First Asset launches momentum-style U.S. ETF

Rudy Luukko 5 July, 2017 | 5:00PM

Stock-price momentum drives the rules-based process of First Asset U.S. TrendLeaders Index (SID), which opened for trading today on the Toronto Stock Exchange.

The market benchmark for the exchange-traded fund is the CIBC U.S. TrendLeaders Index of large- and mid-cap stocks. The investment logic behind the strategy is the momentum-investing assumption that trends in stock prices tend to persist, at least over shorter periods.

This is a high-turnover strategy, since the index will be rebalanced monthly to create an updated portfolio of the 50 highest-scoring stocks, according to the proprietary methodology developed by CIBC World Markets. The rebalancing removes weakening or stagnating stocks, replacing them with new, higher-scoring ones.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
CI Financial Corp18.04 CAD0.17

About Author

Rudy Luukko

Rudy Luukko  Rudy Luukko is a freelance writer who contributes to Morningstar.ca on topics involving fund industry trends and regulatory issues. He retired in May 2018 from his position as editor, investment and personal finance, at Morningstar Canada, where he had worked since 2004. He has also worked as an editor and writer for various general, specialty and institutional media, and he has co-authored courses for the Canadian Securities Institute. Follow Rudy on Twitter: @RudyLuukko.

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