# iShares MSCI USA Momentum ETF outperforms SPY 20% YTD

**Published:** 2026-06-17T12:45:07.614Z  
**Topic:** S P 500  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/351d15cf-7a13-45cd-83b3-285938137b03

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%) |

## Why MTUM leads the S&P 500

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].

## Tradeoffs and tax considerations

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].

## What to watch
- **Semi‑annual rebalancing dates** – May 31 and November 30, when MTUM’s holdings will be refreshed and could narrow or widen the performance gap.
- **Fed policy outlook** – Any unexpected rate cuts or hikes in 2026 could alter equity momentum, affecting both MTUM and SPY.
- **Sector rotation signals** – Shifts from AI‑driven tech to other sectors (e.g., energy or financials) may test MTUM’s ability to stay ahead of SPY’s cap‑weighted exposure.

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.

## Sources
1. Biztoc — [Forget the Plain S&P 500. The Momentum Version Captured the Run and ...](https://biztoc.com/x/82d510b697ba559e)
2. 247wallst — [Forget the Plain S&P 500. The Momentum Version Captured the Run and ...](https://247wallst.com/investing/2026/06/17/forget-the-plain-sp-500-the-momentum-version-captured-the-run-and-beat-it-by-15-this-year/)
3. 247wallst — [This 1 ETF Keeps Outperforming the S&P 500- Expect it to Win Again This ...](https://247wallst.com/investing/2026/02/19/this-1-etf-keeps-outperforming-the-sp-500-expect-it-to-win-again-this-year/)
4. Benzinga — [S&P 500 Momentum Has A Record Rally: History Says A Reversal ... - Benzinga](https://www.benzinga.com/markets/equities/26/05/52631836/sp500-momentum-rally-historical-analysis-goldman-sachs-2026)

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Cite as: TrendWatcher, "iShares MSCI USA Momentum ETF outperforms SPY 20% YTD", https://www.trendwatcher.in/article/351d15cf-7a13-45cd-83b3-285938137b03