Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

4 Momentum ETFs That Still Offer Value

Published 01/08/2021, 01:40 AM
Updated 07/09/2023, 06:31 AM

U.S. stocks spurted to all-time highs on Jan 7 as Congress confirmed the election of Joe Biden as president and market watchers ignored the election-related unrest in Washington.

Democrats took control of Senate and House, which was initially thought to be a little negative for the overall markets. But in reality, the equity rally continues as the Democratic agenda of tax hike is less likely to be enacted at this moment.

Vaccine rollout, the second tranche of virus relief and Saudi’s decision to curb on its own oil production (which may push up oil prices) boosted market sentiments. Moreover, a democratic control in the Congress indicates chances of a fatter fiscal stimulus in the coming days. Meanwhile, the Fed continues to remain super-dovish. Chicago Fed President Charles Evans said, it’s “probably going to be 2024 before we see interest rates start to rise,” per an article.

Why Momentum ETFs With a Value Quotient (NASDAQ:QTNT) Should Be Bought?

Such an environment calls for a momentum rally in the short term. Momentum investing might be an intriguing idea for those seeking higher returns in a short spell. It looks to reflect profits from buying stocks that are sizzling on the market.

But looking at value is necessary now. Anew virus strain that has erupted in the United Kingdom and spread to some other parts of the world including the United States, and solid downside risks to the ongoing global economic recovery may derail the stock market momentum any time.

The Organisation for Economic Co-operation and Development said that in some countries, the initial impact of COVID-19 on labor markets were “ten times larger than that observed in the first months of the 2008 global financial crisis,” as quoted on CNBC.

Plus, with the risk-on sentiments taking an upper hand from late 2020, value stocks started prevailing over growth and momentum ones. Below we highlight a few momentum ETFs that have a P/E below 23.79 times of SPDR S&P 500 ETF Trust SPY.

ETFs in Focus

Cambria Value and Momentum ETF (VAMO) – P/E 9.50X

This ETF is active and does not track a benchmark. The fund charges 64 bps in fees. However, the ETF has a small asset base of $11.9 million.

Invesco S&P MidCap Value with Momentum ETF (XMVM) – P/E 12.83X

The underlying S&P 400 High Momentum Value Index is composed of securities with strong value characteristics selected from the Russell Midcap Index.The fund charges 64 bps in fees and has an asset base of $73.4 million.

Invesco S&P 500 Value with Momentum ETF (SPVM) – P/E 13.36X

The underlying S&P 500 High Momentum Value Index is composed of securities with strong value characteristics selected from the Russell Top 200 Index. The $36.3 million-fund charges 39 bps in fees.

SPDR Russell 1000 Momentum (NYSE:ONEO) Focus ETF (ONEO) – P/E 19.78X

The underlying Russell 1000 Momentum Focused Factor Index reflects the performance of a segment of large-capitalization U.S. equity securities demonstrating a combination of core factors with a focus factor, comprising high-momentum characteristics. The $249.7 million-fund charges 20 bps in fees.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

SPDR S&P 500 ETF (SPY): ETF Research Reports

SPDR Russell 1000 (NYSE:SPLG) Momentum Focus ETF (ONEO): ETF Research Reports

Cambria Value and Momentum ETF (VAMO): ETF Research Reports

Invesco S&P 500 Value with Momentum ETF (SPVM): ETF Research Reports

Invesco S&P MidCap Value with Momentum ETF (XMVM): ETF Research Reports

To read this article on Zacks.com click here.

Zacks Investment Research

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.