JOET ETF

Quality-based portfolios are still attractive amid an economic slowdown, with Virtus Terranova U.S. Quality Momentum ETF offering exposure to high-quality companies with strong relative performance. The JOET fund struggles to keep up with the S&P 500 and other quality ETFs due to its equal-weighted allocation and its underweighting of profitable mega caps, but may benefit from a market sentiment shift favoring mid-cap companies. JOET's sector allocation shows an overweighting of financial services and industrials, and an underweighting in communication services, healthcare, technology, and consumer staples compared to S&P 500 and quality ETF peers.

JOET is an index-based ETF that amalgamates two potent factors, namely momentum and quality, targeting mega- and large-caps. Despite looking promising, JOET has underperformed the S&P 500 ETF and a few quality ETFs since its inception in November 2020. Downside and upside capture were also unsatisfying. At the same time, its portfolio has excellent quality that comes with solid growth and momentum exposure.

The Virtus Terranova U.S. Quality Momentum ETF seeks to track the Terranova U.S. Quality Momentum Index, focusing on large-cap US companies with strong quality fundamentals and positive momentum trends. The ETF is well-diversified across various sectors, with a heavy mid-cap allocation, providing a tilt towards smaller companies without the risk of small-cap stocks. The ETF's strategy is technical and retrospective, potentially overlooking qualitative risk factors, but it offers attractive risk-adjusted returns and a solid risk management approach.

Virtus Investment Partners has transferred the Virtus Terranova U.S. Quality Momentum ETF (NYSE Arca: JOET) from the Nasdaq to the New York Stock Exchange. JOET strives to deliver exposure to U.S.-listed large-cap companies that combine strong quality fundamentals with positive momentum technical trends.