SEIM Profile
The SEI Large Cap Momentum Factor ETF is designed to offer investors exposure to a portfolio of large-cap U.S. companies exhibiting strong momentum characteristics. Under normal market conditions, the fund allocates at least 80% of its net assets, including any borrowings for investment purposes, to equity and equity-related securities. These include common stocks, convertible bonds, convertible preferred stock, depositary receipts, warrants, and rights issued by large-cap U.S. companies that exhibit high momentum based on specific investment criteria.
The fund's investment strategy focuses on identifying and investing in large U.S. companies that show strong upward price trends and other indicators of momentum. Momentum investing is based on the premise that stocks which have performed well recently will continue to do so in the near term. The ETF's underlying index is constructed to capture the performance of such momentum stocks by evaluating various technical and fundamental factors that signal sustained price appreciation.
By concentrating on large-cap stocks with positive momentum, the SEI Large Cap Momentum Factor ETF aims to provide investors with potential opportunities for capital appreciation. This approach typically involves selecting companies that are trending positively and have strong relative performance compared to their peers. The ETF’s methodology may include quantitative models and factor-based strategies to assess and rank stocks based on their momentum metrics.
Investing in momentum stocks carries certain risks, including the potential for higher volatility and the possibility of performance deviations from broader market trends. Additionally, the focus on large-cap stocks means that the ETF may be less exposed to the growth potential of smaller companies. Despite these risks, the fund offers a targeted approach for investors seeking to capitalize on trends in the equity market, leveraging the momentum factor to potentially enhance returns in a large-cap stock universe.
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