iShares MSCI USA Momentum Factor ETF

MTUM

Market cap $21.2B

I downgrade iShares MSCI USA Momentum Factor ETF to hold as momentum underperforms and technicals deteriorate. MTUM's tech-heavy portfolio, with over 40% in US tech, faces headwinds amid sector underperformance and broadening market leadership. Elevated P/E above 25x and soft February–March seasonality reduce near-term appeal despite strong long-term earnings growth.

The Investment Committee debate the software volatility and how you should position your portfolio.

5 ETFs to buy in January: momentum, small caps, chips, defense and healthcare shine as markets rally early in 2026 -- IWM, MTUM, SMH, XAR and IHE.

AI strength, solid earnings, and upbeat 2026 forecasts fuel momentum plays. These five ETFs -- GDXJ, SLV, KBE, MDYV & IWM -- may still have room to run.

The Invesco S&P 500 Momentum ETF is rated a buy, while the iShares MSCI USA Momentum Factor ETF receives a hold rating. SPMO offers stronger upside potential, superior risk-adjusted returns, and lower costs due to its high-conviction, semi-annual rebalancing strategy. MTUM's higher turnover and quarterly rebalancing provide flexibility but result in lower performance and similar or higher volatility compared to SPMO.

After 10 years and under $100 million in assets, many ETFs still trading are on life support, before possibly being sent to the graveyard. However, last week assets in the previously obscure iShares Systematic Bond ETF (SYSB) rose approximately ten-fold.

MTUM is a popular $20B large-cap momentum ETF that's comprised of 125 companies with strong short- and long-term risk-adjusted price momentum characteristics. Its expense ratio is 0.15%. MTUM was the second-best-performing momentum fund over the last decade, but several newer funds have surpassed it over the last five. This article compares its fundamentals against four others. One surprising find was that MTUM's short-term momentum statistics don't stand out, a finding possibly caused by the Index's 30% quarterly turnover constraint.

The Invesco S&P 500 High Beta ETF (SPHB) is up a sizzling 27.3% year to date. SPHB targets the stocks in the S&P 500 with the highest sensitivity to market movements, or beta, over the past 12 months.

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.