U.S. Factor AIM Portfolio

Overview

Stats:
Funds:6
Acquired Fees:0.24%
TTM Yield:1.83%
Benchmark:SPY

Inception Date: June 22, 2020

Investment Objective

The ETF Action U.S. Factor Active Index Model (AIM) Portfolio's primary objective is to outperform the broad U.S. Market as measured by the S&P 500 Index.  To accomplish this objective the investment committee utilizes an actively managed process that is governed and implemented using a transparent and repeatable framework.

Key Facts

  • Selection universe limited to broad U.S. factor ETFs covering value, momentum, growth, quality and low volatility as defined by the ETF Action classification system
  • Over/under weight positions driven by transparent, multi-faceted, and repeatable ratings process
  • Fully invested (no cash), does not use leverage or inverse funds

Philosophy

Returns across factor exposures can diverge widely based on a number of sub-factors including sector exposure, business cycle, macroeconomic environment, fundamentals, valuations, and sentiment. For example, companies with quality characteristics (ie: solid balance sheets, consistent earnings, low leverage) may outperform the broader market during an economic slowdown.  Similarly, companies that have strong positive sentiment and price momentum may outperform at other times.

Following a disciplined process outlined in the methodology guide, ETF Action has created a proprietary process to track and identify factors that we believe have an outsized chance to outperform over various time frames.

All ETF Action Model Portfolios are made available to subscribers for informational purposes only and do not represent actual investments. Full terms of service, including terms of use, copyrights, and disclaimers are available here.

Performance

Performance (as of )

INDEX PERFORMANCE CALCULATED BY indxx. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, THE PERFORMANCE OF AN INDEX DOES NOT REPRESENT ANY ACTUAL TRANSACTIONS AND ITS PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ANY FEES OR EXPENSES ASSOCIATED WITH ACTUAL INVESTING.

*Since Common Inception Date

Composition

Model Insights

U.S. Factor Playbook

6.21.2022

An overview of the U.S. Factor ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.

  • All U.S. Factor strategies have declined over 7% on average in the past month with Value ETFs, Momentum/ Growth ETFs, and Dividend ETFs all falling over 10% on average
  • The SPDR Dow Jones Industrial Average ETF Trust (DIA) and the Invesco S&P 500 Quality ETF (SPHQ) saw the largest net inflows amongst U.S. Factor ETFs over the past week, gathering $630 million and $514 million respectively
  • All U.S. Factor ETFs have posted losses over the past month with the worst performer, the Invesco S&P SmallCap Value with Momentum ETF (XSVM), dropping over 14%
  • The S&P 500 (SPY), S&P 500 Equal Weight (RSP), S&P 500 High Quality (SPHQ), S&P 500 Low Volatility (SPLV), S&P 500 Momentum (SPMO), S&P 500 Value (SPVU), and S&P 500 Dividend (SPYD) are all still trading well below relative 50-Day and 200-Day Moving Averages

 

U.S. Factor Playbook

6.14.2022

An overview of the U.S. Factor ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.

  • Year-to-date, all U.S. Factor strategies have fallen over 11%. The worst performing factors thus far in 2022 have been Momentum/ Growth ETFs which have sunk 25.36% on average and Quality ETFs which have declined 19.35% on average 
  • The SPDR Dow Jones Industrial Average ETF Trust (DIA) saw $294 million in net outflows and was down 7.22% over the past week
  • All U.S. Factor ETFs have posted losses over the past month. The worst performer was the First Trust Multi-Manager Large Growth ETF (MMLG) which was down 9.75%. MMLG is amongst the worst performing U.S. Factor ETFs year-to-date, falling nearly 39%
  • The S&P 500 (SPY), S&P 500 Equal Weight (RSP), S&P 500 High Quality (SPHQ), S&P 500 Low Volatility (SPLV), S&P 500 Momentum (SPMO), S&P 500 Value (SPVU), and S&P 500 Dividend (SPYD) are all trading below relative 50-Day and 200-Day Moving Averages

 

U.S. Factor Playbook

6.7.2022

An overview of the U.S. Factor ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.

  • Value ETFs outperformed other U.S. Factor ETFs in May climbing 3.02% on average. Dividend ETFs followed closely rising 2.59% on average in the month. Momentum/ Growth ETFs were the only Factor ETFs to post declines in May falling 76 bps on average
  • The  iShares MSCI USA Momentum Factor ETF (MTUM) led U.S. Factor ETFs in net inflows over the past week gathering $546 million in net inflows. The iShares MSCI USA Min Vol Factor ETF (USMV) saw the most net outflows on the week with $328 million
  • Momentum/ Growth ETFs have seen large disparity in performance over the past month. The Invesco S&P SmallCap Momentum ETF (XSMO) was the top performing U.S. Factor ETF on the month gaining 5.84% while the Motley Fool Small-Cap Growth ETF (TMFS) was the 2nd worst performer on the month dipping 2.35%
  • S&P 500 Dividend (SPYD) and S&P 500 Value (SPYD) are both currently trading above relative 50-Day and 200-Day Moving Averages while, S&P 500 Equal Weight (RSP), S&P 500 Quality (SPHQ), S&P 500 Low Volatility (SPLV), and S&P 500 Momentum (SPMO) are all trading below relative 50-Day and 200-Day Moving Averages

 

U.S. Factor Playbook

5.31.2022

An overview of the U.S. Factor ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.

