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Competitive Advantages
Risks
Competitive Advantages
Systematic Factor Exposure: Provides diversified, rules-based access to the momentum factor in US equities.
Cost Efficiency: Generally lower expense ratio compared to actively managed funds with similar strategies, enhancing net returns.
Liquidity and Accessibility: Traded on an exchange like individual stocks, offering intra-day liquidity and ease of access for investors.
Risks
Momentum Factor Underperformance Risk: The core investment strategy, which relies on stocks with recent strong performance, may cyclically underperform other investment styles or the broader market, leading to capital losses.
Concentration Risk: The ETF's focus on momentum can lead to significant allocations in specific sectors, industries, or a small number of stocks, increasing vulnerability to adverse developments in those areas.
Market Risk: As an equity ETF, MTUM is subject to general stock market fluctuations, including broad market downturns, economic recessions, and geopolitical events that can significantly reduce its value.
