What is the fundamental difference between an ETF and a mutual fund?

Exchange-traded funds (ETFs) are bought and sold on stock exchanges throughout the trading day, similar to shares. Mutual funds are bought or sold only once per day at the closing price. ETFs generally offer lower expense ratios and greater transparency. Both provide diversification across assets. IVW and SPMO are examples of ETFs, allowing investors to track specific indices or strategies easily. Understanding these mechanisms helps investors choose suitable investment vehicles based on trading frequency needs and cost considerations.

What does an ETF's expense ratio actually cover?

The expense ratio represents the annual cost to operate an ETF, deducted from the fund's assets. It covers management fees, administrative expenses, and other operational costs like legal and marketing. Investors do not pay this fee directly; instead, it reduces the fund's net asset value over time. IVW has an expense ratio of 0.18%, while SPMO has 0.13%. Lower expense ratios can enhance long-term returns by minimising the drag on investment growth, making cost efficiency a crucial factor when comparing funds.

How do ETF dividends and distributions work for investors?

ETFs often receive dividends from the stocks they hold. These accumulated dividends may be passed on to ETF shareholders as cash distributions. Investors can choose to receive these distributions in cash or automatically reinvest them to buy more shares. IVW offers a 0.34% dividend yield, while SPMO provides 0.72%. These yields represent the annual income relative to the price. Understanding this process helps investors anticipate income streams and the potential for compounding through reinvestment, although yields do not guarantee future payments.

Which fund has a lower expense ratio, IVW or SPMO?

SPMO has a lower expense ratio at 0.13%, compared to IVW's 0.18%. This difference of 0.05 percentage points might seem small, but over time, lower fees can compound to significantly affect net returns. IVW, with $77.2 billion in net assets, tracks a large growth strategy, while SPMO, with $28.9 billion, focuses on momentum. When comparing funds, investors often weigh the cost difference against the potential benefits of the specific index methodology each fund follows, ensuring the trade-off aligns with their financial objectives.

What are the top holdings in IVW and SPMO?

IVW’s top holdings include NVDA (14.80%), MSFT (10.09%), and AAPL (6.75%). SPMO’s largest positions are MU (11.09%), NVDA (9.02%), and AVGO (6.05%). Both funds hold NVDA and AVGO among their top ten. IVW concentrates heavily on tech growth stocks, reflecting its large growth focus. SPMO’s inclusion of MU and traditional sectors like energy and healthcare, shown by XOM and JNJ, reflects its momentum strategy. Examining these holdings reveals how each fund's methodology influences its portfolio composition and potential exposure to specific market sectors or individual stocks.

How do dividend yields compare between IVW and SPMO?

SPMO offers a higher dividend yield of 0.72%, whereas IVW has a yield of 0.34%. This difference suggests that SPMO currently provides greater income relative to its share price. Income-focused investors might prefer higher yields, but it is essential to understand that yields can fluctuate with share price and dividend changes. IVW’s lower yield aligns with typical large growth companies that reinvest profits rather than distributing them. Investors should consider yield alongside total return potential, not just income, when evaluating these funds.

What risks are associated with fund concentration in IVW and SPMO?

Concentration risk occurs when a significant portion of assets is invested in a few holdings. IVW’s top holding, NVDA, accounts for 14.80%, making it sensitive to that stock's performance. SPMO’s largest position, MU, is 11.09%. While both funds are diversified across many stocks, high weights in top holdings mean that if those specific companies decline, the fund’s value could drop more than a broader market index. Assessing top holding weights helps investors understand potential volatility and the specific risks tied to individual stock performance within these ETFs.

What is the difference between a momentum and a growth investing strategy?

A growth strategy, like IVW, focuses on companies expected to grow earnings at an above-average rate. A momentum strategy, like SPMO, selects stocks showing strong recent performance or relative strength compared to others. IVW tracks large growth companies, often including tech giants like NVDA and MSFT. SPMO tracks S&P 500 momentum, aiming to capture continuing trends. These strategies lead to different portfolio compositions. Growth seeks long-term expansion, while momentum assumes trends persist. Understanding these differences helps investors select funds matching their investment philosophy and market outlook.

Do IVW and SPMO have significant portfolio overlap?

Yes, IVW and SPMO share NVDA, GOOGL, AVGO, GOOG, and MU in their top 10 holdings. However, their portfolio structures differ due to their distinct strategies. IVW includes MSFT and AAPL prominently, reflecting its large growth focus. SPMO features JNJ, XOM, and LRCX, indicating its momentum methodology picks stocks based on recent performance across various sectors. Despite the overlap in tech stocks, the presence of different other holdings means their total portfolios and sector exposures will likely diverge. Investors should analyse full holdings to determine if holding both funds provides additional diversification benefits or redundancy.

