8/18/2010

Momentum Investing ETF

The blog Systemic Relative Strength has a link to a new article on momentum investing by Tobias Maskowitz that was published in IMCA Journal. The article does a good job of summarizing latest research on momentum anomaly. If you are a momentum trader, it is a good read.


Momentum Investing: “Nearly Unmatched In Its Predictive Strength and Robustness”

Tobias J. Moskowitz, PhD has a nice article on momentum investing in the July/August issue of IMCA’s journal, Investments & Wealth Monitor (linked here with permission from IMCA).  As pointed out in the article, Dorsey Wright is among those providing momentum (aka relative strength) products to investors:
Known to financial academics for many years, momentum investing is a powerful tool for building portfolio efficiency, diversification, and above-average returns.  Until recently, momentum investing has been difficult to access for most investors, but that is changing.
A couple firms recently launched products that give more investors access to momentum. Some are technical, such as Dorsey-Wright’s ETF: others, such as MSCI, are based on proprietary models.

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