Joe Terranova Discusses the Quantitative Strategy Behind the JOET ETF That Spotlights Early Winners Like Palantir
Investment Strategy: Joe Terranova's Virtus Terranova U.S. Quality Momentum ETF (JOET) utilizes a quantitative approach to identify high-momentum stocks, achieving a 10.9% gain this year, outperforming the S&P 500 Equal Weight ETF's 6.8% increase.
Stock Selection Process: The ETF's holdings are selected based on a strict rules-based methodology, screening the top 500 U.S. companies for momentum and grading them on quality factors, resulting in a portfolio of the top 125 stocks.
Emotional Discipline: Terranova emphasizes the benefits of his disciplined, rules-based strategy, which has allowed him to avoid emotional decision-making, leading to successful trades like selling Tesla before its revenue growth flattened.
Future Plans: Looking ahead, Terranova aims to expand his ETF offerings to include small-cap and European equities, believing that his momentum and quality strategy will continue to provide long-term success for investors.
Trade with 70% Backtested Accuracy
Analyst Views on RSP
About the author
Is the S&P Equal Weight Rally Losing Momentum at a Critical Point?
- ETF Overview: The Invesco S&P 500 Equal Weight ETF tracks an equal-weighted version of the S&P 500 index.
- Equal Weighting Impact: This approach gives each of the 500 companies in the index roughly the same influence, regardless of their market size.
Tech Struggled in Earnings Season, But Other Stocks Are Providing Relief.
Technology Stocks Struggle: Technology stocks have experienced a challenging earnings season, indicating potential issues within the sector.
Other Sectors Performing Well: Despite the struggles in technology, most other sectors are showing resilience, which is a positive indicator for investors.
AI Competition Poses Risks to the Market: Tips for Staying Safe.
Market Reaction to AI Concerns: The market is currently reacting to another scare related to AI, leading to a sell-off in tech stocks.
Investment Strategy Suggestion: It is advised to avoid engaging in the volatile tech sector and instead focus on more resilient sectors and companies.
Focus on Resilient Stocks: Investors are encouraged to stick with stocks that are demonstrating strength during this period of uncertainty.
Waiting for Stability: The recommendation is to wait until the situation in the tech market stabilizes before making significant investment decisions.
What is the Duration of Outperformance for Equal-Weighted ETFs Compared to the S&P 500?
Market Trends: The market has seen a rotation out of stocks into sectors like energy, materials, and consumer staples, which have generated significant gains over the past month, outperforming the S&P 500.
ETF Performance: Equal-weighted exchange-traded funds (ETFs) have outperformed their market-cap-weighted counterparts, raising questions about the sustainability of this trend as major tech companies begin reporting earnings.
Concentration Risks: Investors face concentration risks due to a lack of diversification in their portfolios, particularly in sectors like tech, which dominate certain funds, leading to potential volatility and downside risks.
Investment Recommendations: Analysts are suggesting five specific stocks for investors to consider buying now, as they believe these companies are well-positioned for growth despite broader market uncertainties.
S&P 500 Achieves Third Consecutive Year of Strong Returns: Three Crucial Questions for Wall Street as 2026 Approaches
Bullish Market Outlook: The S&P 500 has historically shown strong performance, with a majority of years ending positively, and current conditions suggest continued bullish sentiment for 2026, supported by consensus earnings forecasts and a favorable Federal Reserve outlook.
Market Dynamics and Leadership: Despite concerns about market narrowness, the S&P 500's performance is bolstered by key stocks, with a notable contribution from bank stocks and cyclicals, while the dominance of mega-cap tech stocks raises questions about future market leadership.
Capital Supply and IPO Activity: The anticipated demand for capital from major tech firms and a potential uptick in IPOs indicate a maturing bull market, although this could lead to a decrease in share buybacks and an increase in total shares outstanding.
Bitcoin's Influence on Stocks: Bitcoin's recent struggles may impact market sentiment, as its correlation with tech stocks weakens, raising questions about its role as a speculative asset and its appeal to retail investors amidst shifting interests towards AI and other technologies.
S&P 500 Faces Challenges in Sustaining Gains as Stock Market Rally Expands Without Tech Support
Market Performance: The U.S. stock market has shown broad gains recently, indicating a positive outlook as we approach 2026.
