⚖️ SPMO vs SPY Comparison · Free & No Signup

SPMO vs SPY: A Momentum Bet Wearing an S&P 500 Costume

Both funds draw from the same 503 stocks. SPY owns all of them at market weight. SPMO keeps only the 100 with the strongest recent price momentum and reloads twice a year. Same universe, very different bet.

💰 SPY is cheaper 🔬 Compare top 10 holdings → 💡 Plain-English verdict
🤝 BFF Take
SPMO Is a Concentrated Momentum Strategy, Not an S&P 500 Replacement

SPY (SPDR S&P 500 ETF Trust) owns the whole index at 0.0945% and is the default core holding for a reason. SPMO (Invesco S&P 500 Momentum ETF) screens the same index down to the roughly 100 stocks with the strongest 12-month price momentum, rebalancing twice a year. That filter produced a three-year annualized return near 19% versus roughly 10% for SPY, which is why SPMO grew past $20B in assets. The trade-off is structural: momentum funds are always positioned in whatever just led, so they ride winners up and hold them through the first leg down until the next rebalance. SPMO is more concentrated (top-10 weight runs far higher than SPY), more volatile, and more expensive at 0.13%. SPY is the core; SPMO is a deliberate factor tilt sized accordingly.

📋 Quick Takeaways
🚀SPMO returned roughly 19% annualized over three years vs about 10% for SPY, a huge run for a rules-based fund
🎯SPMO holds only ~100 of the S&P 500's 503 stocks, so it is a concentrated momentum bet, not broad-market exposure
Semi-annual rebalancing means SPMO is structurally late to turns: it holds last cycle's winners through the first leg down
📊 Data-Based Take: SPY has the lower fee

Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.

Both funds trade commission-free at every major brokerage. How the major brokerages compare →

Reviewed by a CFA® Charterholder · Data as of Aug 1, 2026 · Educational only, not financial advice
SPMO
Invesco S&P 500 Momentum ETF
Expense Ratio
0.13%
1-Year Return
+26.7%
AUM
$22.2B
Holdings
100
SPY
State Street SPDR S&P 500 ETF Trust
Expense Ratio
0.09% ✓
1-Year Return
+19.3%
AUM
$781.2B
Holdings
503

📋 SPMO vs SPY — Key Facts Side by Side

Metric SPMO SPY
Fund Name Invesco S&P 500 Momentum ETF State Street SPDR S&P 500 ETF Trust
Issuer Invesco State Street
Tracks Index S&P 500 Momentum S&P 500
Expense Ratio 0.13% 0.09% ✓
Cost per $10K/yr $13.00 $9.45
AUM $22.2B $781.2B
Holdings 100 503
Inception 2015 1993
1-Year Return +26.66% +19.30%
3-Year Return +37.36% +18.99%
5-Year Return +20.13% +12.60%
Dividend Yield 0.65% 1.01%
Holdings Overlap See holdings overlap →
Avg Bid-Ask Spread 0.03% 0.01%

Expense ratio, AUM, and returns updated Aug 1, 2026 from ETF BFF database. Returns are annualised. Not investment advice.

📊 SPMO vs SPY — Annualised Returns

Annualised returns (trailing, price-based). Past performance does not guarantee future results.

🎯 Which Fund Fits Which Investor?

Often fits investors who...
SPMO
  • want focused large-cap US stock exposure via S&P 500 Momentum
  • already use Invesco and prefer staying within one fund family
Often fits investors who...
SPY
  • want the lowest fees: saves ~$4/yr per $10K vs SPMO
  • want broader diversification (503 holdings vs 100)
  • want focused large-cap US stock exposure via S&P 500

💰 What the Fee Difference Actually Costs

Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.

Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.

⚙️ Want the Full Interactive Comparison?

Side-by-side holdings overlap, sector breakdown, and live performance tabs, all in one place.

Run Full SPMO vs SPY Comparison → Free · No signup · Instant results
📧 Free Weekly Newsletter

Get smarter about ETFs — one concept a week, free forever

The ETF BFF newsletter breaks down one ETF concept per week — clear, jargon-free, and actually useful.

Reviewed by a CFA® charterholder · No spam · Unsubscribe anytime

✅ You're in! Check your inbox for your first issue.

❓ SPMO vs SPY — Frequently Asked Questions

SPY holds all 503 stocks in the S&P 500 at market-cap weight for 0.0945%. SPMO starts from the same index but keeps only the roughly 100 stocks with the strongest 12-month price momentum, weighted by momentum score times market cap, and rebalances twice a year at 0.13%. SPY is broad-market exposure; SPMO is a concentrated momentum factor strategy built from the same universe.
SPMO's momentum screen kept it loaded with the market's strongest leaders during a period when those leaders kept leading, producing roughly 19% annualized over three years versus about 10% for SPY. That is what momentum does in a trending market. The same design works in reverse when leadership rotates: the fund holds fallen leaders until its next semi-annual rebalance. Past performance does not guarantee future results.
Yes, by construction. SPMO holds about a fifth as many stocks, carries much heavier top-10 concentration, and its momentum weighting amplifies whatever the market currently favors. In a sharp leadership rotation, momentum strategies have historically drawn down harder than the broad index before their next rebalance catches up. SPY's 503-stock market-cap weighting spreads that risk.
They answer different questions. SPY (or the cheaper VOO and IVV) is designed to be the whole-market core of a portfolio. SPMO is a factor tilt: a deliberate, concentrated bet that recent winners keep winning. Investors who use momentum funds typically size them as a satellite alongside a broad core rather than in place of one, because the strategy's drawdowns arrive exactly when its holdings are most crowded.
Both are momentum ETFs. SPMO screens only S&P 500 stocks and charges 0.13%; MTUM screens the broader MSCI USA index, holds about 125 names, and charges 0.15%. SPMO's S&P-only universe has kept it more concentrated in mega-cap leaders, which helped it outperform MTUM in recent years. MTUM's wider universe includes mid-caps that SPMO never touches.

New to ETF investing? See answers to the most common ETF questions →

📄 SPMO & SPY Fact Sheets

SPMO Fact Sheet SPY Fact Sheet
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.