Long Short Alpha Momentum-LS
Smart Portfolio
9m
Edited
Momentum L-S: riding 2025’s winners while hedging the bumps 👉 Momentum-LS is built on a simple idea: keep 75 % of the portfolio in large-cap U.S. stocks that are already outperforming, and offset that long book with a 25 % short “drag” in the market’s laggards. 👉 The result is a pure-play momentum factor with no leverage and a modest risk profile that has historically delivered equity-like returns with bond-like drawdowns. Over the past decade the strategy has compounded at ~8.6 % a year with just 11 % volatility and a maximum drawdown of –7.4%. 👉 That defensive DNA has not stopped it from capturing 2025’s AI-driven surge. Year-to-date the portfolio is up about 7 % — ahead of the S&P 500, which is close to flat after a choppy spring — thanks to overweight positions in mega-cap innovators such as Nvidia, Meta Platforms and Eli Lilly, all of which sit near record highs on the back of blockbuster earnings and product pipelines . 👉 On the short side, the model has zeroed-in on rate-sensitive real-estate and low-growth consumer names, providing a valuable buffer when markets wobble. 👉 Because the long and short books rebalance monthly, the portfolio naturally “rolls” into fresh leaders and cuts exposure to names that lose steam — a disciplined antidote to the all-too-human tendency to fall in love with yesterday’s winners. Add in zero performance fees and the convenience of one-click access on eToro, and Momentum L-S offers a cost-effective way to own the market’s strongest trend while keeping risk on a tight leash. 👉 Ready to let momentum work for you? Invest on the Momentum-LS Smart Portfolio and stay positioned for the next leg of 2025’s rally. ✨ eToro’s Momentum-LS Smart Portfolio strategy involves buying securities that seem to have positive price momentum, while simultaneously short-selling those that have displayed negative momentum. Smart Portfolios is a product that may include CFDs. 61% of retail investor accounts lose money when trading CFDs with this provider. Past performance is not an indication of future results.
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