Artificial Intelligence Ranks MTUM Best US Momentum Smart Beta ETF

The S&P 500 is hovering around a record this morning with a Fed meeting on the way, after an eventful week last week in regards to inflation. CPI printed at 5% annualized, the highest in decades, as many pundits described it as transitory. However, only time will tell — especially if monetary and fiscal stimulus keeps their foot on the gas pedal. One way to play stocks these days is to lean into momentum trading, and this week we are highlighting the top US Momentum Smart Beta ETFs. Q.ai’s deep learning algorithms have identified several ETFs based on fund flows over the last 90-days, 30-days, and 7-days. We have recognized 1 ETF rated as “Best,” 1 ETF rated as “Good,” 1 ETF rated as “Caution,” 2 ETFs rated as “Poor,” and one final ETF rated as “Worst.”

Sign up for the free Forbes AI Investor newsletter here to join an exclusive AI investing community and get premium investing ideas before markets open.

Best

iShares Edge MSCI USA Momentum Factor ETF (MTUM)

The iShares Edge MSCI USA Momentum Factor ETF
MTUM
is the only “Best” rated ETF this week. The ETF seeks to track the performance of an index that measures the performance of U.S. large- and mid-capitalization stocks exhibiting relatively higher momentum characteristics. The ETF is the largest on our list this week with $14,723,824,555.00 AUM. It has seen mixed fund flows, with a 90-day fund flow of -$412,075,490.00, and a 30-day fund flow of $453,918,950.00, and a 1-week fund flow of $331,966,155.00. The ETFs net expense ratio of 0.15% is the second cheapest for this week’s list.

Good

Alpha Architect US Quantitative Momentum ETF (QMOM)

We have one “Good” rated US Momentum ETF this week in the Alpha Architect US Quantitative Momentum ETF
QMOM
. The ETF’s goal is to buy stocks with the highest quality momentum factors based on their proprietary strategies. The ETF is smaller-sized with $110,455,200.00 AUM. It has seen mixed fund flows, with a 90-day fund flow of -$17,352,600.00, 30-day fund flow of $497,700.00, and 1-week fund flow of $497,700.00. Its net expense ratio is on the higher side and most expensive this week at 0.79%.

Caution

Invesco DWA SmallCap Momentum ETF (DWAS)

We have one “Caution” rated ETF this week in the Invesco DWA SmallCap Momentum ETF
DWAS
. The ETF is for those looking for exposure to the Dorsey Wright SmallCap Technical Leaders Index. The ETF is medium-sized, with $492,612,389.40 AUM. It has also seen mixed fund flows as of late, with an increase over the last 90 days of -$24,405,751.50, a 30-day fund flow of $8,951,054.30, and a 1-week fund flow of $1,762,339.40. Its net expense ratio of 0.60% is on the higher side.

Poor

SPDR Russell 1000 Momentum Focus ETF (ONEO)

The next ETF on our list is our first “Poor” rated ETF in the SPDR Russell 1000 Momentum Focus ETF. The ETF’s specific focus on momentum potentially captures the excess returns of stocks that have enjoyed higher recent price performance compared to other securities due to the tendency for stock prices to form trends over certain time horizons. The ETF is right in the middle in terms of size this week with $281,915,216.03AUM. It has seen positive fund flows, with a 90-day fund flow of $25,418,239.93, 30-day fund flow of $24,437,107.47, and 1-week fund flow of $992,881.95. Its net expense ratio of 0.2% is quite attractive.

Vanguard US Momentum Factor ETF (VFMO)

The Vanguard US Momentum Factor ETF
VFMO
 
is our next “Poor” rated ETF this week. The ETF uses a rules-based quantitative model to evaluate U.S. common stocks, to invest in stocks with strong recent performance. The ETF is smaller-sized on this week’s list with $103,105,650.00 AUM. It has also seen positive fund flows, with a 90-day fund flow of $15,822,150.00, a 30-day fund flow of $13,594,950.00, and 1-week fund flow of $9,125,000.00. Its net expense ratio of 0.13% is the cheapest this week.  

Worst

Invesco DWA Momentum ETF (PDP)

The Invesco DWA Momentum ETF
PDP
 is our only U.S. Momentum Smart Beta ETF rated Worst this week. This ETF is based on the Dorsey Wright Technical Leaders Index. It is the second largest this week in terms of AUM with $1,797,739,134.00 AUM. Its fund flows have been negative, with a 90-day fund flow of -$151,306,586.10, a 30-day fund flow of -$53,161,126.50, and a 1-week fund flow of -$4,338,736.00. With a net expense ratio of 0.63%, it is middle of the pack in terms of cost this week. 

Liked what you read? Sign up for our free Forbes AI Investor Newsletter here to get AI driven investing ideas weekly. For a limited time, subscribers can join an exclusive slack group to get these ideas before markets open.

Source link

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

21,935FansLike
3,912FollowersFollow
0SubscribersSubscribe

Latest Articles