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U.S. Momentum ETF (FDMO) Hits New 52-Week High

Sweta Killa
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For investors seeking momentum, Fidelity Momentum Factor ETF FDMO is probably on radar now. The fund just hit a 52-week high and is up about 21.56% from its 52-week low price of $24.26/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:

FDMO in Focus

FDMO provides exposure to the large-cap and mid-cap stocks that signal momentum. Holding 126 stocks in its basket, it is well spread across components with none holding more than 4.1% share. The fund has key holdings in information technology, financials, healthcare, consumer discretionary and industrials. It charges 29 basis points in annual fees (see: all the Large Cap ETFs here).

Why the Move?

The momentum corner of the broad U.S. stock market has been an area to watch lately given that the country’s bourses are hitting multiple highs dodging all the ills of economy and politics. The optimism strengthened following Trump’s tax reform plans, a rebound in oil prices, strong corporate earnings and rounds of upbeat economic data. Still-low interest rates and improving health of economies around the world are adding to the strength.

More Gains Ahead?

It seems that FDMO might remain strong given a high weighted alpha of 17.90% and a low 20-day volatility of 5.30%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.

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FID-MOM FACTOR (FDMO): ETF Research Reports
 
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