How to Build an ETF Screen with Low Expense Ratios

Example 2: How to Build an ETF Screen with Low-Expense Ratios

In our example 2, we will look for low-expense ETFs with a high turnover and low tracking errors. 

Starting with shortlisting our universe.

As you can see, we chose the bottom 10%. We now have 30 ETFs left. Let’s now filter the ones with high traded volume.

We chose the average daily turnover volume and selected the top 25%. We are left with 8 ETFs now.

Next, we will filter out low-tracking error ETFs from this list to have our final list of ETFs. We selected the bottom 25% and our list is now narrowed down to 2. 

But we also want to invest in ETFs that have a good AUM as that tells us about the reliability of an ETF. When we select the top 25% we are now left with just 1 ETF. 

Let’s check one last example for ETF screeners.