For investors seeking momentum, iShares Edge MSCI Intl Momentum Factor ETF IMTM is probably on radar now. The fund just hit a 52-week high and is up nearly 17.5% from its 52-week low price of $23.88/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: IMTM in Focus
This fund provides exposure to large and mid-cap developed international stocks that exhibit a relatively higher price momentum. It has key holdings in financials, industrials, materials, consumer staples and energy. United Kingdom dominates the portfolio with one-third share while Canada and Japan round off the next two with a double-digit exposure each. It charges 30 bps in fees per year and is unpopular with AUM of $28 million (see: all the Broad Developed World ETFs here
). Why the Move?
The international developed market has been an area to watch lately given their outperformance relative to the U.S. and emerging market stocks. As such, investors are seeking higher returns in a short spell through momentum investing. The strategy looks to capture profits from buying hot stocks that have shown an uptrend over the past few weeks or months. More Gains Ahead?
Currently, IMTM has a Zacks ETF Rank of 3 or 'Hold' rating with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. Further, this fund might remain strong given a high weighted alpha of 11.80%
and a low 20-day volatility of 9.81%
. As a result, there is still some promise for investors who want to ride on this surging ETF. Want key ETF info delivered straight to your inbox?
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