What are the primary strategies behind SPMO and XLK?

SPMO is an Invesco S&P 500 Momentum ETF designed to capture stocks with strong relative momentum within the S&P 500, targeting large blend stocks that have shown recent outperformance. In contrast, XLK is a Technology Sector SPDR fund that aims to replicate the performance of the technology sector as defined by GICS. While SPMO is dynamic in its momentum selection and broad in sector exposure, XLK is static and purely sector-focused, meaning it maintains constant technology exposure. Investors should note that these funds have different goals: SPMO seeks stock selection based on price trends, whereas XLK provides direct sector exposure to the technology industry.

How do the expense ratios of SPMO and XLK differ?

SPMO, the Invesco S&P 500 Momentum ETF, has an expense ratio of 0.13%, while XLK, the Technology Sector SPDR, boasts a lower expense ratio of 0.08%. This represents a difference of 0.05 percentage points. When comparing ETFs, the expense ratio is a critical factor as it represents the annual cost of managing the fund. While both funds are relatively low-cost, XLK's slightly lower expense ratio may be advantageous over extended investment horizons due to reduced cost drag. However, investors should also consider other factors such as tracking differences and sector exposure when evaluating costs, as a low expense ratio alone does not guarantee superior performance or suitability for a given investment strategy.

What are the holdings overlaps between SPMO and XLK?

SPMO and XLK share several major technology companies in their top holdings. The overlapping stocks include Micron Technology (MU), Nvidia (NVDA), Broadcom (AVGO), Advanced Micro Devices (AMD), Lam Research (LRCX), and Intel (INTC). These stocks constitute significant portions of both portfolios, particularly XLK, which is a sector-specific technology fund. The top holdings for SPMO include MU at 11.09% and NVDA at 9.02%, while XLK has NVDA at 15.53% and Apple (AAPL) at 14.16%. This indicates that both funds are technology-intensive, despite SPMO being a momentum ETF. The overlap suggests that momentum-driven strategies can significantly align with sector-focused portfolios, but SPMO may rebalance differently over time based on momentum criteria.

How do the dividend yields of SPMO and XLK compare?

SPMO has a dividend yield of 0.72%, while XLK's yield is 0.43%. Both are relatively low, reflecting the focus on growth-oriented sectors like technology rather than income-producing stocks. ETFs do not pay fixed dividends; instead, they distribute a share of the income received from their holdings. The yield can fluctuate based on underlying stock dividends, market value, and distribution schedules. For instance, SPMO and XLK may alter yields depending on stock prices or dividend changes. Investors seeking regular income might consider funds with higher yields, as SPMO and XLK primarily serve growth strategies. Thus, while SPMO offers slightly higher yields, both funds emphasize capital appreciation, a trait common to their technology-heavy portfolios.

What are the tracking methods used by SPMO and XLK?

Both SPMO and XLK aim to track the performance of specific indices, but the provided fund data notes that the tracked index is not available for either fund. Typically, SPMO would track an index focused on momentum within the S&P 500. XLK, as a sector-specific ETF, generally tracks the technology sector. Differences in tracking can lead to performance variances: SPMO's methodology might shift with momentum trends, causing holdings to change periodically. XLK would likely maintain constant sector exposure, mirroring the technology sector's performance. These tracking differences are essential in understanding how an ETF will respond to market movements. Investors should research the exact index methodology for the most precise understanding of each fund's strategy.

What is the net asset size of SPMO and XLK?

SPMO, the Invesco S&P 500 Momentum ETF, has net assets of $28.9 billion, while XLK, the Technology Sector SPDR, boasts a much larger asset base of $123.2 billion. Net asset value reflects a fund's size, often influencing liquidity and operational efficiency. Larger funds like XLK tend to offer better liquidity, as they trade more frequently, which is advantageous for transactions. Meanwhile, SPMO, with $28.9 billion in assets, is still substantial but may have relatively lower trading volumes. Investors should consider that a fund's size impacts trading spread and the ease of buying or selling shares. Thus, XLK's larger asset base may provide a slight advantage in trade efficiency and fund stability, while SPMO remains well within a robust asset size category.

What is the inception date of SPMO and XLK?

SPMO, the Invesco S&P 500 Momentum ETF, began operations on October 9, 2015. Meanwhile, XLK, the Technology Sector SPDR, has been active since December 16, 1998. This means XLK has more than fifteen years of additional track record data. An earlier inception date is often advantageous, as it offers a broader performance history to evaluate during different market cycles. While SPMO has been available for nearly a decade, its history is shorter compared to XLK. This could influence investment decisions, as longer data sets provide more insights into how a fund responds to market volatility. Thus, XLK's history spans nearly three decades, offering greater transparency on performance through varied economic periods compared to SPMO.

What are the sector weights of SPMO and XLK?

In the provided fund data, the sector weights of both SPMO and XLK are listed as not available. Typically, SPMO, as a momentum ETF, includes a diverse set of stocks within the S&P 500, likely including large exposure to tech, healthcare, and other sectors. Its momentum approach would shift its composition as different stocks outperform. On the other hand, XLK is a sector-specific fund, meaning it predominantly holds technology stocks, as indicated by its name and category. Sector weights can reveal how much of the fund's assets are allocated to different industries, impacting concentration risk and sector performance alignment. Investors should seek detailed holdings to ascertain actual sector allocations, as understanding these can be crucial in evaluating each fund's role in a diversified portfolio.

