Actively managed or tracking customized indices, the Sound Fundamentals ETFs of the theme are invested in quality companies, mostly large cap and US based, but not exclusively, with a focus on fundamentals (such as strong cash balance, low long-term debt, and high return on equity)
Supported by favorable ratios of return on equity and financial leverage, the ETFs share a long-term horizon
However, the quality of the companies held by the funds will be beneficial in the short-term by correlating with positive market movements, with exposure to potential momentum reversal impacting ETF performances
Market risk is mitigated by the average - or below average - risk exposure of the funds in this theme, highlighting favorable opportunities of risk/return arbitrage
Performance and volatility computation of recently launched funds will be skewed for lack of full data history
To take a closer look, momentum signals trends of the last 5 days against a 20-day average
For comparison, select various time frames in the top right menu box, from 2 weeks to a full year (performance of some very recently listed ETFs may not be significant for lack of price data)