MSCI USA Momentum ETF surges 38% YTD, 4x S&P equal-weight
The MSCI USA Momentum Factor ETF (MTUM) has risen 38.2% year-to-date, outpacing the S&P 500 equal-weighted index by a factor of four. The ratio between the two has reached a record high of approximately 172, indicating momentum stocks are dramatically outperforming the average stock.
The MSCI USA Momentum Factor ETF ($MTUM) has surged 38.2% year-to-date, more than four times the 9.2% gain of the S&P 500 equal-weighted index. The fund's top holdings include Micron ($MU), Intel ($INTC), AMD ($AMD), and Broadcom ($AVGO).
The ratio of $MTUM to the S&P 500 equal-weighted index has risen to a record ~172, a 75% increase since early 2023. This metric now stands 14.7% above its previous peak during the 2020 pandemic recovery.
Meanwhile, the MSCI US Momentum Index versus the MSCI US Index ratio surged 24% during the latest quarter — the largest quarterly outperformance on record, surpassing the 2000 Dot-Com bubble high of 21%. The momentum trade is leaving the rest of the market behind.
Source: The Kobeissi Letter