On Thursday, Virtus ETF Solutions, a multi-manager ETF sponsor and an affiliate of Virtus Investment Partners, announced the introduction of the Virtus Terranova U.S. Quality Momentum ETF (NASDAQ: JOET), which strives to deliver exposure to U.S.-listed large-cap companies that combine strong quality fundamentals with positive momentum technical trends.
JOET tracks the Terranova U.S. Quality Momentum Index (VTUSQM), which was created and developed by Joseph M. Terranova, senior managing director and chief market strategist for Virtus. The index’s methodology reflects the investment philosophy Terranova has utilized throughout his career on Wall Street as a professional investor, risk manager, and trader.
“An essential component for building long-term growth is maintaining discipline and identifying high-conviction investment opportunities for portfolio allocation and diversification,” said Terranova. “Throughout my career, I have determined that high-conviction investment opportunities are rooted in both quality fundamental strength and positive technical momentum trends.”
Joy For JOET
JOET may serve as a core equity holding in a diversified portfolio as the ETF strives to provide exposure to the best performing U.S. large-cap companies with the highest quality fundamental characteristics, resulting in a distinct portfolio built for long-term growth. With its quality momentum approach, JOET systematically seeks to identify and capture returns of high conviction investment opportunities characterized by fundamental (quality) and technical (momentum) attributes.
It results in a portfolio of 125 equal stock weightings at the time of quarterly index rebalance to help ensure balance and diversification, while also attempting to reduce over-concentration, single event stock risk, and limitations, relative to traditional cap-weighted strategies.
“We believe the opportunity to utilize Joe’s investment philosophy and expertise with the launch of the Virtus Terranova U.S. Quality Momentum ETF delivers a compelling, core domestic equity strategy for the Virtus ETF suite,” added William Smalley, executive managing director of Virtus ETF Solutions. “Investment professionals and investors will discover how JOET may serve as a differentiator for their respective portfolios.”
“The methodology behind the Terranova U.S. Quality Momentum Index, which JOET follows, provides rules-based, systematic exposure to domestic large-cap companies exhibiting those quality and momentum characteristics,” Terranova said. “It also removes any emotion from the decisionmaking process in a modern market environment proliferated by algorithmic models and a widening gap between top-performing and bottom-performing companies.”
Visit Virtus ETF Solutions to learn more about the Virtus Terranova U.S. Quality Momentum ETF (JOET).
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