MTUM’s underlying index reconstitutes holdings only twice per year in May and November, and includes a broad buffer to diminish turnover and potential transaction costs. The ETF’s annual fee is just 0.15%, or $15 on a $10,000 investment. That is low for any ETF, smart beta or otherwise.

Some economic data point to potential headwinds for momentum stocks.

“Look a little deeper and you’ll find pockets of weakness that could signal larger problems. Home sales and building data was especially weak this month. Auto sales, which had been steadily rising since 2010, are down again in 2017 despite manufacturer incentives. This data could just be a blip or it could be seasonal. Or it could be a sign of a bigger problem brewing,” according to ETF Daily News.

For more on Smart Beta ETFs, visit the Smart Beta Channel home page.