Euclidean Fundamental Value ETF

ECML

Market cap $131M

Euclidean Fundamental Value ETF is designed based on the output of an AI model that uses machine learning to predict future earnings per share for a universe of roughly 1,600 U.S. companies. The ECML goal is to select the most deeply discounted 60-70 non-financial stocks that aren't "value traps." Fortunately, I found its value features excellent, and ECML has a 10.92x forward P/E. However, its growth and momentum features are poor, and I expect the strategy to produce inconsistent results. Lately, it's been one of the few value ETFs to deliver a loss.

In 2Q25, All Cap Value, All Cap Blend, and Large Cap Blend styles earn attractive-or-better ratings, driven by quality stock holdings and low costs. Only the top 30% of ETFs and mutual funds achieve attractive-or-better ratings, emphasizing the importance of high-quality holdings and low fees. Euclidean Fundamental Value ETF is the top-rated All Cap Value fund, while Optimum Small-Mid Cap Growth Fund is the worst-rated Small-Cap Growth fund.

The sheer number of ETFs, especially within the same style, complicates investor choices due to vastly different portfolios and risk profiles. Manually analyzing each ETF is impractical; investors risk insufficient analysis and missed opportunities due to the extensive number of holdings. EA Series Euclidean Fundamental Value ETF ranks as the top overall style ETF, while iShares Morningstar Mid-Cap Growth ranks last among the best.

All Cap Value, Large Cap Value, and All Cap Blend styles receive Attractive-or-better ratings. High-quality holdings and low costs are essential for ETFs and mutual funds to earn an Attractive-or-better Predictive Rating. Euclidean Fundamental Value ETF is the top-rated All Cap Value fund, while 1290 Essex Small Cap Growth Fund is the worst-rated Small Cap Growth fund.

All Cap Value, Large Cap Value, and All Cap Blend styles earn an Attractive-or-better rating at the beginning of 1Q24. Investors should focus on style funds that hold quality stocks, such as the mentioned styles. Cheap funds can dupe investors, so it's important to invest in funds with good stocks and low fees.