A wildly popular trade that involves buying proven stock-market winners just saw its biggest outflow on record

By: Daniel Strauss

A hugely popular trading strategy that revolves around betting on proven stock-market winners saw its largest monthly-outflow on record in October. 

Investors pulled a record $1.6 billion from momentum-focused exchange-traded funds last month, according to Bloomberg data going back to 2012. 

Most of the outflows over the period came from traders pulling more than $1 billion from the iShares Edge MSCI USA Momentum Factor ETF, which holds about $9 billion worth of assets. Those investors have continued to flee this month, with $155 million pulled from the momentum ETF on Nov. 5 alone.

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