For investors seeking momentum, NYLI Merger Arbitrage ETF (MNA Quick QuoteMNA - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 11.56% from its 52-week low price of $30.36/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 of where it might be headed:

MNA in Focus

The underlying NYLI Merger Arbitrage Index seeks to achieve capital appreciation by investing in global companies for which there has been a public announcement of a takeover by an acquirer. The fund has 45.2% exposure to the United States, followed by exposure of 8.6% in Canada. The product charges 77 bps in annual fees (See: All Hedge Fund ETFs).

Why the Move?

The merger & acquisition (M&A) corner of the broad stock market has been an area to watch lately, given President Trump’s more business-friendly approach, which involves easing regulations on deal-making. Investment banks are projected to flourish during Trump's second term, a key tailwind for the M&A market. Additionally, strong momentum gained in 2024 is estimated to continue in 2025.

More Gains Ahead?

Currently, MNA might continue its strong performance in the near term, with a positive weighted alpha of 8.32 (as per Barchart.com), which gives cues of a further rally.