Momentum rules the market this summer, but let the buyer beware

  • 📰 CNBC
  • ⏱ Reading Time:
  • 36 sec. here
  • 11 min. at publisher
  • 📊 Quality Score:
  • News: 49%
  • Publisher: 72%

Breaking News: Investing News

Stock Markets,Markets,Breaking News: Markets

Sticking with those Big Tech winners has been the ticket this year, but coasting on momentum can be a risky play.

The summer of market momentum continues. For passive investors, it's the best of times: They're seeing new highs on the two major cap-weighted indexes — S & P 500 and the Nasdaq Composite — with low volatility. It doesn't get much better than that. For active investors, things haven't been so great. These active investors want high volatility so they can quickly profit from their wagers.

, the top 10 holdings account for about 67% of the fund. Invesco S & P 500 Momentum ETF Nvidia 13% Apple 9.9% Microsoft 8.7% Meta Platforms 8.4% Amazon 7.6% Eli Lilly and Co. 5.3% Broadcom 5.6% Berkshire Hathaway 3.3% JPMorgan 2.3% Costco 2.2% Source: Invesco So far, it's been a big winner because the top holdings have been consistent winners all year — and even before. It's also attracted big inflows: There were 4.

is reconstituted and rebalanced twice a year, in March and September, while MTUM is rebalanced in May and November. Rebalancing only twice a year can be a very long time in rapidly changing markets. It means the fund may be very slow catching up with changing trends.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Why Big Tech Is Pumping Big Money Into Companies Pulling CO2 From the AirA wave of funding announcements from Microsoft, Salesforce and other tech giants pours millions into new projects to pull CO2 directly from the air.
Source: Newsweek - 🏆 468. / 52 Read more »