A Deep Dive into the Invesco S&P 500 Momentum ETF’s Focused Strategy
16.01.2026 - 20:53:11
The Invesco S&P 500 Momentum ETF (SPMO) employs a high-conviction approach, concentrating its assets in equities demonstrating the strongest price momentum. This results in a portfolio with significant weight in a select group of holdings. As of January 13, 2026, the fund’s ten largest positions accounted for a substantial 52.24% of its total assets. This raises a key consideration for investors: does this concentrated bundling offer a strategic advantage?
Reflecting its underlying index methodology, which assigns higher weights to S&P 500 constituents with the strongest momentum scores, SPMO exhibits a pronounced tilt toward technology and growth-oriented sectors. The sector allocation is led by Technology at 34.05%, followed by Financials (21.44%), Communication Services (13.80%), and Industrials (10.78%). The fund uses a full replication strategy to track its benchmark and distributes dividends on a quarterly basis.
Key Holdings (as of 13.01.2026):
* Broadcom Inc.: 9.76%
* NVIDIA Corp.: 9.25%
* Meta Platforms Inc.: 7.80%
* JPMorgan Chase & Co.: 5.28%
* Palantir Technologies Inc.: 4.58%
* Netflix Inc.: 3.55%
* Walmart Inc.: 3.51%
* Visa Inc.: 3.21%
* Oracle Corp.: 2.47%
* GE Aerospace: 2.47%
The fund held 101 securities in total on that date.
Recent Performance and Trading Metrics
SPMO’s performance has been mixed across shorter time horizons but delivered robust full-year returns. Recent figures show a one-week change of -0.05%, a one-month gain of 1.07%, and a three-month movement of -0.07%. Year-to-date performance as of January 16, 2026, stood at +0.25%. For the entire 2025 calendar year, the ETF posted a strong net asset value (NAV) return of +26.68%.
Trading liquidity appears solid, with average daily volume of approximately 1.99 million shares. The fund typically trades close to its net asset value, evidenced by a current premium/discount value of -0.01%. Its tracking error measures 9.42% over three years and 8.76% over five years.
Competitive Landscape and Strategic Considerations
When compared to relevant peer funds, SPMO distinguishes itself through its narrower, momentum-driven selection process.
| Metric | Invesco S&P 500 Momentum ETF (SPMO) | iShares MSCI USA Momentum Factor ETF (MTUM) | iShares Core S&P 500 ETF (IVV) |
|---|---|---|---|
| Expense Ratio | 0.13% | 0.15% | 0.03% |
| Assets Under Management (AUM) | ~$13.72 billion | ~$21.19 billion | ~$770.44 billion |
| 2025 1-Year Performance | +26.68% | +22.15% | +17.22% |
In 2025, SPMO’s strategy of aggressively weighting the highest-momentum stocks allowed it to outperform both the MTUM momentum ETF and the broad S&P 500, as represented by IVV. Persistent strength in technology and communication services—particularly in stocks linked to artificial intelligence—has provided a favorable backdrop for momentum investing.
However, this strategy carries inherent considerations. Momentum stocks often trade at higher valuations (elevated P/E ratios), which can increase the strategy's vulnerability to shifts in market trends. A key, scheduled event for the fund is its semi-annual index rebalancing, which occurs on the third Friday of March and September. The upcoming March rebalancing will be crucial in determining whether the current heavy weighting in semiconductor and AI-adjacent names will be maintained or altered.
Ad
Invesco S&P 500® Momentum ETF Stock: Buy or Sell?! New Invesco S&P 500® Momentum ETF Analysis from January 16 delivers the answer:
The latest Invesco S&P 500® Momentum ETF figures speak for themselves: Urgent action needed for Invesco S&P 500® Momentum ETF investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from January 16.
Invesco S&P 500® Momentum ETF: Buy or sell? Read more here...
