Investors are cautious of Momentum ETFs

Article Excerpt

Momentum ETFs invest in a range of asset classes, including stocks, fixed income, commodities, and currencies. There are now about 48 momentum ETFs trading on U.S. markets. Together, they claim $15.7 billion in assets under management. Still, that makes up just a portion of the almost $4 trillion invested in U.S. ETFs. The biggest Momentum ETF is the iShares Edge MSCI U.S.A. Momentum Factor ETF, with $9.7 billion in assets. Apart from this fund, there are just three Momentum ETFs with assets of more than $500 million. Still, the assets all four equal just a fraction of the $278 billion held by the U.S.’s largest equity ETF—the SPDR S&P 500 ETF. Momentum ETFs also have a growing presence in Canada, with currently about $1.0 billion in assets under management. This again makes up only a small portion of the $181 billion now invested in Canadian-listed funds. The largest Canadian Momentum ETF is the CI First Asset Morningstar Momentum ETF, with $912 million of…