Momentum ETF Launches as the Sector Sees An Record Exodus

The video discusses a new ETF based on robust momentum, detailing its portfolio, rebalancing, and performance. It explores the differences between momentum and trend following strategies, and the challenges of timing momentum. The video also covers the design and market entry of ETFs, highlighting a specific leveraged strategy that offers capital efficiency by combining stock and bond exposure.

What is unique about the rebalancing feature of the new ETF strategy discussed?

• It rebalances weekly.

• It rebalances daily.

• It rebalances monthly.

• It rebalances annually.

What recent trend was observed in momentum-focused ETFs according to Bloomberg intelligence data?

• No data available

• An increase in investments

• A decrease in investments

• Stable investments

How does momentum differ from trend following in investment strategies?

• Both seek outperformance by comparing assets.

• Both focus on risk management.

• Momentum seeks outperformance by comparing assets, while trend following focuses on risk management.

• Momentum focuses on risk management, while trend following seeks outperformance.

What is a potential benefit of using leverage in ETFs as discussed in the video?

• It eliminates the need for diversification.

• It simplifies the investment process.

• It reduces risk significantly.

• It provides capital efficiency by increasing exposure.

Why might advisors be hesitant to use the new ETF product discussed?

• It is too complex to understand.

• It limits their ability to add value.

• It is not diversified enough.

• It has high fees.