A $15.3 Billion Quant ETF Loses Out in Badly-Timed Rebalance
- MTUM ditched growth stocks, moved into value at cyclical peak
- Fund returns about 10 percentage points less than could have
This article is for subscribers only.
A comeback by megacap growth stocks and the stalling of the value trade arrived at exactly the wrong moment for one $15.3 billion exchange-traded fund.
BlackRock Inc.’s iShares MSCI USA Momentum Factor ETF (ticker MTUM) went all-in on the reflation trade back in May. It has barely edged higher since then as the cheap, cyclically sensitive shares it piled into struggled.