Target high-performing large-cap stocks with strong price trends
The Invesco S&P 500 Momentum ETF (SPMO) focuses on the momentum factor by selecting stocks within the S&P 500 that have shown strong price performance. It’s ideal for investors looking to capitalize on market trends and outperform traditional index strategies.
📌 Table of Contents
✅ SPMO ETF Overview
🧠 Investment Strategy & Structure
💼 Top Holdings
📈 Performance Overview
🔍 Pros & Cons
✅ Conclusion
🏷️ Recommended Tags
1. ✅ SPMO ETF Overview
| ETF Name | Invesco S&P 500 Momentum ETF |
| Ticker | SPMO |
| Issuer | Invesco |
| Inception | October 9, 2015 |
| Expense Ratio | 0.13% |
| Index Tracked | S&P 500 Momentum Index |
| Theme | Momentum Investing / Large-cap Growth |
📌 A rules-based ETF that tracks the strongest price-performing names from the S&P 500.
2. 🧠 Investment Strategy & Structure
- SPMO tracks the S&P 500 Momentum Index, which selects 100 stocks from the S&P 500 with the highest 12-month risk-adjusted returns.
- The index is rebalanced semi-annually (June & December).
- It uses momentum signals such as trailing returns and volatility to rank and select stocks.
- Sector weightings may differ significantly from the broader S&P 500.
📌 A systematic approach to capture relative strength within the S&P 500.
3. 💼 Top Holdings (as of 2025)
| 1 | NVIDIA (NVDA) | 6.2% | Semiconductors |
| 2 | Meta Platforms | 5.9% | Communication Services |
| 3 | Eli Lilly (LLY) | 5.6% | Healthcare |
| 4 | Broadcom (AVGO) | 5.1% | Semiconductors |
| 5 | Amazon (AMZN) | 4.7% | Consumer Discretionary |
| 6 | Microsoft (MSFT) | 4.5% | Technology |
| 7 | Tesla (TSLA) | 4.3% | Automotive/Tech |
| 8 | Alphabet (GOOGL) | 4.1% | Communication Services |
| 9 | Netflix (NFLX) | 3.9% | Entertainment |
| 10 | Apple (AAPL) | 3.7% | Technology |
📌 The holdings are momentum leaders, with a heavy tilt toward tech and healthcare.
4. 📈 Performance Overview
| YTD (2025) | +18.3% |
| 1-Year | +28.1% |
| 3-Year Avg. | +17.4% |
| 5-Year Avg. | +14.2% |
| Since Inception | ~13.5% |
📌 SPMO has consistently outperformed the S&P 500 during momentum-driven bull markets.
5. 🔍 Pros & Cons
| Captures high-performing trends within the S&P 500 | Can underperform in sideways or value-led markets |
| Low expense ratio (0.13%) | Higher portfolio turnover due to semi-annual rebalancing |
| Exposure to tech, healthcare, and growth sectors | Momentum reversals can trigger short-term drawdowns |
| Historically strong relative performance | Limited diversification across all sectors |
6. ✅ Conclusion
The SPMO ETF is an excellent option for investors seeking to harness market momentum within the S&P 500. Its systematic selection of top performers helps boost potential returns during trending markets.
If you believe that “winners keep winning”, then SPMO may be the perfect ETF to complement your growth strategy.