When considering momentum trading, ETFs offer various advantages. These investment vehicles provide diversification and liquidity. They track indexes and sectors, facilitating strategic trading. ETFs enable investors to capitalize on market movements efficiently. They offer transparency and flexibility in trading activities. ETFs involve lower costs compared to other investment options. A distinct benefit of using ETFs is the ability to trade throughout the day. This feature enhances the effectiveness of momentum trading strategies. Additionally, ETFs are well-suited for both short-term and long-term trading goals. Therefore, incorporating ETFs in momentum trading can optimize returns and minimize risks for investors.