 2013, along with Relative Strength Buy Signals which identifed key entry points.

When the ETF broke down below its long-term trend in January 2014, this indicated a potential change in its overall Bullish orientation.

Bearish ETFs

The following chart shows the opposite for the PowerShares DB Commodity Index (DBC):

  • Price below a falling long-term trend
  • Weak Chaikin Money Flow
  • Weak Relative Strength

Chaikin Analytics WebApp

Differences between Stocks and ETFs

ETFs do not have a Power Gauge Rating and do not trigger Signals which require a Power Gauge Rating.

Use Relative Strength Buy/Sell and Relative Strength Breakout/Breakdown Signals, which look for significant patterns in an ETF’s momentum relative to the market, to identify lower-risk entry and exit points.