For investors looking for momentum, John Hancock Multifactor Materials ETF is probably a suitable pick. The fund just hit a 52-week high and is up 95.6% from its 52-week low price of $26.59/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

JHMA in Focus

This ETF seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the John Hancock Dimensional Materials Index. It has AUM of $30.9 million and charges 40 basis points in annual fees.

Why the Move?

The materials sector, which is the most sensitive to global economic growth expectations, is gaining from a dovish Fed. Lower rates put pressure on the U.S. dollar that makes dollar-denominated materials cheap for foreign investors, raising demand for products that these companies sell. Also, as the sector is highly dependent on interest rates for capital expenditures, low rates are a boon. The coronavirus vaccine rollout and strong fiscal stimulus support have fueled investors’ hopes of faster economic recovery in the United States. This is making funds like JHMA an attractive investment option.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 75.86, which gives cues of further rally.

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