NVIDIA

JPMorgan Chase & Co

Broadcom

Walmart

Eli Lilly

Costco

General Electric

Philip Morris

Coca-Cola

Raytheon Technologies

iShares MSCI USA Momentum Factor ETF

MTUM tracks an index of large- and mid-cap US equities, selected and weighted based on price appreciation over 6- and 12-month periods and low volatility over the past 3 years.

I maintain a hold rating on MTUM due to its recent performance and ahead of its rebalance in November, despite its current all-time high. iShares MSCI USA Momentum Factor ETF's diverse sector mix includes overweight positions in Financials and Consumer Staples, with potential shifts in mega-cap tech. The ETF's technical chart shows strong performance, but weaker RSI momentum and volatility around key support levels raise mild concerns.

MTUM: Clues Into The November Rebalance With Shares Near All-Time Highs

iShares MSCI USA Momentum Factor ETF (MTUM) focuses on mid- and large-cap U.S. stocks with price momentum, boasting a 0.15% expense ratio and $10.16 billion AUM. MTUM has performed well, with a 19.31% annual return, although it has lagged the S&P 500's 21.58% over the same period. The fund's diversified portfolio includes tech, financial services, consumer defensive, and industrials.

MTUM: U.S. Momentum Stocks Are Likely Undervalued

iShares MSCI USA Quality Factor ETF

Vanguard Small Cap Value ETF

While tracking the market or looking for stocks with disruptive business models can be legitimate ways to invest, another strategy takes advantage of research by individuals often regarded as pioneers in finance. Eugene Fama and Kenneth French are two professors who fundamentally shaped our modern conception of finance.

Leverage Proven Stock Factors With These Top 3 Smart Beta ETFs

JPMorgan US Momentum Factor ETF

Invesco S&P 500 Equal Weight ETF

Invesco S&P 500 Quality ETF

Invesco S&P 500 Momentum ETF

Finally, someone believes the trend in the S&P 500 is their friend. In mid-August, the Invesco S&P 500 Momentum ETF (SPMO) had its 2024 net inflows nearly double.

This Momentum ETF Has New Friends

Invesco DWA Momentum ETF

Invesco S&P 500 High Beta ETF

Invesco S&P MidCap Momentum ETF

Invesco S&P SmallCap Value with Momentum ETF

On Monday, U.S. stocks closed at session highs, continuing their rally from last week's strong performance.

Time for Momentum ETFs?

Stocks surged higher on Thursday as retail sales showed gains and Fed cues of interest rate cuts.

Momentum ETFs to Play as Wall Street Rallies?

The iShares MSCI USA Momentum Factor ETF has had a strong year, with shares +23.5% YTD and +30.1% over the past year. The ETF tracks an index of leading American momentum stocks, with top holdings, including Nvidia, Broadcom, and Eli Lilly. Despite its recent performance, MTUM's long-term track record does not significantly outperform the S&P 500, and it severely lags the performance of the Nasdaq-100.

MTUM: There Are Better MOMO Strategies Than This Momentum ETF

Investors seeking momentum may have iShares MSCI USA Momentum Factor ETF MTUM) on radar now. The fund recently hit a new 52-week high.

Momentum ETF (MTUM) Hits New 52-Week High

The iShares MSCI USA Momentum Factor ETF is a momentum ETF that spreads risk across multiple stocks and sectors. MTUM tracks the performance of high momentum companies and uses a set of rules to determine momentum values. While MTUM has performed well in the last six months, it has underperformed compared to other ETFs and has higher volatility than the SPY.

MTUM: Outperformance Under Rare Conditions

The iShares MSCI USA Momentum Factor ETF's robust year-over-year journey has reached an inflection point. Momentum investing can be effective in the long term but breaks down in the short term during economic regime changes. We believe an economic shift is occurring. The outlook for the MTUM ETF is uncertain due to potential market-based changes, and contrarian investing may outperform momentum investing in 2024.

MTUM ETF: To Momentum Or To Contrarian?

Qraft AI-Enhanced US Large Cap Momentum ETF

SPDR S&P 1500 Momentum Tilt ETF

The rally has been broad-based this year, with momentum investing emerging as a big winner.

Momentum ETFs Hit New 52-Week Highs

CastleArk Large Growth ETF

Harbor Long-Term Growers ETF

All aboard the momentum train! The U.S. stock market, led by top techs, continued its winning ways from 2023 at the start of this year.

The Megacap Song Remains The Same For Stocks And ETFs

VanEck Vectors Gold Miners ETF

VanEck Junior Gold Miners ETF

iShares North American Tech ETF

American Beacon GLG Natural Resources ETF

Nuveen Growth Opportunities ETF

iShares Mortgage Real Estate ETF

Amplify Junior Silver Miners ETF

VanEck Vectors Semiconductor ETF

T Rowe Price Blue Chip Growth ETF

Direxion Daily MSCI Emerging Markets ex China Bull 2X Shares

PIMCO 25+ Year Zero Coupon US Treasury Index ETF

Hello! This is MarketWatch reporter Isabel Wang bringing you this week's ETF Wrap. After a decade of seemingly never-ending fee-cutting wars, ETF issuers raised their fees in 2023 as the landscape evolved beyond cheap index-tracking funds.

