For investors seeking momentum, NYLI Merger Arbitrage ETF MNA is probably on the radar. The fund just hit a 52-week high and is up 11.56% from its 52-week low price of $30.36/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 of where it might be headed:
MNA in Focus
The underlying NYLI Merger Arbitrage Index seeks to achieve capital appreciation by investing in global companies for which there has been a public announcement of a takeover by an acquirer. The fund has 45.2% exposure to the United States, followed by exposure of 8.6% in Canada. The product charges 77 bps in annual fees (See: All Hedge Fund ETFs).
Why the Move?
The merger & acquisition (M&A) corner of the broad stock market has been an area to watch lately, given President Trump’s more business-friendly approach, which involves easing regulations on deal-making. Investment banks are projected to flourish during Trump's second term, a key tailwind for the M&A market. Additionally, strong momentum gained in 2024 is estimated to continue in 2025.
More Gains Ahead?
Currently, MNA might continue its strong performance in the near term, with a positive weighted alpha of 8.32 (as per Barchart.com), which gives cues of a further rally.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
