How do the expense ratios of SPMO and SPY compare and why does that matter over time?

SPMO charges a 0.13 percent expense ratio, while SPY charges 0.09 percent. This is a 0.04 percentage point difference. Over long periods, lower fees reduce cost drag, allowing more of the return to stay invested. The size of the impact depends on the amount invested and the time horizon. Always check the latest ratios because they can change.

What do SPMO and SPY track, and how do their index methodologies differ?

SPMO tracks the S&P 500 Momentum Index, which selects stocks based on momentum factors. SPY tracks the S&P 500 Index, which includes all eligible large-cap US companies regardless of performance momentum. This means SPMO aims to capture stocks with recent upward trends, while SPY mirrors the broader market performance of the S&P 500. Understanding these differences helps in grasping their respective strategies.

Are the holdings of SPMO and SPY similar? Which names appear in both top-10 lists?

Both funds share five top-10 holdings: NVDA, MU, AVGO, GOOGL, and GOOG. However, the weightings and other holdings differ significantly. SPMO is more concentrated in momentum leaders like MU and NVDA, while SPY reflects the standard market-cap weights of the S&P 500. This overlap means they share some exposure to large tech and semiconductor firms, but their overall portfolio structures vary due to their different selection methodologies.

How do the dividend yields of SPMO and SPY differ, and what should I know about ETF distributions?

SPMO has a dividend yield of 0.72 percent, whereas SPY yields 0.98 percent. ETF distributions are paid out from the dividends and interest collected by the fund's underlying holdings. These yields are indicative and not fixed; they fluctuate as the underlying companies adjust their payouts and as the fund's share price changes. Investors should view yields as variable income rather than guaranteed returns.

Which investing goals are typically associated with SPMO compared to SPY?

SPMO is generally associated with investors seeking to capture short-term market momentum and potentially outperform the broad market during trending periods. SPY is typically linked to goals focused on long-term growth and diversification, serving as a standard benchmark for the overall US large-cap equity market. Investors choose based on whether they want a rule-based momentum strategy or broad market exposure.

How do the net assets and liquidity of SPMO and SPY compare?

SPY has $785.0 billion in net assets, offering excellent liquidity and typically tight trading spreads. SPMO has $28.9 billion in net assets, which also provides ample liquidity and trading capacity for most investors. While SPY is one of the largest and most traded ETFs globally, SPMO's size is substantial enough to support efficient trading without significant issues for standard transaction sizes.

What is the operational history of SPMO and SPY, and why does track record matter?

SPMO was launched on October 9, 2015, establishing a track record of nearly a decade. SPY, established on January 22, 1993, has the longest operational history among major S&P 500 funds. A longer track record allows investors to evaluate performance across various market cycles. SPMO's shorter history means it has experienced fewer distinct market environments compared to SPY.

What risks are associated with concentration in SPMO's top holdings?

SPMO exhibits concentrated exposure to specific sectors and companies. For instance, MU constitutes 11.09 percent and NVDA 9.02 percent of its portfolio. This high concentration means the fund's performance is heavily influenced by the price movements of these few stocks. If these companies underperform, the fund's overall returns may suffer disproportionately compared to a broader index like the one tracked by SPY.

Are there any structural considerations for investing in SPY?

SPY is structured as an unit investment trust (UIT). This legal structure means it cannot automatically reinvest dividends or engage in securities lending in the same way other ETFs might. For most retail investors, this has minimal impact, but non-qualified investors in certain jurisdictions may find restrictions on holding the shares. Always verify if this structure aligns with your specific investment needs and regulatory status.

What is the educational disclaimer for this ETF comparison?

This content is for educational purposes only and does not constitute financial advice, recommendations, or endorsements. The information provided is based on data from Yahoo Finance as of September 22, 2026. Investment performance, fees, yields, and holdings change over time. Readers should consult qualified financial professionals and conduct their own research before making any investment decisions.

SPMO vs SPY

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

Compare Invesco S&P 500 Momentum ETF (SPMO) and S&P 500 ETF Trust SPDR (SPY). This page examines fees, holdings, dividends, and how each fund tracks its market to help you understand their distinct approaches within the large blend category. Educational content, not financial advice.

Compare Invesco S&P 500 Momentum ETF (SPMO) and S&P 500 ETF Trust SPDR (SPY). This page examines fees, holdings, dividends, and how each fund tracks its market to help you understand their distinct ap...

Fund Snapshot

Key Fund Metrics

SPMO

Metric

SPY

0.13%

Expense Ratio

0.09%

0.72%

Dividend Yield

0.98%

$28.85B

Net Assets

$785.05B

102

Holdings

505

Oct 9, 2015

Inception Date

Jan 22, 1993

–

Index Tracked

–

Large Blend

Fund Category

Large Blend

SPY costs about $4.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	SPMO	SPY
MUMicron Technology, Inc.	11.09%	1.74%
NVDANVIDIA Corporation	9.02%	8.16%
AVGOBroadcom Inc.	6.05%	2.58%
GOOGLAlphabet Inc.	4.51%	3.11%
GOOGAlphabet Inc.	3.57%	2.48%

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Investment Analysis

SPMO

Pros

The ETF charges a 0.13 percent expense ratio, which is reasonable for a momentum strategy.
With 28.9 billion dollars in net assets, the fund offers ample liquidity and trading capacity.
Since its October 2015 inception, SPMO has established a long operational track record.

Considerations

Top holdings such as MU at 11.09 percent and NVDA at 9.02 percent create concentrated exposure.
The 0.72 percent dividend yield is lower than that of the broad market benchmark.
The specific index methodology is not available, limiting transparency on the precise momentum rules.

SPY

Pros

The fund has a very low expense ratio of 0.09 percent, reducing long-term cost drag.
With 785.0 billion dollars in net assets, SPY provides excellent liquidity and tight spreads.
Operating since January 22, 1993, this ETF has the longest track record among major S&P 500 funds.

Considerations

It is structured as a trust, which may prevent certain non-qualified investors from holding shares.
The 0.98 percent dividend yield is modest compared with dedicated income-oriented products.
The specific index methodology is not available, despite the fund being benchmarked against the S&P 500.

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About SPMO and SPY

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.

SPY (SPY)

SPDR S&P 500 ETF Trust (SPY) is an exchange‑traded fund designed to track the S&P 500 index, offering investors broad exposure to large‑capitalisation US equities. It is widely used by retail and institutional investors for core portfolio allocation, tactical trading and hedging because of its deep liquidity and transparent holdings. SPY distributes dividends (typically quarterly) and reflects the performance of the underlying index, so returns move with the US large‑cap market. As with any equity product, value can fall as well as rise and past performance is not a guide to the future. Costs, tax considerations and suitability will depend on an individual’s circumstances; consult official documents and consider seeking independent advice where appropriate. This summary is general educational information and not personalised investment advice.

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SPMO vs SPY

Fund Snapshot