Virtus Investment Partners has transferred the Virtus Terranova U.S. Quality Momentum ETF (NYSE Arca: JOET) from the Nasdaq to the New York Stock Exchange.
JOET strives to deliver exposure to U.S.-listed large-cap companies that combine strong quality fundamentals with positive momentum technical trends. The fund seeks investment results that correspond, before fees and expenses, to the performance of the Terranova U.S. Quality Momentum Index.
Combining Quality With Momentum
Investors have increasingly been turning to JOET to identify longer-term trends. By combining quality with momentum, JOET offers an intuitive investment balance of both offense and defense. The goal is to capture changing market dynamics and different investment cycles through a combination of fundamental (quality) and technical (momentum) measures.
JOET provides exposure to the best performing U.S. large-cap companies with the highest quality fundamental characteristics. The result is a distinct portfolio built for long-term growth. It seeks to identify and capture the returns of high-conviction investment opportunities characterized by fundamental (quality) and technical (momentum) attributes.
“By combining quality and momentum factors, this ETF has outperformed larger momentum peers since it launched three years ago,” said Todd Rosenbluth, head of research for VettaFi. “The fund also takes an equally weighted approach, spreading the risk around rather than concentrating in a handful of larger-cap companies.”
Following the Launch of SDCP
The transfer of JOET follows Virtus launching the Virtus Newfleet Short Duration Core Plus Bond ETF (SDCP) on the NYSE Arca. The actively managed ETF invests primarily in investment-grade, short-duration debt securities from multiple bond sectors. SDCP seeks opportunities across undervalued areas of the fixed income markets through a disciplined investment process and risk management approach.
Amid High Inflation, Income is an Overriding Theme
Virtus ETF Solutions Income Strategist James Jessup said at Exchange 2023 that “income is the overriding theme of essentially all the conversations” he’d been having.
Per Jessup, income is important “for a number of reasons.” For one thing, the “nation is getting older.” So, resources “have to last longer.”
Inflation is another reason. “You’ll find out that in fact inflation has arrived,” Jessup said. “And that erodes the buying power of those assets.”
Finally, Jessup said that “there wasn’t really a good place to go” and “no good place to hide” within fixed income in 2022.
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