Momentum can be described as the tendency of a stock to continue exhibiting an upward trend in the near future, given that the stock’s price has
appreciated over the recent past. The NewFunds Equity Momentum ETF selects 20 stocks that have exhibited the greatest price appreciation over the past
12 months (excluding the most recent month). The stocks are weighted such that the risk contributed by each stock to the overall portfolio is equal at the
time of rebalancing.
The NewFunds Equity Momentum ETF is aimed at providing Investors with diversified exposure to 20 constituents securities in the South African equity market that exhibit greatest price appreciation over the past 12 months (excluding the most recent month) in their performance by tracking the Absa Wits Risk-Controlled SA-Momentum Index where the constituent security’s weights in the Momentum Index are determined by applying an equal risk contribution weighting scheme. The Momentum Index was created by Absa Bank Limited in collaboration with Wits
University using their Findata@Wits® database. The ETF is total return in nature therefore all dividends and income received in the Portfolio is reinvested at each income distribution date.
Wits SA Factor Research presentation
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