Methodology

Transparent scoring, not black-box tips

Phenomen scores don't come from a language model guessing. Every ETF gets two independent 0–100 scores each day, each built from named, inspectable components you can reason about.

Suitability score

Is this a sound fund to own?

The suitability score (0–100) measures structural quality — how tradable, cheap, durable, and clear a fund is. It is built from eight components:

Liquidity

How easily the fund trades — spreads and daily turnover.

AUM

Assets under management, as a stability and durability signal.

Cost

Expense ratio and the drag it places on long-term returns.

Diversification

How concentrated the holdings are versus broadly spread.

Transparency

How clearly the fund discloses what it holds.

Tracking

How faithfully the fund follows its stated exposure.

Momentum

Recent price behavior as a supporting input.

Role clarity

How cleanly the fund fits a defined portfolio job.

Technical score

What is price doing right now?

The technical score (0–100) is a separate read on price behavior — it never inflates the suitability score. It comes from six components, with a confidence band and a plain-English summary:

Trend direction

Which way price is leaning across key moving averages.

Trend strength

How firmly that trend is established versus choppy.

Momentum

The rate of change behind recent moves.

Relative strength

Performance measured against the broader market.

Timing

Where price sits within its recent range and cycle.

Risk state

Volatility and drawdown context for the current setup.

How the two scores combine

For recommendations, candidates are ranked by a blend that leans on quality first: roughly 70% suitability and 30% technical. Suitability gates what can be recommended at all; the technical score helps rank and time within that set.

ETFs are organized into four universes — Core, Sector-Style, Thematic, and Research-Only — with a deliberate Recognition vs Recommendation distinction: some funds (leveraged, inverse, ETNs) are recognized and explained but never recommended.

Where the data comes from

Prices, volumes, and fundamentals are sourced from a licensed market-data provider (EODHD) and refreshed nightly into our database. Indicators (RSI, SMA 20/50/200, MACD, volatility envelopes, Stochastic, and more) are computed from that data — not inferred by a model.

We describe what each component measures rather than exact proprietary weightings, so you can judge the reasoning without us handing over the formula.

Phenomen provides data, analysis, and educational tools for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. ETF investing involves risk, including possible loss of principal. Past performance does not guarantee future results. Consult a licensed financial professional before making investment decisions. Full disclaimer.

Institutional-grade ETF analysis, inside your AI assistant.