SPMO: INVESCO S&P 500 MOMENTUM ETF
What this ETF is trying to do
The INVESCO S&P 500 MOMENTUM ETF (ticker: SPMO) is designed to follow a specific strategy. It focuses on "momentum," which generally means looking for stocks within the S&P 500 that have shown strong price movement. This ETF is not a leveraged or inverse fund, meaning it does not use borrowed money to multiply returns or bet against the market.
What the numbers show
The data shows that SPMO has experienced significant growth over various timeframes. When looking at the share price alone (the price return), here is how it has performed:
• Year-to-Date (YTD) Price Return: Approximately 28.22%
• One-Year Price Return: Approximately 27.06%
• Three-Year Price Return: Approximately 164.14%
It is important to distinguish between price return and total return. Price return only tracks the change in the share price. Total return includes both the price change and any cash distributions paid out to investors. For SPMO, the total returns are slightly higher than the price returns:
• YTD Total Return: Approximately 28.98%
• One-Year Total Return: Approximately 28.12%
• Three-Year Total Return: Approximately 169.85%
Based on an estimated price from roughly one year ago of $120.41, the current price of $152.99 reflects a strong upward trend.
Income and distribution explanation
SPMO provides some cash income through distributions. The distribution yield is approximately 0.72%. This number describes the cash paid out relative to the ETF's price. The fund usually pays these distributions on a quarterly basis, with 4 payments recorded over the last 12 months.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes look like erosion, they are different things.
For SPMO, the erosion-risk score is 100, which is labeled as "No price erosion detected," and the erosion severity is rated as "good." There is no severe erosion-risk flag present. The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
Top Holdings
The following are the top holdings in the portfolio (note that this is a partial list):
• Micron Technology Inc (9.52%)
• Apple Inc (8.91%)
• Advanced Micro Devices Inc (5.60%)
• Intel Corp (5.36%)
• Alphabet Inc Class A (4.77%)
• Johnson & Johnson (4.56%)
• Alphabet Inc Class C (3.84%)
Holdings can change over time.
Pros
• Strong historical price and total returns.
• No detected price erosion based on the provided score.
Cons
• The distribution yield is relatively low (0.72%), which may not meet the needs of investors seeking high immediate income.
Beginner takeaway
SPMO is an ETF that has shown strong price growth and total returns over the last year and three years. While it pays a small amount of regular income, its main characteristic is the movement in its share price.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | MICRON TECHNOLOGY INC | MU | 9.52% |
| 2 | APPLE INC | AAPL | 8.91% |
| 3 | ADVANCED MICRO DEVICES INC | AMD | 5.60% |
| 4 | INTEL CORP | INTC | 5.36% |
| 5 | ALPHABET INC CLASS A | GOOGL | 4.77% |
| 6 | JOHNSON & JOHNSON | JNJ | 4.56% |
| 7 | ALPHABET INC CLASS C | GOOG | 3.84% |
| 8 | EXXONMOBIL HOLDINGS CORP | XOM | 3.02% |
| 9 | LAM RESEARCH CORP | LRCX | 2.95% |
| 10 | APPLIED MATERIALS INC | AMAT | 2.78% |