For investors seeking momentum, Fidelity Momentum Factor ETF (FDMO - Free Report) is probably a suitable pick. The fund just hit a 52-week high, up roughly 23.4% from its 52-week low of $30.43/share.
But does it have more gains in store? Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
FDMO in Focus
The fund seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the Fidelity U.S. Momentum Factor Index. The fund’s AUM is $104.7 million and expense ratio, 0.29%.
Why the Move?
The momentum corner of the broad market has been an area to watch on U.S.-China trade deal optimism and easing fears in Middle-East tensions. Trade negotiations have been major market movers for more than a year now. Per latest developments, the phase one of the trade deal between the United States and China is expected to be signed this week. Moreover, President Donald Trump’s speech provided relief from fears of a full-fledged conflict in the Middle East following retaliatory missile strikes by Iran on U.S. military compounds in Iraq.
More Gains Ahead?
Currently, it seems FDMO might remain strong given a positive weighted alpha of 19.7.
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