Best Momentum ETFs in 2026

How We Chose These ETFs

Selecting the right ETFs for momentum etfs investors requires a careful evaluation of multiple factors. We analyzed dozens of funds across the industry and narrowed our recommendations based on the following criteria. Each factor was weighted according to its importance for investors in this specific category, ensuring that our picks are truly optimized for your goals.

1. Systematic momentum screening — Systematic momentum screening avoiding emotional stock picking
2. Regular rebalancing to — Regular rebalancing to capture shifting momentum trends
3. Diversification across sectors — Diversification across sectors following current market leadership
4. Research-backed factor exposure — Research-backed factor exposure with long-term evidence of premium

We also factored in our proprietary Beginner Suitability Score, which evaluates each fund on a 1-to-10 scale considering expense ratios, volatility (beta), diversification (holdings count), dividend history, and track record length. Funds that score consistently high across these dimensions earned a spot on our list.

1. iShares MSCI USA Momentum Factor ETF (MTUM) — Best Overall

BlackRock • Momentum Factor

MTUM invests in U.S. large and mid-cap stocks that have shown strong recent price performance, following the idea that winning stocks tend to keep winning. It reconstitutes semi-annually to capture the latest momentum trends across the market. Beginners should understand that MTUM can deliver strong returns during trending markets but may rotate sharply when market leadership changes.

iShares MSCI USA Momentum Factor ETF earns its spot as our best overall pick because it delivers on the metrics that matter most for momentum etfs investors. With an expense ratio of just 0.15%, you keep more of your returns working for you over time. The fund manages $12.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, MTUM has delivered a total return of 14.80%, outperforming many of its peers and rewarding patient, long-term investors. The fund holds 125 individual securities, giving you solid diversification across a meaningful number of positions. Its beta of 1.10 indicates that the fund is somewhat more volatile than the market as a whole, offering higher upside potential but also larger drawdowns during corrections.

MTUM currently pays a dividend yield of 0.80%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2013, MTUM has demonstrated its ability to perform across different market environments over a meaningful period. Our Beginner Suitability Score rates it 8.5/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

Comparison Table

Here is a side-by-side comparison of all 1 ETFs in our momentum etfs category. This table highlights the key metrics you should evaluate when choosing between these funds. Pay close attention to expense ratios and beginner scores, as these are the most impactful factors for long-term investment success.

*Beginner Score is calculated based on expense ratio, beta, holdings count, dividend yield, and fund inception year. Past performance does not guarantee future results.

Common Mistakes Momentum ETFs Investors Make

Even with a solid selection of ETFs, investors in the momentum etfs category can undermine their results by falling into avoidable traps. Understanding these common pitfalls will help you stay on track and avoid costly errors that could set back your financial progress by years or even decades.

• 1

  Buying momentum ETFs after: Buying momentum ETFs after a long run-up when reversals become more likely

• 2

  Not understanding that momentum: Not understanding that momentum can reverse sharply during market regime changes

• 3

  Overweighting momentum and neglecting: Overweighting momentum and neglecting other factors for balance

• 4

  Confusing momentum investing with: Confusing momentum investing with chasing the latest meme stocks

The best defense against these mistakes is a simple, written investment plan that you commit to following regardless of market conditions. Define your target allocation, set up automatic contributions, and schedule a review only once or twice per year. This removes emotion from the process and keeps you focused on long-term wealth building rather than short-term noise.

Frequently Asked Questions