My favorite ETF reads over the past week, along with my ETF chart of the week!
A Framework for Evaluating Momentum ETFs by Ben Johnson
“Momentum is tough to harness. Most funds that try fall short. Real-world frictions prevent them from delivering academic momentum in its raw form.”
ANT ETFs: Mutual fund slayer or active’s savior? Probably neither. by Bailey McCann
“Ultimately, as with all active management, performance is key. An underperforming fund is still an underperforming fund even if it costs less, and investors aren’t likely to stick around for that.”
Darkest Quant Fears Ring True in $1 Trillion World of Smart Beta by Gregor Stuart Hunter
“Average above-market return for smart-beta strategies is 2.77% per year before they are listed. That flips to a loss of 0.44% after fees once they actually become ETFs.”
ETF Chart of the Week: The JPMorgan Ultra-Short Income ETF (JPST) overtook the PIMCO Enhanced Short Maturity Active ETF (MINT) as the largest actively managed ETF. It’s an impressive feat considering JPST launched nearly 8 years after MINT. Bloomberg’s Tom Psarofagis captured the picture shortly before JPST eclipsed MINT.
Source: Bloomberg’s Tom Psarofagis
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