Related: More Investors Are Considering Smart Beta Bond ETFs
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.
FDMO’s top 10 holdings, which combine for 23% of the ETF’s roster, include Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT) and Facebook Inc. (NASDAQ: FB).
FDMO charges just 0.29% per year, or $29 on a $10,000 investment. That is slightly below average for U.S. large-cap smart beta strategies. Fidelity clients can realize additional cost savings with FDMO by trading the ETF commission-free on the Fidelity platform.
For more on Smart Beta ETFs, visit the Smart Beta Channel home page.
Tom Lydon’s clients own shares of Apple, Facebook and Microsoft.