Investors looking for ETFs with rising momentum should begin to consider the IQ ARB Merger Arbitrage ETF (NYSE:MNA). This product just hit a new 52-week high of $29.65 today, and is now up 10.18% from its 52-week low price of $26.91 per share.
Will this ETF continue its string of recent wins? Let’s take a closer look at the fund, its recent gains, the category it resides in, and its ratings and outlook to get a sense of whether its momentum is sustainable or not.
Inside MNA’s Rise
As mentioned earlier, MNA has now gained 10.18% from its 52-week low, which was hit back on June 24, 2016. The fund has now returned 0.65% over the past month, 2.64% over the past three months, and 4.09% in the past six months. Those returns compare to the benchmark S&P 500 index’s 1.80%, 8.47%, and 6.41% returns in the same periods, respectively.
A Look Under The Hood
IQ ARB Merger Arbitrage ETF is a Equity-focused product issued by IndexIQ. Its expense ratio of 0.75% makes it the #4 cheapest ETF among 19 total funds in the Alternative ETFs category.
MNA currently boasts $139.18M in assets under management (AUM), placing it #5 of 19 ETFs in its category, and #782 of 1922 total ETFs in the U.S. exchange traded universe.
The investment objective of the IndexIQ ARB Merger Arbitrage ETF seeks investment results that correspond generally to the price and yield performance of its underlying index, the IQ Merger Arbitrage Index. This unique fund concentrates its holdings on companies that have agreed to be acquired, and attempts to scrape additional gains from this process.
Earlier this month, we reported on some big changes to the fund, and they appear to be working, considering the new highs hit today.
MNA SMART Grade: More Gains Ahead?
MNA currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #2 of 20 funds in the Alternative ETFs category.
A SMART Grade of A suggests very strong future price growth potential, so it’s reasonable to expect even more gains ahead.