It's a phenomenon that baffles analysts while cheering its beneficiaries. Now, the momentum effect – the statistically observed tendency for stocks that have risen over the period of a year to continue outperforming in the near term – has become big business for smart beta index providers, with a spate of offerings released by different developers in the past 12 months.
There is a corollary, however. Compared to other factor-based investment strategies such as value investing – which seeks to
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