MTUM / MTUM: Just Doesn't Live Up To The Momentum Hype

iShares MSCI USA Momentum Factor ETF has not demonstrated much momentum despite its name. The MTUM exchange-traded fund holds 123 individual stocks, w more_horizontal

The Momentum factor has underperformed in 2023, with investors favoring large-cap growth shares through May. Cyclical sectors have outperformed since more_horizontal

Commonly held beliefs suggest that once an investment strategy starts approaching the level of being an assured path to success, it is bound to falter more_horizontal

The iShares MSCI USA Momentum Factor ETF is not recommended due to factor decay, which refers to the length of time it takes for a stock to lose its p more_horizontal

The sector trend continues to be your friend heading into year-end, but ETF-focused advisors would be wise to dive deeper. When the largest U.S.-liste more_horizontal

BlackRock's cross-sectional and time series momentum strategies are empirically backed but lack efficient execution. The iShares MSCI Momentum Factor more_horizontal

MTUM invests in stocks generating strong momentum. Momentum trading tends to outperform during bull markets, but interestingly, MTUM has beaten higher more_horizontal

MTUM is designed to respond to momentum factors, meaning simply that this portfolio is a proxy for investing in a momentum factor. In that respect, on more_horizontal