In this article, we discuss 5 best momentum ETFs to buy. If you want to read our discussion on momentum investing and the stock market outlook, head directly to 10 Best Momentum ETFs To Buy.
5. JPMorgan U.S. Momentum Factor ETF (NYSE:JMOM)
5-Year Share Price Performance as of March 26: 91.49%
JPMorgan U.S. Momentum Factor ETF (NYSE:JMOM) aims to offer exposure to domestic equities, focusing on firms with robust risk-adjusted momentum to potentially improve returns. It tracks the JP Morgan US Momentum Factor Index, employing a rules-based method that aligns with Russell 1000 sector weights and selects stocks with stronger risk-adjusted momentum. As of March 25, 2024, JPMorgan U.S. Momentum Factor ETF (NYSE:JMOM)’s assets amounted to $864.15 million, along with a portfolio of 285 stocks and an expense ratio of 0.12%. It is one of the best momentum ETFs to invest in.
NVIDIA Corporation (NASDAQ:NVDA) is one of the top holdings of JPMorgan U.S. Momentum Factor ETF (NYSE:JMOM). NVIDIA Corporation (NASDAQ:NVDA) recently unveiled its Blackwell GPU platform and made significant announcements at its annual GTC developer conference. UBS analysts predict strong demand from sovereign nations, foreseeing a potential revenue increase to $150 billion in 2025, up 30% year-over-year. Despite concerns about supply and meeting Wall Street estimates, UBS raised its price target on Nvidia to $1,100 from $800 on March 22, seeing any near-term weakness as a buying opportunity due to promising future prospects.
According to Insider Monkey’s fourth quarter database, 173 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA), compared to 180 funds in the last quarter.
Orbis Global Equity Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its fourth quarter 2023 investor letter:
“Never before has following the crowd made so much money. Nor, in our estimation, so little sense. But just look at the opportunities the crowd has left for those of us willing to take a different view. We could wax lyrical about the glaring difference in value between Korean banks priced at 4 times earnings, versus Apple at 28 times, despite diverging fundamentals—Apple is increasingly at risk of bans in China, while Korean banks could double their dividends.
Or how the thick margin of safety at Intel, backed by listed stakes and real saleable assets, compares to the slim margin for error at NVIDIA Corporation (NASDAQ:NVDA), trading at 13 times next year’s projected revenue. That revenue that could be competed away over time, while Intel’s semiconductor “fabs” in the US are increasingly valuable as the east and the west drift further apart.”