ETF issuers defied investor expectations by raising fees in 2023. They may have to keep doing it.

Franklin Focused Growth ETF

Gabelli Growth Innovators ETF 

Invesco Dynamic Large Cap Growth ETF

Many ETFs have been outperforming the S&P 500 Index, returning doubled the index. We have highlighted some of them.

5 Large-Cap ETFs That Doubled the S&P 500 Gains

Seeking Alpha Quant rates MTUM as a buy with a high rating.

MTUM: Buy Momentum (Technical Analysis)

Tesla isn't the only stock clobbering Cathie Wood's ARK Innovation ETF this year. Another big loser is pushing the ETF near the bottom.

Cathie Wood's Fund Suffers $473 Million Hit From 2 Ugly Stocks

High-beta and high-momentum products are expected to outperform during Santa Claus rally and are intriguing choices for a short spell.

Bet on High Beta & Momentum ETFs to Cash In On Santa Rally

iShares MSCI USA Momentum Factor ETF has not demonstrated much momentum despite its name. The MTUM exchange-traded fund holds 123 individual stocks, with top holdings including Nvidia, Meta Platforms, Microsoft, Eli Lilly, and Exxon Mobil. MTUM's rebalancing frequency and factor decay have faced criticism, potentially impacting its ability to deliver on its investment premise.

MTUM: Just Doesn't Live Up To The Momentum Hype

Avantis U.S. Small Cap Value ETF

YieldMax COIN Option Income Strategy ETF

Pacer US Cash Cows 100 ETF

First Trust Dorsey Wright Focus 5 ETF

SPDR S&P Global Natural Resources ETF

FlexShares Morningstar Global Upstream Natural Resources Index Fund

iShares Russell 1000 Value ETF

iShares Russell 1000 Growth ETF

JPMorgan Equity Premium Income ETF

Amplify Natural Resources Dividend Income ETF

YieldMax NVDA Option Income Strategy ETF

Invesco S&P 500 Pure Growth ETF

Invesco S&P 500 Pure Value ETF

SPDR Portfolio S&P 500 Growth ETF

SPDR Portfolio S&P 500 Value ETF

First Trust NASDAQ Technology Dividend Index Fund

Yieldmax Tsla Option Income Etf

VictoryShares Free Cash Flow ETF

iShares MSCI USA Value Factor ETF

Vanguard Value ETF

Vanguard Growth ETF

Consumer Staples Select Sector SPDR Fund

Good Morning, VettaFi Voices! Growth has blown value out of the water in 2023. It's not even close. The Vanguard Value ETF (VTV) is up less than 1% year to date. Meanwhile, the Vanguard Growth ETF (VUG), the growth fund, is up 32%. That's a big difference, and clearly we're in a growth regime.

VettaFi Voices On: The Nature of Value

iShares S&P Mid-Cap 400 Value ETF

MTUM and IJJ saw massive trading volumes in the last session.

Momentum and Mid-Cap: 2 ETFs to Watch for Outsized Volume

The Momentum factor has underperformed in 2023, with investors favoring large-cap growth shares through May. Cyclical sectors have outperformed since June 1, with a recent jump in Treasury yields impacting the performance of the Information Technology sector. The iShares MSCI USA Momentum Factor ETF has endured relatively poor returns and is currently allocated to large-cap growth stocks.

MTUM: Weak Relative Returns Persist Amid Mega-Caps' Underperformance

Commonly held beliefs suggest that once an investment strategy starts approaching the level of being an assured path to success, it is bound to falter. The reasoning behind this is that if the secret to amassing substantial wealth becomes widespread knowledge, the efficacy of the strategy could diminish.

The Value of Momentum

iShares Core Dividend Growth ETF

iShares S&P 500 Value ETF

NightShares 500 1x/1.5x ETF

SPDR S&P 500 ETF Trust

iShares Edge MSCI Min Vol USA ETF

The night effect is handily outpacing many traditional investment factors in 2023. The night effect is a persistent pattern whereby most large and small cap returns come in during the overnight session.

How the Night Effect Compares to Traditional Investment Factors in 2023

The iShares MSCI USA Momentum Factor ETF is not recommended due to factor decay, which refers to the length of time it takes for a stock to lose its properties. Momentum has the fastest decay, with an optimal rebalance for the momentum factor at 3 months, while MTUM's rebalance frequency is 6 months. Due to factor decay, MTUM should rebalance every 3 months to maintain its position in the momentum premium; it is only recommended for the first few months following rebalance.

MTUM: Lacks Momentum Much Of The Time

The iShares MSCI USA Momentum Factor ETF has completed its semi-annual rebalancing process, shifting roughly 18% to the Information Technology sector. The ETF's performance now depends on the continued success of the "Magnificent Seven" stocks, including NVIDIA, Meta Platforms, and Microsoft. Despite a bearish descending triangle pattern, MTUM tends to perform well following the May rebalance, and I have a hold rating today.

News for iShares MSCI USA Momentum Factor ETF ETF (MTUM)