Our Analysis

Each market day we track the institutional community's price forecast for over three-hundred ETFs and analyze the information against the current listed price for that security. At any given time, a handful of ETFs can be identified as being undervalued according to their ETF price range forecasts. Those ETFs considered to be undervalued by the market makers are then ranked in terms of the degree to which they appear to be undervalued and their unique probability of going up.

Again, the analysis driving the price forecast and ETF ranking is based on the forward-looking expectations of the community of market makers and institutional traders. It is based solely on the content of the market data and consists only of the aggregate judgments of the professionals that trade that ETF en masse.

Our analysis is further refined by reviewing historical ETF price range forecasts and quantifying the accuracy of those previous forecasts. In other words, the past performance of the community of block traders for a specific exchange traded fund is tracked and impacts the final probability calculation and ranking of securities.

As the ETF investment landscape changes, so too does the price range forecast, and subsequently, the best practices of the institutional trader. Institutional Insights identifies those unique opportunities where not only is the current ETF price at the low end of the forecasted range indicated by the market makers, but also where such past forecasts have been followed by frequent sizable price rises and infrequent, minimal, temporary declines. In other words, the forecasters have demonstrated that they do have a keen insight into the likely performance of ETF securities.

The resulting output is a ranking of over three hundred ETFs, indicating those with the highest probability of price movement and the likely magnitude of that price movement.

The final probabilities are generated by both the asymmetry of the ETF prince range forecast indicated by the institutional traders as well as that community's historical track record of success with that particular security.

In end, our subscribers are the beneficiaries of both the collective trading decisions of the smartest, best informed and most experienced traders in the world and, as it relates to ETF's, nearly a decade's worth of daily data that is leveraged to generate high probability recommendations for the best ETF investment opportunity at the moment.

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Our one-of-a-kind insights were developed by Peter Way. Peter is a regular contributor to Forbes.com.
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