Having piled into cyclicals and ditched several big tech stocks at around the mid-point of this year, it seems iShares Edge MSCI USA Momentum Factor UCITS ETF (IUMF) is still playing catch-up with 2021’s market rotations.
We’re approaching the next rebalancing of the index the exchange traded fund (ETF) tracks and research provider CFRA believes further churn lies ahead. CFRA predicts that the fund’s “minuscule” stakes in energy and real estate should move higher on the back of strong recent performance, while Disney (US:DIS) and Berkshire Hathaway (US:BRK.A) could exit the portfolio.
This all makes sense when you consider the fund’s remit. It focuses on a sub-set of stocks in MSCI USA index that have been experiencing a recent “upward price trend”. Given that we’ve seen some big market rotations this year, turnover is to be expected.