“Since the beginning of September, the Dow Jones U.S. High Momentum index, comprising 200 companies ranked as having the highest 12-month total return, has fallen 1.7%, while the S&P 500 has risen 1.7%,” wrote Evie Liu in Barron’s. “That isn’t surprising, because momentum investing—chasing the market’s best performers in hopes their gains will continue—hasn’t always worked, especially when trends reverse as sharply as we’re seeing now.”

Reasons to use MTUM per the iShares website:

  1. Exposure to large- and mid-cap U.S. stocks exhibiting relatively higher price momentum
  2. Index-based access to a specific factor which has historically driven a significant part of companies’ risk and return
  3. Use to help manage exposure and risk within a stock allocation
  4. MTUM’s top 10 holdings as of Oct. 16:
  5. Mastercard Inc Class A: 5.37%
  6. Microsoft Corp: 5.33%
  7. Procter & Gamble: 5.32%
  8. Visa Inc Class A: 5.28%
  9. Walt Disney Communication: 4.06%
  10. Cisco Systems Inc: 3.24%
  11. Comcast Corp Class A Communication: 3.13%
  12. Merck & Co IncHealth Care: 2.70%
  13. Starbucks CorpConsumer Discretionary: 2.38%
  14. Paypal Holdings Inc: 2.33%

Here’s the rest of the biggest momentum ETFs list based on AUM:

SymbolETF NameTotal Assets ($MM)
MTUMiShares Edge MSCI USA Momentum Factor ETF$9,201.12
PDPInvesco DWA Momentum ETF$1,555.65
XMMOInvesco S&P MidCap Momentum ETF$576.61
ULVMVictoryShares USAA MSCI USA Value Momentum ETF$477.08
ONEOSPDR Russell 1000 Momentum Focus ETF$429.90
UIVMVictoryShares USAA MSCI International Value Momentum ETF$341.48
PUIInvesco DWA Utilities Momentum ETF$281.65
DWASInvesco DWA SmallCap Momentum ETF$220.28
PTFInvesco DWA Technology Momentum ETF$203.86
USVMVictoryShares USAA MSCI USA Small Cap Value Momentum ETF$196.68

 

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