What exactly are expense ratios and how do they impact my investment?

An expense ratio represents the annual fee charged by a fund to manage assets, deducted from the fund's total returns. For SPMO, the ratio is 0.13%, while UMMA charges 0.65%. This 0.52 percentage point difference means UMMA is costlier to hold. Lower fees generally preserve more compounding potential over long periods. Understanding these costs is vital because they directly reduce net returns regardless of market performance. Investors should compare these figures to gauge operational efficiency. However, cheaper does not always mean better fit for specific financial goals, as structure and strategy also matter significantly.

How does the tracking index influence the fund's behaviour?

Each ETF aims to mirror a specific benchmark. SPMO tracks the S&P 500 Momentum Index, selecting US large-cap stocks with strong recent price performance. UMMA tracks the Dow Jones Islamic World Index, focusing on global companies compliant with Sharia principles. SPMO’s index is domestic and momentum-driven, whereas UMMA’s is international and values-based. The provided data notes specific indices for SPMO and describes UMMA as foreign large growth. Understanding these tracking methods helps investors anticipate how economic cycles might affect each fund differently based on their underlying rules and geographic scopes.

What does net asset value indicate about an ETF?

Net assets, often referred to as assets under management, reflect the total market value of all holdings within the fund. SPMO holds approximately $28.9 billion, indicating substantial scale and liquidity. UMMA has around $292 million, suggesting a smaller, less liquid fund structure. Larger funds like SPMO often benefit from economies of scale, potentially lowering trading costs. Smaller funds like UMMA might face higher liquidity risks. These figures help beginners understand the fund's size and stability, though high assets do not guarantee performance. It is a metric for assessing operational robustness and market presence.

Do these two funds share any common top holdings?

According to the provided data, there are no shared top-10 holdings between SPMO and UMMA. SPMO’s largest positions include MU at 11.09% and NVDA at 9.02%, reflecting its US momentum strategy. UMMA’s top holding is TSM at 5.49%, aligned with its Islamic foreign growth focus. This lack of overlap means the funds pursue entirely different investment avenues. For a portfolio, this could offer diversification benefits since they do not concentrate on the same stocks. Investors should note this distinction when evaluating how these funds might interact within a broader asset allocation.

How do the dividend yields compare between the two ETFs?

SPMO offers a dividend yield of 0.72%, while UMMA provides a slightly higher yield of 0.96%. Both figures are relatively modest. ETFs pay dividends to shareholders when the underlying companies distribute profits. The yield represents annual dividends paid relative to the current share price. While UMMA’s yield is higher, neither fund is primarily designed for high income generation compared to dedicated dividend ETFs. Beginners should interpret these yields as supplementary income potential rather than core investment goals. Actual distributions can vary based on corporate actions and market conditions affecting the underlying holdings.

What kind of investing goals are these funds typically associated with?

SPMO is typically associated with growth-oriented strategies seeking exposure to high-performing US large-cap stocks through momentum factors. It caters to investors believing recent trends will continue. UMMA is associated with values-based investing, specifically for those seeking Sharia-compliant exposure to global foreign large growth companies. It serves a demographic prioritising ethical alignment alongside growth potential. Neither is explicitly recommended for income or capital preservation. Understanding these typical associations helps investors align fund structures with their personal financial objectives, risk tolerance, and ethical preferences without assuming one is inherently superior.

Are there concentration risks visible in the top holdings?

Yes, concentration risk is evident in both funds. SPMO has a significant 11.09% weight in MU, meaning its performance is heavily influenced by this single stock. Similarly, UMMA has a 5.49% holding in TSM. While UMMA’s top holding weight is lower, it still represents a notable portion of the portfolio. Sector weights are not available for either fund, adding uncertainty to broader exposure. Beginners should be aware that high concentration in specific companies can lead to increased volatility if those particular stocks underperform unexpectedly.

How do the inception dates affect reliability of performance data?

SPMO was established on October 9, 2015, providing over a decade of historical performance data. This longer track record allows investors to observe how it behaves across various market cycles. UMMA, launched on January 7, 2022, is much newer with a shorter operational history. Limited historical data means there is less evidence of how UMMA has reacted to prolonged recessions or different interest rate environments. While newer funds offer modern structures, beginners should consider that SPMO’s longer history provides more context for evaluating potential future behaviour under stress.

What are the geographical and sector exposures of each fund?

SPMO focuses on US large-cap stocks, specifically those from the S&P 500, as indicated by its tracking of the Momentum index. UMMA is categorised as Foreign Large Growth, implying exposure to international markets rather than domestic US ones. This geographical distinction is a key differentiator. Specific sector weights are not available for either fund, which limits precise understanding of industry concentration. Investors must recognise that SPMO is a domestic strategy while UMMA is international. This difference affects currency risk, regulatory environments, and economic drivers impacting each fund's performance.

How should beginners interpret the lack of sector weight data?

The data states that sector weights are not available for both SPMO and UMMA. This absence creates uncertainty regarding how much each fund is exposed to specific industries like technology, healthcare, or energy. Beginners should be cautious when interpreting risk, as they cannot easily assess industry diversification. For SPMO, high weights in MU and NVDA suggest heavy technology and semiconductor influence, but without full sector data, this is an inference. For UMMA, TSM’s 5.49% weight hints at semiconductor exposure. Lack of transparency means investors must rely on top holdings and fund categories.

Why is it important to know the fund issuers?

SPMO is issued by Invesco, a well-known global asset manager. UMMA’s issuer is listed as not available in the provided data, though it is associated with Wahed Invest. Knowing the issuer helps investors assess operational credibility, regulatory compliance, and service quality. Large issuers often have established frameworks for liquidity management and trading. When issuer information is missing or unclear, beginners should research further through official prospectuses. This detail adds another layer of due diligence, ensuring that the entity managing the money is reputable and transparent in its operations and reporting standards.

What does 'Foreign Large Growth' mean for UMMA's strategy?

'Foreign Large Growth' categorises UMMA as investing in established companies outside the investor's home country that exhibit growth characteristics. This typically implies higher volatility and less dividend focus compared to value or blended strategies. Combined with its Sharia-compliant mandate, the universe of eligible companies is filtered both geographically and ethically. This dual constraint creates a unique exposure profile. For beginners, it signals that UMMA is not a general global fund but a specialised one. The growth aspect suggests potential for capital appreciation rather than steady income, aligning with the low yield observed.

SPMO vs UMMA

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

Explore Invesco S&P 500 Momentum ETF and Wahed Dow Jones Islamic World ETF side-by-side. Compare fees, holdings, dividends, and how each fund tracks its market. Invesco S&P 500 Momentum ETF charges 0.13%, while Wahed Dow Jones Islamic World ETF charges 0.65%. This comparison highlights key differences in cost and structure. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SPMO

Metric

UMMA

0.13%

Expense Ratio

0.65%

0.72%

Dividend Yield

0.96%

$28.85B

Net Assets

$291.74M

102

Holdings

100

Oct 9, 2015

Inception Date

Jan 7, 2022

–

Index Tracked

–

Large Blend

Fund Category

Foreign Large Growth

SPMO costs about $52.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

SPMO

Pros

Invests in high-momentum stocks from the S&P 500 index, potentially enhancing returns.
Offers a relatively low expense ratio of 0.13%, minimizing costs for investors.
Has a substantial net assets value of approximately $28.9 billion, supporting liquidity and stability.

Considerations

The dividend yield is lower at 0.72%, which may not meet the needs of income-focused investors.
Concentrated top holdings, including a 11.09% weight in MU, introduce significant single-stock risk.
The sector weights are not available, creating uncertainty in sector-specific risks.

UMMA

Pros

Caters to investors seeking Sharia-compliant investments, broadening its appeal to a specific demographic.
Provides exposure to Foreign Large Growth companies, potentially offering different return profiles compared to domestic markets.
Has the lowest expense ratio among Islamic ETFs, making it cost-effective within its niche.

Considerations

The fund's net assets are smaller, at approximately $292 million, which might impact liquidity.
Being relatively new, established in January 2022, the fund lacks a long track record, potentially limiting its reliability.
Investor exposure might be significantly affected by single-stock concentration, such as the 5.49% holding in TSM, which could present a risk if TSM underperforms.

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About SPMO and UMMA

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.

UMMA (UMMA)

Wahed Dow Jones Islamic World ETF (UMMA) is a passively managed exchange-traded fund that aims to track the Dow Jones Islamic Market World Index, offering diversified exposure to global equities that meet Shariah principles. It seeks to exclude businesses involved in interest-bearing activities, alcohol, gambling, and other sectors inconsistent with Islamic investing. As an ETF, UMMA trades like a stock on an exchange, providing intraday liquidity and potentially lower costs versus actively managed alternatives. Investors should be aware that performance will follow the underlying index and is not guaranteed; values can rise or fall and currency movements may affect returns. Market-cap data may not be applicable to the fund itself. This summary is educational only and not personal financial advice — suitability depends on individual circumstances, investment horizon and attitude to risk.

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SPMO vs UMMA

Fund Snapshot