BROOMALL, Pa.--(BUSINESS WIRE)--Alpha Architect today announced that it has launched its fifth proprietary index fund, the Alpha Architect Value Momentum Trend ETF (Ticker: VMOT) with a zero management fee.1

VMOT is a fund of funds ETF that seeks to track the Alpha Architect Value Momentum Trend Index (“Index”), which seeks to capture (1) focused value and momentum factor premiums and (2) follows a proprietary trend-following algorithm that seeks to avoid downtrending markets against extreme losses. The Index seeks to mitigate extreme market drawdowns, while capturing focused value and momentum exposures.

Dr. Wes Gray, founder of Alpha Architect, is excited for the Fund’s prospects: “We see a great opportunity to provide investors with a unique type of alternative exposure. VMOT provides exposures to what we believe to be the most robust factor premiums: value, momentum, and trend.”

VMOT will hold the four flagship funds of Alpha Architect (QVAL, QMOM, IMOM, and IVAL) and also deploy a trend following system overlay, all for zero management fees beyond the underlying ETF expense ratios.

With zero sales representatives and a “disdain for flash” culture, Alpha Architect has raised $180M in ETF assets in under three years. Their overall asset base has grown from $30M in 2012 to over half a billion (managed accounts and ETFs) to date.

Dr. Wesley Gray and Dr. Jack Vogel, co-CIOs of Alpha Architect, started developing their Value Momentum Trend Index soon after they completed development of their Quantitative Value algorithm and Quantitative Momentum algorithms.

VMOT joins a small number of boutique ETFs that offer trend-following exposure inside of an ETF structure. When trend-following signals “break,” the fund will short domestic and international market exposures and move to a protection seeking stance.

Dr. Gray continued, “We seek to deliver a high-conviction value/momentum approach backed by extensive academic and market research and a substantive knowledge of the manner in which irrational investor behavior creates mispricing. With VMOT, we can now give our investors access to this strategy, while simultaneously providing a mechanism that seeks to avoid downtrending markets. For disciplined investors looking to access multiple factor premiums in one package, VMOTmay be a compelling product.”

VMOT may be best suited for investors and advisors that want focused factor exposures paired with trend-following overlays.

ABOUT ALPHA ARCHITECT VALUE MOMENTUM TREND ETF (VMOT)

Alpha Architect Value Momentum Trend ETF is advised by Alpha Architect, an SEC-registered investment firm that seeks to design affordable, tax-efficient, index strategies for Exchange-Traded Funds and Separately Managed Accounts. Alpha Architect’s strategies are rooted in the science of behavioral finance with a goal of beating behavioral bias. For further information, visit www.alphaarchitect.com/funds.