The fund tracks an index that uses MSCI World ex USA as its parent universe and selects stocks with high price momentum scores. Momentum is calculated by adjusting medium-term returns for volatility, and a cap is placed on each stock's weight.

It suits investors who want to diversify across developed markets outside the US while tilting toward stocks whose trends are still intact. Investors must be able to endure periods when the factor underperforms.

It is a passive (index-tracking) ETF managed by BlackRock (iShares).

The index calculates a momentum score by dividing medium-term returns by volatility, then multiplies it by each stock's market-cap weight within the parent universe to set the final weighting. Caps on individual stock weights reduce concentration, and the portfolio is diversified across a broad number of holdings.

• An early momentum factor product targeting developed markets outside the US
• Applies both a volatility-adjusted momentum score and weight caps
• Shares its methodology with the same manager's US momentum product

Assets under management (AUM) stand at $4.2B, and the total expense ratio is 0.30% per year.

Momentum factor performance tends to cluster when trends persist and lag during reversals. It is best to look at the fee and turnover together.

Performance depends on the direction of developed markets outside the US and on whether the momentum factor is working. A recurring pattern is that the fund beats the market average in trending markets, while losses grow right after rebalancing during sharp reversals.

When demand to reduce US concentration is rising, money tends to flow into developed-market products outside the US as a whole. Factor products tend to see inflows when performance is strong and outflows when it is weak.

Its strength is that it systematically captures momentum across developed markets outside the US, while its weaknesses are periods of factor underperformance and currency exposure.

Among the products in the table, IDMO(ETF) is the closest comparison since it also covers developed-market momentum, and PIZ(ETF) is also developed-market momentum but uses a different stock selection method and carries a higher fee burden. UIVM(ETF) blends value and momentum in developed markets outside the US, so its character differs from pure momentum, and PIE(ETF) holds emerging markets, so its investment region itself is different. To cover all developed markets outside the US without a factor tilt, products such as EFA and VEA are worth comparing; for US momentum, MTUM; and to widen exposure to emerging markets, IXUS and similar funds.

These are the items to review before investing in this ETF. Factor products differ in character from core assets that hold the entire market, so it is best to decide in advance on your position size, holding period and currency approach before entering.

When momentum breaks down, drawdowns can be larger than the market average, and if currency moves compound the effect, performance in won terms swings even more. Using it to replace a core holding outright is a stretch.

For investors who want to follow trends while diversifying across developed markets outside the US, it is worth considering as a satellite holding. We recommend checking the fee, regional composition and distribution frequency before deciding on a position size.