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MTUM is a well-established fund that uses six-month and twelve-month momentum signals to select and weight securities. Its expense ratio is 0.15%, and the ETF has $24.9 billion in assets. Although performing well this year, MTUM has struggled to keep pace with SPMO, the gold standard of momentum ETFs, over the last five years, especially. My analysis suggests the six-month signal can be problematic sometimes, such as during the May 2021 rebalance that resulted in an ill-timed hunt for value.
I reiterate a hold rating on iShares MSCI USA Momentum Factor ETF (MTUM) after a volatile but strong first half of 2026. MTUM's recent alpha was concentrated in a short Q2 rally; otherwise, performance has been sideways or highly volatile. Valuation is now attractive, with MTUM trading at 18.8x P/E, below the S&P 500, and sector exposure has shifted toward Technology, Industrials, and Energy.
Invesco Dorsey Wright Momentum ETF is initiated at Hold due to persistent underperformance versus SPMO and MTUM across return, valuation, and factor metrics. PDP's diversified weighting and lower technology sector exposure limit its ability to capture high-momentum gains seen in peers with more concentrated strategies. The ETF trades at a premium valuation (trailing P/E 34.7, forward P/E 29.5) and carries a higher expense ratio (0.62%) and lower liquidity than competitors.
South Korea's KOSPI just suffered a historic overnight collapse, dragging Samsung and SK Hynix down double digits and sending shockwaves straight into US chip stocks before Tuesday's open. Whether this sparks another brutal Nasdaq sell-off depends on one critical signal forming in premarket right now.
Are momentum stocks on the verge of a major recovery? Consider this: the iShares MSCI USA Momentum Factor ETF (CBOE:MTUM) fell from $345.22 on June 22 to $302.09 on Friday, July 17, and has rebounded since.
Record ETF inflows and a new fee war in the Nasdaq 100 category were among the highlights on this week's ETF Prime. Host Nate Geraci welcomed Todd Rosenbluth, head of research at VettaFi, followed by Brian Walsh, head of advice and planning at SoFi.
The iShares MSCI USA Momentum Factor ETF (NYSEARCA:MTUM) has run hard this year, climbing 30% year to date and 38% over the past 12 months to roughly $326.
Despite numerous reasons why investors might expect otherwise, 2026 appears to be off to an excellent start across many parts of the market. As evidenced by strong earnings growth often topping analyst expectations, hearty revenue growth, and continued elevation in profit margins, a market buoyed by AI investment has thrived.