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.