Alpha Architect Launches MomentumShares U.S. Quantitative Momentum ETF (QMOM)

QMOM enters the active ETF marketplace with a focus on delivering a systematic, transparent, and high-conviction momentum strategy

BROOMALL, Pa.--(BUSINESS WIRE)-- Alpha Architect today announced that it has launched its third active exchange-traded fund, the MomentumShares U.S. Quantitative Momentum ETF (Ticker: QMOM). QMOM pursues its investment objective by investing primarily in U.S. equity securities the Advisor believes to be the stocks in the market with the highest quality momentum. The Advisor already manages two funds, QVAL and IVAL, which have collective assets of approximately $66 million as of November 30, 2015. QMOM anticipates transferring assets from its separately managed accounts into the Fund. The managed account capital’s sources are high-net-worth clients of the Fund’s Advisor, Alpha Architect.

“We believe our edge is robust: we design systematic investment programs that seek to exploit mispricing caused by irrational investors,” said Founder and CIO, Wesley R. Gray, Ph.D. “We invest the majority of our resources in research and development, with a focus on understanding how investor psychology affects stock prices. QMOM seeks to exploit the so-called momentum anomaly in a systematic, high-conviction, tax-efficient, and affordable way.”

Dr. Gray and Dr. Vogel, co-CIOs of Alpha Architect, started developing their momentum algorithm soon after they completed development on their Quantitative Value algorithm in 2012. The philosophy underlying the Quantitative Momentum algorithm will be published by John Wiley & Sons in late 2016, QUANTITATIVE MOMENTUM: A Practitioner’s Guide to Building a Momentum-Based Stock Selection System.

QMOM joins a small number of concentrated, active, and momentum-based ETFs currently in the marketplace. QMOM may invest in securities of companies in any industry and with any market capitalization. The Fund will invest in approximately 50 of the top U.S. equity securities as determined by its Quantitative Momentum system.

When asked why QMOM was explicitly designed to be concentrated and highly active, Dr. Gray responded: “We could have gone the ‘Smart Beta’ route and built a closet-index strategy that holds 100, 200, or more stocks.1 However, investors are paying us to take active bets; they are not paying us to deliver what is effectively a Vanguard S&P 500 ETF with a small tilt towards some factor.”

QMOM may be best suited for investors and advisors that want a concentrated exposure to what the Advisor believes are the stocks with the highest quality momentum. The Fund’s Advisor adheres to a momentum investment philosophy and utilizes computer technology to minimize human biases, interpret past trends, and assess future prospects.

ABOUT MOMENTUMSHARES

MomentumShares is advised by Alpha Architect, an SEC-registered investment firm that seeks to design affordable, tax-efficient, active-management strategies for Exchange-Traded Funds and Separately Managed Accounts. Alpha Architect’s strategies are rooted in the science of behavioral finance with a goal of beating behavioral bias. For further information, visit www.MomentumShares.com.

DISCLOSURE

Investments involve risk. Principal loss is possible. Redemptions are limited and often commissions are charged on each trade. Because the Fund is non-diversified, it may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may result in greater fluctuation in the value of the Fund’s Shares and greater risk of loss. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value.

The Securities and Exchange Commission (SEC) does not approve or disapprove of any investment. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. References to other funds should not to be interpreted as an offer of these securities. The Fund is distributed by Quasar Distributors, LLC. Fund's investment advisor is Empowered Funds, LLC which is doing business as Alpha Architect. RBC Capital Markets is the fund's lead market maker.

Momentum investing is subject to the risk that past performance does not predict the future performance of investments. Investments utilizing quantitative methods may perform differently than the market as a result of characteristics and data used and changes in trends.

The fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The statutory and summary prospectus contains this and other important information about the investment company, and it may be obtained once available by calling 215-882-9983 or visiting www.MomentumShares.com. Read it carefully before investing.

1 Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151202005313/en/

Alpha Architect
Patrick Cleary, 215-882-9983
[email protected]

Source: Alpha Architect

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