Monthly momentum across developed-market ETFs
Strategy overview
Instead of buying the whole international haystack, this rules-based model scores developed-market ETFs on blended 3-month and 6-month momentum each month-end, concentrates into the top four leaders, applies region and style caps to limit crowded bets, and exits lagging names gradually so capital can rotate cleanly into the next set of winners.
Performance
OOS from Jan 1, 2026 (dashed line).
Key Performance Indicators
93.5%Total return (2.7 yr)
28.1%CAGR (2.7 yr)
6.8%Max drawdownVEA 13.4% · SPY 18.5%
1.94Sharpe ratioSPY 1.25 · VEA 1.17
3.92Sortino ratioSPY 2.41 · VEA 1.85
MonthlyTrading frequency
—OOS start
$14KMin. capitalCovers $100/mo fees using 8.6% excess CAGR over VEA (28.1% vs 19.5%), both annualized over the same 2.7-year backtest (Jan 2024 – Sep 2026). Based on backtest; not a guarantee.
Drawdowns
Backtest report
| Series | Total return | CAGR | Max DD (monthly) | Max DD (daily) |
|---|---|---|---|---|
| Strategy | 93.45% | 28.11% | 6.76% | 15.50% |
| SPY (buy & hold) | 61.96% | 19.84% | 7.47% | 18.49% |
| VEA (buy & hold) | 60.62% | 19.47% | 8.60% | 13.41% |