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Why SPMO Stands Out in a Strong Momentum Year
['Zandile Chiwanza']
ETF Trends
The Invesco S&P 500 Momentum ETF (SPMO) has pulled in nearly $3.59 billion in net inflows over the past three months.
See More: Mind the Momentum ETFs: SPMO, MTUM Having Strong MonthHow SPMO WorksSPMO tracks the S&P 500 Momentum Index, which selects and weights stocks based on their risk-adjusted price momentum rather than market capitalization.
Unlike broader momentum strategies that draw from large- and midcap stocks, SPMO focuses exclusively on S&P 500 companies and weights holdings according to their momentum characteristics rather than their size.
Compared with the broader S&P 500, momentum has also delivered a stronger result.
While both ETFs seek to capture companies with strong price performance, SPMO focuses exclusively on S&P 500 companies and weights holdings based on momentum characteristics.