Virtus ETFs launches Core Equity Exchange Traded Fund
Virtus ETF Solutions, a multi-manager ETF sponsor and affiliate of Virtus Investment Partners, has launched the Virtus Terranova US Quality Momentum ETF (NASDAQ: JOET), which strives to deliver exposure to US-listed large-cap companies that combine strong quality fundamentals with positive momentum technical trends.
JOET tracks the Terranova US 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 utilised throughout his career on Wall Street as a professional investor, risk manager, and trader. In addition to providing Virtus clients and investment professionals with insights into the domestic and global investing landscape, Terranova is a CNBC ensemble member, appearing regularly on the Halftime Report and Squawk Box. He is also the author of the book, “Buy High, Sell Higher.”
“An essential component for building long-term growth is maintaining discipline and identifying high-conviction investment opportunities for portfolio allocation and diversification,” says Terranova. “Throughout my career, I have determined that high-conviction investment opportunities are rooted in both quality fundamental strength and positive technical momentum trends.”
JOET may serve as a core equity holding in a diversified portfolio as the ETF strives to provide exposure to the best performing US 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 characterised 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 utilise Joe’s investment philosophy and expertise with the launch of the Virtus Terranova US Quality Momentum ETF delivers a compelling, core domestic equity strategy for the Virtus ETF suite,” adds 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 US Quality Momentum Index, which JOET follows, provides rules-based, systematic exposure to domestic large-cap companies exhibiting those quality and momentum characteristics,” Terranova says. “It also removes any emotion from the decision-making process in a modern market environment proliferated by algorithmic models and a widening gap between top-performing and bottom-performing companies.”