Alpha Architect U.S. Quantitative Momentum ETF (QMOM) Covered Calls

Alpha Architect U.S. Quantitative Momentum ETF is an actively managed fund that targets U.S. stocks with the highest quality momentum. Utilizing a systematic, rules-based process, the fund identifies companies with strong past returns while filtering for "smooth" momentum to avoid volatile price jumps. It typically maintains a concentrated portfolio of approximately 50 stocks, equally weighted to ensure that individual security trends drive performance rather than market capitalization.

You can sell covered calls on Alpha Architect U.S. Quantitative Momentum ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for QMOM (prices last updated Fri 4:16 PM ET):

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The Alpha Architect U.S. Quantitative Momentum ETF is a high-conviction, factor-based investment vehicle that seeks to capture the academic momentum anomaly. Unlike passive momentum funds that may hold hundreds of securities, this fund employs a concentrated approach, focusing only on the top decile of stocks exhibiting the strongest relative strength. The strategy is designed to exploit behavioral biases in the market, specifically the tendency for winning stocks to continue their upward trajectory.

Core Business and Products

The primary product of this fund is an actively managed, equal-weighted portfolio of roughly 50 U.S. equities. The investment process involves a two-step quantitative screen: first, identifying stocks with the highest total returns over the past year (excluding the most recent month), and second, filtering for "high-quality" momentum—those with consistent gains rather than sporadic price spikes. Current major holdings typically include momentum leaders such as EchoStar, MasTec, and C.H. Robinson.

The fund’s composition is dynamic and can shift significantly between sectors based on where the strongest trends are emerging. It frequently carries heavy weightings in industrials, technology, and consumer services when those sectors lead the market. Other notable constituents often include firms like L3Harris Technologies and Alphabet. By rebalancing quarterly, the fund ensures it remains invested in the most current "hot" stocks while systematically exiting those whose momentum has stalled.

Competitive Landscape

The fund operates in the specialized "smart beta" and factor-investing arena. Its most direct competitor is the iShares MSCI USA Momentum Factor ETF, which is much larger but follows a more diversified, market-cap-weighted index. Other rivals include the Invesco S&P 500 Momentum ETF and the Invesco Dorsey Wright Momentum ETF, which use different technical screens to identify trend persistence.

Because the fund is equal-weighted and highly concentrated, its performance often diverges significantly from broader momentum products like the Vanguard Growth ETF. While it includes well-known names like Quanta Services, its true competitive edge is its "automated active" management, which aims to provide a purer exposure to the momentum factor than diluted, broad-market indices. This makes it a popular choice for tactical investors seeking aggressive alpha generation.

Strategic Outlook and Innovation

The strategic focus of the fund is the rigorous application of quantitative research to navigate various market regimes. Innovation is embedded in its proprietary "Momentum Quality" score, which seeks to differentiate between stocks driven by fundamental trend-following and those driven by transient noise. This focus on the "path" of returns is intended to provide better risk-adjusted performance and mitigate the severity of momentum crashes during sudden market reversals.

The long-term outlook is based on the persistence of human behavioral patterns that create momentum in asset prices. As data processing and algorithmic trading continue to evolve, the fund is positioned to remain a disciplined, rules-based alternative to emotional decision-making. By maintaining an evergreen methodology that ignores "story-based" investing in favor of verifiable price trends, the fund serves as a systematic tool for capturing the strongest growth cycles across the U.S. corporate landscape.

Want more examples? QLYS Covered Calls | QNST Covered Calls