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 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.