⚡Factor strategy: Momentum

Investing in shares with strong trend behaviour

The „Momentum“ factor strategy focuses on shares that have performed above average in the recent past. The idea behind it: Trends tend to continue. Momentum ETFs systematically filter the strongest winners of recent months and bundle them in a rule-based portfolio.

🔍 What does „momentum“ mean?

Momentum indices select companies based on their Share price development from. Typical criteria:

  • Strong performance in the last 6-12 months
  • Relative strength compared to the overall market
  • Trend stability
  • Smaller setbacks during corrections

The strategy is based on one of the best-documented market phenomena: Winners often remain winners.

🧭 Why is the momentum strategy interesting?

You're close to making better decisions.

You've just seen real added value – that's exactly how all the content on Mueckinvest helps you.

✅ Complex topics explained simply
✅ Clear decisions instead of chaos
✅ Saves you time & bad decisions
🔒 Your free limit has been reached (2 items)
Unlock access
From €8.99/month – cancel anytime
Or continue reading later

Tags: