Momentum screen beats broad growth benchmarks as U.S. equity volatility filters matter
Against a backdrop of elevated market volatility and compressed growth-stock valuations, a quantitative momentum strategy has drawn attention for outperforming the major U.S. equity benchmarks in 2026. The MarketDesk Focused U.S.…
Key takeaways
- The MarketDesk Focused U.S. Momentum ETF (Nasdaq: FMTM), trading around $39 per share, is up 21% year-to-date and 45% over the trailing twelve months in 2026.
- FMTM's momentum screen selects U.S.-listed companies above $1 billion market cap, applies liquidity and quality filters, then ranks names by upward price movement over the previous six months.
- The fund holds a concentrated, equal-weighted basket of 30 to 50 stocks rebalanced monthly, with current holdings including Astera Labs, Snowflake, CrowdStrike, and Marvell Technology.
- FMTM outperformed major benchmarks, which returned 14% YTD/25% trailing (Nasdaq) and 13%/22% (S&P 500), as well as growth ETFs IVW (14% YTD) and IWP (4% YTD).
- The strategy's edge depends on continued momentum dispersion across sectors, with its six-month lookback favoring technology and semiconductor names through the first half of 2026.
Against a backdrop of elevated market volatility and compressed growth-stock valuations, a quantitative momentum strategy has drawn attention for outperforming the major U.S. equity benchmarks in 2026. The MarketDesk Focused U.S. Momentum ETF (Nasdaq: FMTM), trading at roughly $39 per share, is up 21% year-to-date and 45% over the trailing twelve months, according to a Motley Fool analysis by Dave Kovaleski published August 11, 2026.
How the selection screen works
The fund's methodology starts with U.S.-listed companies carrying market capitalizations above $1 billion. Liquidity filters narrow that pool. Quality screens then assess profitability, operating efficiency, and balance sheet health before the remaining names are ranked by upward price movement over the previous six months.
The result is a concentrated basket of 30 to 50 stocks, equal-weighted and rebalanced monthly. Current holdings include Astera Labs, Snowflake, CrowdStrike, and Marvell Technology. Equal-weighting prevents any single position from dominating returns as momentum rotates across the sector cycle.
Performance against the broader cycle
The outperformance is wide relative to standard benchmarks. The Nasdaq gained 14% year-to-date and 25% over the past twelve months. The S&P 500 returned 13% and 22% over the same periods. Among large- and mid-cap growth alternatives, the iShares S&P 500 Growth ETF (NYSEMKT: IVW) rose 14% year-to-date, and the iShares Russell Mid-Cap Growth ETF (NYSEMKT: IWP) added 4%.
The read-through for the demand environment is direct: sector-wide, growth stocks carried elevated valuations into 2026, and single-stock selection has carried higher dispersion risk. A rules-based screen that replaces positions losing momentum at each monthly rebalance has, in this cycle, produced a meaningfully different return profile than broad index exposure.
Macro caveats and positioning
At $39 per share, approximately 25 shares fit within a $1,000 investment. Kovaleski discloses a personal position in the fund. The Motley Fool holds positions in CrowdStrike, Marvell Technology, Micron Technology, Nvidia, and Snowflake, and recommends Astera Labs, per disclosures dated August 11, 2026.
On balance, the fund's edge rests on continued momentum dispersion across sectors. Monthly rebalancing means the portfolio exits positions losing price momentum each cycle, which limits drawdown drag but concentrates exposure in whatever leadership has been strongest over the prior six months. At 45% trailing versus the Nasdaq's 25%, that lookback window has favored technology and semiconductor names through the first half of 2026.
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