Read through the recent WCI post on Factor Based Investing https://www.whitecoatinvestor.com/factor-investing-review-of-your-complete-guide-to-factor-based-investing/ and was interested in the momentum based investing. I've tried many different thoughts on investing, but have been mostly index focused for a long time. The Momentum Strategy/Factor is something I'd not heard of till his post, though I've obviously watched many stocks balloon over the last 18 years.
iShares has a Momentum ETF https://www.ishares.com/us/products/251614/ishares-msci-usa-momentum-factor-etf that has incredible one and three year returns, but no history beyond that.
What do you thing will happen to this thing in a downturn? My guess is outsize losses to match the outsize gains. Even Apple lost >50% in 2008/2009, though they seem to have done ok now.
iShares has a Momentum ETF https://www.ishares.com/us/products/251614/ishares-msci-usa-momentum-factor-etf that has incredible one and three year returns, but no history beyond that.
What do you thing will happen to this thing in a downturn? My guess is outsize losses to match the outsize gains. Even Apple lost >50% in 2008/2009, though they seem to have done ok now.
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