This Is the Only ETF That Gets You More Gains With Less Risk

Before you writer me, I'd instrumentality a look into the Invesco S&P 500 Momentum ETF's (NYSEARCA:SPMO) past and comparison it with the S&P 500. Of course, you cannot justice the aboriginal based disconnected of humanities show alone, but this is the lone ETF that has managed to outperform the S&P 500 portion losing little during downturns clip and clip again. That makes it worthy knowing much about.

SPMO does thing astir embarrassingly simple. It owns the apical 100 S&P 500 stocks ranked by 12-month momentum, rebalances doubly a twelvemonth successful March and September, and charges 0.13% for the trouble. You are fundamentally renting past year's leaders, holding them six months, past swapping retired the laggards. When momentum is the ascendant origin successful the market, which it has been for astir of the post-2020 stretch, that mechanical rotation keeps the portfolio loaded with the close names conscionable somewhat longer than subject unsocial would allow.

SPMO's pb implicit SPY runs into the treble digits

Over 1 year, SPMO is up 31.5% against the SPDR S&P 500 ETF Trust's (NYSEARCA:SPY) 23%. Over 5 years, 156% versus 76%. Stretch it to 10 and SPMO has returned 457% portion SPY managed 262%. A $1,000 involvement 5 years agone would present beryllium worthy astir $2,404 by Benzinga's accounting, an annualized 20% against a overmuch quieter SPY.

The hazard broadside is wherever the communicative gets much interesting. The fund's enactment regularisation mechanically dumps weakening names astatine each rebalance, truthful the portfolio rotates retired of breached trends earlier they go disasters.

That is wherefore 24/7 Wall St. sum earlier this twelvemonth argued SPMO has consistently outperformed the S&P 500 implicit the past 3 years portion maintaining comparable oregon little downside risk.