2D·

Momentum ETFs

Hey guys! I have a question...

I recently came across the topic of momentum ETFs, and I'm curious to know what you think about them.

I like to invest a small portion of my portfolio in potential tenbagger candidates. Of course, this involves a lot of risk, and it also takes a bit of luck to find the right winners.

Momentum ETFs invest precisely in the stocks that are currently breaking out to the upside. Of course, there’s a bit of a lag, so you won’t make the absolute biggest gains, but I took a look at the performance of a few of these ETFs, and it doesn’t look bad. Returns of 20–30% per year aren’t unrealistic here.

What do you think about this? For example, regarding $SPMO or $MCEU (-0,58 %) ?

Or which momentum ETFs are your favorites?

13 Comentarios

PresidentDonkey@DonkeyInvestor

Check out the Wikifolios at @Epi and @Krush82 —for example, <security:n/a:DE000LS9U6W1>. They feature some solid momentum strategies.

Otherwise, it’s also worth taking a look at my post on the topic:
https://getqu.in/CDEnfS/

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TotallyLost@TotallyLost

@DonkeyInvestor 3xGTAA is trend following, not stock momentum. 😘

But I didn't know at the beginning that these things shift, either.

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PresidentDonkey@DonkeyInvestor

@TotallyLost You know what's great? I don't care, as long as it turns a profit 😁

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Epi@Epi

@TotallyLost Trend-following and momentum are two terms for the same phenomenon: price trends tend to continue.

GTAA diversifies across various asset classes, while equity momentum strategies invest in only one. Both approaches are legitimate and successful.

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TotallyLost@TotallyLost

@Epi Oh, what a fine gentleman with his new logo.

Yeah, but it makes a big difference whether you're tracking stock momentum or multi-asset momentum. 😘

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Bruce💎🙌@HomoOeconomicus

20% of my portfolio is in the $IS3R —I’m really happy with it, especially since MSCI shortened the allocation interval from 6M to 3M.

Over a 6-month period, the ETF was a bit sluggish, but now I think the 3-month interval is a good choice. It didn’t perform quite as well in 2025, and it was also sluggish at the start of 2026.
However, momentum has returned over the past few months, and now it’s performing really well.

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Krush82@Krush82

@HomoOeconomicus Momentum has been working really well again for at least 9 months. It just always takes a little longer with these ETFs.

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edumarbar@emppsb

Does an ETF like $VWCE already have some built-in momentum exposure?
I chose $XDEV over a dedicated momentum factor for my portfolio, and its performance has been significantly better so far. However, I understand that factor performance tends to be cyclical.

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Lt_Tentennante@Lt_Tentennante

@emppsb $VWCE being so broad it surely contains momentum, quality and maybe also some value companies. The game is always played on the amount. Since global ETFs are mostly composed by Megacaps you lose exposure to other factors. A good strategy could be to associate with your global ETF a small factor allocation.

Also remember that in factor investing someone has to lose. If you want to buy momentum companies, you need someone not interested in them and interested in stable companies. This creates this "cyclical" effect you are talking about.

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edumarbar@emppsb

@Lt_Tentennante thank you for you comment. Yes I understood, that’s what I thought, but.. do you think makes sense to have “contradictory” ETFs in the same portfolio? Like value and momentum?

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Lt_Tentennante@Lt_Tentennante

I'm also growing solid interest towards factor investing. My idea is to allocate ~20% of my portfolio equally distributed between value, momentum and quality. Check out the newly established Dimensional ETFs. Dimensional is known for its approach in terms of favor investing.

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Uwe@SchlaubiSchlumpf

@Lt_Tentennante that’s nearly mine (I’m not totally equal weighted though).

Dimensional does a very professional & scientific approach. But they don’t really buy momentum in the classic way. They just take momentum into consideration (they don’t buy against momentum). Still damn good for factor investing I think.

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Uwe@SchlaubiSchlumpf

@SchlaubiSchlumpf and much underrated due to bad phases for value & small value

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