For investors seeking momentum, MomentumShares U.S. Quantitative Momentum ETF (QMOM - Free Report) is probably on radar now. The fund just hit a 52-week high and is up more than 30% from its 52-week low price of $24.73/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:
QMOM in Focus
This is an actively managed ETF consisting of stocks having the highest-quality momentum. The fund has key holdings in information technology, industrials, financials and healthcare. It charges 79 basis points in annual fees (see: all the Total U.S. Market ETFs here).
Why the Move?
The momentum space of the broad equity market has been an area to watch lately given the raft of upbeat data that indicates smooth sailing for the economy. Amid such scenario, momentum investing would be a winning strategy for those seeking higher returns in a short spell. This is because the strategy looks to fetch profits from buying hot stocks that have shown an uptrend over the past few weeks or months.
More Gains Ahead?
It seems that QMOM might remain strong given a high weighted alpha of 28.40% and a low 20-day volatility of 15.36%. 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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