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It shouldn't be possible to outperform the S&P 500 time and time again without getting hit by downturns as hard.
Alpha Zero LLC grew its position in shares of Invesco S&P 500 Momentum ETF (NYSEARCA:SPMO) by 6.4% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 95,683 shares of the company's stock after purchasing an additional 5,789 shares during
Millions of investors default to the same S&P 500 fund without realizing a rules-based cousin, built from the exact same stock universe and costing pennies more, has been running circles around it in 2026. The gap is large enough to change how you think about your core equity position.
Invesco S&P 500 Momentum ETF is rated BUY for its rules-based exposure to leading momentum stocks. SPMO systematically targets S&P 500 companies with the strongest risk-adjusted momentum, resulting in a concentrated, tech-heavy portfolio. The ETF has outperformed the S&P 500 significantly but carries higher volatility and tracking error, making it best suited as a satellite allocation.
Invesco S&P 500 Momentum ETF is rated a buy, offering a cost-efficient, momentum-driven alternative to traditional S&P 500 ETFs. SPMO's concentrated technology exposure leverages AI-driven growth but also introduces higher volatility and downside risk during sector rotations or market declines. Twice-yearly rebalancing enables SPMO to dynamically capture shifting market momentum, potentially outperforming SPY and VOO during sustained rallies.
It's one thing to gather momentum and another to maintain it. The S&P 500 Momentum has effectively done both, gaining 7.5% during the month of June while maintaining a 44.4% gain that led all S&P factor-based equity exposure during the full second quarter.
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The S&P 500 remains resilient in 2026 on AI-led earnings strength, but elevated valuations and geopolitical risks warrant caution.