Thoughts on Momentum ETFs?

Hi fellow Mustachians,

Any thoughts on ETFs based on Momentum strategy?

E.g. I’d like to have a MSCI World ETF in my portfolio and I’ve recently stumbled upon the iShares Edge MSCI World Momentum Factor UCITS ETF, which seems pretty interesting.

This ETF is still quite aligned to the MSCI index but it makes room for companies that are currently having more traction compared to others in the same index that are more static and stagnating. Last 3y performances are significative higher when compared to other ETFs that replicate the same index.

It’s still a passively managed ETF and the cost is a bit higher but not crazy higher: 0.30% vs 0.20% of the more common iShares Core MSCI World UCITS ETF USD.

I personally find this philosophy interesting and I’d be curious to get your thoughts. Thanks a lot in advance for your help!

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