For investors seeking momentum, NYLI Merger Arbitrage ETF MNA is probably on the radar. The fund just hit a 52-week high and is up 9.82% from its 52-week low price of $30.36/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
MNA in Focus
The underlying NYLI Merger Arbitrage Index seeks to achieve capital appreciation by investing in global companies for which there has been a public announcement of a takeover by an acquirer. The fund has 46.5% exposure to the United States, followed by exposure of 10.1% in Canada. The product charges 77 bps in annual fees (See: All Hedge Fund ETFs).
Why the Move?
The merger & acquisition (M&A) corner of the broad stock market has been an area to watch lately, given expectations of a more business-friendly incoming Trump administration fostering an increase in transactions and boosting business confidence. Strong momentum gained in 2024 is estimated to continue in 2025.
Easing financial market conditions driven by the Fed’s interest rate cuts in 2024 are also expected to boost activity in the M&A market.
More Gains Ahead?
Currently, MNA might continue its strong performance in the near term, with a positive weighted alpha of 6.57 (as per Barchart.com), which gives cues of a further rally.
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