Tech Sector Importance: The S&P 500's ability to continue rallying may be hindered without significant contributions from the technology sector, especially in light of the ongoing artificial intelligence boom.
Sector Analysis: Bespoke Investment Group conducted an analysis of the S&P 500 and its 11 sectors, highlighting the critical role of technology in the index's performance.
Future Outlook: The reliance on the tech sector suggests that its performance will be a key factor in the overall market trajectory moving forward.
Is the S&P Equal Weight Rally Losing Momentum at a Critical Point?
- ETF Overview: The Invesco S&P 500 Equal Weight ETF tracks an equal-weighted version of the S&P 500 index.
- Equal Weighting Impact: This approach gives each of the 500 companies in the index roughly the same influence, regardless of their market size.
Tech Struggled in Earnings Season, But Other Stocks Are Providing Relief.
Technology Stocks Struggle: Technology stocks have experienced a challenging earnings season, indicating potential issues within the sector.
Other Sectors Performing Well: Despite the struggles in technology, most other sectors are showing resilience, which is a positive indicator for investors.
AI Competition Poses Risks to the Market: Tips for Staying Safe.
Market Reaction to AI Concerns: The market is currently reacting to another scare related to AI, leading to a sell-off in tech stocks.
Investment Strategy Suggestion: It is advised to avoid engaging in the volatile tech sector and instead focus on more resilient sectors and companies.
Focus on Resilient Stocks: Investors are encouraged to stick with stocks that are demonstrating strength during this period of uncertainty.
Waiting for Stability: The recommendation is to wait until the situation in the tech market stabilizes before making significant investment decisions.
What is the Duration of Outperformance for Equal-Weighted ETFs Compared to the S&P 500?
Market Trends: The market has seen a rotation out of stocks into sectors like energy, materials, and consumer staples, which have generated significant gains over the past month, outperforming the S&P 500.
ETF Performance: Equal-weighted exchange-traded funds (ETFs) have outperformed their market-cap-weighted counterparts, raising questions about the sustainability of this trend as major tech companies begin reporting earnings.
Concentration Risks: Investors face concentration risks due to a lack of diversification in their portfolios, particularly in sectors like tech, which dominate certain funds, leading to potential volatility and downside risks.
Investment Recommendations: Analysts are suggesting five specific stocks for investors to consider buying now, as they believe these companies are well-positioned for growth despite broader market uncertainties.
S&P 500 Achieves Third Consecutive Year of Strong Returns: Three Crucial Questions for Wall Street as 2026 Approaches
Bullish Market Outlook: The S&P 500 has historically shown strong performance, with a majority of years ending positively, and current conditions suggest continued bullish sentiment for 2026, supported by consensus earnings forecasts and a favorable Federal Reserve outlook.
Market Dynamics and Leadership: Despite concerns about market narrowness, the S&P 500's performance is bolstered by key stocks, with a notable contribution from bank stocks and cyclicals, while the dominance of mega-cap tech stocks raises questions about future market leadership.
Capital Supply and IPO Activity: The anticipated demand for capital from major tech firms and a potential uptick in IPOs indicate a maturing bull market, although this could lead to a decrease in share buybacks and an increase in total shares outstanding.
Bitcoin's Influence on Stocks: Bitcoin's recent struggles may impact market sentiment, as its correlation with tech stocks weakens, raising questions about its role as a speculative asset and its appeal to retail investors amidst shifting interests towards AI and other technologies.
S&P 500 Faces Challenges in Sustaining Gains as Stock Market Rally Expands Without Tech Support
Market Performance: The U.S. stock market has shown broad gains recently, indicating a positive outlook as we approach 2026.
Tech Sector Importance: The S&P 500's ability to continue rallying may be hindered without significant contributions from the technology sector, especially in light of the ongoing artificial intelligence boom.
Sector Analysis: Bespoke Investment Group conducted an analysis of the S&P 500 and its 11 sectors, highlighting the critical role of technology in the index's performance.
Future Outlook: The reliance on the tech sector suggests that its performance will be a key factor in the overall market trajectory moving forward.
