In the dynamic world of ETFs, timing and tactics are both necessary to stand out. Symmetry Partners may have hit the mark with its latest debut: the Symmetry Panoramic Sector Momentum ETF (NASDAQ:SMOM), designed to capture sector momentum while adhering to a disciplined rebalancing policy.
The fund, which debuted this week, is part of the expanding universe of sector-specific ETFs but stands out by actively targeting the S&P 500’s 11 sectors. Its approach prioritizes momentum, aiming to harvest the returns from sectors with strong relative performance without risking the pitfalls of short-term chasing.
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Symmetry Partners emphasizes the long-term performance variances between sectors as a primary justification of SMOM. During the last 15 years, the dispersion in performance between the top- and bottom-performing U.S. sectors has averaged approximately 44%, which indicates that a dynamic sector approach can provide investors with a significant advantage.
By adjusting allocations based on momentum indicators, SMOM aims to provide flexibility and potentially higher returns than pure sector ETFs.
David Connelly, CEO of Symmetry Partners, said that sector momentum has long been a potent source of returns, and he thinks this ETF offers a disciplined means of accessing such trends.
SMOM replicates the approach of Symmetry’s Sector Momentum separately managed account, applying a tested model to the ETF format. Its rules-based approach enables investors to tap sector trends without ongoing monitoring, making it an attractive choice for those who want dynamic, sector-oriented exposure in their portfolio.
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