Alpha Architect International Quantitative Momentum ETF (IMOM)

Overview

The Alpha Architect International Quantitative Momentum ETF (IMOM) seeks long-term capital appreciation by investing in developed market stocks outside the US that exhibit high momentum characteristics, as measured by recent price performance. It utilizes a rules-based, quantitative investment strategy.

Reputation and Reliability

Alpha Architect is a boutique asset manager known for its focus on evidence-based, quantitative investment strategies and academic research.

Management Expertise

Alpha Architect's management team has expertise in quantitative finance, portfolio management, and academic research. They are known for their transparent and rules-based approach.

Goal

To provide long-term capital appreciation by investing in international developed market equities exhibiting strong momentum characteristics.

Investment Approach and Strategy

Strategy: IMOM employs a quantitative momentum strategy, selecting stocks based on their recent price performance. It does not track a specific index but follows a proprietary rules-based approach.

Composition The ETF primarily holds common stocks of companies located in developed markets outside the United States.

Market Share: IMOM's market share in the international momentum ETF segment is relatively small compared to broader international equity ETFs.

Total Net Assets (AUM): 139815879

Key Competitors

• iShares MSCI EAFE Minimum Volatility Factor ETF (EFAV)
• Vanguard FTSE Developed Markets ETF (VEA)
• Dimensional International Value ETF (DFIV)

Competitive Landscape

The international equity ETF market is highly competitive with many large, established players. IMOM differentiates itself through its focus on quantitative momentum and rules-based approach. Competitors like VEA are broader, market-cap weighted ETFs while EFAV focuses on minimum volatility. IMOMu2019s momentum strategy can lead to higher volatility, but also potentially higher returns in favorable market conditions.

Historical Performance: Historical performance can be found in the provided excel sheet. Past performance is not indicative of future results.

Benchmark Comparison: The ETF's performance should be compared to relevant international equity benchmarks, such as the MSCI EAFE Index, to assess its effectiveness in capturing momentum premiums.

Expense Ratio: 0.29

Average Trading Volume

The ETF exhibits a moderate average trading volume, which is generally sufficient for most investors.

Bid-Ask Spread

The bid-ask spread is typically relatively tight, reflecting adequate liquidity for this ETF.

Market Environment Factors

Global economic growth, international trade policies, currency fluctuations, and geopolitical events can all significantly impact IMOM's performance.

Growth Trajectory

IMOM's growth depends on its ability to consistently capture momentum premiums in international markets, and its appeal to investors seeking a quantitative, rules-based approach to international investing. Changes to strategy and holdings are based on model parameters.

Competitive Edge

IMOMu2019s competitive edge lies in its rigorous, transparent, rules-based quantitative methodology. The ETF's focus on momentum provides a differentiated approach compared to traditional market-cap weighted international equity ETFs. The firm's commitment to academic research and evidence-based investing further strengthens its appeal. The ETF's lower expense ratio provides added value to investors, helping to maximize their net returns.

Volatility

IMOM's momentum strategy can lead to higher volatility compared to broad market international equity ETFs.

Market Risk

The ETF is subject to market risk, including fluctuations in international equity prices, currency risk, and geopolitical risks specific to international markets.

Ideal Investor Profile

The ideal investor is one with a higher risk tolerance seeking international equity exposure and is comfortable with a quantitative, rules-based investment approach and potential volatility associated with momentum strategies.

Market Risk

IMOM may be suitable for long-term investors who understand momentum investing and are seeking diversification within their international equity allocation.

Alpha Architect International Quantitative Momentum ETF (IMOM) offers exposure to international developed market equities using a quantitative momentum strategy. This rules-based approach aims to capture stocks with strong recent price performance. While the ETF's momentum focus may lead to higher volatility, it also provides diversification benefits for investors seeking a differentiated approach to international investing. IMOMu2019s transparent methodology and relatively low expense ratio enhance its appeal to investors comfortable with its risk profile.

• IVV
• SPY
• MTUM
• QMOM
• EFG
• VTV

Data Sources:

• Alpha Architect's website
• ETF.com
• Morningstar
• Yahoo Finance

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.