Looking at the headline to get traffic, you’ve likely already seen this one in a search: The Invesco S&P 500 Momentum ETF (SPMO) has outperformed the Vanguard S&P 500 ETF (VOO) significantly over the last several years. That much is true.
Some comparison pages gloss over a more valuable question: What exactly are you purchasing when you purchase SPMO, and why has it been successful? This article will take care of both, relying on official, dated figures provided by Invesco and Vanguard, instead of back-extrapolations.
SPMO is not a substitute for the S&P 500, it is the S&P 500, but with two rebalances each year, to reweight the portfolio toward the approximately 100 names with the strongest risk-adjusted momentum.
All the deviations in the following quirks, such as the Micron figure near 12%, not having Apple or Microsoft in the top ten, and the volatility of the dividend from year to year, are a direct result of that mechanism. VOO, on the other hand, just holds all the securities in the index at market weights for 0.03%. The universe is the same, but two very different philosophies.
If you’re also comparing growth-focused ETFs, our SCHG vs VOO breakdown covers a similar momentum-adjacent strategy.
SPMO vs VOO at a Glance
Before the mechanics, here is the snapshot table every reader is really searching for.
| Metric | SPMO (Invesco) | VOO (Vanguard) |
| Index tracked | S&P 500 Momentum Index | S&P 500 Index |
| Inception | Oct 9, 2015 | Sep 7, 2010 |
| Expense ratio | 0.13% | 0.03% |
| Net assets | $21.86B (7/1/26) | $995.5B share class / $1.7T fund (5/31/26) |
| Holdings | 99 (6/30/26) | 505 stocks (5/31/26) |
| Top-10 weight | 52.09% (6/30/26) | 39.23% (5/31/26) |
| P/E, trailing / forward | 34.75 / 21.47 | 28.1x |
| ROE / P/B | 36.58% / 8.13 | 29.4% / 5.5x |
| 30-day SEC yield | 0.65% (6/30/26) | 1.00% (5/31/26) |
| Beta vs S&P 500 | 1.10 | 1.00 |
| Rebalance schedule | Semi-annual, 3rd Friday Mar & Sep | Continuous, tracks index |
So, one paragraph is sufficient to lead up to the verdict: SPMO is the S&P 500 re-weighted to chase strength, with 52% of its assets in the top ten holdings and holding 12% of Micron these days. VOO’s biggest position is barely a few percent — it is the whole market. One pond, two different fish.
What SPMO Actually Is (The Machine Behind the Ticker)
SPMO is based on the S&P 500 Momentum Index. It’s mechanical, not discretionary: that’s the construction, that’s a key factor in understanding almost everything else in this comparison.
The index methodology
- Momentum score: 12-month price performance (without the last month) adjusted to risk.
- Weighting: Market capitalisation multiplied by momentum score; high weight goes to large, strongly trending companies.
- Reconstitution: The next reset is on the third Friday of March and September 2026 (twice per year).
What does that produce right now
As of June 30, 2026, the top of SPMO’s portfolio looks nothing like a typical S&P 500 fund:
| Holding | Weight in SPMO |
| Micron Technology (MU) | 11.86% |
| NVIDIA (NVDA) | 7.46% |
| Broadcom (AVGO) | 5.96% |
| Lam Research (LRCX) | 4.48% |
| Advanced Micro Devices (AMD) | 4.34% |
Curious how these individual momentum leaders compare to their peers? See our Micron vs Broadcom and NVIDIA vs Broadcom breakdowns.
VOO
While that’s the case, VOO simply keeps a basket of all 505 constituent stocks at their natural market weight (503 equity holdings as of May 31, 2026) as opposed to SPMO’s average market cap of $1.31 trillion, a point to keep in mind when it comes to momentum screening, which favours mega-cap victors.
