The Momentum ETF Portfolios will utilize trends in investment returns by exploiting patterns through under- or over-weighting asset classes based on proprietary momentum signals.
The Global Tactical ETF Portfolios follows momentum and “mean-reversion” – performance tends to revert to their historical averages over the long-term – by buying contrarian investments and selling popular assets.
“All three new strategies start with robust Ibbotson asset allocations and then attempt to add additional value through active-risk budgeting or tactical modeling to exploit the momentum anomaly or momentum and mean reversion patterns,” Thomas Idzorek, chief investment officer and research director for the Morningstar Investment Management division, remarked.
For more information on active ETFs, visit our actively managed ETFs category.
Max Chen contributed to this article.