SPDR® S&P 1500 Momentum Tilt ETF (MMTM)

Overview

The SPDRu00ae S&P 1500 Momentum Tilt ETF (TMOM) is designed to provide exposure to U.S. large, mid, and small-cap stocks that exhibit strong momentum characteristics. It aims to capture companies that have shown superior price performance over a defined lookback period. The ETF's strategy is to tilt its portfolio towards these momentum stocks within the S&P 1500 Composite Index.

Reputation and Reliability

State Street Global Advisors (SSGA) is a leading global asset manager with a long-standing reputation for providing a wide range of investment products, including ETFs. They are known for their robust infrastructure and commitment to investor needs.

Management Expertise

SSGA's ETF offerings are managed by experienced teams with deep expertise in index tracking, quantitative research, and portfolio management, ensuring adherence to the ETF's stated investment strategy.

Goal

The primary investment goal of the SPDRu00ae S&P 1500 Momentum Tilt ETF is to seek to track the performance of the S&P 1500 Momentum Tilt Index, before fees and expenses.

Investment Approach and Strategy

Strategy: The ETF aims to track a specific index, the S&P 1500 Momentum Tilt Index, which is designed to capture the performance of stocks with strong momentum characteristics within the S&P 1500 Composite Index.

Composition The ETF primarily holds U.S. large, mid, and small-capitalization stocks selected based on their momentum factor. This means companies with recent strong price appreciation are favored.

Market Share: Specific market share data for individual ETFs can fluctuate and is proprietary. However, as a broad-based momentum ETF within the large universe of US equity ETFs, TMOM occupies a niche focused on a specific factor strategy.

Total Net Assets (AUM): 589000000

Key Competitors

• iShares MSCI USA Momentum Factor ETF (MTUM)
• Invesco S&P 500 Momentum ETF (SPMO)
• WisdomTree U.S. Momentum Fund (WMO)

Competitive Landscape

The momentum ETF landscape is competitive, with several established players offering similar factor-based strategies. TMOM's advantage lies in its inclusion of small-cap stocks within the S&P 1500, potentially offering broader diversification within the momentum universe compared to ETFs solely focused on large-caps. However, competitors like MTUM often have higher AUM and liquidity, which can be a disadvantage for TMOM in terms of trading costs.

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Benchmark Comparison: The SPDRu00ae S&P 1500 Momentum Tilt ETF aims to track the S&P 1500 Momentum Tilt Index. Its performance is expected to closely mirror this index, after accounting for fees. Deviations typically arise from tracking error and the expense ratio.

Expense Ratio: 0.3

Average Trading Volume

The ETF has an average daily trading volume of approximately 250,000 shares, indicating moderate liquidity.

Bid-Ask Spread

The bid-ask spread for TMOM typically ranges between 0.05% and 0.10%, representing a reasonable cost for trading the ETF.

Market Environment Factors

The performance of TMOM is influenced by broader market sentiment, economic growth prospects, interest rate environments, and the specific performance of U.S. equity markets, particularly sectors and companies exhibiting upward price trends. Increased market volatility can impact momentum strategies.

Growth Trajectory

The ETF's growth trajectory is tied to the adoption of factor-based investing and the ongoing appeal of momentum strategies. Any adjustments to the underlying index methodology by S&P Dow Jones Indices could also influence its composition and performance.

Competitive Edge

The SPDRu00ae S&P 1500 Momentum Tilt ETF's primary competitive edge is its broad exposure to U.S. large, mid, and small-cap stocks within a momentum framework, offering a more comprehensive factor tilt than some competitors. Its alignment with the S&P 1500 Composite Index provides a well-defined and recognized universe of U.S. equities.

Volatility

The ETF's historical volatility is generally in line with broad U.S. equity market indices, with potential for higher volatility during periods of market rotation or when momentum signals reverse sharply.

Market Risk

The ETF is subject to market risk, as its performance is directly tied to the underlying equities in the S&P 1500. Specific risks include sector concentration, individual stock performance, and the inherent risks of small-cap stocks which can be more volatile.

Ideal Investor Profile

The ideal investor for the SPDRu00ae S&P 1500 Momentum Tilt ETF is one seeking to enhance returns through a systematic momentum strategy across a wide range of U.S. equity market capitalizations. Investors should have a moderate to high risk tolerance and understand the cyclical nature of momentum investing.

Market Risk

This ETF is generally suitable for long-term investors who believe in the efficacy of momentum as an investment factor and are looking to tilt their portfolios accordingly. It can also be used by active traders seeking to capitalize on short-to-medium term price trends.

The SPDRu00ae S&P 1500 Momentum Tilt ETF (TMOM) offers investors exposure to U.S. large, mid, and small-cap stocks exhibiting strong recent price performance. Its strategy aims to track the S&P 1500 Momentum Tilt Index, providing a diversified momentum approach. While facing competition, its broad market cap coverage is a distinguishing feature. Investors should be aware of the inherent volatility and cyclical nature of momentum strategies.

Data Sources:

• State Street Global Advisors (SSGA) Official Website
• S&P Dow Jones Indices
• Financial Data Providers (e.g., Bloomberg, Morningstar - hypothetical for data generation)

Disclaimers:

This information is for educational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Investment decisions should be made based on individual financial circumstances and consultation with a qualified financial advisor.