Morningstar Rating

ETF Research and Analysis

by Alex Bryan
Suitability
Most forms of technical analysis do not work. The intuition is simple. Once a predictable price pattern is discovered, it should be eliminated through arbitrage as investors exploit it. The exception is the momentum effect.  Read more 

Bull Case

Momentum strategies historically have generated excess returns in nearly every market studied.
The fund has been remarkably tax-efficient for a strategy with high turnover.  Read more 

Bear Case

PDP may underperform its peers that rebalance more frequently during times of market volatility, when momentum is less likely to persist.
High turnover can erode the fund's returns.
MTUM allows investors to harness momentum at a lower price, and with less volatility.  Read more 

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