9Mon·

MSCI Factor ETF comparison

According to MSCI, the Momentum and Quality ETFs perform better than the World ETF. The positions are smaller and more concentrated than in the World ETF.

A world option for you?

What do you think?

Since I don't own an ETF and otherwise hold quality stocks, I can well imagine a momentum ETF as an addition.

But I'm not sure whether I would choose one of the ETFs if I only had to bet on a single ETF.

22 Comments

GeldmitKopf@cashwithhead

9Mon

If so, I would take the Quality. The momentum more or less always follows the trend, whereas the quality simply picks out good stocks that can bring promising performance

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Na D.@user24280df1bf3d4d22

9Mon

Over a long time scale, no one factor applied to a market cap weighted index can beat the underlying market cap weighted index. If it did, the underlying index would eventually start to mimic that factor index. You can have outperformance in short run based on the valuations, economy conditions etc.

But nothing wrong in picking one or more factors you like and investing in them.

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Gerit@Gerit

9Mon

This would also be interesting to observe in other market phases, not just in a zero interest rate bull run 😅

Edit: but thanks for the preparation! So much effort must be appreciated here 🙏🏻

What I have noticed so far over the past few years is that classic value investing simply works best over long periods of time.

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PowerWordChill@PowerWordChill

9Mon

Bitch please, these are Pokemon for me and I have them ALL! 😎

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Waldo@Waldo

9Mon

Whereas the quality index might perform better, the connected etfs usually have a much higher cost, resulting in lower overall gains, at least that was my analysis outcome early last year.

The momentum index I held for a while but as you can also see from the data, it's performance is not consistent. I struggle to understand how and when best to use it, so I sold.

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