The index would screen and isolate sectors with the greatest momentum, excluding real estate, and further narrow the selection to 50 stocks, with 10 stocks selected from each of the top 3 performing momentum sectors and 5 stocks for each of the next 4 performing sectors.
“SWIN is the first Momentum ETF to combine both macro (sector) and micro (stock) level screens,” Mike Akins, SVP & Head of ETFs for ALPS, said in a note. “We believe its unique two-screen construct creates opportunity for outperformance in strong sector momentum cycles, while simultaneously maintaining a diversification cushion to help weather periods where no clear sector leadership is present.”
Sector weights include information technology 20.2%, industrials 20.0%, consumer cyclical 19.9%, healthcare 10.0%, financials 10.0%, energy 10.0% and basic materials 9.9%.
Top holdings include Tesaro 2.3%, Advanced Micro Devices 2.2%, NVIDIA 2.1%, Targa Resources 2.1% and Amazon 2.1%.
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