Currently, Facebook is not among MTUM’s top 10 holdings. Just FAANG stocks – Amazon.com Inc. (NASDAQ: AMZN) and Netflix, Inc. (NASDAQ: NFLX) – are among MTUM’s top 10 holdings, but that pair combines for just 9% of the ETF’s weight. MTUM holds 124 stocks and Facebook currently does not reside in the fund.
“Momentum strategies track price trends, a measure of investor sentiment. Many breakout stocks across a variety of industries have earned exceptional returns over the last 6 to 12 months–the time frame generally employed by momentum strategies like the iShares Edge MSCI USA Momentum ETF (MTUM),” according to BlackRock.
MTUM’s total FAANG exposure is just 9% compared to nearly 39% in the Nasdaq-100 Index. As is the case with many growth and momentum strategies, MTUM is heavily allocated to the technology and consumer discretionary sectors. Those sectors combine for over 60% of MTUM’s weight.
For more information on alternative index-based exchange traded funds, visit our smart beta category.