IDMO - IDMO: As I Suspected Timing Is Everything For This ETF
2024-04-12 08:30:00 ET
Summary
- The article discusses the Invesco S&P International Developed Momentum ETF and its application of momentum investing to international stocks.
- Momentum investing has been proven to work, with investors either overreacting or under-reacting to important information. A change in Morningstar's rating methodology may have affected the performance of momentum strategies.
- Since momentum investors goes in cycles and IDMO just had a blowout year, with a concern the turn is coming, I rate IDMO as a Cautionary Sell.
Introduction
This article reviews the Invesco S&P International Developed Momentum ETF ( IDMO ). While I have come across numerous US equity momentum ETFs, this is my first that applies that strategy to International stocks. Momentum investing has been studied for years and its success runs counter to the Efficient Market Hypothesis that states earning Alpha via a targeted investing strategy should not be possible. A study in 2018 by UCLA found evidence that momentum investing does work but couldn’t explain why....
IDMO: As I Suspected, Timing Is Everything For This ETF