The fund pursues a momentum strategy, using a quantitative model to identify and invest in companies whose share prices are gaining upward traction. Through active management, it flexibly adjusts position weights to suit market conditions, focusing on maximizing the performance of the momentum factor.

It suits investors who want to ride the upward trend in US large-cap growth stocks and seek returns above the market, while still wanting systematic risk management.

This is an actively managed ETF launched in 2022 by SEIM Investments.

Beyond price strength alone, the portfolio is refined by combining multiple factors such as earnings growth, value, and quality. The key is to keep exposure to the momentum factor high while preventing excessive concentration in any single stock or sector.

• An expense ratio as low as an index ETF, despite active management
• A multi-factor strategy combining momentum with supporting factors

Assets under management (AUM) stand at $1.5B, and the expense ratio is 0.15% per year.

Even though it uses an active quant strategy, it maintains a fee level similar to or lower than competitors' passive momentum ETFs, making it highly cost efficient.

In momentum-driven markets led by tech and growth stocks, the fund has shown stronger momentum than the broader market. In rising markets it raises the weighting of leading stocks to maximize returns, and in falling markets it aims for relatively low volatility.

Capital seeking to boost returns in bull markets tends to flow into the fund, and the recent solid share price performance of Big Tech companies has been having a positive effect on portfolio results.

The fund effectively captures large-cap stocks in an uptrend, but investors should note that short-term volatility can increase during rotational markets when market leadership changes.

MTUM and SPMO, shown in the table, are representative passive momentum ETFs and the main competitors of SEIM. If you are interested in small- and mid-cap momentum, consider XMMO or XSMO, and if you are looking for a lower-cost factor product, JMOM is also a good alternative. If you also want exposure to the value factor in addition to momentum, consider VLUE, and if you want to invest in the entire market, consider IVV.

We have summarized the key points to review before deciding to invest in the SEIM ETF. It is important to confirm that the characteristics of the momentum strategy and the active management approach fit your own investment profile.

When market leadership rotates, steeper declines in former leaders can leave a momentum strategy vulnerable. This is a product for which managing investor sentiment amid sharp short-term price swings is important.

It is an active quant solution suited to investors who want to make active use of the upward trend in the US large-cap market. A major attraction is the ability to benefit from professional factor management at a reasonable fee.