U.S. Factor AIM Portfolio

Model Portfolios

Overview

Stats:
Funds:6
Acquired Fees:0.24%
TTM Yield:1.24%
Benchmark:SPY
Links:
Methodology
Positioning Guide
Launch in Terminal

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

7.27.2021

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

  • Momentum/Growth ETFs saw sizeable net outflows of $719 million over the past week
  • The net inflows for the iShares MSCI USA Quality Factor ETF (QUAL) totaled another $644 million on the week
  • Value strategies have been the worst performers across the 1-month and 3-month periods, but are the top performers in the YTD and 1-year periods
  • The Invesco S&P 500 Pure Growth ETF (RPG) has surged 5.86% while the Invesco S&P 500 Pure Value ETF (RPV) has declined 3.93% over the past month

 

 

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U.S. Factor Playbook

7.20.2021

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

  • Quality ETFs saw another week of solid net inflows ($391 million) while Size once again saw the most net outflows, totaling $759 million
  • Over the past week, the iShares MSCI USA Quality Factor ETF (QUAL) gathered nearly $400 million in net inflows
  • Value strategies continued to decline over the past month (-2.33%) while Quality and Low Volatility strategies remain up in the period
  • The Invesco S&P Smallcap 600 Pure Value ETF (RZV) has been the worst performer over the past month (-7.63%) and also saw net outflows totaling nearly 10% of it's AUM in the past week

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U.S. Factor Playbook

7.13.2021

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

  • Quality ETFs see sizeable inflows ($558 Million) while Size see outflows of $277 Million
  • Value strategies continue to lag Momentum/Growth strategies over the past month, but maintain year-to-date outperformance 
  • Invesco S&P 500 Momentum ETF (SPMO, +8.33%) is the top performer over the last month
  • Dividend ETFs still seeing inflows despite negative 1-month performance 

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U.S. Factor Playbook

6.29.2021

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

  • Low Volatility ETFs see net outflow (ongoing trend) while Value sees new weekly net outflows (-$72 million)
  • Momentum/Growth strategies outperforming Value  strategies over the past month by an average of over 5%
  • Best performer over past month? Cabot Growth ETF (CBTG +9.23%)
  • Flows over past three months favoring dividend ETFs but performance isn't (category laggard)

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U.S. Factor Playbook

6.23.2021

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

  • More of the same in flow: Dividend ETFs see $671 million net inflows while low vol ETFs see net outflows
  • Momentum/Growth best performing factor over past month (+3.77%)
  • Wide dispersion: 13% seperating leader and laggard in category 1-month performance
  • First Trust Mid Cap Growth AlphaDEX fund (FNY) category leader (+9.47%) over past month

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U.S. Factor AIM Positioning Guide

6.20.2021

U.S. Factor AIM Portfolio returned -1.72% last week, underperforming the S&P 500 (SPY) by 1.33%

  • Top Performers: QUAL -1.98%
  • Bottom Performers: VLUE -4.81%, ONEV -4.12%
  • Since Inception Performance: +36.61% outperforming the S&P 500 (SPY) by 0.16%

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U.S. Factor Playbook

6.16.2021

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

  • More net outflows for Low Volatility ETFs, Dividend ETFs see $750 million in
  • iShares MSCI USA Min Vol ETF (SIZE) sees 2nd most net outflows over past week (-$110 million)
  • Momentum/Growth factor best performing over past month (+3.71%)
  • Cabot Growth ETF (CBTG +11.85%) best one month performer across factor landscape

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U.S. Factor AIM Positioning Guide

6.13.2021

U.S. Factor AIM Portfolio returned -0.25% last week, underperforming the S&P 500 (SPY) by 0.65%

  • Top Performers: QMOM +1.44%, QUAL +0.54%
  • Bottom Performers: VLUE -0.72%, MTUM -0.44%, QVAL -0.38%
  • Since Inception Performance: +41.90% outperforming the S&P 500 (SPY) by 2.82%

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U.S. Factor AIM Positioning Guide

6.6.2021

U.S. Factor AIM Portfolio returned +0.52% last week, underperforming the S&P 500 (SPY) by 0.09%

  • Top Performers: QUAL +0.99%, MTUM +0.78%, ONEV +0.74%
  • Bottom Performers: QMOM -1.82%, QVAL -0.60%
  • Since Inception Performance: +42.26% outperforming the S&P 500 (SPY) by 3.74%

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U.S. Factor Playbook

6.1.2021

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

  • Dividend and Size factors see net inflows over past week but low volatility ETFs lead in net outflows over past 6 months (-$10.8 billion)
  • iShares MSCI USA Momentum Factor ETF (MTUM) sees $3.3 billion in net outflows over past week
  • Value factor best peformer over past month, 3 months, 6 months, and 12 months
  • Best performing category ETF over past month? Invesco S&P Smallcap 600 Pure Value ETF (RZV +6.34%)

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