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.
Momentum ETF (SPMO) Hits New 52-Week High
Invesco S&P 500 Momentum ETF SPMO is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 35.9% from its 52-week low price of $76.75/share.
SPMO: A Portfolio Built On The Past, For An Uncertain Future
SPMO's latest rebalance increased exposure to Consumer Cyclical, Consumer Defensive, and Communication Services while reducing Healthcare. These are sectors that have reached statistically attractive relative valuations (multiples). In fact, the declines and subsequent pullback in SPMO have been more pronounced. I'm concerned about the low exposure to healthcare and the reduced participation in the tech segment compared to the S&P 500, currently the two sectors with the strongest growth outlooks.
SPMO: A Major March Rebalancing (Rating Downgrade)
SPMO's March rebalancing saw significant changes, adding TSLA and PLTR, while cutting BRK.B and LLY, with technology and financials still heavily weighted. The fund has outperformed in the last 3 years due to gains in Mag 7 and financials, but its first six years were unimpressive. Concerns arise from adding stocks like TSLA and PLTR, which show recent downward momentum, questioning the sustainability of SPMO's outperformance.
SPMO: Momentum Unwinding As Top Performers Face Largest Declines
The Invesco Momentum ETF, SPMO, has historically outperformed with a superior risk-reward profile but is now showing signs of underperformance. Momentum investing thrives in stable markets but struggles in choppy conditions, often leading to "buy high, sell low" scenarios during corrections. Stocks with the best performance from March 2024 to February generally performed worse over the past month, while 2024's underperformers were left unharmed.
Momentum ETF (SPMO) Hits New 52-Week High
S&P 500 Momentum Invesco ETF SPMO is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 48.5% from its 52-week low price of $66.52/share.
SPMO Holds S&P 500 Stocks While Overcoming 2025's Biggest Risk
SPMO is a momentum ETF on the S&P 500, with an expense ratio of 0.13%, a low dividend yield, and strong capital appreciation abilities. The S&P 500 has hit initial support, with over 70% of stocks below the EMA50 and RSI above 50, before bouncing. The S&P 500's P/E ratio is 30x, but declining earnings growth estimates put growth stocks at risk.