What is the top holding for SPMO?

The top holding of SPMO, the Invesco S&P 500 Momentum ETF, is Micron Technology (MU), comprising 11.09% of the fund's portfolio. This is followed closely by Nvidia (NVDA) at 9.02%. The composition of SPMO's holdings suggests a significant exposure to technology stocks. These large positions highlight the fund's focus on stocks with high momentum. The top holdings provide insights into how a fund is allocated and its potential impact on performance. Momentum ETFs can experience shifts in holdings as stocks' relative performance changes, potentially leading to frequent rebalancing. This dynamic nature might contrast with more stable sector-specific funds like XLK, which would maintain tech-heavy holdings but without rebalancing due to momentum shifts.

How are ETF distributions made to shareholders?

ETFs like SPMO and XLK distribute income and gains to shareholders through cash distributions, usually on a quarterly, semi-annual, or annual basis. For instance, SPMO has a dividend yield of 0.72%, while XLK's yield is 0.43%. These yields are indicative of past distributions. Distributions depend on dividends from underlying stocks, realized gains, and fund policies. Investors can typically receive these in cash or reinvest them into additional ETF shares. It's crucial to understand that the yields provided are estimates based on past distribution rates, which might fluctuate. For example, if the underlying companies in SPMO's portfolio increase their dividends, this could raise SPMO's distributions, affecting yield. Similarly, XLK's yield depends on its tech-focused holdings' payout.

What type of investor might be interested in XLK?

XLK, as a Technology Sector SPDR, is particularly relevant for investors who specifically seek exposure to the technology sector. Given its expense ratio of 0.08%, its inception date of December 16, 1998, and a substantial net asset base of $123.2 billion, it attracts those seeking stability and sector-focused performance. It is suitable for investors looking to capitalize on the growth of tech companies without having to pick individual stocks. It may also appeal to those interested in the sector's response to technological advancements. However, it concentrates risk in one sector, unlike SPMO, a momentum fund with broader S&P 500 exposure. Investors should evaluate their tolerance for tech sector volatility and their desire for concentrated versus diversified market exposure.

What type of investor might be interested in SPMO?

SPMO, the Invesco S&P 500 Momentum ETF, is ideal for investors looking to implement a momentum strategy within the S&P 500 universe. Its expense ratio of 0.13% and inception date of October 9, 2015 suggest a relatively modern approach. Investors often target momentum ETFs to capture stocks with strong recent price trends, expecting them to continue performing well. This fund might suit those who are confident in the strategy's ability to outperform traditional indices over time. It has broader sector diversification than XLK, including large blend exposure and potential for performance driven by momentum shifts. However, it may entail higher turnover. SPMO's composition indicates significant tech exposure, similar to XLK, which could be appealing but requires understanding of the momentum strategy's inherent risks.

SPMO vs XLK

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

Compare SPMO and XLK. This page examines fees, holdings, dividends and tracking. SPMO targets momentum within the S&P 500, while XLK focuses on technology. See how these strategies differ in composition and costs. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SPMO

Metric

XLK

0.13%

Expense Ratio

0.08%

0.72%

Dividend Yield

0.43%

$28.85B

Net Assets

$123.19B

102

Holdings

Oct 9, 2015

Inception Date

Dec 16, 1998

–

Index Tracked

–

Large Blend

Fund Category

Technology

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

Shared Top Holdings

Holding	SPMO	XLK
MUMicron Technology, Inc.	11.09%	4.39%
NVDANVIDIA Corporation	9.02%	15.53%
AVGOBroadcom Inc.	6.05%	4.90%
AMDAdvanced Micro Devices, Inc.	4.49%	4.78%
LRCXLam Research Corporation	3.07%	2.11%
INTCIntel Corporation	2.88%	3.15%

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Investment Analysis

SPMO

Pros

The fund has a low expense ratio of 0.13%.
Net assets are substantial at $28.9 billion.
The fund has been in operation since October 2015.

Considerations

The dividend yield is relatively low at 0.72%.
The index tracked by the fund is not available.
The sector weights of the fund are not available.

XLK

Pros

The expense ratio is very low at 0.08%.
The fund has high net assets of $123.2 billion.
It has been in existence since December 1998.

Considerations

The dividend yield is quite low at 0.43%.
The index tracked by the fund is not available.
Sector weights for this fund are not available.

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About SPMO and XLK

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.

XLK (XLK)

Technology Sector SPDR (XLK) is an exchange‑traded fund designed to give investors broad exposure to the US technology sector by tracking a technology‑focused index. It concentrates on large‑capitalisation companies across software, hardware, semiconductors and IT services, so holdings are often dominated by a handful of industry leaders. The ETF is passively managed, typically has a low expense ratio relative to actively managed funds, and can serve as a straightforward way to gain sector exposure without selecting individual stocks. Investors should be aware of sector concentration risk, sensitivity to interest‑rate changes and valuation swings, and the cyclicality of technology spending. XLK is suitable for those seeking long‑term exposure to technology trends but not as a substitute for a diversified portfolio. This is general information only and not personal advice; values can rise and fall and past performance does not predict future returns.

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SPMO vs XLK

Fund Snapshot