March 2025 Momentum ETF Uses Six-Month Algorithm to Equal-Weight 30–50 Stocks
FMTM•MarketDesk’s Focused U.S. Momentum ETF, launched in March 2025, applies a six-month price momentum algorithm to an equal-weight portfolio of 30–50 U.S. stocks drawn monthly from 300 firms after liquidity and profitability screening. The fully invested fund manages risk through holdings selection and shortens its signal period as volatility increases.
1. Fund Inception
Launched in March 2025 by MarketDesk Research and Thor Financial Technologies, the ETF stemmed from a six-year in-house momentum algorithm that was previously executed manually for select clients. Converting the model to an ETF structure provided tax efficiency and automated monthly rebalancing.
2. Momentum Strategy
Each month, the fund begins with a high-liquidity universe and applies quantitative screens on profitability and operating margins to narrow to about 300 names. Those stocks are ranked by six-month share price performance, with the top 30–50 equally weighted in the portfolio.
3. Risk Management Approach
The ETF remains fully invested at all times, implementing risk controls through selective holdings rather than shifting to cash. As market volatility rises, the strategy dynamically shortens its signal period to maintain exposure to pockets of relative momentum in both rising and falling markets.
4. Future Expansion
MarketDesk plans to introduce additional ETFs leveraging its suite of quantitative models over time, extending its research-driven approach beyond momentum to capture other factor-driven opportunities.
