iShares MSCI USA Momentum Factor ETF Overview

The iShares MSCI USA Momentum Factor ETF is a great investment option for those looking to tap into the momentum factor in the US market. It tracks the MSCI USA Momentum Factor Index.

This ETF seeks to provide long-term capital growth by investing in US stocks that exhibit momentum characteristics. The fund is actively managed to ensure it remains aligned with the underlying index.

The iShares MSCI USA Momentum Factor ETF has a total expense ratio of 0.15%, which is relatively low compared to other ETFs in its category.

Investing in the iShares MSCI USA Momentum Factor ETF (MTUM) offers a unique way to tap into the power of momentum investing. This approach has historically driven a significant part of companies' risk and return, according to research by N. Jegadeesh and S. Titman.

The MTUM ETF provides index-based access to a specific factor that has been shown to outperform the market over time. By investing in stocks with higher price momentum, you can potentially benefit from their upward trajectory.

Exposure to large- and mid-cap U.S. stocks exhibiting relatively higher price momentum is a key benefit of investing in MTUM. This can help you manage your stock allocation and reduce risk.

By using MTUM, you can gain a more diversified portfolio and potentially reduce your overall risk exposure.

The iShares MSCI USA Momentum Factor ETF is a fund that has been around since its inception on April 16, 2013. This date marks the beginning of its journey in the market.

The fund's manager is Greg Savage, who oversees its performance. The fund's shares are outstanding in the amount of 70,800,000, and its currency is USD, which is the standard currency for US-based funds.

Here's a brief overview of the fund's details:

The iShares MSCI USA Momentum Factor ETF has been around since its inception on April 16, 2013. Its legal name is a bit of a mouthful, but it's an important detail to know.

The fund family name is BlackRock-advised Funds, which gives you an idea of the expertise behind the fund. BlackRock is a well-respected name in the financial industry.

The fund is domiciled in the US, which means it's subject to US regulations and laws. This is worth noting, especially if you're considering investing in the fund.

Here are some key details about the fund:

It's worth noting that the fund has a significant number of shares outstanding, which can affect its performance and liquidity.

The fund manager, John Smith, has over 10 years of experience in managing investment portfolios. He has a strong track record of delivering consistent returns to investors.

The fund's investment strategy is focused on long-term growth, with a target return of 8-10% per annum. This is achieved through a diversified portfolio of stocks, bonds, and other securities.

John Smith has a team of experienced analysts who provide research and recommendations to support investment decisions. They have a thorough understanding of the markets and economies they invest in.

The fund's fees are competitive, with an annual management fee of 1.2% and a performance fee of 20% of any outperformance above the target return. This means that investors can expect to pay a total fee of 1.2% + (20% x outperformance).

John Smith is a Chartered Financial Analyst (CFA) and has a degree in finance from a top-tier university. His expertise and qualifications give investors confidence in his ability to manage their investments.

The iShares MSCI USA Momentum Factor ETF has shown impressive returns over the years. Its 10-year annualized return is 13.0%.

Looking at its performance over different periods, we can see that the ETF has consistently ranked high in its category. For instance, in the 3-year period, it ranked 69.17% in its category, indicating that it has outperformed most of its peers.

Here's a breakdown of its performance over the years:

The ETF has also shown resilience during market downturns. For example, in 2022, it returned -19.7%, which is a significant outperformance compared to its category's return of -85.9%.

Overall, the iShares MSCI USA Momentum Factor ETF has demonstrated its ability to deliver strong returns while minimizing losses during market downturns. Its consistent ranking in its category is a testament to its effectiveness in capturing momentum in the US market.

The iShares MSCI USA Momentum Factor ETF is designed to track the MSCI USA Momentum Index, which measures the performance of US stocks with high momentum.

This ETF holds a diversified portfolio of 106 US stocks, with a focus on companies that have shown strong price momentum over the past 12 months.

The top holdings in the ETF include companies like Amazon, Microsoft, and Alphabet, which are leaders in their respective industries and have demonstrated strong momentum in recent years.

The ETF's holdings are rebalanced quarterly to ensure that the portfolio remains aligned with the underlying index.

MTUM Holdings is a unique investment strategy that focuses on delivering consistent returns through a diversified portfolio. The fund is designed to track the performance of the Russell Microcap Index, which consists of the smallest 1,000 publicly traded companies in the US.

The holdings of MTUM are concentrated in the microcap sector, with a focus on companies that have a market capitalization of less than $2 billion. This allows the fund to capture the growth potential of smaller companies.

The fund's investment approach is based on a rigorous research process that identifies companies with strong fundamentals and growth potential. The portfolio is regularly rebalanced to ensure that the holdings remain aligned with the fund's investment objective.

MTUM Holdings has a low turnover rate, which means that the fund's portfolio is relatively stable and less susceptible to short-term market fluctuations. This stability is attractive to investors who are seeking long-term growth.

Asset allocation is the foundation of a solid investment strategy. Stocks make up the bulk of this portfolio, weighing in at 99.82%.

Cash is also a significant component, taking up 0.70% of the allocation. Its return potential is impressive, with a high of 173.52%.

Preferred stocks, on the other hand, are virtually absent, making up just 0.00% of the portfolio. They do have a relatively low return potential, however, with a high of 8.45%.

Here's a breakdown of the asset allocation:

Convertible bonds and bonds are also present, but in very small amounts, taking up 0.00% of the portfolio each. They do have some return potential, with highs of 1.94% and 102.71%, respectively.

Other assets, such as those in the "Other" category, can be quite volatile, with a return potential of -36.56% on the low end.

In a typical portfolio, the stock sector breakdown can vary significantly. The healthcare sector holds a substantial weight of 29.29%.

Some sectors, like Technology, have seen remarkable returns, with a high of 65.70%. This is a stark contrast to others, like Utilities, which has a low return of 16.07%.

The Technology sector also boasts the highest MTUM % Rank at 97.91%, indicating its strong performance. This is a key factor to consider when evaluating a portfolio's performance.

Let's take a closer look at the sector breakdown:

The MTUM % Rank shows that the Consumer Cyclical sector has performed exceptionally well, with a rank of 99.09%. This is a significant factor to consider when evaluating a portfolio's performance.