The overlap paradox
This is the insight that competitors ignore: 100% of the weight in SPMO is in VOO, but only ~35% of the weight is position-for-position. While the portfolios may be the same, the names are broken up in different proportions between the two, such that the two funds trade like separate strategies.
| Overlap Measure | Value |
| Overlap by weight | 35% |
| Overlapping holdings | 98 |
| % of SPMO also in VOO | 100% |
| % of VOO also in SPMO | 20% |
| Biggest overweights vs VOO. | MU +10.3 pts, GOOGL +4.4, AVGO +3.8, LRCX +3.5, JNJ +3.0 |
| Biggest underweights vs VOO. | AAPL −6.8 pts, MSFT −4.4, AMZN −3.7, META −2.0, TSLA −1.8 |
Fees: 0.13% vs 0.03% — Does It Matter?
SPMO charges 0.13% a year against VOO’s 0.03% – a difference of about $10 per $10,000 invested annually ($13 vs $3). This puts SPMO about 4.3 times more expensive than VOO in relative terms, but still relatively inexpensive compared to the 0.72% average expense ratio of comparable factor funds.
In dollar terms, the difference is not significant. The truthful presentation: While there is a difference in fees, it’s been swamped by the performance gap of the two funds over the last few years; don’t let it be the sole consideration in your decision.
Performance: 1, 3 and 5-Year Returns (Official)
These are official NAV total returns. Invesco’s data is month-end May 2026, while Vanguard’s data is month-end June 2026. Invesco also publishes its own same-date S&P 500 column to cleanly isolate the contribution of the momentum factor.
| Period | SPMO NAV (5/31/26) | S&P 500 Index (Invesco, 5/31/26) | VOO NAV (6/30/26) | SPMO minus S&P 500 |
| YTD | +26.56% | +11.27% | +10.19% | +15.3 pts |
| 1-year | +44.16% | +29.78% | +22.28% | +14.4 pts |
| 3-year (ann.) | +42.91% | +23.61% | +20.58% | +19.3 pts |
| 5-year (ann.) | +23.54% | +14.15% | +13.36% | +9.4 pts |
| 10-year (ann.) | +20.59% | +15.65% | +15.47% | +4.9 pts |
| Since inception (ann.) | +19.76% (since 10/9/15) | +15.22% (same window) | +15.03% (since 9/7/10) | +4.5 pts |
Figure 1: Official trailing total returns, SPMO vs VOO.
Calendar-year returns: a regime story
The average is a disguise for what is actually very true: Momentum’s advantage is very regime-dependent. Three distinct chapters are clearly evident in the calendar-year data:
- 2022 – momentum held: SPMO was down −10.45% while VOO was down −18.17% as the index had already swung into defensive and energy stocks before the peak of the bear market.
- 2023 – momentum whipsawed: SPMO gained +17.56% while VOO surged +26.32%. Held over at the sharp regime turns is the record of yesterday’s winners.
- 2024–2026 – momentum ran: +45.82%, +26.58%, and +30.74% year-to-date, against VOO’s +24.98%, +17.82%, and +9.97%, as the AI-semiconductor cohort took flight.
| Year | SPMO | VOO |
| 2026 YTD (7/2/26) | +30.74% | +9.97% |
| 2025 | +26.58% | +17.82% |
| 2024 | +45.82% | +24.98% |
| 2023 | +17.56% | +26.32% |
| 2022 | −10.45% | −18.17% |
| 2021 | +22.64% | +28.79% |
| 2020 | +28.25% | +18.32% |
| 2019 | +25.93% | +31.37% |
| 2018 | −0.92% | −4.50% |
| 2017 | +27.76% | +21.77% |
Figure 2: Calendar-year total returns, SPMO vs VOO, 2017–2026 (2026 is year-to-date and will change).
The sincere disclaimer: Three-year CAGRs of more than 40% are artefacts of the regime and not expectations. Academic risk premium is real on long time scales, but is episodic and may underperform significantly at turning points. History does not repeat itself.
