MTUM ETF: What Is It? Returns, Expense Ratio, Holdings, and Alternative ETFs Explained
The iShares MSCI USA Momentum Factor ETF (MTUM) is a US momentum factor ETF that uses a rules-based process to select US large- and mid-cap stocks with strong price uptrends and holds them in a diversified portfolio. Differences in the underlying index, dividends, and expense ratio versus peers such as SPMO are the key selection criteria.
SubscribeWhat Is the iShares MSCI USA Momentum Factor ETF?
This is a factor ETF that tracks the MSCI USA Momentum Index. It selects US large- and mid-cap stocks with strong recent price momentum according to set rules, and weights them by a risk-adjusted momentum score.
As a trend-following factor strategy, it suits investors who want exposure that differs from a core market holding.
It is a passive (index-tracking) ETF managed by BlackRock (iShares).
How Does the iShares MSCI USA Momentum Factor ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | MSCI USA Momentum Index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Semiannual (with additional adjustments if needed) |
| Dividend Frequency | Quarterly |
| Issuer | BlackRock (iShares) |
| Total Expense Ratio | 0.15% |
The fund calculates a momentum score by adjusting the past 6-month and 12-month price gains for volatility, then selects and weights the top-ranked stocks among US large- and mid-cap names. Stocks whose trends have weakened are replaced at regular rebalancings, so the portfolio stays focused on strong performers.
- Rules-based momentum factor selection
- Trend exposure that differs from market-cap weighting
iShares MSCI USA Momentum Factor ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $18.6B, and the total expense ratio is 0.15% per year.
Unlike broad core ETFs, exposure is concentrated in stocks with strong trend momentum, so performance can vary depending on the market environment.
iShares MSCI USA Momentum Factor ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeBy the nature of momentum strategies, the fund tends to show more resilient performance than the market in bull markets, but volatility can rise easily when trends reverse. Its recent trend has been influenced by concentration in market-leading sectors.
Fund flows tend to fluctuate with demand for factor investing and the market environment. Interest rises in trending markets, while in sideways or transitional phases, money sometimes shifts to core ETFs.
iShares MSCI USA Momentum Factor ETF Pros and Cons
Its strength is systematic exposure to stocks with strong trends, while its weaknesses are volatility during trend reversals and sector concentration.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products to the iShares MSCI USA Momentum Factor ETF
The two ETFs shown in the table, SPMO and JMOM, track the same momentum factor and are direct comparisons, though they differ in underlying index and expense level. XMMO and XSMO focus on mid-cap and small-cap momentum respectively, so their market capitalization ranges differ. In addition, for broad investment across the whole market, you can also consider the core ETF VOO, and for greater focus on technology sector trends, the XLK sector ETF.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 SPMO | Invesco S&P 500 Momentum ETF | $136.27 | -4.3% | $22.3B | 0.13% | 0.81% | +11.9% |
 XMMO | Invesco S&P MidCap Momentum ETF | $136.13 | -2.4% | $6.7B | 0.34% | 0.72% | +0.8% |
 XSMO | Invesco S&P SmallCap Momentum ETF | $80.98 | -1.9% | $2.9B | 0.35% | 0.63% | +13.4% |
 JMOM | JPMorgan U.S. Momentum Factor ETF | $79.52 | -3.2% | $2.8B | 0.12% | 0.78% | +16.1% |
 VFMO | Vanguard U.S. Momentum Factor ETF | $217.38 | -3.0% | $2.1B | 0.13% | 0.62% | +11.5% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| MU | Micron Technology Inc | 0.11% | $884.74 | -5.3% | $1.00T | 11.9 | 0.08% |
| AVGO | Broadcom Inc | 0.10% | $326.08 | -5.5% | $1.56T | 41.6 | 0.8% |
| AMD | Advanced Micro Devices Inc | 0.09% | $504.80 | -10.9% | $824.1B | 129.6 | - |
| NVDA | NVIDIA Corp | 0.05% | $204.64 | -4.2% | $4.93T | 25.9 | 0.38% |
| INTC | Intel Corp | 0.08% | $65.76 | -28.6% | $347.6B | - | 0.06% |
| XOM | ExxonMobil Holdings Corp | 0.04% | $187.25 | +2.2% | $770.0B | 24.1 | 2.22% |
iShares MSCI USA Momentum Factor ETF Investor Checkpoints
Here are the points to review before investing in MTUM. Because momentum factor ETFs differ in nature from core ETFs that track the entire market, it is important to first understand how the strategy works and why you are holding it. Review the items below to see whether it fits your investment style.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the cumulative cost impact over a long holding period | Annual fee applies |
| 🔄 Rebalancing | Check the replacement cycle as trends change | Regular adjustments |
| 📊 Sector Concentration | Track the concentration trend in leading sectors | Needs checking |
| 💱 Exchange Rate | Impact on returns converted to Korean won | Not currency hedged |
During trend reversals, a momentum strategy reacts later than the market and volatility can increase. Also, if weight piles into the leading sector, concentration risk can rise along with it.
It is worth considering as a factor satellite holding that complements core assets. If you want trend exposure, MTUM fits, while a core ETF is better suited if broad market diversification is the priority.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.
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