iShares AUMF ETF (ASX:AUMF)
The iShares AUMF ETF provides investors with the performance of MSCI Australia IMI Diversified Multiple Factor (AUD) Index, before fees and expenses. This index is composed of Australian equities that have favourable exposure to four target style factors (quality, value, size and momentum).
What does the AUMF invest in?
The AUMF ETF uses an optimisation indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to that of the index. This ETF has a strong exposure to the financial and material sectors, and you could buy all of these companies yourself using a share brokerage account, but ETFs can be an effective way to invest in an entire sector through a single trade.
What do investors use AUMF for?
The iShares AUMF ETF uses a rules-based strategy to seek outperformance over the long-term. Investors could use this ETF to get exposure to a basket of Australian public companies that targets four drivers of return: quality, value, size, and momentum. For example, the AUMF fund looks for companies with healthy balance sheets (quality) that are cheap relative to fundamentals (value), smaller in size and with a share price moving in an upward direction (momentum).
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