What are the primary investment focuses of AVLV and SPMO?

AVLV focuses on large-cap value stocks, aiming to capture the value premium by selecting companies with potentially attractive valuations. In contrast, SPMO targets large-cap momentum stocks, seeking to capitalise on trends of recent outperformance. While both funds invest in the large-cap market, their underlying strategies differ significantly. Value investing looks for undervalued opportunities, whereas momentum investing follows recent price strength. These distinct approaches mean that the funds' holdings and performance patterns will naturally diverge based on prevailing market conditions and investor sentiment.

How do the fund structures and tracking methods differ?

AVLV and SPMO operate with distinct structural approaches. AVLV follows a quantitative methodology using proprietary factor models to select value stocks, though its specific index tracking details are not available. SPMO is designed to track the S&P 500 Momentum Index, which uses a defined quantitative model to select stocks exhibiting the strongest recent momentum within the S&P 500. Understanding these methodologies is crucial, as the transparency of index tracking differs, impacting how investors assess the consistency and replicability of each fund's stated investment strategy over time.

How do the expense ratios compare between the two ETFs?

SPMO carries a slightly lower expense ratio of 0.13% compared to AVLV's 0.15%. While the difference of 0.02% may appear negligible on an annual basis, these costs compound over long investment horizons. For every £10,000 invested, the annual cost difference amounts to merely £2, which is relatively small. However, fee efficiency is a critical factor in net returns. Investors should weigh this minor cost advantage against each fund's unique performance characteristics and strategic focus to determine which better aligns with their overall portfolio construction goals and time investment horizon.

Which fund has a longer track record for performance analysis?

SPMO has a more extended track record, having launched on 9 October 2015. In contrast, AVLV was inceptioned on 21 September 2021, giving it a much shorter history. A longer operating history provides investors with more data points across various market cycles, which can be useful for assessing consistency and risk metrics. However, AVLV's shorter history means there is less empirical evidence of how its specific value-tilted methodology performs during prolonged downturns or extended value droughts, requiring investors to rely on broader factor research.

What does the scale of these funds indicate for investors?

Both AVLV and SPMO are substantial in size, with net assets of $21.5 billion and $28.9 billion, respectively. This significant asset base typically enhances liquidity, making it easier for investors to buy and sell shares throughout the trading day without causing large price movements. Higher liquidity often leads to tighter bid-ask spreads, reducing implicit transaction costs. While scale offers these trading benefits, it does not guarantee superior investment outcomes. Investors must still evaluate the underlying holdings and strategic fit of each fund relative to their own portfolio objectives and risk tolerance.

How do the top holdings of AVLV and SPMO overlap?

Although both AVLV and SPMO invest in large-cap U.S. stocks, their top 10 holdings show limited overlap. Only Micron Technology and Exxon Mobil appear in the top 10 lists of both funds, indicating that the majority of their leading positions are distinct. This difference highlights the divergence between the value and momentum investment styles, which select companies based on entirely different fundamental characteristics. As a result, the two funds are likely to behave differently under varying market conditions, reflecting their unique underlying selection criteria and sector exposures.

What are the key differences in concentration risks between the funds?

SPMO exhibits notable concentration risk, with its top two holdings, Micron Technology and Nvidia, accounting for approximately 20% of its portfolio. This heavy weighting means the fund's performance is significantly influenced by these individual stocks. Conversely, AVLV appears more diversified, with its largest holding, Microsoft, representing only 3.30%. This structure implies that AVLV is less exposed to idiosyncratic risks from any single company. Investors should consider that while SPMO's concentration may boost returns if momentum leaders perform well, it also amplifies downside potential during market corrections.

How do the dividend yields compare between AVLV and SPMO?

AVLV offers a dividend yield of 1.11%, whereas SPMO provides a lower yield of 0.72%. This indicates that AVLV currently generates more income for every dollar invested compared to SPMO. Investors seeking higher current income might view AVLV's superior yield as a more suitable characteristic for their needs. However, the difference between these yields should be considered alongside capital appreciation potential and the underlying investment philosophy. Dividend yields can fluctuate based on company actions and market conditions, so a higher stated yield does not guarantee superior total returns.

How do ETF distributions and yield calculations work?

