What this ETF is trying to do

The ALPHA ARCHITECT U.S. QUANTITATIVE MOMENTUM ETF (ticker: QMOM) is an exchange-traded fund designed to follow a specific investment strategy. While the exact mechanics are not detailed here, momentum strategies generally focus on stocks that have shown strong price movement. This ETF holds a total of 49 different holdings.

What the numbers show

The data shows that QMOM has experienced significant price growth over various timeframes.

• Year-to-Date (YTD): The YTD price return is approximately 13.72%.

• One-Year: The one-year price return is approximately 14.61%.

• Three-Year: The three-year price return is approximately 73.48%.

It is important to distinguish between price return (the change in the share price) and total return (which includes distributions). For this ETF, the total returns are higher than the price returns:

• The one-year total return is approximately 15.22%.

• The three-year total return is approximately 78.36%.

Based on an estimated price from roughly one year ago of $64.79, the current price is $74.25.

Income and distribution explanation

QMOM provides a relatively low level of income. The distribution yield is approximately 0.48%. The fund has a payout count of 1 over the last 12 months, and its distribution frequency is described as "Irregular / less frequent." Because the total return figures are higher than the price return figures, it shows that distributions have contributed to the overall performance.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, regarding price-based evidence, the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag.

Top Holdings

The following are the top holdings in the portfolio (note that this list is partial):

• DELL TECHNOLOGIES INC: 2.66%

• ROIVANT SCIENCES LTD: 2.34%

• CROWDSTRIKE HOLDINGS INC: 2.30%

• HEWLETT PACKARD ENTERPRISE CO: 2.28%

• VALERO ENERGY CORP: 2.27%

• HF SINCLAIR CORP: 2.25%

• MARATHON PETROLEUM CORP: 2.23%

• GUARDANT HEALTH INC: 2.17%

• FORTINET INC: 2.16%

• RINGCENTRAL INC: 2.16%

Holdings can change over time.

Pros

• Strong historical price returns over the one-year and three-year periods.

• No detected price erosion according to the erosion score.

Cons

• The distribution frequency is irregular and less frequent.

• The distribution yield is relatively low.

Beginner takeaway

QMOM has shown strong price growth and total returns over the last three years. While it provides some income through distributions, it is not primarily a high-income fund. The data shows no signs of price erosion.