XSMO: INVESCO S&P SMALLCAP MOMENTUM ETF
What this ETF is trying to do
The INVESCO S&P SMALLCAP MOMENTUM ETF (XSMO) is an exchange-traded fund designed to follow a specific strategy. It focuses on small-cap companies that show "momentum." In investing, momentum refers to the tendency of a stock's price to keep moving in its current direction. This ETF holds 116 different companies to carry out this strategy.
What the numbers show
The data shows that XSMO has experienced significant growth over different time periods. When looking at the share price alone (the price return), here is how it has performed:
• Year-to-Date (YTD) Price Return: Approximately 13.53%
• One-Year Price Return: Approximately 12.65%
• Three-Year Price Return: Approximately 70.15%
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 XSMO, the total returns are slightly higher than the price returns:
• YTD Total Return: Approximately 14.08%
• One-Year Total Return: Approximately 13.37%
• Three-Year Total Return: Approximately 73.74%
An estimated price from roughly one year ago was $72.57, compared to the current price of $81.75.
Income and distribution explanation
XSMO provides cash distributions to investors. The distribution yield is currently 0.63%. 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 made over the last 12 months.
While some investors look for high yields, it is important to remember that a distribution yield is not the same as total return.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). 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.
However, looking at price-based evidence, the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag.
Top Holdings
The following are the top holdings in the portfolio (note that this is a partial list):
• VIASAT INC (3.83%)
• FORMFACTOR INC (3.67%)
• VICTORIA'S SECRET & CO (2.82%)
• PROTAGONIST THERAPEUTICS INC (2.64%)
• MAXLINEAR INC (2.37%)
Holdings can change over time. This data was last updated on October 12, 2026.
Pros
• Strong historical price and total returns over the one-year and three-year periods.
• No detected price erosion based on the current erosion score.
Cons
• The distribution yield is relatively low (0.63%) compared to income-focused funds.
Beginner takeaway
XSMO is a momentum-based ETF that has seen strong price growth recently. While it pays quarterly distributions, its primary performance driver appears to be the increase in share price rather than high dividend income.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | VIASAT INC | VSAT | 3.83% |
| 2 | FORMFACTOR INC | FORM | 3.67% |
| 3 | VICTORIA'S SECRET & CO | VSXY | 2.82% |
| 4 | PROTAGONIST THERAPEUTICS INC | PTGX | 2.64% |
| 5 | MAXLINEAR INC | MXL | 2.37% |
| 6 | n/a | MSGS | 2.17% |
| 7 | LIGAND PHARMACEUTICALS INC | LGND | 1.91% |
| 8 | INTERNATIONAL SEAWAYS INC | INSW | 1.86% |
| 9 | GLAUKOS CORP | GKOS | 1.77% |
| 10 | PLEXUS CORP | PLXS | 1.76% |