Mistakes and anomalies drive momentum investing
The premium is linked to behavioural biases as opposed to risk
Momentum
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Investment ‘factors’ are also concentrated
Apple, Amazon and Microsoft appear in the top 10 stocks for three different factors
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The trend is your friend: record flows into momentum ETFs
August was a hot month for momentum ETFs. Trend-following equity trackers saw record inflows of $300m (€250m) from European investors, Blackrock reports. Global equity momentum ETFs were responsible for the bulk of the inflows.