|Bid||29.79 x 3200|
|Ask||29.80 x 1200|
|Day's Range||29.62 - 29.82|
|52 Week Range||23.32 - 31.43|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||16.91%|
|Beta (3Y Monthly)||1.18|
|Expense Ratio (net)||0.89%|
First Trust Advisors L.P. announces the declaration of distributions for 129 exchange-traded funds advised by FTA.
Momentum, an investment factor rooted in the idea that a security that has already appreciated in price can continue doing so, makes a predictable candidate to overshoot declines when the broad market declines. The iShares Edge MSCI USA Momentum Factor ETF (CBOE:MTUM) recently boosted its allocation to technology stocks to almost 40 percent of its weight, more than triple its weight to health care, its second-largest sector weight. “Using momentum ETFs, investors can gain some diversification using this approach, but it is important to understand the exposure is not static and that momentum funds can be quite different,” said CFRA Research Director of ETF & Mutual Fund Research Todd Rosenbluth in a note out Thursday.
The FAANG stocks, among others, make for easy culprits behind the recent slide in momentum stocks and the related exchange traded funds. It may be overly simplistic, but a key element of momentum investing is that it works until doesn't. Different momentum strategies apply the factor in varying ways.