New ETF to list on Tuesday November 17, 2020: Virtus Terranova U.S. Quality Momentum ETF

Virtus Terranova U.S. Quality Momentum ETF

Ticker: JOET
Exchange: Nasdaq

Expense ratio: 0.29%

CUSIP: 92790A504

Adviser: Virtus Investment Partners

Sub-adviser: N/A

Daily holdings here.

Index: Terranova U.S. Quality Momentum Index developed by Senior Managing Director for Virtus Investment Partners Joseph Terranova, a CNBC Halftime Report Ensemble Member

Index provider: Indxx, LLC

Methodology:

1. Begin with 500 largest US securities by market capitalization

2. Rank these 500 by momentum and quality score:

• Momentum = security's tendency to exhibit persistence in its relative performance
• Quality = companies that exhibit strong fundamentals

• Momentum score based on issuer's last twelve months' total return.

• Quality score is calculated based on:

1. return on equity (net income / average shareholder equity)
2. debt to equity (total liabilities / total shareholder equity)
3. sales growth rate (annualized sales growth rate over past three years)

3. 250 securities with highest momentum score form universe of Index.

4. Each security ranked within each of the above quality factors and given composite score based on its cumulative risk.

5. 125 securities with lowest composite scores (highest composite rankings) form the components of the Index.

6. Equal weighted at each rebalance and reconstitution.

Portfolio Managers:          

• Seth Kadushin
• Matthew B. Brown

Prospectus is here.

Portfolio holdings here.

Twitter: @ETFhearsay