(MTUM) iShares MSCI USA Momentum - Ratings and Ratios

The iShares MSCI USA Momentum Factor ETF (MTUM) is designed to capture the performance of U.S. large- and mid-capitalization stocks exhibiting higher momentum characteristics. The fund typically invests at least 80% of its assets in securities from its underlying index or in investments that closely replicate the economic characteristics of those securities. This approach ensures alignment with the momentum-driven strategy while maintaining flexibility to optimize returns.

The underlying index, the MSCI USA Momentum Index, is constructed to outperform the broader MSCI USA Index by focusing on stocks with strong momentum. Momentum, in this context, is measured by a stocks price performance over the past 6 to 12 months. This makes MTUM a tool for investors seeking exposure to companies that are gaining traction in the market, potentially signaling strong fundamentals or positive sentiment.

As a large blend ETF, MTUM holds a mix of growth and value stocks, but its momentum focus skews it toward companies with strong recent performance. The fund’s AUM of over $15 billion underscores its popularity and liquidity, making it a stable choice for investors looking to incorporate momentum strategies into their portfolios. MTUM is listed on the BATS exchange and is domiciled in the United States, offering a straightforward way to access domestic equities with a momentum tilt.

Investors should note that MTUM’s portfolio is periodically rebalanced to maintain exposure to high-momentum stocks, which can lead to turnover and potential tax implications. Additionally, while the fund’s momentum strategy can outperform during certain market conditions, it may underperform in periods where value or dividend-focused investing is favored. For more details, prospective investors can visit the fund’s homepage at www.ishares.com.