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The Alpha Architect U.S. Quantitative Momentum ETF holds 50 trending stocks, with a focus on mid-caps, consumer discretionary and industrials. Despite outperforming in certain periods, QMOM has lagged the Russell 1000 benchmark and key competitors since its inception in 2015. QMOM's volatility may benefit swing traders, but it lacks long-term attractiveness even within the momentum ETF category.
Alpha Architect U.S. Quantitative Momentum ETF offers exposure to top-performing stocks using momentum strategies while maintaining reasonable valuations, with a P/E ratio of 18.9x. QMOM's portfolio is diversified across mid-caps and various sectors, with low exposure to technology and mega caps, providing a great diversification opportunity. Despite its low mega-cap exposure, QMOM has achieved competitive gains, making it a compelling option for investors seeking to benefit from the broadening market leadership.
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QMOM ETF provides exposure to high-momentum stocks that do not overlap with benchmark indices. The fund had a stellar 2020, returning 62%. However, returns in other time frames are much more modest.
FAQ
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