Screening Filters
Minimum Volume ≥ 100,000 shares
- Purpose: Ensure ETFs are liquid and easy to trade.
- Rationale:
- High daily trading volume usually means tighter bid–ask spreads and lower trading costs.
- For a young, long-term investor, you still want to be able to enter and exit positions efficiently, especially if you’re adding regularly over time.
- Illiquid ETFs can be more volatile and harder to trade at fair prices, which conflicts with your “minimal volatility” goal.
1-Year Price Change ≥ 8%
- Purpose: Filter for ETFs that have delivered reasonably strong recent performance, roughly in line with your ~10% return target.
- Rationale:
- You asked for rentability around 10%; we can’t guarantee future returns, but we can favor ETFs that have shown solid performance recently.
- 8% is close to your 10% target, allowing some cushion so we don’t exclude every ETF during weaker market periods.
- This is a proxy for your return objective, not a promise that the return will continue.
5-Year Price Change ≥ 8% (annualized proxy)
- Purpose: Focus on ETFs with consistent medium-term performance, not just a good recent year.
- Rationale:
- Long-term investing is your goal, so 5-year performance is more relevant than only short-term returns.
- Requiring at least ~8% per year over 5 years helps align with your long-term 10% objective by selecting funds that have historically compounded at a reasonable rate.
- This favors ETFs with more durable return profiles, which is important when you also want to keep volatility lower.
Themes: “broad market”, “low volatility”, “total market”, “large cap”, “quality”
- Purpose: Match your “minimal volatility, long-term” requirement through the type of ETFs selected.
- Rationale:
- Broad market / Total market:
- These are diversified across many sectors and companies, which naturally reduces idiosyncratic risk and volatility.
- Low volatility:
- Directly targets ETFs that are designed to have lower price swings than the overall market (e.g., low-vol factor ETFs).
- This theme is the most explicit response to your “minimize volatility” request.
- Large cap:
- Large, established companies tend to be more stable and less volatile than small caps.
- They often form the core of long-term portfolios.
- Quality:
- Focuses on companies with strong balance sheets, stable earnings, and good profitability.
- Quality stocks historically tend to hold up better in downturns, reducing drawdowns and smoothing the ride over time.
- Together, these themes are a factor-based way to seek smoother returns while still aiming for long-term growth.
Stock_Position_Pct: MoreThan50Pct
- Purpose: Ensure that the ETFs are primarily invested in stocks, not bonds or alternatives.
- Rationale:
- Equities are the main asset class capable of delivering around 8–10% long-term returns historically, which aligns with your rentability goal.
- If we included mostly bond or cash-heavy ETFs, volatility might be lower, but returns would likely fall well below your 10% target.
- By requiring more than 50% in stocks, we balance your growth objective with the lower-volatility factors chosen above (large cap, quality, low vol).
Expense Ratio ≤ 0.50%
- Purpose: Control costs so that more of the ETF’s gross return goes to you.
- Rationale:
- Over a long horizon (you’re young and investing long term), fees compound against you.
- High expense ratios directly reduce your net return; if you aim for ~10% returns, a 1% fee effectively takes 10% of that return every year.
- Capping expense ratios at 0.50% focuses on cost-efficient ETFs, which is critical for hitting ambitious long-term return targets.
Why Results Match Your Request
In summary, while no screen can guarantee a specific 10% return, these filters are designed to:
- Emphasize historically strong, equity-based ETFs,
- Use low-volatility, large-cap, and quality themes to reduce risk, and
- Control costs and liquidity, all of which align well with a young, long-term investor seeking lower volatility and solid growth.
This list is generated based on data from one or more third party data providers. It is provided for informational purposes only by Intellectia.AI, and is not investment advice or a recommendation. Intellectia does not make any warranty or guarantee relating to the accuracy, timeliness or completeness of any third-party information, and the provision of this information does not constitute a recommendation.