The Value Line Select ETF Index
Description and Methodology
The Value Line Select ETF Index is an equal-dollar weighted index comprised of between 30 and 100 U.S. traded ETFs ranked #1 by Value Line Publishing LLC in the Value Line ETF Ranking System.
For purposes of the index, Value Line currently defines ETFs to include open-end management investment companies ("open-end funds"), unit investment trusts ("UITs") and Holding Company Depositary Receipts ("HOLDRs") that issue shares that are approved for listing and trading on a national securities exchange. It is possible that the Value Line Select ETF Index could include other exchange-traded portfolios in the future. Value Line does not currently include exchange-traded notes, commodity pools or close-end management investment companies in the index.
Value Line ETF Ranking System is a purely quantitative computer model applying the approach of the famous Value Line Timeliness™ Ranking System to the universe of ETFs.
The Value Line ETF Ranking System seeks to selects the "best-for-investment" ETFs among all U.S. traded ETFs. Since the total number of U.S. traded ETFs varies year-over-year, the Value Line Select ETF Index historically includes approximately 10% of all traded ETFs but no more than 100 ETFs.
The Value Line Select ETF Index is rebalanced and reconstituted once per quarter.
The index assumes equally weighted positions in every ETF, as of each rebalance. Upon Value Line Select ETF Index's introduction in 2008, the index values were computed on a daily basis dating back to 2003 to provide a historical frame of reference.
The decision to include or to exclude a new ETF in the Value Line ETF Ranking System is based on several factors, including but not limited to liquidity (i.e., average volume), market capitalization, and availability of other ETFs based on the same or practically-identical underlying. The Value Line ETF Ranking System requires each included ETF to have at least one year of trading history.