iShares MSCI USA Momentum Factor ETF

MTUM

Market cap $19.3B

Value ETFs witness a surge as tech falters, with SPVU, RPV, RZV, RFV and GVLU gaining on rate cut bets and rotation into defensive sectors.

MTUM hits a new 52-week high, up 42% from its low, as bullish market trends lift momentum-focused strategies.

VettaFi's director of research Todd Rosenbluth and Astoria portfolio advisors COO & head of ETFs Bruce Lavine sit down with CNBC's Leslie Picker to discuss new strategies for investors looking to diversify while still trying to stay tax efficient, as well as the growing popularity of momentum ETFs.

VettaFi's Director of Research Todd Rosenbluth and Astoria Portfolio Advisors COO & Head of ETFs Bruce Lavine sit down with CNBC's Leslie Picker to discuss looking beyond cap-weighted ETF giants, and the growing popularity of momentum funds.

The iShares MSCI USA Momentum Factor ETF offers diversified exposure to US large- and mid-cap stocks with strong risk-adjusted momentum, but carries higher volatility. The ETF's high P/E ratio (33x) signals elevated valuations, especially in tech and financials, increasing the risk of sharp corrections if growth expectations falter. Recent performance has lagged peers using pure momentum metrics, partly due to risk-adjusted selection and portfolio turnover limits, despite similar expense ratios.

Momentum investing is well-positioned for strong returns as the S&P 500 uptrend continues, supported by earnings growth and expected rate cuts. Vanguard U.S. Momentum Factor ETF is too diversified, limiting its upside and underperforming both the S&P 500 and peer momentum ETFs. SPMO and MTUM are better momentum ETF options, with higher concentration in mega-cap growth stocks and superior recent performance and risk profiles.

In the one-year period ended June 2025, the S&P 500 Momentum Index rose 30%, essentially double the gain of the S&P 500. Momentum was the best-performing factor of the widely tracked benchmark, ahead of growth, free cash flow, and even high beta slices.

Markets may be fretting over Federal Reserve policy and economic soft landings, but a handful of momentum ETFs have quietly been stealing the show. Across the array of factor funds, momentum has performed best this year.

Jay Jacobs, BlackRock head of U.S. equity ETFs, joins CNBC's Dom Chu on ‘ETF Edge' to debate the momentum trade and if it is insulated from the tariff and economic uncertainty. Nate Geraci, ETF Store president, also joins the convo.

Court ruling halts Trump-era tariffs, boosting stocks and spotlighting high-beta, momentum ETFs like SPHB, MTUM, XMMO, SPMO and XSMO.