U.S. Momentum ETF (MTUM) Hits New 52-Week High
For investors seeking momentum, iShares MSCI USA Momentum Factor ETF MTUM is probably on radar. The fund just hit a 52-week high and is up about 65.8% from its 52-week low price of $88.83/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 125 stocks in its basket, it has key holdings in information technology, healthcare, consumer discretionary and communication. It charges 15 basis points in annual fees (see: all the Large Cap Growth ETFs here).
Why the Move?
The momentum corner of the broad U.S. stock market has been an area to watch given the soaring stocks. The S&P 500 and Nasdaq Composite Index reached new highs while the Dow Jones ended above 28,000 for the first time in six months. The latest rally is being driven by new developments in the coronavirus vaccine. Adding to the strength is the back-to-school season, which seems different this year with school outfits being replaced by technology gadgets.
More Gains Ahead?
It seems that MTUM might remain strong given a high weighted alpha of 27.80% and a low 20-day volatility of 16.29%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Click to get this free report
iShares Edge MSCI USA Momentum Factor ETF (MTUM): ETF Research Reports
To read this article on Zacks.com click here.