iShares MSCI Intl Momentum Factor ETF (IMTM)

Overview

The iShares MSCI Intl Momentum Factor ETF (IMTM) seeks to track the performance of the MSCI EAFE Momentum Index. It focuses on large and mid-cap equities in developed markets excluding the US and Canada, specifically targeting companies demonstrating strong upward price momentum. The strategy aims to capture the performance premium associated with stocks that have recently exhibited strong price appreciation.

Reputation and Reliability

BlackRock, the issuer of iShares ETFs, is a global leader in investment management and is highly reputable for its extensive range of financial products and robust operational infrastructure. iShares ETFs are generally considered reliable and well-managed.

Management Expertise

BlackRock's ETF division benefits from the vast resources and expertise of the broader BlackRock organization, which includes experienced portfolio managers and quantitative analysts specializing in index tracking and factor-based investing.

Goal

The primary investment goal of IMTM is to provide investors with exposure to international developed market equities that exhibit strong momentum characteristics, aiming to deliver returns that reflect the performance of the MSCI EAFE Momentum Index.

Investment Approach and Strategy

Strategy: The ETF aims to track a specific index, the MSCI EAFE Momentum Index, which selects securities based on their momentum factor. This is a rules-based, passive investment strategy.

Composition The ETF primarily holds equities (stocks) of companies located in developed markets outside of the US and Canada. The selection is based on a quantitative model that identifies companies with strong historical price performance relative to their peers.

Market Share: Information on specific market share for niche factor ETFs like IMTM is not readily available in a standardized format. Its market share is part of the broader international equity ETF category.

Total Net Assets (AUM): 1355580000

Key Competitors

• iShares MSCI EAFE Value Factor ETF (EFV)
• iShares MSCI Intl Quality Factor ETF (IQDF)
• iShares MSCI Intl Size Factor ETF (ISZF)

Competitive Landscape

The competitive landscape for international factor ETFs includes numerous products from various issuers, each offering exposure to different factors or regions. IMTM's advantage lies in its focus on the MSCI EAFE region and its specific momentum strategy, which can offer diversification benefits. However, it faces competition from other broad international equity ETFs and other international factor ETFs that might cover different factor exposures or broader geographic regions. Its disadvantage might be its narrower focus compared to broader international index funds.

Historical Performance: [object Object]

Benchmark Comparison: IMTM aims to track the MSCI EAFE Momentum Index. Its performance is expected to closely mirror that of its benchmark index, with minor deviations due to tracking error and expenses.

Expense Ratio: 0.25

Average Trading Volume

The ETF has a consistent average daily trading volume, indicating good liquidity for most investors.

Bid-Ask Spread

The bid-ask spread for IMTM is typically tight, reflecting efficient pricing and low transaction costs for active traders.

Market Environment Factors

IMTM is influenced by global economic conditions, currency fluctuations (as it holds non-USD denominated assets), investor sentiment towards international equities, and specific sector performance within developed ex-US/Canada markets. Interest rate changes in major economies can also impact its constituents.

Growth Trajectory

The growth trajectory of IMTM is tied to the performance of the MSCI EAFE Momentum Index. Its strategy is designed to capture periods of strong upward momentum, potentially leading to growth during favorable market phases. Changes in index methodology by MSCI can affect holdings and thus strategy.

Competitive Edge

IMTM's competitive edge stems from its focused exposure to international developed markets specifically through a momentum lens, which can offer diversification from other factors or geographies. Its adherence to the well-established MSCI EAFE Momentum Index provides a transparent and systematic approach. As part of the iShares suite, it benefits from BlackRock's brand recognition and extensive distribution network, appealing to a broad base of institutional and retail investors seeking targeted factor exposure.

Volatility

IMTM's historical volatility is moderate to high, consistent with equity market investments, particularly those focused on a momentum strategy which can be more susceptible to sharp reversals.

Market Risk

The ETF is exposed to market risk inherent in developed international equity markets (e.g., political instability, economic downturns), currency risk due to its non-USD holdings, and specific risks associated with the momentum strategy, such as its potential underperformance during periods when momentum trends reverse or fade.

Ideal Investor Profile

The ideal investor for IMTM is one seeking to diversify their international equity holdings with a focus on companies exhibiting strong recent price performance. Investors should have a moderate to high risk tolerance and a long-term investment horizon.

Market Risk

IMTM is best suited for investors looking to supplement a core international equity allocation with a factor-based approach. It can appeal to both passive index followers who want to capture a specific factor and active traders who aim to capitalize on momentum trends, provided they understand the associated risks.

The iShares MSCI Intl Momentum Factor ETF (IMTM) provides targeted exposure to developed international equities demonstrating strong price momentum. Its objective is to track the MSCI EAFE Momentum Index, offering a systematic approach to capturing this factor. With a reputable issuer and a clear strategy, it appeals to investors seeking diversification and factor-based returns in international markets. However, like all equity ETFs, it carries market and strategy-specific risks, including potential volatility and exposure to currency fluctuations.

Data Sources:

• BlackRock Official Website (iShares)
• MSCI Index Data
• Financial Data Aggregators (e.g., Morningstar, ETF.com)

Disclaimers:

This information is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions. Data accuracy and completeness are subject to the availability and reliability of the provided sources.