Invesco S&P International Developed Momentum ETF (IDMO)
ARCA ARCA Primary 
XBER 
IDMO: A Potential Core Of A (Truly) Ex-U.S. Competitive Portfolio
IDMO is a momentum ETF that seeks to represent developed market stocks excluding the U.S. In my opinion, it interfaces well within a diversified portfolio; almost 50% of the portfolio is in financials, which is an anomaly compared to classic global ETFs. It seems to have had competitive performance compared to other ETFs such as EFA and other ex. US ETFs.
Defense Spending Could Keep Momentum on This ETF's Side
The momentum factor is helping to propel strength in international equities. So defense spending, especially in Europe, could keep momentum on the side of the Invesco S&P International Developed Momentum ETF (IDMO).
IDMO Brings Momentum Factor to International Stocks
Investors enjoying the pairing of domestic stocks and the momentum factor are likely familiar with some related ETFs. This includes the Invesco S&P 500 Momentum ETF (SPMO).
I'm Selling My IDMO
After a year of strong returns, my analysis now signals it's time to sell the Invesco S&P International Developed Momentum ETF. IDMO underperforms the S&P 500 on both absolute and risk-adjusted returns, with a negative alpha and subpar risk-return metrics. While IDMO offers lower volatility and some diversification benefits, its risk-reward profile and information ratio are disappointing.
IDMO: A Tactical Play For Short-Term Gains With Long-Term Risks
Invesco S&P International Developed Momentum ETF offers momentum exposure with a 0.25% expense ratio, suitable for tactical rather than core holdings due to high turnover. IDMO's portfolio, based on the S&P World Ex-U.S. Momentum Index, is growth-tilted and rebalanced semi-annually, leading to higher volatility in downturns. While the Fund may outperform in bull markets, its high turnover ratio and trading expenses could hinder long-term performance compared to more stable ETFs like VEA.
IDMO: Solid Performance In 2024 But Numerous Risks And Disadvantages
Invesco S&P International Developed Momentum ETF targets ex-U.S. and ex-Korea developed world equities that demonstrate robust momentum characteristics. In the current version, most of its net assets are allocated to Japanese stocks (54.7%). Denmark (9.9%) and the U.K. (6.6%) are in second and third places, respectively. IDMO solidly outperformed its peer IMTM as well as EFA in the past. However, it was unable to keep pace with IVV.
