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For investors seeking momentum, iShares Edge MSCI USA Momentum Factor ETF MTUM is probably on radar now. The fund just hit a 52-week high and is up about 36.7% from its 52-week low price of $73.90/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
MTUM in Focus
MTUM provides exposure to large and mid-cap U.S. stocks exhibiting a relatively higher price momentum. Holding 123 stocks in its basket, it is pretty well spread across components with none holding more than 5.4% share. The fund has key holdings in information technology, financials, consumer discretionary, healthcare and industrials. It charges 15 basis points in annual fees (see: all the Large Cap ETFs here).
Why the Move?
The momentum corner of the broad U.S. stock market has been an area to watch given that the first anniversary of Donald Trump’s election win has approached. Trump has led to monster rally in the stock market in the last one year, with his proposed pro-growth agenda aimed at accelerating economic growth, reducing regulation, increasing spending, slashing taxes, and boosting jobs and corporate profits.
More Gains Ahead?
It seems that MTUM might remain strong given a high weighted alpha of 36.20% and a low 20-day volatility of 6.92%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.
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ISHRS-MSCI US M (MTUM): ETF Research Reports
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