ETFs like AVLV and SPMO typically receive dividends from their underlying portfolio holdings, which are then aggregated and distributed to ETF shareholders, usually on a quarterly basis. The displayed dividend yield represents a forward or trailing estimate based on recent distributions and the fund's current price. Investors receive these payments either as cash or can reinvest them into additional fund shares. It is important to remember that the yield is a snapshot and can change as underlying companies modify their dividend policies or as ETF share prices fluctuate, making historical yield an unreliable predictor.

What disclaimer should investors consider when reading this comparison?

This FAQ content is provided for educational and informational purposes only and should not be construed as personalised financial advice or a recommendation to buy or sell any investment. The data presented relies on publicly available sources and is accurate as of the stated collection date. All investments carry risks, including potential loss of capital. Investors must independently verify figures and consider their personal financial situation, investment objectives, and risk tolerance. It is strongly advised to seek guidance from a qualified financial professional before making any significant investment decisions based on this comparison.

AVLV vs SPMO

Two funds, one decision: we compare cost, performance and what each ETF actually holds in November 2026.

Compare Avantis U.S. Large Cap Value ETF (AVLV) and Invesco S&P 500 Momentum ETF (SPMO) to see how each fund tracks its market. This page reviews fees, holdings, and dividends. AVLV has a 0.15% expense ratio and SPMO has a 0.13%. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

AVLV

Metric

SPMO

0.15%

Expense Ratio

0.13%

1.11%

Dividend Yield

0.72%

$21.49B

Net Assets

$28.85B

303

Holdings

102

Sep 21, 2021

Inception Date

Oct 9, 2015

–

Index Tracked

–

Large Value

Fund Category

Large Blend

SPMO costs about $2.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	AVLV	SPMO
MUMicron Technology, Inc.	3.13%	11.09%
XOMExxonMobil Holdings Corporation	2.42%	3.21%

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Investment Analysis

AVLV

Pros

The fund offers a low 0.15% expense ratio, keeping ongoing costs minimal for long-term investors.
With $21.5 billion in net assets, the fund enjoys significant scale and liquidity benefits.
The 1.11% dividend yield provides a reasonable income stream relative to many growth-oriented large-cap funds.

Considerations

The index tracking methodology is not available, limiting transparency on the specific screening rules.
The fund's short history since September 2021 provides limited evidence of long-term tracking accuracy.
Sector weights are not available, making it difficult to assess current industry concentration risks directly.

SPMO

Pros

The expense ratio is just 0.13%, making it one of the more affordable large-cap ETFs available.
Assets of $28.9 billion ensure deep liquidity and tighter bid-ask spreads for active traders.
An inception date of October 2015 allows for a longer track record of performance evaluation.

Considerations

The fund lacks a specified dividend yield of any material size at 0.72%, appealing less to income-focused investors.
Top holdings such as MU at 11.09% and NVDA at 9.02% create meaningful single-stock concentration.
The specific index tracking methodology is not available, which restricts detailed understanding of its momentum factor application.

About AVLV and SPMO

AVLV (AVLV)

The Avantis U.S. Large Cap Value ETF (AVLV) is an exchange-traded fund designed to provide exposure to large-capitalisation companies in the United States that are considered undervalued relative to their fundamentals. Launched in September 2021, this fund seeks to capture the value factor, which historically suggests that cheaper stocks may outperform more expensive ones over long periods. With a low expense ratio of 0.15%, it offers a cost-efficient way for investors to diversify their portfolios within the US equity market. The fund holds over 300 companies, providing broad exposure while maintaining a focus on value metrics. Investors should note that while value stocks can offer attractive opportunities, they may underperform growth stocks during certain market cycles. As with any investment, values can rise and fall, and returns are not guaranteed.

SPMO (SPMO)

The Invesco S&P 500 Momentum ETF offers investors exposure to companies within the S&P 500 index that have demonstrated stronger price performance compared to the broader market in recent times. By focusing on stocks with positive momentum trends, the fund aims to capture opportunities in sectors or companies currently experiencing growth or renewed interest. It holds approximately 102 companies, reflecting a diversified approach within the large-cap category. With a low expense ratio of 0.13%, it provides a cost-effective way to gain this specific type of market exposure. Investors should note that while momentum strategies can perform well during trending markets, they may underperform during market reversals or periods of volatility. Values can rise and fall, and past performance is not a guarantee of future results. This ETF is suitable for those interested in understanding systematic investment approaches, keeping risk tolerance in mind.

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AVLV vs SPMO

Fund Snapshot