Factor Investing
Momentum Factor
Definition
What is Momentum Factor?
The tendency for recent relative winners and losers to continue their trends for a period.
Example in practice
How This Looks in Practice
The fund buys shares with strong 12-month performance.
Keep learning
Related Terms
Factor Investing
Factor Investing
An approach targeting broad, persistent return drivers such as value, size, momentum, quality, or low volatility.
Factor InvestingValue Factor
The tendency for relatively cheap securities to perform differently from expensive securities over time.
Factor InvestingSize Factor
The return pattern associated with smaller companies relative to larger companies.
Regulation & ComplianceFiduciary Duty
A legal or ethical duty to act loyally and carefully in another person's best interest.