JOET Profile
The Virtus Terranova U.S. Quality Momentum ETF is structured to provide investors with exposure to a portfolio of high-quality, large-capitalization companies based in the United States. Under normal market conditions, the fund commits at least 80% of its assets to the component securities that make up its benchmark index. This index is carefully designed to reflect the performance of U.S. companies that exhibit both strong quality metrics and positive momentum characteristics, ensuring that the fund captures firms with robust financial health and favorable stock price trends.
The fund's underlying index includes a diverse range of securities, encompassing both common stocks and American Depositary Receipts (ADRs), which allow investors access to foreign companies that meet the fund's stringent quality and momentum criteria. By focusing on these attributes, the ETF aims to deliver superior risk-adjusted returns, capitalizing on the persistent outperformance of quality companies in rising market environments and the defensive nature of these firms during downturns.
Additionally, the fund adheres to a strict investment policy, ensuring that no less than 80% of its net assets, including any borrowed capital for investment purposes, are invested in U.S. securities. This allocation strategy not only emphasizes domestic equities but also underscores the fund's commitment to maintaining a portfolio that closely mirrors the characteristics of the U.S. equity market. The ETF’s investment approach is rooted in a disciplined methodology, blending fundamental analysis with momentum strategies to select and weight its holdings.
Overall, the Virtus Terranova U.S. Quality Momentum ETF serves as a tool for investors seeking a balanced approach to growth and stability, focusing on companies with solid financials and strong market positioning. The ETF offers a strategic way to gain exposure to quality U.S. equities, potentially enhancing portfolio performance through its emphasis on both quality and momentum factors, which have historically been associated with long-term outperformance.
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