Managing a 20-stock momentum portfolio can be daunting if you are just getting started. Here are our single-ETF, monthly re-balance strategies to get you on your way.

Factor Momentum III

Factor Momentum III

Goes long the best performing factor-ETF over the previous month.

Research shows that equity factors like Value, Momentum, Quality, etc. go in-and-out of favor. This means that stubbornly ticking to a single factor, like Value, can result in your portfolio under-performing the markets over decades.

However, factor performance tends to be sticky. If Quality performed previously, it more-or-less continues to perform over the next month. This strategy exploits this stickiness by rotating into factor-ETFs that have outperformed the previous month.

Suitable for investors staying focused on US markets but want to add an extra oomph to their portfolio.

Global Equities Momentum II

Global Equities Momentum II

Trades US or Developed-Markets ex-US Momentum ETFs when equities are doing well over the last 6- to 12-months. Switches to bonds when equities are doing poorly.

Historically, US equity markets have under-performed their Developed Market peers over extended periods of time. This strategy tries to side-step this problem by switching between US and DM ex-US markets based on recent performance.

Also, when equities underperform, it is best to stay safe in bonds.

Additionally, our research has shown that swapping out plain-vanilla ETFs with their corresponding momentum ETFs boosts returns significantly.

Suitable for investors who want to systematically diversify beyond US markets.

Factor Momentum II

Factor Momentum II

A slow-moving factor momentum strategies that goes long the best performing factor-ETF over the previous 6-12 months.

Similar to the Factor Momentum III strategy described above. Except that this looks at a larger historical dataset to reduce flipping between ETFs too frequently.

Global Equities Momentum I

Global Equities Momentum I

A slow-moving Global Equities Momentum strategy that trades US or Developed-Markets ex-US Momentum ETFs when equities are doing well over the last 12 months. Switches to bonds when equities are doing poorly.

Similar to the Global Equities Momentum II strategy described above. Except that this looks at a larger historical dataset to reduce flipping between ETFs too frequently.