Correlation: 0.78–0.86, a Genuinely Different Path
One widely held belief is that any fund based on the S&P 500 index tracks the index. SPMO does not track it as closely as most people assume. So, its correlation to VOO is materially lower than a growth-typical fund, such as SCHG (growth tilt, ~0.94 correlation to VOO), due to the re-weighting that takes place twice a year.
| Window | Correlation to VOO |
| Trailing 1 year | 0.84 |
| Trailing 3 years | 0.86 |
| Trailing 5 years | 0.85 |
| Trailing 10 years | 0.81 |
| Full history (since Oct 2015) | 0.78 |
Dividends: VOO Compounds, SPMO Whipsaws
This is the distinction that most income-producing investors see between the two funds. The dividend yield of VOO is constant and increasing, and the amount is roughly 1.07% trailing payout, $7.35 per share, and it increases about 5-7% per year, like clockwork. The payout history of SPMO is quite different, however, as it pays quarterly at a 0.65% yield, as of June 30, 2026.
| Year | SPMO DPS | SPMO Growth | VOO DPS | VOO Growth |
| 2022 | $0.9452 | — | $5.9467 | — |
| 2023 | $1.0662 | +12.8% | $6.3572 | +6.9% |
| 2024 | $0.4577 | −57.1% | $6.7035 | +5.4% |
| 2025 | $0.8734 | +90.8% | $7.0678 | +5.4% |
| TTM (to Jun 2026) | $1.0489 | — | $7.3456 | — |
This isn’t a “random” reason; it’s a mechanical one: If SPMO’s momentum cohort is delivering the dividend, that’s what it’s delivering. In 2022–2023, the index moved away from value and energy names and into low-yielding semiconductor stocks, with the fund’s income plummeting by more than half in one year before rising by 91% the following year.
In 2022, SPMO produced about 1.66%, whereas it currently produces about 0.65%. The payout follows the momentum of the current owner. That volatility is an issue for anyone trying to establish an income portfolio, which is not what SPMO is designed to do, so it’s not a good long-term option. VOO, on the other hand, is the more consistent compounder. If steady income is your priority, our roundup of best dividend stocks to buy offers more consistent alternatives.
Risk and Valuation: What You Pay for the Hot Hand
The higher returns have been accompanied by higher volatility, but it’s not as simple as “more return, more risk.”
| Metric | SPMO | VOO |
| Volatility (1Y) | 21.68% | 12.49% |
| Volatility (5Y, ann.) | 20.13% | 16.93% |
| Max drawdown (since inception) | −30.95% | −33.99% |
| Max drawdown (5Y) | −22.74% | −24.52% |
| Sharpe ratio (1Y) | 1.93 | 1.78 |
| Calmar ratio (1Y) | 3.28 | 2.50 |
| Ulcer index | 3.40% | 2.03% |
| 2022 calendar year | −10.45% | −18.17% |
The 12% holding in Micron is just one of the 10 stocks that account for 52% of SPMO’s assets. But its drawdown is not as bad as VOO’s, and 2022 was even shallower, as momentum, which rebalances the fund twice a year, moves it away from declining trends before a drop hits. The real risks of concentration and volatility are indeed greater, but the worst historical loss has actually been smaller.
Valuation-wise, the official P/E of 34.75 is on the high side for SPMO when compared to that of VOO, which stands at 28.1x; however, its forward P/E is 21.47, well below its own trailing multiple. This means that the ROE is on the high end for SPMO as well, 36.58% versus 29.4% for VOO, with a corresponding higher price-to-book ratio of 8.13x versus 5.5x.
The house framing: The businesses that are generating better returns on capital are currently under the control of momentum, and momentum is being priced into the market as they continue to grow earnings. There’s not really a danger of paying too much today; it’s the risk that when momentum seems to leave a struggling name, it’s after it leaves, not before.
Should You Hold Both SPMO and VOO?
