The Chaikin Power Gauge ETF Rating predicts whether an ETF is likely to outperform or underperform other ETFs in its category over the next 3 to 6 months. It uses the same five-point scale as stocks, but a different model built for how ETFs behave.

This article covers the Power Gauge rating specific to ETFs – for the 20-factor model behind our stock ratings, see How the Power Gauge Rating Is Calculated for Stocks.

🧭 What Goes Into an ETF Rating?

The ETF rating blends three things: Chaikin's proprietary Technical Rank for ETFs, the Power Gauge Ratings of the stocks the ETF holds, and the ETF's holdings structure. Which inputs are used depends on the ETF's category.

U.S. Equity ETFs

The rating combines three inputs into one score, which is then assigned a rating from Very Bullish to Very Bearish:

• ETF Technical Rank: technical strength, using intermediate- and long-term signals.
• Constituent Bull/Bear Ratio: how many stocks in the ETF are rated Bullish versus Bearish.
• Weighted Average Stock Rating: the average Power Gauge Rating of the ETF's top holdings, adjusted for how much of the ETF each one makes up.

Global Equity and Fixed Income ETFs

Only the Technical Rank is used, because of differences in data availability and how these funds hold their assets.

💡 Tip: On an ETF's Power Gauge Rating page, the Rating Summary states the ETF's technical rank and how many Bullish and Bearish stocks it holds, and the Chaikin Power Bar shows that holdings count. See The ETF Page.

📈 Why Is an ETF's Technical Rank Bullish When Its Chart Just Dropped?

The Technical Rank leans on longer-term performance to cut down on false signals. It looks at trend quality over weeks and months rather than short-term swings.

• A sharp short-term drop may not change the rank right away if the longer trend is still intact.
• ETFs with a steady downward trend are more likely to have a Bearish Technical Rank.

For U.S. Equity ETFs, the rank is then combined with the Power Gauge Ratings of the ETF's holdings.

⏱️ How Often Are ETF Ratings Updated?

• Weekly: ratings are recalculated on Saturdays, using the previous week's data.
• Daily: a technical overlay can change the displayed rating to Neutral+ or Neutral– if a large price move doesn't line up with the underlying rating. A Bullish ETF with a sudden drop may show Neutral+, and a Bearish ETF with a sudden rally may show Neutral–.
• Continuity checks help prevent big week-to-week rating changes that aren't backed by real changes in the data.

For more on Neutral+ and Neutral–, see What do Neutral+ and Neutral- mean?

When does a new ETF get a rating?

New ETFs receive a rating after 120 trading days. Five years of weekly rating history is available on Chaikin charts.

💡 How Are Chaikin ETF Ratings Different From Other ETF Ratings?

Most ETF rating systems focus on past price performance, expense ratios, or liquidity and size. The Power Gauge ETF Rating also looks at the fundamentals and technicals of the ETF's underlying holdings, which makes it more forward-looking.

Use ETF ratings to:

• Spot ETFs to overweight (Very Bullish) or underweight or avoid (Very Bearish).
• Support allocation decisions by sector, market cap or style (value vs. growth).
• Get insight from the stocks an ETF holds, not just the ETF's own price.

⚠️ Avoid using ratings in isolation. A Bullish rating is a call to investigate—not a command to buy.