SPMO VS FDMO

Exchange-Traded Funds (ETFs) have transformed the investment landscape by providing investors with an efficient way to diversify their portfolios across various sectors and asset classes. In this article, we will delve into a thorough comparison of two prominent ETFs: SPMO (S&P 500 Momentum Portfolio) and FDMO (Fidelity Momentum Factor ETF). Through a detailed exploration of ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure, we aim to shed light on the unique characteristics of these funds.

SPMO Vs FDMO: Overview

SPMO and FDMO are two distinct ETFs that cater to investors seeking exposure to momentum-based strategies. While both ETFs focus on identifying and capitalizing on stocks with strong recent performance, they do so through different approaches. SPMO tracks the S&P 500 Momentum Index, while FDMO follows an index of U.S. large-cap stocks demonstrating momentum characteristics. This difference in methodology leads to variations in portfolio composition and risk exposure, which we will delve into further.

SPMO Vs FDMO: Sectors and Top Holdings

SPMO's sector exposure mirrors that of the S&P 500 Index, capturing various industries such as technology, healthcare, finance, and consumer discretionary. On the other hand, FDMO's sector allocation is influenced by its momentum-focused selection process, potentially resulting in a tilt towards sectors exhibiting recent strong performance. Diving into their top holdings, SPMO might include companies like Apple, Microsoft, and Amazon, while FDMO could feature stocks that have shown momentum growth recently. Understanding these sectors and holdings aids investors in aligning their portfolios with their investment goals.

SPMO overlap SPMO VS FDMO

SPMO Vs FDMO: Capitalization and Strategy

Capitalization and strategy play pivotal roles in determining the risk and potential returns of an ETF. SPMO's significant asset under management (AUM) suggests its popularity among investors seeking momentum exposure within the S&P 500 universe. FDMO employs a strategy rooted in the momentum factor, seeking to capture stocks with upward price trends. The divergence in capitalization and strategy between the two ETFs results in differing risk-return profiles, emphasizing the importance of thorough analysis before making investment decisions.

SPMO Vs FDMO: Tracking and Exposure

Tracking and exposure mechanisms are crucial aspects to consider when evaluating ETFs. SPMO tracks an index designed to measure momentum within the S&P 500, ensuring investors can participate in the potential upside of recent winners. FDMO, meanwhile, employs its proprietary momentum factor methodology to create a portfolio of U.S. large-cap stocks demonstrating positive momentum. The dissimilar tracking methodologies of these ETFs highlight their distinct approaches to capturing momentum, making it vital for investors to choose the strategy that aligns with their preferences.

Conclusion

SPMO and FDMO provide investors with specialized avenues for harnessing the power of momentum in their portfolios. To gain a comprehensive understanding of the holdings, correlations, overlaps, and other insights, investors can turn to ETF insider—an intuitive app designed to facilitate in-depth exploration of financial instruments. This user-friendly tool equips investors with the insights needed to make informed decisions within the dynamic world of ETFs and financial markets.

Disclaimer: This article is intended for informational purposes only and does not offer investment advisory services. Investors should conduct their research and consult with financial professionals before making investment decisions.

Sources:

FDMO quote and analysis

Discover the top holdings, correlations, and overlaps of ETFs using our visualization tool.
Our app allows you to build and track your portfolio.
To learn more about the FDMO Fidelity Momentum Factor ETF, access our dedicated page now.

Get started