There is no single “better” fund here, only a better fit for a given investor. Use this framework:
| Investor Profile | Better Fit |
| One-fund investor / first ETF purchase | VOO, full stop – broad, cheap, simple |
| Believes in the momentum factor, accepts whipsaw risk, 10-year-plus horizon | SPMO as a satellite around a VOO core |
| Needs a reliable income from the position | VOO – SPMO’s payout is structurally unstable |
| Performance-chasing after the 2024–2026 run | Caution: review the 2023 whipsaw and momentum-crash history before buying |
Re-check this article for holdings-dependent claims after the next reconstitution of SPMO on September 18, 2026. The Micron weight and the “no Apple” story may change significantly every semi-annual reconstitution. Still unsure whether passive index investing or active stock selection fits you better? Our guide on stock picking vs index funds breaks down the core tradeoffs.
Frequently Asked Questions
Is SPMO better than VOO?
On official trailing returns, SPMO has done very well relative to VOO (+44.16% vs +22.28% over 1-year, +20.59% vs +15.47% over 10-years), but has higher concentration, whipsaw risk and an unstable dividend. VOO is a stronger sole holding, and SPMO is a factor bet, not a core bet.
What is the overlap between SPMO and VOO?
They have 98 holdings in common, and 100% of the weight of SPMO is within VOO, but not quite 35% of that weight is the same because it’s based on momentum score, not just market cap.
Does SPMO pay dividends?
Yes, it’s quarterly, and it has a 0.65% SEC yield as of June 30, 2026, but the payout is quite volatile based on index rotation, dropping 57% in 2024 and increasing 91% in 2025. It is not a good income vehicle.
Why doesn’t SPMO hold Apple or Microsoft?
The index features only the most recent 100 S&P 500 names with the best momentum scores, and Apple, Microsoft and Amazon have not been included in the last couple of rebalances. They can all come back for the following semi-annual reconstitution, which is either in March or September.
Is SPMO riskier than VOO?
It has a higher volatility (approximately 21.7% vs. 12.5% over one year) and is holding 52% of the assets in its top ten holdings, which includes approximately 12% in Micron. But its biggest recorded decline has been less than VOO’s as momentum’s rebalance happens against trends that have been failing. The risk profile is not more, it’s different.
Can I hold both SPMO and VOO?
Yes. They correlate between 0.78 and 0.86, and when combined, do more than just provide a duplicate exposure to the portfolio. For any investor interested in the momentum tilt but who does not want to give up on the breadth of the index, a VOO core with a 10–25% satellite of an SPMO index is a sensible choice.
Disclaimer
Disclaimer: This is educational content from Financial Beings, not personalised investment advice. Past performance does not guarantee future results. SPMO is a non-diversified fund with meaningful single-stock concentration risk. Always do your own research, or speak with a licensed financial adviser, before investing.
References
- ETF Research Center. SPMO vs. VOO Fund Overlap Tool — Holdings overlap by weight, asymmetric overlap percentages, top overweights/underweights, data accessed 2 July 2026. View Source
- Invesco. Invesco S&P 500 Momentum ETF (SPMO) — Fund Overview (expense ratio, net assets, holdings, trailing total returns), data as of 1 July 2026. View Source
- PortfoliosLab. SPMO vs. VOO — Correlation, Calendar-Year Returns, and Risk Metrics (monthly-updated correlation windows, volatility, drawdown, Sharpe ratio), data accessed 2 July 2026. View Source
- S&P Dow Jones Indices. S&P 500 Momentum Index Methodology — Index construction rules, momentum scoring, rebalancing schedule. View Source
- StockAnalysis. SPMO and VOO — Dividend History and Beta Statistics (split-adjusted dividends per share, beta vs. S&P 500), data accessed 1 July 2026. View Source
- Vanguard. Vanguard S&P 500 ETF (VOO) — Fund Profile and Performance (net assets, 30-day SEC yield, portfolio P/E, sector allocation), data as of 30 June 2026. View Source
