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One S&P 500-based ETF has quietly been outpacing both the SPY and the QQQ year after year, and the structural reason behind its edge suggests the run is far from over.
The Invesco S&P 500 Momentum ETF has posted an average annualized return of 37% over the past three years. It is one ETF to buy now in 2026 and hold for the long term.
A simple two-factor portfolio could be all you need to outperform the S&P 500. One outperforms in bull markets, the other outperforms in market downturns.
This ETF blows away the Vanguard S&P 500 ETF.
Invesco Dorsey Wright Momentum ETF is initiated at Hold due to persistent underperformance versus SPMO and MTUM across return, valuation, and factor metrics. PDP's diversified weighting and lower technology sector exposure limit its ability to capture high-momentum gains seen in peers with more concentrated strategies. The ETF trades at a premium valuation (trailing P/E 34.7, forward P/E 29.5) and carries a higher expense ratio (0.62%) and lower liquidity than competitors.
I'm maintaining my buy on SPMO. I'm bullish through year-end and still see the S&P 500 at or above 8,500, with the fund's own earnings growth carrying it. SPMO's look-through forward P/E of 17.3x reads cheaper than SPY's 20.2x. Strip Micron, and it jumps to 21.7x. Strip the memory names, and it hits 22.7x. Micron is roughly 10% of the fund and sits mid-supercycle. That one weight drags the portfolio multiple down and pulls the earnings growth line up.
The week ended August 14 saw readers on ETF Database and ETF Trends turn mainly to stories focused on thematic ETFs, all of which involved ETFs addressing concerns that are top of mind for investors at the moment.
Micron Technology Inc (NASDAQ:MU) is back above the $1,000 mark, extending a 2026 rally that has made the memory-chip stock one of the market's hottest AI trades, keeping its leveraged ETF counterparts firmly in the spotlight.