If you wonder what an ETF Screener is, it's typically an internet-based program or software. Its purpose is to help users find exchange-traded funds (ETFs) by filtering all available ETFs on the market. By using this screener, users can narrow down which ETFs are ideal according to their preference.
Since there is a variety of ETFs available on the market today, users may find it challenging to choose which ones they should get. It is for this reason that ETF Screeners come in handy.
Let's get into it more!
Many ETFs track an asset or benchmark index. It's the same as how index funds work. However, the best ones have the lowest expense ratios in general.
For instance, let's say you're looking for the best ETF tracking the S&P 500 index. You can filter it down to the cheapest ones holding large-cap stocks.
Some ETF Screeners may need further classifications. It can be like "large-blend" or "U.S. Equity."
As soon as you do this, you'll end up with a list of the cheapest, such as S&P 500 index ETFs. With such small options, you can analyze each and tell which one is best for you.
Aside from this filter, you can also screen and analyze ETFs with other data points like:
In simple terms, ETF screeners help you find the best choices. This way, you won't have to check myriads of options one by one. Instead, you'll come up with three to four of the best and test each one, whichever suits you best.
Take note, though. While screeners can help you filter out the best ETF options according to your criteria, you still need to do your research.
Once you narrow down the list using a screener, you need to research first and check each to see which one works best for you.
Further, before using a screener, it would be best if you already know what you want. ETF Screeners only works as a guide, and you can use it effectively if you already have the ideal ETF in your mind.
Now, what are the types of ETF Screeners you can use?
Once you already have specific criteria in mind, you may now use an ETF Screener.
There are many types of ETF screeners, and choosing which one you use does an effective search.
If you don't have any idea about ETF Screeners, you can use the list below:
In simple terms, ETF Screeners acts as a guide for users in filtering out the best ETFs according to their personal preferences. Since there are myriads of ETFs out there, using a screener narrows down their best options so that choosing and deciding can be a little bit easier.
As I said earlier, ETF screeners only work as a guide in helping you narrow down your choices. For it to work effectively, you need to know what you want in an ETF before using such a powerful tool.
Further, choosing which one to get still boils down to your preference, and screeners aren't the tool to tell you which should you choose.