For investors seeking momentum, AGFiQ US Market Neutral Momentum Fund is probably on radar now. The fund just hit a 52-week high, and is up 28.5% from its 52-week low price of $23.71/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:
MOM in Focus
This fund follows the Dow Jones U.S. Thematic Market Neutral Momentum Index, providing exposure to the “momentum” factor by investing long in U.S. equities that have had above average total returns and shorting those securities that have had below average total returns. This approach results in long and short positions in 200 stocks in equal proportions. MOM has accumulated $4.9 million in its asset base and charges investors 1.88% in annual fees (see: all the Long/Short ETFs here).
Why the Move?
The broad market has been an area to watch lately as volatility has been playing foul. Myriad woes related to lingering U.S.-China trade tensions, slowing economic growth in Europe and Japan, troubles in emerging markets as well as threats of global slowdown have resulted in market gyrations. Additionally, renewed slide in oil price, the Fed’s lower-than-expected dovish view and threats of extended government shutdown have added to the woes. Given the bearish sentiments, long/short strategy is gaining momentum.
More Gains Ahead?
It seems that MOM might remain strong given a high weighted alpha of 28.70% but could be a risky choice as depicted by 20-day volatility of 73.56%. As a result, there is definitely still some promise for the risk-aggressive investors, who want to ride on this surging ETF.
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Long/Short ETF (MOM) Hits New 52-Week High
For investors seeking momentum, AGFiQ US Market Neutral Momentum Fund is probably on radar now. The fund just hit a 52-week high, and is up 28.5% from its 52-week low price of $23.71/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:
MOM in Focus
This fund follows the Dow Jones U.S. Thematic Market Neutral Momentum Index, providing exposure to the “momentum” factor by investing long in U.S. equities that have had above average total returns and shorting those securities that have had below average total returns. This approach results in long and short positions in 200 stocks in equal proportions. MOM has accumulated $4.9 million in its asset base and charges investors 1.88% in annual fees (see: all the Long/Short ETFs here).
Why the Move?
The broad market has been an area to watch lately as volatility has been playing foul. Myriad woes related to lingering U.S.-China trade tensions, slowing economic growth in Europe and Japan, troubles in emerging markets as well as threats of global slowdown have resulted in market gyrations. Additionally, renewed slide in oil price, the Fed’s lower-than-expected dovish view and threats of extended government shutdown have added to the woes. Given the bearish sentiments, long/short strategy is gaining momentum.
More Gains Ahead?
It seems that MOM might remain strong given a high weighted alpha of 28.70% but could be a risky choice as depicted by 20-day volatility of 73.56%. As a result, there is definitely still some promise for the risk-aggressive investors, who want to ride on this surging ETF.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>