"SPMO does not beat the S&P 500 by picking different stocks. Every holding already lives in the index. The difference is which ones it picks and how much weight it gives them."
"The fund ranks all 500 companies by their 'momentum score,' a measure of how strongly a stock has been trending upward relative to peers over the prior 12 months."
"SPMO has a heavy tilt toward technology and financials. Information technology makes up about 33% of the portfolio, financials roughly 21%, and communication services around 14%."
"The top holdings tell the same story. Nvidia, Broadcom, and Meta together constitute ~18% of the fund. SPMO is a concentrated bet on the companies that have been winning."
The Invesco S&P 500 Momentum ETF (SPMO) has consistently delivered stronger returns than the SPDR S&P 500 ETF Trust (SPY) by selecting stocks based on momentum scores. SPMO includes only stocks from the S&P 500 but emphasizes those with the highest upward trends over the past year. The fund rebalances semi-annually, allowing it to adapt to market changes. Currently, SPMO is heavily weighted in technology and financial sectors, with top holdings like Nvidia, Broadcom, and Meta, reflecting its focus on high-performing companies.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]