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MTUM iShares MSCI USA Momentum Factor ETF

Category: Large Cap Growth Equities

Inception: 2013-04-16 Issuer: BlackRock, Inc.
Net Assets
$13.8B
Expense Ratio
0.15 %
# of Holdings
126
Average Daily Volume
1.32M

Fund Overview

The iShares MSCI USA Momentum Factor ETF (MTUM) is designed to track the investment results of an index composed of U.S. large- and mid-capitalization stocks exhibiting relatively higher price momentum. Momentum investing is based on the premise that stocks that have performed well in the recent past will continue to perform well in the near future. The fund provides exposure to companies that have demonstrated strong upward price trends, making it a popular choice for investors seeking to capitalize on market trends. MTUM is part of iShares' suite of factor-based ETFs, which aim to provide targeted exposure to specific investment styles or market anomalies.
Asset Class
Equity
Industry
N/A
Annual Dividend Rate
Smart Beta
Yes
Leveraged / Inverse
N/A / No
Dividend Quality - Yield
 - 1.17 %
Currency Hedged
No
Portfolio Turnover
95 %
Dividend Date

Why Invest in the MTUM ETF?

Potential Benefits

  • Exposure to high-momentum stocks, which historically have outperformed during market uptrends.
  • Diversification across sectors, as momentum can be found in various industries.
  • Lower expense ratio compared to many actively managed momentum strategies.
  • Liquidity and transparency, typical of iShares ETFs.
  • Potential for enhanced returns in trending markets.

Potential Risks

  • Momentum strategies can underperform during market reversals or periods of high volatility.
  • Higher turnover may lead to increased transaction costs and tax implications.
  • Concentration risk if momentum is concentrated in a few sectors or stocks.
  • Performance may lag in sideways or choppy markets where trends are less clear.

Performance

1 Week 1 Month 1 Year 3 Years 5 Years YTD 2025 2024 Since Inception
+2.37% +5.32% +28.49% +136.43% +93.81% +28.89% +21.53% +35.37% +646.11%

Performance


Monthly Returns (%)

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2026 +2.2% -1.1% -5.0% +18.3% +11.2% +8.7% -12.6% +0.3% +5.9% +2.2% - -
2025 +5.9% -0.3% -7.2% +3.7% +10.5% +4.0% +0.4% +1.0% +5.5% -0.9% -1.6% +0.3%
2024 +5.6% +10.0% +2.9% -5.5% +5.4% +4.5% -2.0% +3.4% +3.0% -0.2% +7.0% -4.1%
2023 -0.5% -4.0% +0.4% +2.4% -4.8% +6.9% +1.7% +0.3% -4.8% -1.6% +9.2% +4.8%
2022 -9.0% -2.7% +4.8% -12.7% -0.6% -6.4% +5.2% -2.0% -5.9% +12.5% +3.5% -3.9%
2021 +1.6% -0.6% -1.2% +7.1% -1.1% +1.9% +0.9% +4.1% -3.5% +8.6% -3.9% -0.5%
2020 +3.7% -7.2% -11.5% +11.7% +5.9% +4.3% +7.0% +9.5% -3.8% -4.2% +10.6% +3.4%
2019 +6.5% +3.4% +2.1% +2.3% -2.2% +6.1% +1.8% +0.3% -1.1% +0.6% +3.3% +1.7%
2018 +8.2% -1.5% -3.4% +0.5% +3.4% -0.1% +1.8% +5.9% +0.9% -9.9% +1.4% -7.5%
2017 +3.2% +3.8% +2.1% +2.6% +4.8% +0.3% +3.5% +1.5% +2.8% +5.0% +2.8% +0.1%
< -5% -5% to -2% -2% to 0% 0% 0% to +2% +2% to +5% > +5%

Top Holdings (by weight)

Symbol Company Name Weight
WMT WALMART INC 5.1 %
JPM JPMORGAN CHASE & CO 5.0 %
AVGO BROADCOM INC 4.4 %
META META PLATFORMS INC CLASS A 4.1 %
V VISA INC CLASS A 4.0 %
NVDA NVIDIA CORP 4.0 %
TSLA TESLA INC 3.6 %
COST COSTCO WHOLESALE CORP 3.4 %
NFLX NETFLIX INC 3.1 %
PLTR n/a 2.6 %
Top 10 holdings shown, out of 126 total holdings.

