Since the onset of hostilities involving Iran on February 28, the momentum factor has proven to be the most influential force in the equity market. Analysis of various Exchange-Traded Funds (ETFs) reveals that those tied to momentum strategies have delivered extraordinary returns, far exceeding their counterparts. This illustrates a clear trend where investment in securities with strong recent performance continues to yield superior results.

A notable example is the iShares MSCI USA Momentum Factor ETF, which has seen an impressive surge of over 32% since the conflict began. This gain is significantly higher than that of other factor-based ETFs. While most factor ETFs have recorded positive returns during this period, the low volatility factor (USMV) stands out as a fractional exception, experiencing a slight downturn.

This period highlights the market's inclination towards high-performing assets in times of uncertainty. Investors prioritizing growth have found momentum strategies particularly rewarding, demonstrating the resilience and potential of this factor to drive significant capital appreciation, even as geopolitical tensions persist and influence global economic sentiment.