Invesco S&P 500 Momentum ETF (SPMO)
ARCA ARCA Primary 
XBER 
Momentum ETFs: SPMO Is The Superior Fund Over MTUM
The Invesco S&P 500 Momentum ETF is rated a buy, while the iShares MSCI USA Momentum Factor ETF receives a hold rating. SPMO offers stronger upside potential, superior risk-adjusted returns, and lower costs due to its high-conviction, semi-annual rebalancing strategy. MTUM's higher turnover and quarterly rebalancing provide flexibility but result in lower performance and similar or higher volatility compared to SPMO.
SPMO: Some Small But Important Changes With Recent Rebalancing
The Invesco S&P 500 Momentum ETF is reiterated as a strong buy for its proven momentum-based strategy and consistent outperformance. SPMO's recent rebalancing increased technology exposure and reduced underperforming consumer defensive holdings, enhancing its sector allocation for current market conditions. SPMO delivered a 35.57% return over the past year, nearly doubling the S&P 500's 18.21%, showcasing its effectiveness in volatile markets.
SPMO: September Reconstitution Brings A Fresh But Familiar Momentum Mix
Invesco S&P 500® Momentum ETF's Index reconstituted on Friday, substituting 40 securities and 34% of the portfolio by weight. Key changes involved Oracle, Visa, Amazon, Tesla, and Costco Wholesale. Tech sector exposure increased to 34%, while Consumer Discretionary exposure fell by 11%. Overall, SPMO is now less diversified than before at the sector level. However, overlap with this benchmark remains low at 32%, and SPMO still has many other great things going for it, including robust quality and surprisingly excellent GARP statistics.
How To Use SPMO To Reduce Risk And Increase Portfolio Return
Relying on the backtest, SPMO generates alpha compared to the S&P 500 or other factor-based ETFs. The time-sensitive structure of SPMO mitigates the overcrowded risk, but hardly calms downturns, and fuels volatility. Personally, I deal with uncertainty with a multifactor approach, built first on quality, then on momentum.
S&P 500's Record Streak Boosts High Beta, Momentum ETFs
SPY's five-day record streak has powered high-beta and momentum ETFs like SPMO, SPHB, MTUM and JMOM.
SPMO's Portfolio Offers Hefty Gains In The Second Half And 2026
I rate the Invesco S&P 500 Momentum ETF a buy, as its portfolio is well-aligned with current and future market trends. Momentum investing is supported by strong earnings growth, AI-driven optimism, economic stability, and potential rate cuts, fueling a sustained market uptrend. SPMO's diversified, high-momentum holdings across sectors, exceptional performance, and low expense ratio make it a compelling choice for both short- and long-term gains.
SPMO: Can This Top-Performing Momentum ETF Keep Up The Pace?
SPMO has easily been the top-performing large-cap momentum ETF over the last three years. Key benefits are a straightforward approach and a low 0.13% expense ratio. Its Index selects the top 100 S&P 500 stocks based on one-year price returns, and its weighting scheme gives preference to larger and likely more profitable stocks, thereby boosting quality. SPMO also currently has excellent exposure to the growth factor, though that's far from guaranteed. Certain top contributors like Nvidia, Amazon, and Meta Platforms might be deleted in September.
VIDEO: ETF of the Week: SPMO
On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research Todd Rosenbluth discussed the Invesco S&P 500 Momentum ETF (SPMO) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF overall.
SPMO's Sweet Spot: Bull Euphoria And Tactical Momentum
Invesco S&P 500 Momentum ETF excels in momentum-driven bull markets, rewarding sustained performance and offering unique exposure beyond mega caps due to its methodology. The ETF's semi-annual rebalancing can lead to sharper drawdowns and lag in rapidly changing markets, making it less suited for volatile or choppy periods. Recent outperformance in 2024 signals a mature bull run; future upside is likely more muted as style rotation favors value and defensives over pure momentum.
ETF of the Week: Invesco S&P 500 Momentum ETF (SPMO)
VettaFi's Head of Research Todd Rosenbluth discussed the Invesco S&P 500 Momentum ETF (SPMO) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and strategy, visit the ETF Education Channel.
SPMO: Trust The Process
SPMO has recovered to new all-time highs and continues to outperform. Its methodology is relatively simple, but very effective. Momentum stocks often look unattractive because of valuations, or the amount of gains they have already pasted. Investors struggle with 'buying high.'
SPMO: Don't Chase Momentum Now
Momentum has outperformed recently, but its run appears overextended and concentrated in a few mega-cap stocks, increasing risk. Valuations for SPMO and the market-cap S&P 500 are elevated, while equal-weighted alternatives look more reasonably priced. Macroeconomic uncertainty and potential inflation from tariffs favor a rotation into defensive sectors like healthcare and value-oriented strategies.
