Virtus Terranova U.S. Quality Momentum ETF (JOET US) - Investment Proposition

Core Viewpoint - Virtus Terranova U.S. Quality Momentum ETF (JOET) offers targeted exposure to U.S. large-cap equities that combine strong balance-sheet quality with sustained price momentum [1] Investment Strategy - The strategy systematically screens a broad universe for profitability, earnings stability, and balance-sheet strength alongside trend persistence [1] - JOET assembles an equal-weighted, sector-aware portfolio aimed at diversifying single-name and industry risk [1] - The approach emphasizes disciplined reconstitution to refresh signals and mitigate factor decay and crowding [1] Performance Characteristics - JOET's risk/return profile typically reflects factor cyclicality, benefiting during stable or improving economic conditions when quality balance sheets and leadership trends are rewarded [1] - The ETF may lag during abrupt factor rotations or sharp reversals into deep value [1] Practical Applications - JOET can serve as a satellite sleeve to express a quality-momentum tilt, factor completion within a multi-factor core, or as a systematic growth complement to dividend or value allocations [1] Key Risks - A key risk to monitor is turnover and associated trading costs, which can modestly drag performance when signals churn [1]