Momentum ETFs to Ride Upbeat Data & Good Start to Q2 Earnings
The University of Michigan Consumer Sentiment Index for July jumped to its highest level since September 2021, indicating growing confidence in the U.S. economy. This unexpected increase reflects positive factors such as the slowdown in inflation and stability in labor markets. The recent wave of upbeat economic data, promising start to the Q2 earnings seasons, falling inflation and debates over Fed’s rate hike after July have boosted the stock market higher lately.
The University of Michigan report highlights a 19% surge in long-term business conditions and a 16% increase in short-run business conditions. These positive indicators contribute to a supportive investment landscape. Moreover, the expectations for inflation have slightly increased, but remain lower than the highs seen in April 2022. Overall, easing concerns about a recession and favorable economic data have contributed to the rise in consumer sentiment.
Upbeat Economic Datapoints
Last week's release of economic data has been largely positive. The Consumer Price Index for June and the Producer Price Index both indicated slower-than-expected increases in prices. Additionally, weekly jobless claims were lower than anticipated, demonstrating the resilience of the labor market. These factors suggest a tight labor market where employment remains high while the prices of goods continue to decrease.
What is Momentum Investing?
U.S. stocks just logged the biggest weekly rally since March. Momentum ETFs are designed to capture the upward momentum of stocks experiencing positive price trends. These ETFs employ strategies that identify and select stocks that have demonstrated consistent price appreciation, making them suitable for investors looking to capitalize on the current market conditions.
The favorable conditions suggest that Wall Street rally to continue ahead, presenting an opportune time to invest in Momentum ETFs. As Wall Street's optimism continues to grow, these funds are likely to yield significant returns.
Invesco DWA Consumer Cyclicals Momentum ETF PEZ, VanEck Social Sentiment ETF BUZZ, Invesco DWA SmallCap Momentum ETF DWAS, Vanguard U.S. Momentum Factor ETF VFMO, Invesco DWA Developed Markets Momentum ETF PIZ are some of the winning ETFs of last week.
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Invesco DWA Consumer Cyclicals Momentum ETF (PEZ): ETF Research Reports
Invesco DWA SmallCap Momentum ETF (DWAS): ETF Research Reports
Invesco DWA Developed Markets Momentum ETF (PIZ): ETF Research Reports
Vanguard U.S. Momentum Factor ETF (VFMO): ETF Research Reports
VanEck Social Sentiment ETF (BUZZ): ETF Research Reports
