What does comparing SPMO and VGT involve?

Comparing SPMO and VGT involves examining their strategies, costs, and holdings. SPMO (Invesco S&P 500 Momentum ETF) targets large blend momentum stocks within the S&P 500. VGT (Vanguard Information Technology ETF) focuses exclusively on the technology sector. Key comparison points include expense ratios, dividend yields, top holdings, and fund size. Understanding these factors helps investors evaluate which ETF aligns better with their portfolio objectives.

What is the primary difference in focus between SPMO and VGT?

SPMO is designed to capture momentum within the broader S&P 500 universe, potentially across various sectors exhibiting strong recent performance. VGT is specifically concentrated in the technology sector. This means VGT's performance will be heavily influenced by tech industry trends, while SPMO might include tech stocks if they exhibit momentum but is not limited to them. SPMO offers sector flexibility through its methodology, whereas VGT is a pure sector bet.

How do the expense ratios of SPMO and VGT compare?

SPMO has an expense ratio of 0.13%, while VGT has a lower expense ratio of 0.09%. This represents a difference of 0.04 percentage points. Over time, lower fees can result in higher net returns, assuming all other factors are equal. An investor holding £10,000 would pay £4 more annually for SPMO compared to VGT, purely due to the expense ratio difference.

How do the dividend yields of SPMO and VGT differ?

SPMO offers a higher dividend yield of 0.72% compared to VGT's 0.34%. This means an investment in SPMO is projected to generate more income relative to its price. However, dividend yield is just one factor; total return also includes capital appreciation, which might differ significantly between a momentum strategy and a sector-specific strategy. Yield-focused investors may lean towards SPMO, while growth-focused investors consider both.

What are the shared top holdings in SPMO and VGT?

SPMO and VGT share several top holdings, including MU, NVDA, AVGO, AMD, LRCX, and INTC. This overlap suggests both funds have significant exposure to the semiconductor industry. However, the weighting of these holdings will differ due to their distinct strategies. The overlap highlights that momentum investing (SPMO) can result in a portfolio that resembles a sector fund (VGT) if those sectors are currently exhibiting strong performance.

What is the concentration risk associated with each fund?

Both funds exhibit concentration risk. SPMO's top ten holdings include Micron at 11.09% and Nvidia at 9.02%. VGT's top two holdings are Nvidia at 17.74% and Apple at 15.80%, creating substantial single-stock concentration. If these top holdings perform poorly, both funds will likely underperform. Investors should be aware that despite different strategies, both ETFs can be heavily influenced by a small number of large companies.

How do the fund sizes and liquidity of SPMO and VGT compare?

VGT has significantly larger net assets ($150.2 billion) compared to SPMO ($28.9 billion). Larger funds generally offer higher liquidity, meaning it might be easier to buy or sell shares without affecting the price, especially for large orders. While SPMO's asset base provides meaningful liquidity, VGT's size indicates exceptionally high trading convenience. This could matter for investors managing large positions or needing quick exits.

Which fund has a longer track record?

VGT has a significantly longer track record, having been launched on 26 January 2004. SPMO was launched on 9 October 2015. This means VGT's performance has been observed through multiple market cycles, including periods of high volatility and rapid growth. SPMO's shorter history provides less data for long-term performance assessment, although its underlying methodology is systematic. Longer track records generally offer more confidence for some investors.

What index information is available for SPMO and VGT?

For both SPMO and VGT, the tracked index information is listed as 'not available' in the provided data. This limits transparency regarding the exact methodology used for constituent selection and weighting. Investors comparing these funds based solely on this data cannot directly verify how closely each fund adheres to a benchmark index. This lack of specific index detail requires reliance on the described strategy.

Which fund suits a technology sector allocation?

VGT is designed specifically for investors seeking exposure to the technology sector. If an investor wants a pure play on tech stocks like Apple, Microsoft, and Nvidia, VGT is the straightforward choice. SPMO might include tech stocks if they exhibit momentum, but it will also include other sectors meeting the momentum criteria, making it less suitable for precise sector allocation within a portfolio strategy.

Which fund aligns with a momentum strategy?

SPMO is tailored for investors seeking to capture the momentum factor within the S&P 500. If an investor believes stocks that have performed well recently will continue to do so, SPMO provides systematic exposure to this strategy across various sectors. VGT is purely a sector fund and does not specifically target momentum stocks, even though its holdings might currently exhibit momentum characteristics.

SPMO vs VGT

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

Compare SPMO (Invesco S&P 500 Momentum ETF) and VGT (Vanguard Information Technology ETF). This page examines fees, holdings, dividends, and how each fund tracks its market. SPMO targets large blend momentum, while VGT focuses on the technology sector. Both hold NVDA and AVGO, differing in strategy. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SPMO

Metric

VGT

0.13%

Expense Ratio

0.09%

0.72%

Dividend Yield

0.34%

$28.85B

Net Assets

$150.23B

102

Holdings

323

Oct 9, 2015

Inception Date

Jan 26, 2004

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Index Tracked

–

Large Blend

Fund Category

Technology

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

Shared Top Holdings

Holding	SPMO	VGT
MUMicron Technology, Inc.	11.09%	4.18%
NVDANVIDIA Corporation	9.02%	17.74%
AVGOBroadcom Inc.	6.05%	4.52%
AMDAdvanced Micro Devices, Inc.	4.49%	2.95%
LRCXLam Research Corporation	3.07%	1.49%
INTCIntel Corporation	2.88%	1.54%

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Investment Analysis

SPMO

Pros

Invesco S&P 500 Momentum ETF offers a relatively low expense ratio of 0.13% for systematic style-factor exposure.
With US$28.9 billion net assets, the fund provides meaningful liquidity for investors seeking S&P 500 momentum stocks.
It generates a dividend yield of 0.72%, which is higher than the sector-concentrated alternative.

Considerations

The top-ten holdings include Micron at 11.09% and Nvidia at 9.02%, indicating significant concentration risk.
Invesco has not made the tracked index available, limiting transparency regarding its S&P 500 Momentum ETF methodology.
The fund’s inception on 9 October 2015 means it has a shorter track record than more established alternatives.

VGT

Pros

Vanguard Information Technology ETF features a very low expense ratio of 0.09% for sector-specific exposure.
With US$150.2 billion net assets, the fund provides exceptional liquidity and trading convenience for large orders.
Its January 2004 inception date provides a long track record through multiple technology cycles and market conditions.

Considerations

Vanguard Information Technology ETF has a dividend yield of only 0.34%, limiting income generation for yield-focused investors.
Top holdings of Nvidia at 17.74% and Apple at 15.80% create substantial single-stock concentration risk.
The Vanguard fund’s tracked index is not available, reducing transparency in its underlying methodology and criteria.

About SPMO and VGT

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.

VGT (VGT)

The Vanguard Information Technology ETF (VGT) aims to provide investors with exposure to companies operating in the technology sector, encompassing both US and international firms. As a broad market fund, it seeks to track the performance of the technology industry by holding a diversified basket of over 300 stocks. With a low expense ratio of 0.09%, it offers a cost-efficient way to gain access to major tech players. Investors should note that while the fund offers potential growth tied to technological innovation, it is heavily concentrated in the technology sector. This concentration means its value can fluctuate significantly based on sector-specific trends, regulatory changes, and market sentiment. Returns are not guaranteed, and values can rise and fall, making it suitable for those who understand the risks associated with sector-focused investing.

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SPMO vs VGT

Fund Snapshot