“How long can momentum’s dominance last? Unclear. Eventually, the tide will turn, of course. Meantime, recent data from Bloomberg may cheer contrarians looking for a sign that regime shift is near. On Monday, the company advised that ‘the Bloomberg US pure momentum portfolio had its worst week since April 2016 [through Friday, Dec. 1]. Such a uniform demolition of long-short momentum can be caused by a concentrated bet unwinding, according to Pravit Chintawongvanich, the head of derivatives strategy at Macro Risk Advisors,’” according to Seeking Alpha.
For the week ended Dec. 6th, investors pulled $651.5 million from MTUM, more than all but four ETFs over that period. Still, MTUM is not as volatile as some investors may think. The ETF has a three-year standard deviation of just under 10%. That compares favorably with basic broad market funds.
Year-to-date, investors have added $2.42 billion to MTUM.
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