The Invesco S&P 500 Momentum ETF (SPMO) returned 20.14% year-to-date, outperforming Vanguard S&P 500 ETF (VOO) at 8.71% and QQQ at 10.4%. SPMO remains invested within the S&P 500 but shifts weight toward names with the strongest price momentum while cutting laggards, producing substantially higher gains with drawdowns that match or beat the S&P 500. The fund's rebalancing behavior has tended to buy rising winners and sell laggards, amplifying returns. The ETF tracks the S&P 500 Momentum Index, which uses a 12-month lookback excluding the most recent month and rebalances semiannually.
A far less famous ETF has delivered 20.14% in gains year-to-date (~130% better than the VOO). This is even better than the 10.4% that the QQQ returned. The Invesco S&P 500 Momentum ETF (NYSEARCA:SPMO ) is the ETF in question. It still invests inside the S&P 500, but the index re-weights and puts extra money into the names with the strongest price momentum, cutting loose the laggards.
The ETF tracks the S&P 500 Momentum Index. The index uses sophisticated methodology, as it looks at the past year of price history and then excludes the most recent month to prevent it from chasing very short-term spikes. In turn, this lets it ride sustained momentum. Plus, it rebalances just twice per year on the third Fridays of March and September. This gives trends time to develop while avoiding the t
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