FIRST TRUST US MOMENTUM UCITS ETF

Issuer: First Trust

Asset Class: Equity

TER: 49bps

Trading Currency: GBX

Pays Income: False

Listing Date: 31 Jul 2024

Ticker: USMO

ISIN: IE000CY30YV9

The fund provides targeted exposure to the momentum factor within the US equity market. It aims to deliver capital growth by tracking the Nasdaq US Momentum Index, which is composed of approximately 100 large and mid-capitalisation US stocks exhibiting the strongest recent performance trends. The selection process is purely quantitative, based on a proprietary momentum score that evaluates price performance over various trailing periods. This methodology seeks to systematically identify and invest in stocks that are on an upward trajectory, effectively capturing the 'hot hands' of the market.

This investment is designed for individuals looking to supplement a core equity portfolio with a factor-based strategy. By focusing on momentum, the fund offers a distinct return profile compared to traditional market-cap-weighted indices. It may appeal to investors who believe in the persistence of price trends and are willing to accept the cyclical nature of factor performance. The strategy provides a disciplined way to participate in market leadership, making it a potential tool for enhancing returns, particularly in trending market environments. As a factor-based investment, it is best suited for those with a comprehensive understanding of smart beta principles and a longer-term investment outlook.