JOET - JOET: Top-Quality Portfolio With Performance Weaknesses

2024-06-07 23:24:56 ET

Summary

• 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.
• Although I like JOET's factor mix, I regard its returns as unsupportive of a Buy rating.

Factor investing is not only about tailoring pure-play portfolios that are either significantly inexpensive or have an aggressive growth profile. It is more about finding promising combinations to maximize returns. The Virtus Terranova U.S. Quality Momentum ETF ( JOET ), which is focused on balancing exposure to highly efficient, relatively debt-light companies with the momentum factor, is one of the names in that arena. With $107.4 million in AUM, JOET has a 29 bps expense ratio ....

For further details see: