“This dynamic is partly what allows winners to keep winning and momentum investing to work,” Fidelity analysts said.

Given its focus on companies’ earnings growth, the momentum strategy can be an effective way for investors to hone in on growth-oriented companies as these stocks with positive momentum typically continue to generate strong earnings.

According to Morningstar data, FDMO also includes a 39% tilt toward the growth style box. The ETF’s portfolio is also chock-full of growth stocks, such as Apple (NasdaqGS: AAPL) 4.2%, Alphabet (NasdaqGS: GOOGL) 3.2%, Microsoft (NasdaqGS: MSFT) 3.0% and Amazon (NasdaqGS: AMZN) 2.2%.

Due to its growth orientation, the ETF is also heavy on cyclical and economically sensitive sectors, including technology 23.5%, financial services 13.3%, industrials 10.4% and consumer discretionary 10.4%.

For more information on alternative indexing strategies, visit our smart beta category.