The Invesco S&P 500 Momentum ETF (SPMO) delivered a 137.81 percent cumulative return over the last five years—a 67 percentage point advantage over the S&P 500's 70.27 percent return. On an annualized basis, SPMO returned 19.7 percent versus 12.8 percent for the S&P 500 Total Return Index through August 31. A $100,000 investment in SPMO would have grown to roughly $246,000; the same bet on the broad index would reach about $183,000.
The outperformance is momentum-driven strategy at work. SPMO tracks the S&P 500 Momentum Index, which selects approximately 100 stocks from the S&P 500 based on strongest momentum scores. The index reconstitutes in March and September. Holdings are weighted by both market capitalization and momentum, allowing the fund to overweight large-cap leaders with strong price trends.
The fund's 0.13 percent expense ratio costs roughly $13 annually per $10,000 invested—negligible drag for the performance edge delivered.
SPMO's portfolio diverges sharply from traditional large-cap indexing. Technology stocks comprise 54 percent of assets. The fund holds concentrated positions in semiconductors and semiconductor equipment: Micron Technology (11 percent of assets), Nvidia (9 percent) and Broadcom (6 percent-plus). Other significant holdings include AMD, Johnson & Johnson, Alphabet and Lam Research. The top 10 stocks represent just over half the portfolio.
The edge extends across multiple timeframes. Over three years, SPMO returned 37.3 percent annualized versus 21.0 percent for the S&P 500. Year-to-date through August 2026, SPMO is up 23.8 percent against the index's 13.1 percent gain.
Momentum strategies have delivered historically, but outperformance is not assured. Reversion risk exists—crowded winners eventually stumble, and the fund's semi-annual rebalancing locks in gains and buys weakness, a discipline that cuts both ways.
