iShares MSCI USA Momentum ETF Reaches New High After 10-Session Gain Streak

The iShares MSCI USA Momentum Factor ETF (MTUM) hit a new intraday record on Thursday, extending its winning streak to 10 sessions in a row. This follows the ETF reaching record levels earlier in the week on Tuesday. Despite being down more than 7% year to date at one point, MTUM has rebounded strongly and is now up 8% for 2026.

Momentum stocks, which are characterized by their large earnings expansion potential relative to the broader market, have driven this rally. The broader market has also shown strength, with the S&P 500 erasing losses incurred since the Iran war began and moving back into record territory this week.

The S&P 500 traded just below 7,000 on Wednesday, bouncing more than 10% from its post-war closing low less than 10 trading sessions ago when it was at 6,300.

Market analysts attribute the recent gains to shifting investor sentiment and geopolitical developments. The market bottomed out on March 30, the same day the White House began talks about an exit strategy from the Iran conflict. Ed Yardeni, president of Yardeni Research, said, "There's plenty of reasons to be optimistic," and noted that concerns about an AI bubble have diminished.

He added, "The market tends to look ahead, usually by 12 months. " Momentum is playing a key role in amplifying market movements this year. " He described momentum as "absolutely the captain of the ship," suggesting the market is poised to move higher.

Individual stocks within the momentum space have also seen significant gains. Shares of Bloom Energy surged more than 40% since the start of the Iran war, including a 24% jump on Tuesday, following its expanded partnership with Oracle to supply power for Oracle's data center energy demand.

Similarly, Intel shares have risen more than 40% since the war began, with a 24% increase last week after entering new partnerships with Google and Elon Musk's Terafab project.

Several names within MTUM, including Palantir, Micron Technology, Applied Materials, Advanced Micro Devices, Lam Research, and KLA, are held by Kilburg, underscoring the ETF's exposure to key momentum stocks.