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.

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

What implications do the changes in the ETF have for investors looking for momentum investments?