The All Cap Blend style ranks second out of the twelve fund styles as detailed in our1Q19 Style Ratings for ETFs and Mutual st quarter, the All Cap Blend style ranked third. It gets our Attractive rating, which is based on an aggregation of ratings of 105 ETFs and 778 mutual funds in the All Cap Blend style as of January 22, 2019. See a recap of our4Q18 Style Ratings here.

Figures 1 and 2 show the five best and worst rated ETFs and mutual funds in the style. Not all All Cap Blend style ETFs and mutual funds are created the same. The number of holdings varies widely (from 4 to 7690). This variation creates drastically different investment implications and, therefore, ratings.

Investors seeking exposure to the All Cap Blend style should buy one of the Attractive-or-better rated ETFs or mutual funds from Figures 1 and 2.

Ourempowers our uniqueETF and mutual fund rating methodology, which leverages our rigorous analysis of each funds holdings.[2]We think advisors and investors focused on prudent investment decisions should include analysis of fund holdings in their research process for ETFs and mutual funds.

Figure 1: ETFs with the Best & Worst Ratings Top 5

* Best ETFs exclude ETFs with TNAs less than $100 million for inadequate liquidity.

Sources: New Constructs, LLC and company filings

Eleven ETFs are excluded from Figure 1 because their total net assets (TNA) are below $100 million and do not meet our liquidity minimums.

Figure 2: Mutual Funds with the Best & Worst Ratings Top 5

* Best mutual funds exclude funds with TNAs less than $100 million for inadequate liquidity.

Sources: New Constructs, LLC and company filings

Seven mutual funds are excluded from Figure 2 because their total net assets (TNA) are below $100 million and do not meet our liquidity minimums.

State Street SPDR SSGA Gender Diversity Index (SHE) is the top-rated All Cap Blend ETF and Hennessy Cornerstone Large Growth Fund (HILGX) is the top-rated All Cap Blend mutual fund. Both earn a Very Attractive rating.

ProShares Long Online/Short Stores ETF(CLIX) is the worst rated All Cap Blend ETF and Upright Investments Assets Allocation Plus Fund (UPAAX) is the worst rated All Cap Blend mutual fund. CLIX earns an Unattractive rating and UPAAX earns a Very Unattractive rating.

Buying a fund without analyzing its holdings is like buying a stock without analyzing its business and finances. Put another way, research on fund holdings is necessary due diligence because a funds performance is only as good as its holdings performance. Dont just take our word for it,see what Barrons sayson this matter.

Analyzing each holding within funds is no small task. OurRobo-Analyst technologyenables us to perform this diligence with scale and provide theresearch neededto fulfill the fiduciary duty of care. More of the biggest names in the financial industry (seeAt BlackRock, Machines Are Rising Over Managers to Pick Stocks) are now embracing technology to leverage machines in the investment research process. Technology may be the only solution to the dual mandate for research: cut costs and fulfill the fiduciary duty of care. Investors, clients, advisors and analysts deserve the latest in technology to get the diligence required to make prudent investment decisions.

Figures 3 and 4 show the rating landscape of all All Cap Blend ETFs and mutual funds.

Figure 3: Separating the Best ETFs from the Worst Funds

Sources: New Constructs, LLC and company filings

Figure 4: Separating the Best Mutual Funds from the Worst Funds

Sources: New Constructs, LLC and company filings

This article originally published onJanuary 25, 2019.

Disclosure: David Trainer and Kyle Guske II receive no compensation to write about any specific stock, style, or theme.

Follow us onTwitterFacebookLinkedIn, andStockTwitsfor real-time alerts on all our research.

[1]Harvard Business School features the powerful impact of our research automation technology in the caseNew Constructs: Disrupting Fundamental Analysis with Robo-Analysts.

[2]Ernst & Youngs recent white paperGetting ROIC Rightproves the superiority of our holdings research and analytics.

Filing Season Finds (forensic accounting in real-time)

Best Worst ETFs Mutual Funds by Sector

Best Worst ETFs Mutual Funds by Style

Machine Learning AI for Smarter Investing