MTUM ETF

Investors are anticipating a Santa Claus rally, which means that products with high beta and high momentum are likely to do better than others.

In 2024, momentum strategies performed well because of big stock rallies and unique market situations, but in 2025, the success may be less pronounced. The iShares MSCI USA Momentum Factor ETF did not do as well as expected, mainly because of its approach and how it chooses stocks. Unlike the more focused Invesco S&P 500 Momentum ETF, MTUM includes mid-cap stocks and uses a risk-adjusted momentum score.

After the US market indexes (^DJI, ^IXIC, ^GSPC) ended lower for the second consecutive day, Apple's (AAPL) market value surpassed a historic $3.7 trillion. Yahoo Finance's markets and data editor, Jared Blikre, joins Josh Lipton on Asking for a Trend to discuss key topics from the trading day, such as Apple's new market cap, changes in momentum patterns, and MicroStrategy's (MSTR) stock movements related to bitcoin (BTC-USD). For more expert insights and analysis on recent market developments, you can find additional episodes of Asking for a Trend here.

I have a hold rating on MTUM because of its recent performance and the upcoming rebalance in November, even though it has reached an all-time high. The iShares MSCI USA Momentum Factor ETF has a varied sector mix, with significant investments in Financials and Consumer Staples, and there may be changes in large tech companies. While the ETF's technical chart indicates good performance, the lower RSI momentum and fluctuations near important support levels are a bit concerning.

The iShares MSCI USA Momentum Factor ETF (MTUM) targets mid- and large-cap U.S. stocks that show price momentum, featuring a low expense ratio of 0.15% and assets under management of $10.16 billion. While MTUM has achieved a solid annual return of 19.31%, it has not quite matched the S&P 500's return of 21.58% during the same timeframe. The fund's portfolio is well-diversified, including sectors like technology, financial services, consumer goods, and industrials.

On Monday, U.S. stocks finished the day at their highest points, building on the strong gains from the previous week.

On Thursday, stock prices rose significantly due to positive retail sales and hints from the Federal Reserve about possible 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.