This ETF is CRUSHING The S&P 500: Should You Switch? (SPMO vs VOO)

AI-generated source summary

The video compares two ETFs, VOO and SPMO, analyzing their historical performance and strategies. VOO, representing the S&P 500, is presented as a stable, low-fee foundation with broad diversification, holding 500 of the largest US companies. SPMO, an Invesco ETF, isolates the top 100 momentum stocks from the S&P 500, aiming to capture stronger performance by focusing on companies with the highest momentum scores over the previous 12 months, excluding the most recent month. Historical data from August 2016 to June 2026 shows SPMO significantly outperforming VOO on an annualized return basis (21.16% vs. 15.47% in the backtest, and 24.34% vs. 18.40% with monthly contributions), with a slightly higher standard deviation but notably better drawdown performance (-21.10% vs. -23.91%). The analysis highlights SPMO's dynamic rotation strategy and sector allocation shifts based on momentum, leading to a higher concentration in tech (53% currently) and individual stocks like Micron (over 10% allocation). The video advises against going 100% into SPMO due to concentration risk and the cyclical nature of momentum, suggesting an 80/20 split of VOO (core) and SPMO (tilt) as a potentially effective strategy to spread risk while boosting upside potential.

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