Momentum And Large-Cap Growth Still Lead Equity Factor Returns
Betting against the hottest equity risk factors this year has been a painful strategy, if only in relative terms. But no matter how you slice the numbers, momentum and large-cap growth continue to outperform in 2024, based on a set of ETFs through yesterday’s close (Aug. 27).
The iShares MSCI USA Momentum Factor ETF (MTUM) is posting the strongest gain for the opportunity set year to date via a sizzling 25.6% surge. Large-cap growth (IWV) is a strong second-place winner with a 24.7% rise. Not only are those gains well ahead of the rest of the factor field, the returns also reflect solid premiums over the broad market’s 18.9% advance, based on SPDR S&P 500 (SPY).