For buyers searching for momentum, SPDR S&P 1500 Momentum Tilt ETF MMTM might be on the radar. The fund simply hit a 52-week excessive and is up 46.08% from its 52-week low worth of $172.61/share.
However are extra positive factors in retailer for this ETF? Let’s take a fast take a look at the fund and the near-term outlook on it to get a greater thought of the place it could be headed:
MMTM in Focus
The underlying S&P 1500 Optimistic Momentum Tilt Index applies an alternate weighting methodology to the S&P Composite 1500 Index in order that shares with comparatively excessive momentum are obese relative to the S&P 1500 Index and shares with comparatively low momentum are underweight. The product expenses 12 bps in annual charges (See: All Cap Growth ETFs).
Why the Transfer?
The momentum nook of the broad U.S. inventory market has been an space to look at given the Fed’s 50 bps fee lower in September. Momentum investing goals to capitalize on the continuance of an present market development. Market expectations of additional fee cuts in November and December are a key tailwind for the fund, driving the present rally out there.
Extra Good points Forward?
At the moment, MMTM has a Medium threat outlook. Nonetheless, it would proceed its robust efficiency within the close to time period, with a constructive weighted alpha of 37.15 (as per Barchart.com), which supplies cues of an additional rally.
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SPDR S&P 1500 Momentum Tilt ETF (MMTM): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
