MTUM lives up to its billing as a momentum play with health care, consumer discretionary and technology combining for two-thirds of the fund’s sector weight. Low-beta consumer staples, utilities and telecom names combine for just 4.1% of the fund’s weight.
“MTUM can be implemented with more of a tactical mentality to access stocks with the strongest recent price trends,” notes FMD Capital.
Google (NasdaqGM: GOOG), Johnson & Johnson (NYSE: JNJ) and Facebook (NasdaqGM: FB) are the ETF’s top-three holdings and represent 14.5% of its weight. MTUM is up 17.5% since its April debut and is cost-efficient with annual fees of just 0.15%.
iShares MSCI USA Momentum Factor ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of Facebook and Google.