How we evaluate investments, check data, and build tools
Methodology
This page explains the frameworks, data sources, and processes we use to analyze investment concepts, build calculators, and evaluate products. Our goal is to make our methods transparent so readers can trust — and verify — our work.
1. Our investment philosophy
InvestorsEdge.com follows long-established evidence from financial research:
- Broad diversification reduces risk
- Low costs improve long-term outcomes
- Time in the market beats timing the market
- Behaviour often matters more than strategy
- Simplicity increases the chance of sticking to a plan
This philosophy guides how we build content and how we evaluate products or concepts.
2. How we evaluate investment products
When discussing ETFs, index funds, or other investment vehicles, we examine:
- Fees & expenses: MER, management fees, and trading costs
- Tracking accuracy: How closely a fund follows its index
- Diversification: Number of holdings, sector exposure, country exposure
- Risk profile: Volatility, drawdowns, and factor tilts
- Index methodology: Market-cap, equal-weight, factor-based, etc.
- Liquidity & size: Assets under management, bid-ask spread
We do not make personalized recommendations or claim any product is inherently “best” — only how it fits within a general long-term framework for education.
3. How calculators are built
Our calculators use transparent math and well-established formulas from finance, such as:
- Compound growth:
FV = PV × (1 + r)^n - Dollar-cost averaging projections
- Fee impact over time
- Withdrawal sustainability simulations
- Basic probability & expected return structures
Inputs are clearly labeled and assume reasonable defaults to make the tools usable by beginners. Calculators do not predict future returns — they illustrate concepts.
4. Data sources
Data used throughout the site may come from:
- Fund provider websites (Vanguard, iShares, State Street, etc.)
- Regulatory filings (ETF prospectuses, annual reports)
- Index providers (MSCI, S&P Dow Jones, FTSE Russell)
- Federal Reserve, Bank of Canada, ECB, and other central banks
- Academic research and publicly available working papers
Where we cite specific figures (such as expense ratios), they are accurate as of the date mentioned and may change.
5. How comparisons are made
When comparing investment vehicles or approaches, we consider:
- Long-term expected outcomes (not short-term performance)
- Fund structure and diversification
- Costs and tax efficiency
- Risks and behaviour implications
- Simplicity and ease of ongoing management
We avoid comparing products purely based on recent performance or headlines.
6. Limitations & assumptions
All models, calculations, and examples involve simplifying assumptions. They do not account for every variable, such as:
- Tax differences between jurisdictions
- Trading costs specific to individual brokers
- Currency fluctuations
- Inflation variability
- Behavioural impacts on returns
No model can predict future returns or eliminate uncertainty. All investing involves risk.