In the one-year period ended June 2025, the S&P 500 Momentum Index rose 30%, essentially double the gain of the S&P 500. Momentum was the best-performing factor of the widely tracked benchmark, ahead of growth, free cash flow, and even high beta slices. The trend was investors' friend, and this has persisted into the third quarter.
The Invesco S&P 500 Momentum ETF (SPMO) tracks the S&P 500 factor index. The $10.5 billion fund has more than doubled in size in 2025. This is due to its $5.4 billion of net inflows and its 21% price appreciation as of July 22. SPMO owns shares of 100 large-cap companies, with the strongest relative strength based on 12-month performance. The ETF is constituted semiannually, with the next changes to occur in late September.
Momentum vs. Growth: What’s the Difference?
Momentum investing is different from growth investing, although there is some overlap. The SPDR S&P 500 Growth ETF (SPYG) owns 212 stocks that exhibit strong sales growth and earnings change relative to price, as well as momentum. It was up 12% as of July 22 and its holdings are updated annually in December.
Though SPMO and SPYG have the same starting universe — the S&P 500 — their portfolios look different. SPYG had 41% of assets invested in information technology stocks, nearly double that of SPMO (23%). Meanwhile, SPMO had 9% in consumer staples, which was triple the exposure found in SPYG. Financials was the second-largest sector for SPMO, at 20%, compared to being the fourth-largest for SPYG (12%).
With its strong recent demand, SPMO is the second-largest momentum ETF, according to our research. The iShares MSCI USA Momentum Factor ETF (MTUM) manages $17 billion. The fund has added $2.2 billion of net inflows and was up 17% for the year.
