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  • Mark December 2018
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Momentum ETF Becomes A Big Health-Care Bet After Tech’s Stumbles: (MTUM)

TedTed
in Fund Discussions
FYI: Wall Street has a new momentum champion: drugmakers.

The $9.4 billion iShares Edge MSCI USA Momentum ETF, or MTUM, shook up its holdings at the end of November and now has unveiled its latest portfolio of high-flying stocks. Health care’s share almost tripled, as Pfizer Inc. and Merck & Co. came in among the ETF’s five largest positions.

Technology remains its biggest sector, but the fund cut its exposure to 31 percent from 41 percent following the tech sell-off in November. And it eliminated chipmaker Nvidia Corp. altogether. Meanwhile, the ETF chopped its financial holdings to 2 percent from 12 percent.
Regards,
Ted
https://www.bloomberg.com/news/articles/2018-12-03/for-momentum-etf-autumn-tech-wreck-leads-to-big-health-care-bet

M* Snapshot MTUM:
https://www.morningstar.com/etfs/BATS/MTUM/quote.html

Comments

  • MarkMark
    Hmm, I get the Tech to Health rotation but I'm wondering why they sold off most of the financial sector. I had always thought that's a sector that generally holds up during market downturns but maybe the answer lies within the word 'momentum.'
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