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SPMO - ETF AI Analysis

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SPMO

Invesco S&P 500 Momentum ETF (SPMO)

Rating:75Outperform
Price Target:
SPMO, the Invesco S&P 500 Momentum ETF, earns a solid overall rating largely because it is heavily invested in leading AI and technology names like Micron and Alphabet, which show strong financial performance, positive earnings sentiment, and strategic positioning in fast-growing AI and cloud markets. Other major holdings such as Nvidia, Broadcom, and Lam Research further support the rating with robust growth tied to AI semiconductors, though their high valuations and some bearish or mixed technical signals introduce risk. The main risk factor is the fund’s concentration in momentum-driven tech and AI-related stocks, which can increase volatility, while weaker holdings like SanDisk with operational and profitability challenges slightly hold back the overall score.
Positive Factors
Strong Momentum Leaders in Top Holdings
Many of the largest positions, especially in chipmakers and big tech names, have shown strong gains this year, helping drive the fund’s overall performance.
Solid Year-to-Date Performance
The ETF’s returns so far this year have been strong, indicating that its momentum strategy has recently worked well for investors.
Low Expense Ratio
The fund charges a relatively low annual fee, which helps investors keep more of their returns over time.
Negative Factors
Heavy Concentration in a Few Stocks
A small number of companies make up a large share of the portfolio, which increases the impact if any of these holdings stumble.
High Exposure to Technology
Nearly half of the fund is invested in technology stocks, so a downturn in this sector could significantly hurt performance.
Limited Geographic Diversification
The ETF is almost entirely invested in U.S. companies, offering little protection if the U.S. market faces a broad decline.

SPMO vs. SPDR S&P 500 ETF (SPY)

SPMO Summary

SPMO is the Invesco S&P 500 Momentum ETF, which follows the S&P 500 Momentum Index. It focuses on large U.S. companies whose stock prices have been rising strongly, especially in technology. Well-known holdings include Nvidia, Alphabet (Google), Johnson & Johnson, and Exxon Mobil. Investors might consider SPMO if they want growth potential from leading U.S. companies that are currently performing well, while still getting broad diversification across many sectors. A key risk is that momentum stocks can fall quickly if trends reverse, and the fund can go up and down sharply with the overall stock market.
How much will it cost me?The Invesco S&P 500 Momentum ETF (SPMO) has an expense ratio of 0.13%, which means you’ll pay $1.30 per year for every $1,000 invested. This is lower than average for ETFs because it is passively managed, tracking the S&P 500 Momentum Index rather than relying on active stock picking.
What would affect this ETF?The Invesco S&P 500 Momentum ETF (SPMO) could benefit from continued growth in the technology sector, which makes up a significant portion of its holdings, as well as strong performance from top companies like Nvidia and Meta Platforms. However, rising interest rates or economic slowdowns may negatively impact high-growth sectors like technology and communication services, and broader market volatility could affect the ETF's momentum-driven strategy. Regulatory changes targeting large-cap companies or specific sectors could also pose risks.

SPMO Top 10 Holdings

SPMO is riding a powerful U.S. tech wave, with chip makers like Micron and Nvidia doing most of the heavy lifting as their AI-focused momentum keeps pushing higher. Lam Research and AMD add more fuel to this semiconductor engine, though AMD’s recent stretch has been a bit more mixed. Broadcom has lost some steam lately, softening the overall tech punch. Outside tech, steady gains from Johnson & Johnson and Exxon Mobil help balance the ride, but this is still very much a U.S.-centric, AI-and-chip-driven story.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Micron10.93%$2.48B$1.16T549.14%
79
Outperform
Nvidia8.87%$2.01B$5.39T22.80%
76
Outperform
Broadcom6.23%$1.41B$1.73T0.33%
76
Outperform
Johnson & Johnson4.60%$1.04B$643.64B49.22%
78
Outperform
Alphabet Class A4.34%$983.57M$4.03T38.37%
85
Outperform
Advanced Micro Devices4.20%$951.87M$850.67B217.59%
73
Outperform
Alphabet Class C3.45%$781.22M$4.03T37.22%
82
Outperform
Lam Research3.36%$761.82M$395.22B157.84%
77
Outperform
Exxon Mobil3.22%$729.77M$675.30B47.34%
74
Outperform
Intel2.69%$609.22M$561.60B307.64%
64
Neutral

SPMO Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
148.46
Negative
100DMA
147.19
Positive
200DMA
132.90
Positive
Market Momentum
MACD
-0.07
Negative
RSI
49.57
Neutral
STOCH
58.61
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SPMO, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 148.70, equal to the 50-day MA of 148.46, and equal to the 200-day MA of 132.90, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 49.57 is Neutral, neither overbought nor oversold. The STOCH value of 58.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SPMO.

SPMO Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$22.53B0.13%
75
Outperform
$1.07T0.03%
74
Outperform
$825.55B0.03%
74
Outperform
$803.98B0.09%
74
Outperform
$483.03B0.18%
74
Outperform
$162.12B0.02%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SPMO
Invesco S&P 500 Momentum ETF
148.31
28.19
23.47%
VOO
Vanguard S&P 500 ETF
IVV
iShares Core S&P 500 ETF
SPY
SPDR S&P 500 ETF Trust
QQQ
Invesco QQQ Trust
SPYM
State Street SPDR Portfolio S&P 500 ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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