PEZ: Momentum Factor Not Enough For Volatile Consumer Cyclical Stocks

  • PEZ follows a proprietary strategy to identify at least 30 U.S. Consumer Cyclical stocks with strong intermediate and long-term price momentum. Its expense ratio is 0.60%. The ETF's long-term track record and current fundamentals highly suggest that the momentum factor alone is insufficient for investing in this sector. Though PEZ's components currently have an excellent 24% estimated earnings growth rate, it's also extremely risky based on its beta, P/E, and quality characteristics.