ETF selected: iShares Edge MSCI World Momentum Factor UCITS ETF

What's in this ETF?

Logically, this ETF includes artificial intelligence stocks such as Nvidia (5.7%), Amazon (4.8%), Meta Platforms (4.3%), Broadcom (4%) and Alphabet (4.9%), as well as weight-loss drugs with Eli Lilly (4.4%) and Novo Nordisk (2.3%). In all, the product is invested in 350 positions, although the top ten weightings account for 34.9% of total assets.

Geographically, investments are mainly concentrated in the United States (66.9%) and Japan (14.6%). The rest of the world accounts for 14.6%.

Sector-wise, the best-represented sectors are information technology (24.5%), manufacturing (19.6%), finance (17.1%), consumer cyclicals (12.2%), and healthcare (8.7%).

Historically, the momentum factor has outperformed the market over the long term. Since the product's launch, performance has been very good, with a three-fold increase in 10 years.

What are its advantages?

  • ETFs enable you to invest in a portfolio of equities whose trend is favorable.
  • The product concentrates around a third of the investment on the ten main weightings, but is well diversified, with 350 positions.
  • Fees are low (0.3%).

Negative points

  • The momentum theme is based on theoretical rules. As such, there is no certainty that a stock that enters the category will continue to outperform the market. Nevertheless, performance since launch has been excellent, proving that over a broad basket of stocks, the strategy works.

The ETF's identity card :

Assets under management: $1.9 bn

Number of positions: 196

ISIN code: IE00BP3QZ825

Ticker: IWMO

Fees: 0.30