Related ETFs: MTUM vs Peers

ETF Full Name Expense Ratio Net Assets Holdings Asset Class
DWAS Invesco Dorsey Wright SmallCap Momentum ETF 0.60 % $658.1M 202 Equity
PDP Invesco Dorsey Wright Momentum ETF 0.62 % $1.5B 102 Equity
QMOM Alpha Architect U.S. Quantitative Momentum ETF 0.29 % $297.3M 52 Equity
SPMO Invesco S&P 500® Momentum ETF 0.13 % $5.4B 100 Equity
VFMO Vanguard U.S. Momentum Factor ETF 0.13 % $944.8M 644 Equity
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.

Investment Strategy

MTUM tracks the MSCI USA Momentum Index, which selects large- and mid-cap U.S. stocks based on their price momentum. The index methodology evaluates stocks on their recent performance relative to peers, with a focus on maintaining a balanced sector exposure to avoid overconcentration. The fund is rebalanced semi-annually to ensure it continues to reflect the highest momentum stocks. Holdings are weighted based on a combination of momentum scores and market capitalization, providing a blend of factor purity and diversification.

Frequently Asked Questions

What is momentum investing?

Momentum investing is a strategy that focuses on buying stocks that have shown strong recent performance, with the expectation that these trends will continue in the near term.

How often is MTUM rebalanced?

MTUM is rebalanced semi-annually to ensure it continues to hold stocks with the highest momentum scores.

Does MTUM include mid-cap stocks?

Yes, MTUM includes both large- and mid-cap U.S. stocks, providing broader exposure than funds that focus solely on large caps.

What sectors does MTUM typically overweight?

Sector weightings vary based on momentum trends, but historically, MTUM has had significant exposure to technology, consumer discretionary, and healthcare sectors during strong momentum periods.

Industry Overview

The iShares MSCI USA Momentum Factor ETF (MTUM) is part of the growing category of factor-based ETFs, which aim to capture specific investment styles or market anomalies. Momentum investing, in particular, focuses on stocks that have shown strong recent performance, with the expectation that these trends will continue. This strategy can be particularly effective in bull markets but may struggle during periods of market turbulence. MTUM provides investors with a cost-effective and liquid way to gain exposure to this factor without the need for active management.

Alternative Comparison

Compared to its peers like SPMO (Invesco S&P 500 Momentum ETF) and VFMO (Vanguard U.S. Momentum Factor ETF), MTUM stands out for its broader market coverage, including mid-cap stocks, and its semi-annual rebalancing, which may reduce turnover compared to more frequent rebalancing schedules. While SPMO focuses exclusively on the S&P 500, MTUM offers a more diversified approach by including mid-cap names. VFMO, on the other hand, has a lower expense ratio but may differ slightly in its momentum factor construction.

Issuer Overview

iShares, a division of BlackRock, is the largest ETF provider globally, known for its extensive range of index-tracking and factor-based ETFs. The issuer is renowned for its liquidity, transparency, and low-cost investment solutions, making it a trusted choice for both institutional and individual investors.

Conclusion

The iShares MSCI USA Momentum Factor ETF (MTUM) offers investors a systematic way to access momentum as an investment factor. With its focus on high-momentum U.S. stocks, the fund can be a valuable addition to a diversified portfolio, particularly for those looking to capitalize on trending markets. However, investors should be mindful of the risks associated with momentum investing, including potential underperformance during market reversals.

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