MTUM ETF

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.

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.

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

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

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

The iShares MSCI USA Momentum Factor ETF is a diversified momentum ETF that invests in various stocks and sectors to spread risk. It tracks high momentum companies and uses specific rules to assess momentum values. Although MTUM has shown strong performance in the past six months, it has lagged behind other ETFs and has higher volatility than the SPY.

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

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.

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.