IShares MSCI USA Momentum Factor ETF’s MTUM pronounced momentum exposure is attractive, but successful stock selection has fueled some of its outperformance. That’s a less reliable performance engine than the momentum effect. It warrants a downgrade to a Morningstar Analyst Rating of Bronze from Silver.
Will MTUM outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable MTUM’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the MTUM management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of MTUM’s parent organization’s priorities and whether they’re in line with investors’ interests.