Are there any downsides by investing in factor ETFs (i.e. momentum, multi-factor, minimum volatility, high dividend yield)? What happens in case of a crash and how do positions in those ETFs switch? Imagine the stock market goes down, the fast growing companies go down too (= high loss) then the half year rebalancing happens and the ETF switches to some turtle companies. Then if the economy recovers I miss the uptrend. After the uptrend the ETF switches back from turtle to growth companies and missed the growth to recover losses. Is that assumption right in case of a momentum ETF?
Submitted April 14, 2019 at 08:16AM by Mech2017x http://bit.ly/2Gock9J
