SPMO VS DWAS
4 min read
By Ron Koren, ETF Insider

SPMO VS DWAS

Exchange-Traded Funds (ETFs) have emerged as a powerful tool for investors seeking diversified exposure to various sectors and asset classes. In this article, we'll conduct a thorough comparison between two prominent ETFs: SPMO (Invesco S&P 500® Momentum ETF) and DWAS (Invesco DWA SmallCap Momentum ETF). We'll delve into critical aspects including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

SPMO Vs DWAS: Overview

SPMO and DWAS represent two distinct investment strategies that focus on capturing momentum within their respective markets. SPMO aims to track the performance of momentum stocks within the S&P 500 Index, while DWAS targets momentum-driven small-cap stocks. These differing investment focuses lead to unique exposure and risk profiles, which we'll explore further in the upcoming sections.

SPMO Vs DWAS: Sectors and Top Holdings

The SPMO ETF is centered around momentum stocks from various sectors within the S&P 500. Its top holdings include companies like Apple, Microsoft, and Amazon, which have demonstrated strong price trends. On the other hand, DWAS invests in small-cap stocks that exhibit positive price momentum, such as Zebra Technologies, Crocs, and Sleep Number. Evaluating the sectors and top holdings can aid investors in selecting the ETF that aligns with their investment objectives.

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SPMO Vs DWAS: Capitalization and Strategy

SPMO and DWAS differ in terms of their capitalization and investment strategies. SPMO has a substantial Asset Under Management (AUM), reflecting its popularity among investors seeking exposure to large-cap momentum stocks. DWAS, with its small-cap focus, pursues opportunities in smaller companies with strong momentum. The contrast in capitalization and strategy influences the potential returns and associated risks, demanding careful consideration from investors.

SPMO Vs DWAS: Tracking and Exposure

The tracking and exposure methods of SPMO and DWAS showcase their unique characteristics. SPMO closely follows the momentum stocks within the S&P 500 Index, providing investors exposure to well-established large-cap companies with strong momentum trends. DWAS, on the other hand, tracks an index of small-cap stocks exhibiting momentum, aiming to capture potential growth in this segment. Understanding the distinct tracking and exposure approaches assists investors in choosing the appropriate ETF for their investment goals.

Conclusion

SPMO and DWAS exemplify two compelling ETF options, each catering to specific investment strategies within the momentum space. For those seeking in-depth insights into holdings, correlations, overlaps, and other vital information, ETF Insider emerges as an indispensable tool. With its user-friendly app, ETF Insider empowers investors with comprehensive details about these financial instruments and more.

Disclaimer: This article does not offer investment advisory services.

Sources:
Invesco SPMO Fund Overview. Invesco. [Link]
Invesco DWAS Fund Overview. Invesco. [Link]
S&P 500 Index. S&P Dow Jones Indices. [Link]
Small-Cap Stocks and Investing. The Balance. [Link]

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FAQ

  • Why is SPMO better than DWAS?

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

  • Does DWAS beat SPMO?

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

  • Should I invest in SPMO or DWAS?

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

  • Are SPMO and DWAS good investments?

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

  • What is the correlation between SPMO and DWAS?

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