New Constructs Announces June's Most Attractive Exchange Traded Funds

NASHVILLE, Tenn., June 30, 2011 /PRNewswire/ -- New Constructs®, a Nashville-based independent publisher of investment research, announced its ranking of the five Most Attractive Exchange Traded Funds (ETFs) for June.  The top five US Equity ETFs for June are PowerShares Buyback Achievers (PKW), iShares High Dividend Equity (HDV), PowerShares KBW Prop & Casualty Insurance (KBPW), PowerShares Active Mega Cap (PMA) and Health Care Select Sector SPDR (XLV).

Selected from a list of 375 ETF research reports the company generates using its fundamental research methodology, each ETF receives a predictive rating, "very attractive," "attractive," "neutral," "dangerous," and "very dangerous," similar to the way in which stocks are rated buy/hold/sell.  The methodology is based on the company's system used to determine the attractiveness of stocks, which has been top-ranked by Barron's since 2009.  

"We evaluate ETFs based on five important criteria – the economic earnings, return on invested capital, free cash flow yield, price-to-economic book value, and growth appreciation period," said David Trainer, president of New Constructs.  "Looking at these five factors allows us to be forward-looking and not backward-looking in order to predict how attractive – or dangerous – an ETF might be for investors."

All ETFs that are top-ranked for the month received an attractive rating, primarily based on the quality of its earnings and the valuation of the stocks it holds.  An attractive rating is synonymous to a buy rating for stocks.  

Copies of the full ETF reports are available for purchase by visiting newconstructs.com and entering the ticker symbol.

ABOUT NEW CONSTRUCTS

Incorporated in July 2002, New Constructs® is an independent publisher of investment research that provides clients with consulting, advisory and research services. The firm specializes in quality-of-earnings, forensic accounting and discounted cash flow valuation analyses for all U.S. public companies.  To support its proprietary database of financial data, the company leverages expertise in analyzing the Notes to the Financial Statements and extracting data directly from SEC filings.

Company president, David Trainer has provided his investment expertise to national media outlets including CNBC, USA Today, Barron's, Fox Business News, MarketWatch, and TheStreet and has written bylined columns for Forbes.com.

SOURCE New Constructs