Virtus Terranova U.S. Quality Momentum ETF (JOET)
ARCA ARCA Primary 
JOET: Remains Unappealing On Factor, Performance Fronts, A Hold At Best
Virtus Terranova U.S. Quality Momentum ETF is a passively managed vehicle with a strategy bringing together the momentum and quality factors. JOET's underperformance continues as it has trailed IVV since the beginning of the year. Its active return for December 2020–April 2026 was -3.99%. JOET's persistent underdelivery once again raises questions about the efficacy of its dual-factor approach in generating alpha.
Virtus Terranova U.S. Quality Momentum ETF Q1 2026 Commentary
Concerns surrounding AI disruption recalibrated valuations lower for the software industry and select financial institutions. Value sectors such as energy, materials, utilities, consumer staples, industrials, and real estate advanced. Virtus Terranova U. S. Quality Momentum ETF posted a total return of -4.82% at NAV versus the Index's return of -4.77%.
Virtus Terranova U.S. Quality Momentum ETF Q4 2025 Commentary
The Terranova U.S. Quality Momentum Index filters securities based on positive technical momentum and then ranks them by measures of fundamental quality. The fourth quarter provided continued evidence of a healthier investing environment relative to the narrower market opportunities of the prior two years. During the fourth quarter, the S&P 500® Index ('SPX') posted 13.2% earnings growth and 8.3% revenue growth.
JOET: When Combining Quality And Momentum Dilutes Both
The Virtus Terranova U.S. Quality Momentum ETF combines quality and momentum factors with an equal-weighted approach, targeting broad-based quality momentum rallies. JOET's methodology underperforms in most regimes, failing to outperform pure quality, pure momentum, or even equal-weighted broad market alternatives like RSP. The ETF's sector allocation is pro-growth and cyclical, but requires a rare, simultaneous alignment of broad momentum, quality leadership, and supportive macro conditions.
Virtus Terranova U.S. Quality Momentum ETF Q3 2025 Commentary
In the third quarter, the capital markets provided compelling evidence that a much healthier investing environment exists in 2025 relative to the narrowed market opportunities. For the quarter, JOET posted a total return of 5.12% at NAV versus the Index's return of 5.24%. Sector allocation was a detractor from performance over the quarter, relative to the broader market, as measured by the S&P 500® Index.
Joe Terranova on the quantitative approach to the JOET ETF that identifies winners like Palantir early
As the Virtus Terranova U.S. Quality Momentum ETF (JOET) celebrates its five-year anniversary, creator Joe Terranova discussed his strategy for picking stocks. Terranova also shared his vision of creating a suite of related ETF products.
JOET: Persisting Underperformance From The Quality And Momentum Strategy
Virtus Terranova U.S. Quality Momentum ETF is a passively managed ETF with a portfolio of 125 large-cap names sporting strong momentum and quality characteristics. JOET has underperformed the S&P 500 index since my August article. Since the beginning of the year, it has trailed IVV and FQAL. Introduced in 2020, from December 2020 to October 2025, it underperformed IVV and a few quality-focused ETFs, though it did beat RSP.
JOET: High-Turnover Factor Duo Underperforms The S&P 500, Skeptical View Merited
JOET is a passively managed ETF offering exposure to 125 large-cap momentum stocks with robust quality. While JOET has delivered solid YTD performance, its total return since inception is still weaker than IVV's and those of a few quality-focused ETFs. JOET delivers robust quality and momentum characteristics, but IVV's holdings offer stronger revenue growth and capital efficiency.
JOET: Relative Underperformance And Elevated Volatility Raise Doubts About The Fund's Strategy
The Virtus Terranova US Quality Momentum ETF (JOET) combines quality and momentum strategies, but its mid-cap bias leads to below-average profitability and higher volatility. JOET's allocation skews towards financial services and industrials, with significant underweights in technology and consumer discretionary compared to the S&P 500. Valuation is slightly below the S&P 500, driven by low-multiple financial services, but profitability metrics lag due to limited exposure to highly profitable mega caps.
JOET: Inspecting CNBC Star Joe Terranova's Momentum ETF
I have a hold rating on JOET due to its sound strategy, low cost, and solid chart, yet it has underperformed other momentum funds. JOET focuses on U.S.-listed large-cap companies with strong quality fundamentals and positive momentum technical trends, but its relative returns have been lackluster since early 2024. The ETF currently has a mixed exposure to mid- and large-cap stocks, with significant weight in Information Technology, Financials, and Industrials, but lacks defensive holdings.
JOET: Recent Performance Surprise Does Not Change Long-Term View
Virtus Terranova U.S. Quality Momentum ETF is a passively managed ETF focused on promising stocks at the intersection of quality and momentum. JOET has outperformed the S&P 500 since my June article, yet longer-term returns remain disappointing, weighing on my sentiment. With about 41% of the portfolio replaced, the Fund remains a high-quality vehicle.
JOET: A Quality ETF Struggling In The Current Market Environment
Quality-based portfolios are still attractive amid an economic slowdown, with Virtus Terranova U.S. Quality Momentum ETF offering exposure to high-quality companies with strong relative performance. The JOET fund struggles to keep up with the S&P 500 and other quality ETFs due to its equal-weighted allocation and its underweighting of profitable mega caps, but may benefit from a market sentiment shift favoring mid-cap companies. JOET's sector allocation shows an overweighting of financial services and industrials, and an underweighting in communication services, healthcare, technology, and consumer staples compared to S&P 500 and quality ETF peers.
