MTUM ETF Suffers Worst Weekly Drop of 2026, Loses 7%
The iShares MSCI USA Momentum Factor ETF (MTUM) experienced its worst weekly performance of 2026, falling nearly 7% in the week ending July 6. This comes after a strong 29% year-to-date gain, driven by AI chip stocks like Broadcom, AMD, and Intel.
AVGOBroadcom Inc.
AMDAdvanced Micro Devices, Inc.
INTCIntel Corporation
AMATApplied Materials, Inc.
LRCXLam Research Corporation
MUMicron Technology, Inc.
CATCaterpillar, Inc.Key Numbers
The iShares MSCI USA Momentum Factor ETF (MTUM) suffered its worst week of the year, dropping nearly 7% in the seven days ending July 6, 2026. The decline follows a robust 29% year-to-date gain fueled by AI-related semiconductor stocks.
Possible Causes
Analysts attribute the sharp decline to profit-taking in the semiconductor sector, which had been the primary driver of the fund's performance. Stocks such as Broadcom (AVGO), Intel (INTC), and AMD (AMD) saw notable declines during the week, dragging down the momentum-focused ETF.
Context
Despite the weekly loss, MTUM still holds a strong 29% gain year-to-date, outperforming broader market indices. However, the volatility raises questions about the sustainability of momentum investing strategies amid shifting sentiment toward tech stocks.
Similar Moves in the Sector
MTUM was not alone; other tech and semiconductor ETFs experienced similar declines. Stocks like Applied Materials (AMAT), Lam Research (LRCX), and Micron (MU) also fell during the same period, indicating a broad sector weakness.
Frequently Asked Questions
Found this useful? Share it