Invesco S&P 500 Momentum ETF (SPMO)
ARCA ARCA Primary 
XBER 
SPMO: A Mixed Bag For Momentum Seekers (But Still A Decent S&P 500 Play)
The Invesco S&P 500 Momentum ETF offers a reasonable 0.14% expense ratio and has outperformed the S&P 500 over the past decade. The ETF tracks the S&P 500 Momentum Index, rebalancing semi-annually, which reduces trading costs but dilutes the momentum factor. Infrequent rebalancing introduces timing luck, affecting momentum capture and making it easier for traders to front-run the ETF.
SPMO ETF is a good VOO, and SPY alternative with a catch
Exchange-traded funds (ETFs) are having a strong performance this year, with most of them having robust inflows. Some of the most notable ones in terms of inflows are the Vanguard S&P 500 (VOO) and the iShares S&P 500 (SPY) ETFs.
SPMO: Momentum Style Is Losing Momentum As Rotation Grows
Momentum factor funds have performed very well YoY, with SPMO rising twice as fast as the S&P 500 due to its exposure to the "AI trade." As Nvidia, Apple, Microsoft, and others dominate SPMO, it is more exposed to the risk of a burst of the retail-driven "AI bubble." Low individual investor cash allocations may be a solid bearish indication for stocks that are more popular among individual investors.
SPMO: Hope You Love Tech
Invesco S&P 500 Momentum ETF focuses on high-momentum stocks in the S&P 500, rebalancing twice a year for a performance boost. The fund holds 101 positions, with Nvidia as the largest holding at 13.17%, heavily concentrated in the Information Technology sector. Momentum investing can lead to strong returns but also carries the risk of sharp reversals and sector-specific downturns, making it a potentially volatile investment option.
SPMO: A Solid Mix Of High Momentum And Lower Volatility
Momentum factor has shown excess returns in various assets over a 215-year period. Invesco S&P 500® Momentum ETF partially mitigates risks associated with momentum investing. SPMO fund uses risk-adjusted momentum and focuses on higher volatility in bear markets to enhance returns.
