IMTM ETF Tanks, Then Soars: Why Global Momentum Is Making A Comeback

The iShares MSCI International Momentum Factor ETF (NYSE:IMTM) has been a significant player in the international equities segment, drawing renewed investor interest with changing global trade patterns. The fund saw a temporary dip during the last month with the announcement of President Trump’s so-called “Liberation Day” and its fears regarding rising trade tensions. But a later 90-day hiatus on targeted tariffs on most countries served to reassure investors, and the ETF rode the surge back into positive territory.

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The ETF plunged steeply the week “Liberation Day” made headlines — an action that shook global markets and fueled fears of retaliatory tariffs. Investors took their foot off the gas on foreign momentum, anticipating a rerun of past trade wars.

Trade Tensions And Turnarounds

But markets have a drama gene — and diplomacy provided a second act. The news of a 90-day stand-down on reciprocal tariffs between China and the U.S. was like a shot of adrenaline. IMTM turned on a dime, picking up speed as optimism trickled into the global equity story again.

Momentum investing, which IMTM embodies, benefits from trend continuation. With trade concerns eased (albeit temporarily), IMTM regained its footing. According to Barchart, its weighted alpha of 14.51 shows that momentum is recent.

Why International Is the New Interesting

For years, global equities have been the wallflowers of the U.S. investors’ party. But in 2025, the music shifted.

Enter the likes of the Bancreek International Large Cap ETF (NYSE:BCIL), which has turned heads and rankings in its wake. With a year-to-date return of more than 16%, BCIL is rewriting the old narrative of international equity averageness. Bancreek CEO Andrew Skatoff attributes the outperformance to a high-conviction strategy — one that only invests in companies with what he describes as “institutional endurance.” Translation: they choose companies that will not merely survive geopolitical whiplash but dance around it.

What’s Behind The Turn?

It’s not valuation disparities alone—although, let’s be clear, developed international markets remain at a relative discount to the U.S. The actual change is structural. As the U.S. turns inward, cross-border trade lanes are readjusting. Regional leaders—particularly in Japan, the U.K., and Canada—are moving into positions once held by U.S. companies. Couple this with the increasing phenomenon of supply chain regionalization, and international exposure starts to feel less like a contrarian play and more like a required readjustment.

The Quant Factor

Both IMTM and BCIL emphasize a larger trend in ETF strategy: the growth of precision-based, model-led investing. While IMTM follows momentum factors, BCIL uses a proprietary quantitative engine to sift through thousands of stocks and narrow them down to a dozen or so high-quality recommendations. The end result? Two ETFs that provide institutional strategy with retail access and a performance record that renders the passive playbooks of yore… well, passive.

Looking Ahead

So, is IMTM ready for further gains? If optimism over a trade truce persists and global equities keep rebounding, momentum ETFs such as IMTM might continue to shine. Now that the U.S. has agreed to cut tariffs on British cars from 25% to 10%, with the UK also agreeing to lower barriers on US exports, the ETF seems poised for a continued climb. Its trend-oriented structure renders it well-equipped for this macro environment. However, investors should be careful: momentum is temperamental.

Nevertheless, with appropriate macro tailwinds and a shot of model-based constraint, global ETFs are demonstrating they’re not the second-rate act to US equities. They’re taking center stage.

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