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Momentum ETF MTUM up 30.5% year‑to‑date versus SPY’s 10.3%, a 20‑point gap that reshapes the core‑holding debate for investors.
The iShares MSCI USA Momentum Factor ETF (MTUM) has gained 30.52% through June 16, 2026, outpacing the SPDR S&P 500 ETF Trust (SPY) by roughly 20 percentage points YTD [2].
| At a glance | |
|---|---|
| MTUM YTD return | 30.52% |
| SPY YTD return | 10.34% |
| Gap vs. SPY | +20.18 pts |
| MTUM expense ratio | 0.15% (vs. SPY 0.0945%) |
MTUM tracks the MSCI USA Momentum SR Variant Index, which selects large‑ and mid‑cap U.S. stocks with the strongest six‑ and twelve‑month price momentum. The index is rebalanced semi‑annually (May and November), allowing the fund to rotate into the fastest‑growing names while shedding laggards that drag a cap‑weighted basket like SPY. In a market dominated by AI‑linked semiconductors, hyperscalers and platform stocks, this tilt has produced a 30.52% YTD gain versus SPY’s 10.34% [2].
The structural difference also shows in longer horizons. Over the trailing one‑year period MTUM returned 42.90% compared with SPY’s 27.13%; over five years the spread is 104% vs. 89%; and over ten years MTUM’s cumulative return is 391% versus SPY’s 325% [2]. The modest fee premium—0.15% versus 0.0945%—costs roughly $28 per $50,000 invested annually, a small price for the historical outperformance margin [2].
Momentum strategies buy late in rallies and sell late in corrections, which can cause MTUM to lag SPY during leadership shifts (e.g., from growth to value). The fund also turns over more frequently, generating higher short‑term capital‑gain distributions that reduce tax efficiency in taxable accounts. By contrast, SPY’s near‑zero turnover and broader market exposure keep it defensible as a core holding, especially for tax‑advantaged portfolios [2].
MTUM’s YTD outperformance underscores how a momentum tilt can capture the strongest market trends more efficiently than a pure cap‑weighted index. Whether the higher turnover and potential lag during regime changes justify the swap depends on investors’ time horizon, account type and tolerance for short‑term volatility.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 4 outlets · Jun 17, 2026 · How we report
Information Technology makes up about 34.3% of the index, followed by Financials (13.1%), Communication Services (10.5%), Consumer Discretionary (10.1%), and Healthcare (9.92%).
SPY has an expense ratio of 0.0945%, which is higher than VOO and IVV (both 0.03%) and higher than SPYM (0.02%).
The ten largest components are Nvidia (7.17%), Alphabet (6.39%), Apple (5.86%), Microsoft (5.33%), Amazon (3.98%), Broadcom (2.51%), Meta Platforms (2.49%), Tesla (2.31%), Berkshire Hathaway (1.68%), and Eli Lilly (1.55%).
MTUM uses a momentum‑based weighting that has delivered higher returns than SPY over one‑ to ten‑year periods, though it incurs higher fees and turnover.
Switching in a taxable account may trigger capital gains on existing SPY holdings, so a partial allocation or contribution‑based shift can add MTUM exposure without realizing those gains.