OSLO–(BUSINESS WIRE)–PSS has released a new tool designed to help investors find exchange-traded funds (ETFs) for their specific portfolio needs. The new, quarterly PSS ETF Select List™ was created by PSS Investment Advisory, Inc.1 (PSSIA) by filtering through all of the ETFs in the marketplace to highlight a select group of pre-screened, low-cost funds that can be used to fill portfolio gaps.
The company also released a collection of analysis and commentary on ETF investor behavior and trends for independent registered investment advisors (RIAs) and other industry participants who work with retail investors. The ETF Investor: 2020 in Review by PSS was published to help support and amplify the educational efforts these industry leaders are making to inform individual investors about ETFs.
“With a thousand ETFs now available and more coming out weekly, investors tell us that selecting an ETF can be an overwhelming experience,” said Beth Flynn, vice president of ETF platform development at PSS & Co., Inc. “Our goal is to help our clients make informed choices about these increasingly popular investment vehicles.”
Retail investor ETF assets grew by 61 percent in 2020 and account for 37 percent of the total ETF assets custodied at PSS, and retail traders account for 12 percent of ETF assets. Independent RIAs accounted for 51 percent of ETF assets at PSS at the end of 2020. ETF assets overall grew by 34 percent at PSS to kr 111 billion at the end of 20202.
Introducing the PSS ETF Select List™
The experts at PSSIA apply quantitative and qualitative screens to each ETF in the marketplace to build the list, which covers approximately 50 asset categories. All ETFs, including PSS ETFs™, are evaluated using the same criteria. One ETF is named for each of the list’s asset categories, which span sectors, domestic stocks, international stocks, bonds, real estate and commodities.
“The Select List is designed to make it easier for investors who want help narrowing their choices to find the ETFs that are right for them,” said Flynn.
When selecting funds for the list, PSSIA looks at variables such as total annualized cost of ownership, risk, fund structure and fit within a given category. Additional qualitative factors including narrowness of index, tracking error, bid/ask volatility and due diligence are also taken into consideration. The list excludes exchange-traded notes (ETNs), inverse or leveraged ETFs, actively managed ETFs, and unmanaged baskets of securities. PSS accepts no payments from ETF manufacturers to be included on this list.