JMOM - JMOM: Momentum Has Made The Difference In 2024
2024-05-07 03:48:14 ET
Summary
- JPMorgan U.S. Momentum Factor ETF is a robustly performing equities ETF that follows a momentum strategy.
- Momentum investing aims to capitalize on existing market trends by buying rising securities and selling them when they peak.
- The JPMorgan US Momentum Factor Index, which JMOM mirrors, has outperformed the SPY and another popular momentum ETF, MTUM, historically when financial conditions are easing.
- Unlike traditional investment approaches that consider valuation metrics, JMOM prioritizes stocks with upward trends regardless of their price-to-earnings ratio or other valuation factors.
- The holdings of the ETF change frequently (high turnover) as the index removes stocks that lose momentum.
Thesis
When you look at the capital markets and identify what has performed in 2024, momentum strategies stand out. Despite the complex sounding moniker, momentum equities strategies are not hard to understand, and have performed very robustly historically....
JMOM: Momentum Has Made The Difference In 2024