BlackRock’s $9bn momentum exchange-traded fund is expected to ramp up its bets on tech giants as the ETF chases Wall Street’s trendiest stocks in its semiannual makeover

After an equity rally fueled by the largest technology companies, the firm’s iShares MSCI USA Momentum Factor ETF, ticker: MTUM, which tracks the MSCI USA Momentum Index, will have to up its allocation in information technology to 21% from 3% while shedding recession-resistant sectors like health care and energy

The shuffle will make MTUM less defensive overall just as Wall Street is trying to gauge the timing and potential depth of the next economic downturn

The fund is also likely to trade at a valuation premium as it pursues those higher growth tech stocks