For investors seeking momentum, iShares MSCI USA Momentum Factor ETF MTUM is probably on the radar. The fund just hit a 52-week high and is up about 37% from its 52-week low price of $168.49/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

MTUM in Focus

iShares MSCI USA Momentum Factor ETF offers exposure to large and mid-cap U.S. stocks exhibiting relatively higher price momentum. It charges 15 bps in annual fees (see: all the Large-Cap Growth ETFs here).

Why the Move?

The momentum corner of the broad investing world has been an area to watch lately, given the bullish momentum in the stock market. Momentum investing is an investment strategy that aims to capitalize on the continuation of an existing market trend. It involves the purchase of assets that have been showing an upward trend in price or the selling of assets that have been showing a downward trend, with the expectation that the trend will continue. As such, investors can potentially achieve high returns by buying stocks in an uptrend and selling them when they show signs of reversal.

More Gains Ahead?

MTUM might remain strong going ahead, given a weighted alpha of 23.45 and a higher 20-day volatility of 15.79%. There is definitely some promise for investors who want to ride on this surging ETF.

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iShares MSCI USA Momentum Factor ETF (MTUM): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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