Calculation and mechanics
The treemap algorithm first splits the available area among groups and then among the individual ETFs. As the weight, Foliograph uses not the AUM directly but its square root.
This keeps smaller funds visible too. An ETF with a hundred times the AUM of another receives roughly ten times the area with this scaling instead of a hundred times.
A method such as squarify then arranges the weights into rectangles that are as compact as possible.
tile weight ~ sqrt(AUM)
Distinction
A tabular heatmap gives all ETFs the same space and colours the cells according to their respective value. The treemap additionally shows the relative size of the funds. Because of the square-root scaling, the area of a tile is deliberately not proportional to the actual AUM.
Metrics such as the distance to the 52-week high or the EMA21 streak remain easier to compare exactly in the table.
Related terms
- AUM (Assets under Management, net assets of a fund)
- Grantor Trust (Commodity and crypto trusts such as GLD, SLV or IBIT)
- EMA21 (Exponential moving average over 21 periods)
- Distance to the 52-Week High (52WH %, distance to the yearly high)
All market and analytical information is provided for educational and analytical purposes only and does not constitute investment advice or a trading recommendation.