IMOM Profile
The Alpha Architect International Quantitative Momentum ETF is designed to provide investors with exposure to non-U.S. equity securities that exhibit high relative momentum. Managed by Alpha Architect, the fund utilizes a sophisticated, multi-step, quantitative, and rules-based approach to identify a select portfolio of approximately 50 to 100 international stocks. This approach emphasizes the momentum investing style, which targets securities that have demonstrated superior recent total return performance relative to their peers.
The ETF's investment process begins with the identification of high-momentum stocks using a quantitative methodology that ranks potential investments based on their recent performance trends. The Adviser then applies proprietary screens to refine this selection, removing companies that may have factors detrimental to their momentum. These screens address various financial and operational issues that could impair the momentum characteristics of the selected securities.
In addition to its core equity investments, the fund maintains flexibility by allocating up to 20% of its assets to cash and cash equivalents, other investment companies, and a range of securities and financial instruments. This allocation strategy allows the ETF to manage liquidity, adjust to market conditions, and potentially enhance returns through diversified investments beyond the primary equity holdings.
Overall, the Alpha Architect International Quantitative Momentum ETF leverages advanced quantitative techniques and momentum investing principles to seek out high-performing international equities. By combining a disciplined selection process with strategic flexibility, the fund aims to deliver robust performance while navigating the complexities of global equity markets.
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