ETF Evaluator: Virtus Terranova US Quality Momentum ETF () Follow This ETF

Virtus Terranova US Quality Momentum ETF Overview

Virtus Terranova US Quality Momentum ETF (JOET) is a passively managed U.S. Equity Large Blend exchange-traded fund (ETF). Virtus launched the ETF in 2020.

The investment seeks investment results that correspond, before fees and expenses, to the price and yield performance of the Terranova U.S. Quality Momentum Index. Under normal market conditions, the fund will invest not less than 80% of its assets in component securities of the index. The index is designed to track the performance of quality large-capitalization companies listed in the United States. The index includes common stock and ADRs. The fund will invest not less than 80% of its net assets (plus the amount of any borrowings for investment purposes) in U.S. securities.

About Virtus Terranova US Quality Momentum ETF (JOET)

There are 2 members of the management team with an average tenure of 5.70 years: Matthew Brown (2020) and Seth Kadushin (2020). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Terranova U.S. Quality Momentum TR USD index with a weighting of 100%. Virtus Terranova US Quality Momentum ETF has 126 securities in its portfolio. The top 10 holdings constitute 8.9% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Virtus Terranova US Quality Momentum ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. Virtus Terranova US Quality Momentum ETF has 3.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 96.0% There is 3.2% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Virtus Terranova US Quality Momentum ETF has 0.8% of the portfolio in cash.

Assets Under Management

The fund has $243 million in total assets, which is below the $13 billion average for the Large Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

JOET Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Virtus Terranova US Quality Momentum ETF expense ratio is below average compared to funds in the Large Blend category. Virtus Terranova US Quality Momentum ETF has an expense ratio of 0.29%, which is 30% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Virtus Terranova US Quality Momentum ETF has a portfolio turnover rate of 117%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 158% for the Large Blend category.

Recently, in the month of July 2026, Virtus Terranova US Quality Momentum ETF returned -1.6%, which earned it a grade of D, as the Large Blend category had an average return of -0.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Virtus Terranova US Quality Momentum ETF has a trailing yield of 0.60%, which is below the 1.16% category average. The fund normally distributes its income annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Virtus Terranova US Quality Momentum ETF Grades

Year to date, the ETF has returned 8.2%, 1.3 percentage points worse than the category, which translates into a grade of D. The fund has returned 11.5% over the past year (grade of F), 16.4% over the past three years (grade of D) and 9.4% per year over the past five years (grade of D).

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