For investors seeking momentum, MomentumShares US QuantitativeMomentum ETFQMOM is probably on radar now. The fund just hit a 52-week high and is up over 32% from its 52-week low price of $19.36/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 on where it might be headed:
QMOM in Focus
The fund is actively managed and invests in stocks with the highest quality momentum. The fund charges 79 bps in fees (see: all total market (U.S.) ETFs here).
Why the Move?
The U.S. economy has been gaining momentum. Also, sentiments are pretty bullish at the current level courtesy of the Trump-induced optimism. His promises for tax cuts, fiscal boost, easing regulations and job creation may do wonders for numerous U.S. equities. If this was not enough, corporate earnings growth for Q4 of 2016 is on track to be the highest in eight quarters. This makes it clear why this high-momentum ETF is on radar.
More Gains Ahead?
The fund seems to continue with its strength given a positive weighted alpha of 18.62 . Since a positive weighted alpha hints at more gains, there is definitely still some promise for investors who want to ride this surging ETF a little further.
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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.