FCTR: A Rotating Strategy Going In Circles

The First Trust Lunt U.S. Factor Rotation ETF implements a rotating allocation strategy among four factors: momentum, value, volatility and quality. The factor allocation is evaluated monthly, resulting in a high turnover. The return since inception of FCTR is underwhelming compared to the S&P 500 and an equal-weight portfolio of single-factor ETFs based on the four factors involved.

Seeking Alpha • Feb 1, 2025