  • All U.S. Factor strategies have posted gains thus far in May. Value ETFs and Dividend ETFs have outperformed slightly, each rising over 3% on average
  • The iShares Core High Dividend ETF (HDV) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) led net inflows over the past week gathering $478 million and $354 million, respectively
  • Over the past month, the Alpha Intelligent - Large Cap Growth ETF (AILG, -15.22%) is the only U.S. Factor ETF to post double digit losses. The First Trust Dorsey Wright Momentum & Value ETF (DLVU) has been the top performer in the period rising 6.80%
  • S&P 500 Dividend (SPYD) and S&P 500 Value (SPYD) are both currently trading above relative 50-Day and 200-Day Moving Averages while S&P 500 (SPY), S&P 500 Equal Weight (RSP), S&P 500 Quality (SPHQ), and S&P 500 Momentum (SPMO) are all trading below relative 50-Day and 200-Day Moving Averages

 

U.S. Factor Playbook

5.24.2022

An overview of the U.S. Factor ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.

  • Momentum/ Growth ETFs continue to lag other U.S. Factor strategies. On average, Momentum/ Growth ETFs trail all other factor strategies across the 1-month, 3-month, year-to-date, and 1-year periods
  • The iShares Core High Dividend ETF (HDV) gathered $1.9 billion in net inflows over the past week while the iShares MSCI USA Value Factor ETF (VLUE) saw $1.05 billion in net outflows on the week
  • All U.S. Factor ETFs have seen declines over the past month. The worst performer on the month was the Alpha Intelligent - Large Cap Growth ETF (AILG) which dropped 14.01%. AILG is down over 36% thus far in 2022
  • S&P 500 Equal Weight (RSP), S&P 500 Quality (SPHQ), S&P 500 Value (SPVU), and S&P 500 Momentum (SPMO) are each currently trading below relative 50-Day and 200-Day Moving Averages. S&P 500 Dividend (SPYD) is currently trading above its 200-Day Moving Average and is just below its 50-Day Moving Average

 

U.S. Factor Playbook

5.17.2022

An overview of the U.S. Factor ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.

  • All U.S. Factor strategies are down year-to-date, with Momentum/ Growth ETFs declining over 20% on average and Quality ETFs falling over 14% on average
  • The SPDR Portfolio S&P 500 High Dividend ETF (SPYD) gathered $1.1 billion in net inflows over the past week while the iShares MSCI USA Value Factor ETF (VLUE) saw $747 million in net outflows on the week
  • Only one U.S. Factor ETF has posted gains over the past month: the Global Beta Smart Income ETF (GBDV) which has added just 35 bps. The Alpha Intelligent - Large Cap Growth ETF (AILG) has fallen the furthest over the month, dropping nearly 21%
  • S&P 500 Equal Weight (RSP), S&P 500 Quality (SPHQ), S&P 500 Value (SPVU), and S&P 500 Momentum (SPMO) are each currently trading below relative 50-Day and 200-Day Moving Averages. S&P 500 Dividend (SPYD) is currently trading above its 200-Day Moving Average and is in line with its 50-Day Moving Average

U.S. Factor Playbook

5.3.2022

An overview of the U.S. Factor ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.

  • All U.S. Factor strategies have fallen over 5% on average in the past month and have declined over 5.75% on average year-to-date. Momentum/ Growth ETFs have underperformed, losing 9.31% on average in the last month and dropping over 17% on average thus far in 2022
  • Low Volatility ETFs continue to see solid net inflows with the Invesco S&P 500 Low Volatility ETF (SPLV) seeing $150 million in net inflows over the last week
  • The top performing U.S. Factor ETF in the last month was the Global Beta Smart Income ETF (GBDV) which was down 1.00%. The worst perfromer on the month was the Innovator IBD 50 ETF (FFTY) which plunged over 17%
  • S&P 500 Equal Weight (RSP), S&P 500 Quality (SPHQ), S&P 500 Low Volatility (SPLV), S&P 500 Value (SPVU), and S&P 500 Momentum (SPMO) are each currently trading below relative 50-Day and 200-Day Moving Averages. S&P 500 Dividend (SPYD) is currently trading below its 50-Day Moving Average, but above its 200-Day Moving Average

 

U.S. Factor Playbook

4.26.2022

An overview of the U.S. Factor ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.

  • All U.S. Factor strategies have declined in the past month. Value ETFs, Quality ETFs, and Size ETFs have all fallen over 4% on average while Momentum/ Growth ETFs have dropped over 6% on average
  • The iShares Core High Dividend ETF (HDV) and the the Schwab US Dividend Equity ETF (SCHD) led U.S. Factor ETFs in net inflows over the past week gathering $415 million and $349 million, respectively
  • 6 of the 10 best performing U.S. Factor ETFs in the last month are Low Volatility ETFs. The Legg Mason Low Volatility High Dividend ETF (LVHD) and the Invesco S&P 500 Low Volatility ETF (SPLV) have each climbed over 2%. 
  • S&P 500 Equal Weight (RSP), S&P 500 Quality (SPHQ), and S&P 500 Momentum (SPMO) are each currently trading below relative 50-Day and 200-Day Moving Averages

 

U.S. Factor Playbook

4.19.2022

An overview of the U.S. Factor ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.

  • All U.S. Factor strategies are down year-to-date. Value ETFs have declined just 1.62% on average thus far this year while Momentum/ Growth ETFs have dropped over 12% on average
  • Low Volatility ETFs gathered $608 million over the past week, boosted by the iShares MSCI USA Min Vol Factor ETF (USMV) which saw $576 million in net inflows on the week
  • Over the past month, the Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) has gained 6.37% and outpaced other U.S. Factor ETFs. The Invesco S&P Smallcap 600 Pure Growth ETF (RZG), which has dipped nearly 20% year-to-date, was the worst performer on the month
  • S&P 500 Low Volatility (SPLV), S&P 500 Dividend (SPYD), and S&P 500 Value (SPVU) are currently trading above relative 50-Day and 200-Day Moving Averages while S&P 500 Quality (SPHQ) is currently trading below 50-Day and 200-Day Moving Averages

 

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