6Lun·

$XDEM (+0,53 %) 📈🌍 Why the MSCI World Momentum ETF is the best! 🌍📈

Hey community!

Have you ever wondered which ETF is the best for your portfolio? Let me introduce you to the MSCI World Momentum ETF and why it is unbeatable in my opinion!

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Global diversificationThis ETF includes shares from various sectors and countries worldwide. You don't just invest in one market, but in many different ones, which spreads the risk.

Momentum strategyThis ETF focuses on shares that have shown above-average performance in the past. The principle: winners stay winners. By focusing on such shares, you can benefit from strong price rises.

Proven performanceHistorically, the momentum strategy has often outperformed the broad market. The figures speak for themselves - who wouldn't want to be on the winning side?

Easy accessThe MSCI World Momentum ETF offers a simple way to invest in a variety of top performers without having to constantly monitor the market and pick individual stocks.

Cost efficiencyETFs are known for their low costs compared to actively managed funds. So you save on fees and can keep more of your profits.

TransparencyYou always know exactly which stocks are being invested in, as the composition of the ETF is published regularly.

So, if you're looking for a way to boost your portfolio and benefit from the momentum of the world's best stocks, the MSCI World Momentum ETF is just the thing for you! 🚀

Do you have any questions or want to find out more? Write it in the comments!

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I would be particularly interested in the proven performance you mentioned. Can you please link the historical data (ideally in comparison to an MSCI World)? Thank you.
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TDLR: it’s academically a little bit more complicated and I’m still not fully convinced as momentum factor still isn’t explained in a fully deterministic way. Long explanation below :)

Depending on which factor model you want to stick to, momentum has been proved to be highly correlated with value and profitability factors, especially if we consider it in concentration.
Also time windows and stock pool are important factors to consider, as well as turnover, which in factors portfolios is statistically high, leading to more costs than the ter suggests, even if the td is good
So: how much momentum factor is actually captured in a 30+ years span by an index that is lagged by rebalancing and forced to sell large parts of its constituents with a possible lag or wrong timing, thus also influencing the overall market volume and pricing?

It’s quite safe to affirm that if you have some negative momentum funds (like ZPRX/V) you can benefit from having a momentum fund to counterbalance.
Other than that, momentum can also be applied by following the saying “the trend is your friend”.
Factors are by no mean a free lunch and carry risks, there is by definition no “best” or “must have” :)
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I recently bought it as a supplement to the World ETF and S&P500. In the time I've had it, it has performed exactly one day worse than the other two mentioned. On good days, it outperforms both of them by a factor of two to three. It's crazy. I'm definitely curious to see how it will perform in the longer term.
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A stupid question ....
Is the World Momentum also available from an ETF provider as a distributing variant?
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