U.S. Factor AIM Portfolio | ETF Action

Model Portfolios

Overview

Stats:
Funds:	6
Acquired Fees:	0.24%
TTM Yield:	1.35%
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

1.18.2022

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

Momentum/ Growth ETFs have lagged other U.S. Factor strategies in November, December, and thus far in January. Over the past 3 months, Momentum/ Growth ETFs have fallen nearly 4% on average
The Schwab US Dividend Equity ETF (SCHD) saw the largest net inflows over the past week gathering $364 million
The top performing U.S. Factor ETF over the last month has been the Invesco S&P 500 Pure Value ETF (RPV) which has climbed over 10%

U.S. Factor Playbook

1.11.2022

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

Value ETFs have outperformed other U.S. Factor ETFs over the past month climbing 3.34%, on average. Dividend ETFs were not far behind adding 2.81% on average in the period
Amid recent outperformance of the S&P 500 Pure Growth ETF (RPG), the S&P 500 Pure Value ETF (RPV) gathered nearly $100 million in net inflows over the past week. Thus far in 2022, RPV has outpaced RPG by over 10%
The top performing U.S. Factor ETF over the last month has been the First Trust Morningstar Dividend Leaders Index Fund (FDL, +8.00%)

U.S. Factor Playbook

1.4.2022

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

Momentum/ Growth ETFs gained just 1.52% in December on average and trailed all other U.S. Factor strategy ETFs. Dividend ETFs and Low Volatility ETFs returned over 6% on average while Value ETFs, Size ETFs, and Quality ETFs gained over 5% on average on the month
Over the past year, Dividend ETFs gathered over $36 billion in net inflows. Size ETFs saw over $10 billion and Value ETFs saw over $9 billion in net inflows in the period
The iShares MSCI USA Value Factor ETF (VLUE) was the best performing U.S. Factor ETF over the last month adding nearly 8%. The Cabot Growth ETF (CBTG) continues to lag, declining nearly 5% on the month
S&P 500 Low Volatility (SPLV) currently sits well above its 50-Day and 200-Day moving averages

U.S. Factor Playbook

12.21.2021

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

Momentum/ Growth ETFs have continued to lag other U.S. Factor strategies, down 8.53% over the past month and down 1.68% over the past 3 months, on average
The Global Beta Low Beta ETF (GBLO) has been the top performing U.S. Factor ETF over the last month, climbing 4.5%, while the Innovator IBD 50 ETF (FFTY) has been the worst performer in the period, down 16.45%
S&P 500 Value (SPVU) now sits just above its 200-day moving average, but is well below its 50-day moving average

U.S. Factor Playbook

12.15.2021

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

All U.S. Factor ETFs, on average, are down over the past month with Momentum/ Growth ETFs plummeting over 7%
Size ETFs saw $450 million in net outflows over the past week, Quality ETFs were the lone factor strategy to see net inflows in the period
The Cabot Growth ETF (CBTG) has plunged over 20% in the past month. The top performer in the period has been the S&P 500 Low Volatility ETF (SPLV) which has inched up by just 2.59% on the month
SPLV is also well above its 50-day and 200-day moving averages

U.S. Factor Playbook

12.7.2021

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

On average, Momentum/ Growth ETFs have underperformed all other U.S. Factor strategies across the 1-month, 3-month, year-to-date and 1-year periods
After posting solid gains in October, all U.S. Factor strategies declined slightly in November. Dividend ETFs lead month-to-date performance, adding 2.77%, on average
Only 8 U.S. Factor ETFs (LEAD, SPLV, DVOL, LVHD, HUSV, LGLV, KVLE, XMLV) are up over the past month, with the large majority being Low Volatility ETFs
The worst performer over the last month has been the Innovator IBD 50 ETF (FFTY) which plunged nearly 14%
S&P 500 Value (SPVU) now sits between its 50-day and 200-day moving averages

U.S. Factor Playbook

11.30.2021

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

Fairly concentrated performance over the past month with for U.S. Factor strategies as all strategies were within +0.58% and -1.30% on average in the period. On a 3-month basis, the performance range for all strategies is between +0.60% and +2.40%, on average
Low Volatility ETFs have gathered over $1.5 billion in net inflows over the past week. Over the last year, Low Volatility ETFs have seen $10.4 billion in net outflows
The iShares MSCI USA Quality Factor ETF (QUAL) saw net inflows of $3.4 billion in the past week while the iShares MSCI USA Momentum Factor ETF (MTUM) gathered $2.1 billion in net inflows
The Alpha Architect U.S. Quantitative Value ETF (QVAL) has been the top performing U.S. Factor ETF over the past month gaining 3.71%. Meanwhile, the Motley Fool Small-Cap Growth ETF (MFMS) has been the worst performer in the period sinking 6.84%
The closing price, 50-day moving average, and 200-day moving average for the S&P 500 Dividend ETF (SPYD) have converged around the $40 level

U.S. Factor Playbook

11.23.2021

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

Dividend ETFs gathered another $618 million in net inflows over the past week while Momentum/ Growth ETFs saw $451 million in net outflows over the period
Amid recent tech losses over the past week, the SPDR Dow Jones Industrial Average ETF (DIA) Trust saw $540 million in net inflows
The Invesco S&P SmallCap Momentum ETF (XSMO) has been the top performer over the past month climbing 7.80%
Quality (SPHQ) sits just below relative trailing-twelve-month performance of the S&P 500 (SPY) while Size (RSP) is just above relative performance

U.S. Factor Playbook

11.16.2021

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

On average, all, U.S. Factor strategies have posted gains thus far in November after climbing over 4% in October 2021
Dividend ETFs gathered over $500 million in net inflows over the past week and have seen nearly $8 billion in net inflows in the past 3 months
The Invesco S&P SmallCap Momentum ETF (XSMO) has been the top performing U.S. factor ETF over the past month, adding 11.41%
The 50-day and 200-day moving averages for the S&P 500 Dividend ETF (SPYD) are converging, however, its current price sits well above both averages

U.S. Factor Playbook

11.9.2021

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

Momentum/ Growth strategies have outpaced other U.S. factor strategies across the past month, climbing 8.65% on average
The Pacer Lunt Large Cap Alternator ETF (ALTL) saw $62 million in net outflows over the past week and now has just $217 million in total assets under management. ALTL is up an impressive 40.52% year to date
The WisdomTree U.S. Growth & Momentum Fund (WGRO) has been the top performing U.S. factor ETF over the past month, returning over 13%