Momentum ETF Tilts Toward Defensive Sectors Over Tech

The video discusses the MTOM ETF, a popular momentum ETF with $10 billion in assets. It typically rebalances in May and November, but can also rebalance conditionally in response to market volatility, as seen in January. This rebalancing led to significant changes in the ETF's stock composition, with tech stocks like Amazon and Apple being replaced by consumer staples like Johnson & Johnson. The fund's tech exposure has decreased significantly, and it now includes more healthcare and utility stocks, making it resemble a low volatility fund.

What is the regular rebalancing schedule for the MTOM ETF?

• April and October

• May and November

• March and September

• January and July

Which of the following stocks was removed from the MTOM ETF during the recent rebalancing?

• Walmart

• Amazon

• Coca-Cola

• Johnson & Johnson

What type of stocks were added to the MTOM ETF in the recent rebalancing?

• Technology stocks

• Consumer staples

• Financial stocks

• Energy stocks

How has the tech exposure in the MTOM ETF changed after the rebalancing?

• Increased to 50%

• Reduced to 16%

• Remained at 41%

• Increased to 30%

What is the new characteristic of the MTOM ETF after the recent changes?

• High growth fund

• Low volatility fund

• Aggressive growth fund

• High risk fund