FAQ - Frequently Asked Questions

Answers to the most common questions about the GEM investment strategy

A: Global Equities Momentum (GEM) is an investment strategy developed by Gary Antonacci. The strategy harnesses the momentum phenomenon — the tendency of assets that have performed well in the past to continue performing well in the future. GEM automatically invests in the best stocks or moves capital to safe bonds when the market declines.

A: A standard GEM implementation requires 5 ETFs:
  • IWDA — iShares Core MSCI World (global developed market stocks)
  • EIMI — iShares Core MSCI EM IMI (emerging market stocks)
  • CNDX — iShares NASDAQ 100 (US technology stocks)
  • IB01 — iShares $ Treasury Bond 0-1yr (short-term US bonds)
  • CBU0 — iShares $ Treasury Bond 7-10y (medium-term US bonds)
Alternative ETFs with similar exposure can also be used.

A: The GEM strategy requires monthly verification. On the last day of each month (or a chosen day), check the 12-month performance of all ETFs and rebalance according to the strategy rules. Consistently following the rules is key to success.

A: No. No investment strategy guarantees profit. GEM is a risk management tool based on historical data. Past performance does not predict future results. The strategy may underperform buy-and-hold in certain periods (e.g., strong bull markets). Investing always involves risk of capital loss.

A: The main costs are:
  • TER (Total Expense Ratio) of ETFs — typically 0.15-0.25% annually
  • Transaction costs — with monthly rebalancing, costs are usually low
  • Taxes — capital gains are taxed according to local law
  • Tracking error — the strategy may slightly differ from its benchmark
Overall, costs are significantly lower than actively managed investment funds.

A: Yes. GEM is a simple strategy that any individual investor can implement. All you need is a brokerage account with access to the mentioned ETFs and monthly discipline to follow the rules. The gemstrategy.tobewell.com.pl site simplifies this process by providing current recommendations.

A: GEM may be suitable for investors who:
  • Understand and accept investment risk
  • Have an investment horizon of at least 3-5 years
  • Can maintain monthly discipline
  • Prefer a systematic approach over emotional decisions
GEM may not be suitable for investors who need current income or cannot tolerate any capital fluctuations. Always consider consulting a financial advisor.

A: This is a key moment for the strategy. When all equity ETFs have negative 12-month returns, GEM automatically moves capital to safe bonds (IB01 or CBU0). This protects the portfolio from large declines in bear markets. The strategy returns to equities when momentum becomes positive again.

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