ACWX - IMTM: International Momentum Works But Is Spotty
2024-07-29 15:04:07 ET
Summary
- iShares MSCI Intl Momentum Factor ETF offers exposure to momentum factors in international equity markets through factor-based strategies.
- IMTM tracks the MSCI World ex USA Momentum Index with 301 holdings, aiming to beat market cap-weighted indices with a low expense ratio.
- Sector composition favors Industrials, Financials, and Tech, but Japan's 42% allocation poses a risk despite strong sector diversification.
In the continual search for alpha in international equity markets, more and more investors are turning to factor-based strategies. The iShares MSCI Intl Momentum Factor ETF ( IMTM ) aims to provide access to the momentum factor through investment in internationally developed large- and mid-cap stocks with relatively higher price momentum than the market as a whole. The underlying strategy relies on the seminal academic work of Narasimhan Jegadeesh and Sheridan Titman showing that stocks with persistently strong past performance tend to exhibit persistently strong future performance - at least in the short to intermediate term....
IMTM: International Momentum Works But Is Spotty