How have the inception dates and net assets of IVW and SPMO compared?

IVW was established in May 2000 and has $77.2 billion in net assets, indicating a long operational history and significant size. SPMO launched in October 2015 and holds $28.9 billion. IVW’s longer track record allows for more historical performance data, while its larger asset base might enhance liquidity and spread trading costs. SPMO is younger but substantial enough for most investors. The difference in inception dates and asset sizes reflects their establishment in the market, but both are major funds within the S&P 500 strategy categories.

How do sector exposures differ between IVW and SPMO?

According to the provided data, specific sector weights for IVW and SPMO are not available. Typically, IVW as a large growth fund would have heavy exposure to Information Technology and Communication Services, given holdings like NVDA, MSFT, and GOOGL. SPMO, being a momentum fund, might show broader sector rotation, as indicated by holdings in Industrials (LRCX), Energy (XOM), and Healthcare (JNJ). Investors should note that momentum strategies often shift sector allocations as trends change. Without available sector weights, analysing individual top holdings is necessary to infer industry distribution.

IVW vs SPMO

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

Compare IVW (iShares S&P 500 Growth ETF) and SPMO (Invesco S&P 500 Momentum ETF). This page reviews expense ratios of 0.18% and 0.13%, holdings, dividends, and how each fund tracks its market. Understand their large growth and momentum focuses alongside net assets and inception dates. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

IVW

Metric

SPMO

0.18%

Expense Ratio

0.13%

0.34%

Dividend Yield

0.72%

$77.16B

Net Assets

$28.85B

155

Holdings

102

May 22, 2000

Inception Date

Oct 9, 2015

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Index Tracked

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Large Growth

Fund Category

Large Blend

SPMO costs about $5.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	IVW	SPMO
NVDANVIDIA Corporation	14.80%	9.02%
GOOGLAlphabet Inc.	5.64%	4.51%
AVGOBroadcom Inc.	4.68%	6.05%
GOOGAlphabet Inc.	4.50%	3.57%
MUMicron Technology, Inc.	3.16%	11.09%

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Investment Analysis

IVW

Pros

IVW offers access to a large growth strategy with net assets of 77.2 billion US dollars and expense ratio of 0.18%.
It maintains a well-established track record since inception in May 2000, indicating a mature ETF structure and index methodology.
The fund holds leading growth companies, including NVDA at 14.80%, MSFT at 10.09%, and AAPL at 6.75% within its portfolio.

Considerations

The dividend yield is 0.34%, which is low relative to income-oriented funds and may limit cash flow.
Top-ten holdings carry meaningful concentration risk, with the first position alone representing 14.80% of the fund.
Sector weights are not available, reducing transparency on sector exposure and potential diversification across industries.

SPMO

Pros

SPMO provides a low-cost momentum strategy with expense ratio of 0.13% and net assets of 28.9 billion US dollars.
Since inception in October 2015, it tracks an S&P 500 momentum methodology, offering systematic exposure to relative strength.
The dividend yield is 0.72%, higher than IVW’s 0.34%, potentially improving cash distributions for income-focused investors.

Considerations

Concentration is pronounced in its top holding MU at 11.09%, alongside NVDA 9.02% and AVGO 6.05%, increasing idiosyncratic risk.
Momentum index methodology can lead to turnover, which may affect tax efficiency depending on realisation of gains.
Sector weights are not available, limiting visibility into industry exposures and potential diversification benefits versus broader strategies.

About IVW and SPMO

IVW (IVW)

The iShares S&P 500 Growth ETF offers investors exposure to a curated selection of US large-cap companies that exhibit strong growth characteristics. Designed for those seeking capital appreciation, this fund focuses on businesses expected to achieve above-average revenue and earnings growth. With an inception date of May 22, 2000, it has a long history of tracking growth-oriented market segments. The fund holds approximately 155 assets, maintaining a relatively concentrated portfolio compared to broader market indices. Its expense ratio stands at 0.18%, providing a cost-effective way to access this specific factor. While it currently offers a modest dividend yield of 0.34%, the primary objective remains growth rather than income. Investors should note that while net assets are substantial at USD 77.16 billion, the value of these growth stocks can fluctuate significantly, and past performance does not guarantee future returns.

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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IVW vs SPMO

Fund Snapshot