Since defensive stocks typically do better during volatile conditions, the momentum strategy could load up on conservative picks and miss out on the initial recovery in riskier assets.

However, MTUM is among the many momentum ETFs that prove momentum can mean much more than just a high beta from a sexy sector. Momentum can also mean an emphasis on relative strength and strong price characteristics.

Related: A Growing Batch of Momentum ETFs

“However, our expectations are tempered by ‘risk-off’ signals in the fixed income and currency markets. With our conviction toward stock selection, we’re specifically bullish on the iShares Edge MSCI USA Momentum Factor ETF (MTUM) which has been resilient amid market volatility,” said Wald in the note posted by Barron’s.

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iShares MSCI USA Momentum Factor ETF

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