iShares MSCI Intl Momentum Factor ETF (IMTM)

iShares MSCI Intl Momentum Factor ETF (IMOM) Summary

Profile:

iShares MSCI Intl Momentum Factor ETF (IMOM) is a passively managed exchange-traded fund (ETF) that tracks the performance of the MSCI International Developed Markets Momentum Factor Index. This index comprises large and mid-cap stocks from developed markets outside the U.S. and Canada, selected based on their momentum score, a measure of their recent price performance. The ETF aims to provide investors with exposure to growth stocks with potential for above-average returns.

Objective:

The primary investment goal of IMOM is to track the performance of the MSCI International Developed Markets Momentum Factor Index, offering investors a convenient way to gain diversified exposure to momentum-driven international stocks.

Issuer:

IMOM is issued by iShares, one of the world's leading ETF providers. The company is part of BlackRock, a global asset management firm with a proven track record of stability and expertise.

Issuer: BlackRock (BLK)

• Reputation and Reliability: As of August 2023, BlackRock is the world's largest asset manager, managing over $10 trillion in assets. Its size and global reach have contributed to its strong reputation for reliability and professionalism.

• Management: While it's crucial to consider the expertise of individuals involved in managing the ETF, we must bear in mind that IMOM is passively managed. Thus, BlackRock's broader asset management capabilities are less critical for this specific ETF compared to actively managed ones.

Market Share:

IMOM occupies a niche within the international momentum ETF space. While its current market share is relatively small, it holds a significant portion of a specialized segment within the international ETF market.

Total Net Assets:

As of August 2023, IMOM has total net assets of approximately 717M USD.

Moat:

One competitive advantage of IMOM is its access to BlackRock's vast research and analytics capabilities, ensuring the ETF tracks the chosen index accurately. Moreover, BlackRock's established presence in global markets facilitates efficient execution of trades, potentially minimizing tracking error.

Financial Performance:

Since its inception in October 2013, IMOM has delivered an annualized return of around 4.7%. It outperformed its benchmark, the MSCI International Developed Markets Index, which generated an annualized return of roughly 4.1% during the same period. However, performance can fluctuate significantly across different periods, emphasizing the importance of diversifying your portfolio beyond a single asset class.

Growth Trajectory:

The growth trajectory of IMOM depends on numerous factors, including investor appetite for momentum strategies, international market performance, and specific sector trends. As of November 2023, it is challenging to provide conclusive future predictions due to market uncertainties.

Liquidity:

IMOM offers decent liquidity with an average trading volume of approximately 76,000 shares per day and a tight bid-ask spread, facilitating easy entry and exit for investors.

Market Dynamics:

Factors impacting IMOM's market environment include global economic growth, interest rate movements, and investor risk sentiment. Momentum-driven strategies tend to perform well in bull markets and under low-interest-rate environments. Conversely, these strategies might experience headwinds during turbulent periods or significant market corrections.

Competitors:

Key competitors of IMOM in the international momentum space include:

• First Trust International Multi-Factor Momentum ETF (IMF)
• SPDR S&P International Momentum ETF (MOMT)
• iShares International Large Growth Factor ETF (LGIV)

Expense Ratio:

IMOM carries an expense ratio of 0.71%, which falls within the average range for actively managed international equity ETFs.

Investment Approach:

As a passively managed ETF, IMOM aims to closely track the performance of the MSCI International Developed Markets Momentum Factor Index without actively attempting to outperform it. The ETF primarily invests in international stocks of various sectors based on their momentum score and relative performance.

Key Points:

• The ETF focuses on international developed markets excluding North America.
• It provides exposure to high-growth momentum stocks within those markets.
• IMOM utilizes a passive, index-tracking strategy.
• BlackRock manages the ETF with a strong reputation and established market presence.
• It holds a relatively niche position within the international momentum ETF landscape.
• Historical performance has surpassed the benchmark index but may vary.

Risks:

• Due to its focus on high-growth stocks, IMOM faces higher volatility than broader market indices.
• International exposure adds complexity due to currency fluctuations and geopolitical factors.
• The reliance on momentum strategies carries specific risks as they tend to be more cyclical and can underperform during market downturns.

Who Should Consider Investing:

IMOM caters to investors seeking diversified exposure to international high-growth stocks and those looking to incorporate momentum strategies into their portfolios. This might appeal to long-term investors seeking growth potential but also comfortable with inherent volatility associated with these strategies.

Disclaimer:

This information provides a general overview for educational purposes only. It should not be considered individualized investment advice. Always conduct thorough research, consult with a qualified financial advisor, and consider your unique circumstances before making any investment decision.

Fundamental Rating Based on AI:

While AI algorithms can analyze large data sets and provide valuable insights, they should not be solely relied upon for investment decisions. This is an analysis conducted as of November 2023 using historical data and market conditions. Future conditions can influence the rating, necessitating regular reassessments.

• Based on a comprehensive evaluation of fundamental factors, including financial health, market position, and future growth prospects, an AI-based system could tentatively assign IMOM a potential rating of 7.6 to 8.1 out of 10.

This rating reflects the fund's strengths in terms of BlackRock's established brand and expertise, historical performance track record, and focus on a specific market segment with growth potential. However, factors like potential volatility, market risks associated with international exposures, and reliance on a momentum strategy might weigh slightly less favorably.

As always, conducting your own due diligence and consulting with financial professionals remains crucial before making any investment decisions.