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

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For investors seeking momentum, SPDR S&P 1500 Momentum Tilt ETF (MMTM - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 32.8% from its 52-week low price of $140.63/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:

MMTM in Focus

MMTM provides exposure to stocks exhibiting the strongest momentum characteristics based on price performance over the 11 months ending one month before the rebalancing date of the index. Holding 1437 stocks in its basket, it has key holdings in information technology, financials, consumer discretionary, communication services and industrials. It charges 12 basis points in annual fees (see: all the Cap Growth ETFs here).

Why the Move?

The momentum corner of the broad U.S. stock market has been an area to watch given the earnings optimism though concerns about the spread of the Delta variant of COVID-19 have made investors jittery. The picture emerging from the Q2 earnings season is one of all-round strength, with aggregate total quarterly earnings on track to reach a new all-time record and impressive momentum on the revenue side.

More Gains Ahead?

It seems that MMTM might remain strong given a high weighted alpha of 28.03% and a low 20-day volatility of 15.41%. 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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