What if you invested monthly in a Momentum-factor ETF (MTUM) for 10 years?
This calculates the result of investing a fixed amount monthly into MTUM, which overweights stocks with strong recent momentum, over 10 years using actual price data. It shows the factor's out- and under-performance alongside maximum drawdown and time underwater, not just returns.
Investment conditions
Asset · MTUM (US Momentum-factor ETF)
Method · Recurring monthly investment
Period · 2016-07-01 ~ 2026-07-01
Amount · $222 / month
As of · 2026-07-01
Key metrics
These results do not reflect taxes. Based on historical data.
Risk & recovery
As important as returns. This service does not hide maximum drawdown or loss periods.
Maximum drawdown (MDD)
-32.9%
Largest drop from peak
Longest loss period
4months
Months in loss: 4
Recovery period
17months
Growth over time
Invested principal (dashed) and portfolio value (solid). Values below match the calculation.
Total invested $26,889 → Final value $69,697 (+159.2%), Maximum drawdown (MDD) -32.9%
Why this period and asset
Momentum is a factor rooted in the academic observation that recent winners tend to keep winning for a while. Documented in studies such as Jegadeesh and Titman (1993), it was later packaged into smart-beta ETFs. MTUM overweights US large- and mid-cap stocks with strong trailing 6-to-12-month returns and rebalances periodically. This 10-year window (2016-2026) includes the late-2018 selloff, the 2020 COVID crash, and the 2022 correction; in sharp trend reversals, momentum strategies can lag as they turn direction late.
Interpreting the result
Investing the same amount each month buys more shares when prices are low and fewer when they are high. Momentum can outpace the broad index in some regimes, but it tends to fall harder when trends reverse abruptly. Such factor premia do not appear consistently; they show cyclicality, with stretches of underperformance and outperformance alternating over years. The key is to read the maximum drawdown, how long the position stayed below cost (time underwater), and the months to recovery next to the broad index on the results screen.
Caveats & limits
Factor strategies can trail the broad index for years, and academic backtest results often shrink once real ETF fees, turnover, and taxes are included. Expense ratios, trading fees, USD/KRW exchange-rate moves, and dividend/capital-gains taxes also affect the outcome. Past performance does not guarantee future results, and this page does not recommend buying any specific security.
Data sources & limits
- Price data source: Yahoo Finance / FinanceDataReader
- Collected on: 2026-07-23
- Effective trading date: 2026-07-01
- Price basis: 調整後終値(配当・株式分割を反映)
- Trading fees and taxes are not reflected — figures are pre-tax.
- Based on historical data; does not guarantee future returns.
Frequently asked questions
What is factor investing?
Instead of holding the whole market, it selects stocks by a specific characteristic (factor) such as momentum, value, or low volatility. It is a smart-beta approach that follows, by rules, excess-return patterns observed in academic research.
Does the momentum factor always beat the market?
No. It can lead while a trend persists but tends to fall harder when direction reverses sharply. Out- and under-performance alternate cyclically over multiple years.
What are the risks of this strategy?
Long stretches of underperformance, large drawdowns on trend reversals, and costs and taxes from frequent turnover are the main ones. Real results can trail the backtest, and fees and FX further reduce returns.
Related scenarios
📋 結果は過去のデータに基づくものです。過去のリターンは将来のリターンを保証しません。
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