AAEQ vs. MTUM

Last updated Jul 17, 2026

AAEQ (Alpha Architect US Equity 2 ETF) and MTUM (iShares MSCI USA Momentum Factor ETF) are both exchange-traded funds - AAEQ is a Large Cap Blend Equities fund actively managed by Alpha Architect, while MTUM is a Momentum fund tracking the MSCI USA Momentum SR Variant Index. AAEQ is actively managed, while MTUM is passively managed. A 0.79 correlation means they provide meaningful diversification when combined. Both charge a 0.15% expense ratio.

Performance

AAEQ vs. MTUM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alpha Architect US Equity 2 ETF (AAEQ) and iShares MSCI USA Momentum Factor ETF (MTUM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AAEQ achieves a 8.51% return, which is significantly lower than MTUM's 21.46% return.

AAEQ

• 1D: -0.60%
• 1M: 0.30%
• 6M: 7.61%
• YTD: 8.51%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

MTUM

• 1D: -2.96%
• 1M: -6.94%
• 6M: 18.20%
• YTD: 21.46%
• 1Y: 28.30%
• 3Y*: 28.55%
• 5Y*: 13.65%
• 10Y*: 15.89%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AAEQ vs. MTUM - Yearly Performance Comparison

	2026 (YTD)	2025
AAEQ Alpha Architect US Equity 2 ETF	8.51%	-1.11%
MTUM iShares MSCI USA Momentum Factor ETF	21.46%	-0.99%

Correlation

The correlation between AAEQ and MTUM is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Dec 10, 2025	0.79

AAEQ vs. MTUM - Sectors Allocation Comparison

Sectors	AAEQ	MTUM
Technology	40.5%	50.2%
Communication Services	12.2%	5.1%
Financial Services	11.6%	5.0%
Consumer Cyclical	9.1%	2.9%
Healthcare	9.0%	3.5%
Industrials	6.1%	15.0%
Consumer Defensive	4.5%	3.7%
Energy	2.9%	10.5%
Real Estate	1.6%	1.3%
Utilities	1.5%	0.6%
Basic Materials	1.1%	2.3%

Return for Risk

AAEQ vs. MTUM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AAEQ

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

MTUM

MTUM Risk / Return Rank: 47
MTUM Sharpe Ratio Rank: 39
MTUM Sortino Ratio Rank: 37
MTUM Omega Ratio Rank: 40
MTUM Calmar Ratio Rank: 58
MTUM Martin Ratio Rank: 58

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AAEQ vs. MTUM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alpha Architect US Equity 2 ETF (AAEQ) and iShares MSCI USA Momentum Factor ETF (MTUM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AAEQ	MTUM	Difference
Sharpe ratio: Return per unit of total volatility	—	1.18	—
Sortino ratio: Return per unit of downside risk	—	1.65	—
Omega ratio: Gain probability vs. loss probability	—	1.22	—
Calmar ratio: Return relative to maximum drawdown	—	2.35	—
Martin ratio: Return relative to average drawdown	—	8.08	—

Drawdowns

AAEQ vs. MTUM - Drawdown Comparison

The maximum AAEQ drawdown since its inception was -10.26%, smaller than the maximum MTUM drawdown of -34.08%. Use the drawdown chart below to compare losses from any high point for AAEQ and MTUM.

Drawdown Indicators

	AAEQ	MTUM	Difference
Max Drawdown Largest peak-to-trough decline	-10.26%	-34.08%	+23.82%
Max Drawdown (1Y) Largest decline over 1 year	—	-12.11%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-20.99%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-32.28%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-34.08%	—
Current Drawdown Current decline from peak	-1.12%	-12.11%	+10.99%
Average Drawdown Average peak-to-trough decline	-2.37%	-6.20%	+3.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	3.51%	—

Volatility

Volatility by Period

	AAEQ	MTUM	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	12.40%	—
Volatility (6M) Calculated over the trailing 6-month period	—	21.91%	—
Volatility (1Y) Calculated over the trailing 1-year period	13.85%	24.08%	-10.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.85%	21.61%	-7.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.85%	21.55%	-7.70%

AAEQ vs. MTUM - Expense Ratio Comparison

Both AAEQ and MTUM have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

AAEQ vs. MTUM - Dividend Comparison

AAEQ's dividend yield for the trailing twelve months is around 0.09%, less than MTUM's 0.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAEQ Alpha Architect US Equity 2 ETF	0.09%	0.10%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MTUM iShares MSCI USA Momentum Factor ETF	0.61%	0.91%	0.75%	1.35%	1.80%	0.55%	0.83%	1.48%	1.27%	1.02%	1.43%	1.12%

Frequently Asked Questions

Can I hold both AAEQ and MTUM in my portfolio?

AAEQ and MTUM have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, AAEQ or MTUM?

Both ETFs have the same 0.15% expense ratio. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, AAEQ or MTUM?

AAEQ and MTUM have the same expense ratio: 0.15% per year.

Which ETF pays a higher dividend yield, AAEQ or MTUM?

MTUM has the higher dividend yield at 0.61%, compared with 0.09% for AAEQ.

What is the main difference between AAEQ and MTUM?

AAEQ is categorized as Large Cap Blend Equities, while MTUM is Momentum. They also come from different issuers: Alpha Architect and iShares.