$SPMO vs. $SPY | Which ETF is Better?

In the financial world, ETFs like $SPMO (Invesco S&P 500 Momentum ETF) and $SPY (SPDR S&P 500 ETF Trust) are popular choices for diversifying investment portfolios and gaining exposure to broad market movements. Over the past five years, these ETFs have navigated through fluctuating market conditions, providing a rich dataset to analyze their performance during bull and bear markets.

$SPMO: A Closer Look at Momentum Investing $SPMO focuses on the momentum factor, targeting stocks within the S&P 500 that exhibit rising prices and strong performance trends. This strategy aims to capitalize on the continuation of existing market trends, which can be particularly effective in prolonged bull markets. Over the last five years, during periods of strong market growth, $SPMO has shown the ability to outperform the broader market by leveraging the sustained upward movements of its constituent stocks.

$SPMO 5 Year Performance 126% | Minimal Downside In 2022

$SPMO 5 Year Performance 79% | Moderate Downside In 2022

Evaluating Performance Across Market Cycles I believe $SPMO is the better ETF. It excels during bull markets and maintains its strength during bear markets. In my view, the S&P 500 contains numerous underperforming stocks that hinder the ETF's performance. Over the past two years, the top 10 holdings in the S&P have been sustaining the ETF.

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Disclosure The writer of this blog does not own shares in $SPMO and the content provided here is for informational, educational, and entertainment purposes only. This is not financial advice. Always conduct your own research or consult a financial advisor before making investment decisions.