iShares MSCI USA Momentum Factor ETF (MTUM): Complete Beginner's Guide
Last updated: March 2026 • BlackRock • Momentum Factor
Expense Ratio
0.15%
AUM
$12.0B
Dividend Yield
0.80%
Inception
2013
Beginner Score
8.5/10
What is iShares MSCI USA Momentum Factor ETF?
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.
MTUM is managed by BlackRock and has been available since 2013. With $12.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.15%, which means for every $10,000 you invest, you pay approximately $15 per year in management fees.
MTUM at a Glance — Key Metrics
| Expense Ratio | 0.15% |
| Total Holdings | 125 |
| P/E Ratio | 30.5 |
| Beta | 1.10 |
| Dividend Yield | 0.80% |
| AUM | $12.0B |
| Inception Year | 2013 |
| Issuer | BlackRock |
Top 10 Holdings in MTUM
MTUM holds 125 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | NVIDIA Corp. | NVDA | 7.50% |
| 2 | Meta Platforms Inc. | META | 6.00% |
| 3 | Broadcom Inc. | AVGO | 4.80% |
| 4 | Eli Lilly and Co. | LLY | 4.20% |
| 5 | JPMorgan Chase & Co. | JPM | 3.50% |
| 6 | Costco Wholesale Corp. | COST | 3.00% |
| 7 | Netflix Inc. | NFLX | 2.80% |
| 8 | General Electric Co. | GE | 2.50% |
| 9 | Caterpillar Inc. | CAT | 2.20% |
| 10 | Progressive Corp. | PGR | 2.00% |
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MTUM Performance History
Here's how MTUM has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
3.50%
1 Year
31.00%
3 Year
12.50%
5 Year
14.80%
10 Year
14.20%
Beginner Suitability Score: 8.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
MTUM scores 8.5/10 because it has very low fees, can be more volatile than the broader market, offers broad diversification across 125 holdings, and has been available since 2013, giving it a proven track record.
How to Buy MTUM — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "MTUM" — Use the search bar in your brokerage platform to find iShares MSCI USA Momentum Factor ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into MTUM
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With MTUM's expense ratio of 0.15%, a $10,000 investment would lose approximately $1,278 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.
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Pros and Cons of MTUM
Pros
- ✓Captures the well-documented momentum factor which has historically delivered excess returns
- ✓Semi-annual rebalancing keeps the portfolio aligned with current market leaders
- ✓Can significantly outperform during strong trending markets
- ✓Provides systematic, rules-based exposure to recent winners without emotional bias
Cons
- ✗Can suffer sharp reversals when market momentum shifts or leadership rotates
- ✗Higher turnover from semi-annual rebalancing may create more taxable events
- ✗Momentum as a factor is cyclical and can underperform for extended periods
MTUM vs Similar ETFs
See how MTUM stacks up against similar funds:
Frequently Asked Questions
Is MTUM a good ETF for beginners?▾
MTUM has a Beginner Suitability Score of 8.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of MTUM?▾
MTUM has an expense ratio of 0.15%. This means for every $10,000 you invest, you pay approximately $15 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in MTUM?▾
You can invest in MTUM with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does MTUM pay dividends?▾
Yes, MTUM pays dividends with a current yield of approximately 0.80%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in MTUM?▾
The top holdings in MTUM include NVIDIA Corp. (7.50%), Meta Platforms Inc. (6.00%), Broadcom Inc. (4.80%), and more. The fund holds 125 total positions, providing broad diversification across many companies.