Why is MTUM better than SPMO?

MTUM may be considered better than SPMO for some investors due to its specific focus, offering diversification.

SPMO's performance relative to MTUM will vary over time, depending on market conditions.

Should I invest in MTUM or SPMO?

The choice between MTUM and SPMO should align with your investment goals, risk tolerance, and desired exposure.

Are MTUM and SPMO good investments?

Both MTUM and SPMO can be suitable investments depending on individual investment strategies, goals, and risk profiles.

What is the correlation between MTUM and SPMO?

The correlation between MTUM and SPMO can vary over time, reflecting differences in performance.

3 min read

By Beqa Bumbeishvili, ETF Insider

MTUM Vs SPMO: Sectors and Top Holdings

Exchange-Traded Funds (ETFs) have rapidly become the go-to investment vehicles, providing investors with diversified exposure to various sectors and asset classes. In this article, we will delve into a comprehensive comparison between two prominent ETFs: MTUM (iShares MSCI USA Momentum Factor ETF) and SPMO (Invesco S&P 500 Momentum ETF). We'll take a closer look at their ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategies, tracking methods, and exposure.

MTUM Vs SPMO: Overview

MTUM and SPMO are two ETFs that focus on capturing the momentum factor within the stock market. While MTUM tracks a wide range of US stocks with strong price momentum, SPMO specifically targets momentum within the S&P 500 index. Understanding their different approaches to momentum investing is crucial for investors aiming to capitalize on market trends.

MTUM Vs SPMO: Sectors and Top Holdings

The MTUM ETF covers sectors like technology, consumer discretionary, and communication services, with top holdings including companies like Apple, Microsoft, and Amazon. On the other hand, SPMO concentrates solely on the momentum stocks within the S&P 500 index, which may lead to different sector exposures and diversification benefits.

MTUM overlap MTUM VS SPMO

MTUM Vs SPMO: Capitalization and Strategy

MTUM boasts a substantial asset under management (AUM), reflecting its popularity among investors seeking to benefit from momentum investing. Its strategy involves selecting and weighting stocks based on their price momentum characteristics. SPMO, while more narrowly focused on the S&P 500 index, also aims to capture the momentum factor by investing in companies with recent strong performance.

MTUM Vs SPMO: Tracking and Exposure

MTUM's objective is to provide exposure to high-momentum US stocks, offering investors the potential for enhanced returns during periods of market momentum. SPMO, being tied to the S&P 500 index, offers a more concentrated exposure to momentum stocks within the largest US companies. Understanding the nuances of their tracking and exposure methodologies is crucial for investors seeking to align their portfolios with their investment strategies.

Conclusion

MTUM and SPMO are distinct ETFs that cater to investors interested in capitalizing on momentum trends within the stock market. For those looking to gain insights into the holdings, correlations, overlaps, and other relevant data, ETF Insider stands as the ultimate tool. With its user-friendly app, ETF Insider offers a wealth of information on various financial instruments, empowering investors to make informed decisions.

Disclaimer: This article does not provide any investment advisory services.

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FAQ

Why is MTUM better than SPMO?
MTUM may be considered better than SPMO for some investors due to its specific focus, offering diversification.
Does SPMO beat MTUM?
SPMO's performance relative to MTUM will vary over time, depending on market conditions.
Should I invest in MTUM or SPMO?
The choice between MTUM and SPMO should align with your investment goals, risk tolerance, and desired exposure.
Are MTUM and SPMO good investments?
Both MTUM and SPMO can be suitable investments depending on individual investment strategies, goals, and risk profiles.
What is the correlation between MTUM and SPMO?
The correlation between MTUM and SPMO can vary over time, reflecting differences in performance.