Dear ETF Pro subscriber,

Unlike most of our competitors, our analyst team actually has a proprietary, repeatable process for selecting our top ideas featured every month on ETF Pro. 

The difference between “us and them” could not be more striking. Wall Street relies on the “feel” of supposed market gurus, or “valuation” or the maxim that “this time is different.” 

Our process is anchored by financial market history, math and behavioral psychology.

ETF Pro is a monthly newsletter which boils down the Hedgeye Macro team’s latest economic outlook into 10 to 20 of our favorite ETF ideas. If something happens that alters our outlook for specific ETF ideas, we send special “add or remove” alerts ahead of monthly scheduled updates.

How It Works

How We Select Our Favorite ETF Ideas 

Let’s connect the dots on this process in four simple steps:

1. Macro Research
Our macro analysts track dynamic global economic and financial market data and developments to detect key inflection points.

2. Quarterly Investment Outlook
Our team identifies the three most important market-moving trends each quarter. These form the investing foundation for all ideas selected in ETF Pro.

3. Asset Classes:
W
e break down the asset classes we like (and don’t like) based on our fundamental research and quantitative models (i.e. our GIP Model, Risk Ranges & TACRM).

4. ETF Ideas:
Finally, our Macro team selects the best expression of our quarterly themes from over 200+ ETFs we monitor across global asset classes.
In other words, each section of ETF Pro is specifically designed to reflect our research process, from the themes at the top of every edition, to the top ETF ideas broken down by each individual asset class. 

Our primary goal is to give you a roadmap for portfolio construction, backed by a rigorous macro process that signals what ETFs we like and don’t like.

Copyright © Hedgeye Risk Management LLC.

About Hedgeye

Hedgeye Risk Management is an independent investment research and online financial media company. Focused exclusively on generating and delivering thoughtful investment ideas in a proven buy-side process, the firm combines quantitative, bottom-up and macro analysis with an emphasis on timing. The Hedgeye team features some of the most highly-regarded research analysts on Wall Street, all with buy-side experience, covering Macro, Financials, Energy, Healthcare, Retail, Gaming, Lodging & Leisure (GLL), Restaurants, Industrials, Consumer Staples, Internet & Media, Housing, Materials, Technology, Demography and Washington policy analysis, including Macro, Energy, Healthcare, Telecom & Media and Defense.

Our Macro analyst team – led by Hedgeye founder Keith McCullough – actively tracks global economic and financial market data throughout the day. They are closely monitoring the following risk management tools to assess any fundamental changes to exposures on ETF Pro:
  1. Keith’s quantitative-driven Risk Ranges. These dynamic levels are used to make sure ETF Pro tickers don’t “break” their current bullish or bearish trend.

  2. We measure and map economic data across countries around the world to identify key inflection points via our proprietary Growth, Inflation, Policy (GIP) model and predictive tracking algorithm. (We run our GIP model for the U.S. and also the top 50 economies around the world covering 90% of global GDP to produce growth and inflation forecasts for each.)

  3. Our Tactical Asset Class Rotation Model (TACRM) is a quantitative risk management system. It generates global asset allocation signals via mean variance optimization techniques.

  4. Hedgeye analysts actively track asset class Volatility and Wall Street Consensus positioning to better understand what trades are becoming either crowded or oversold.

    All of these are carefully monitored daily to identify what we add or remove on ETF Pro. 
    CLICK HERE to read our entire “Macro Playbook.”

If you have any questions whatsoever, please do not hesitate to email our Customer Service Director Matt Moran. He can be reached directly at mmoran@hedgeye.com.  

We look forward to working together!

- Hedgeye