What is the primary difference between the mid-cap and small-cap momentum strategies of XMMO and XSMO?

XMMO focuses on mid-capitalisation companies, while XSMO targets small-capitalisation firms. Mid-cap stocks often offer a balance of growth potential and stability, whereas small-cap stocks can be more volatile but may provide higher long-term growth opportunities. Both ETFs apply momentum investing, selecting securities with strong recent performance trends. Investors should consider their risk tolerance and investment horizon when choosing between these distinct market segments.

How do the expense ratios of XMMO and XSMO compare, and what does this mean for investors?

XMMO has an expense ratio of 0.34%, while XSMO's is 0.35%, a mere 0.01% difference. This minor fee variation indicates that both ETFs offer cost-efficient access to their respective momentum strategies. Although this difference is small, lower expense ratios can enhance net returns over extended investment periods. Potential investors should evaluate both funds' fees alongside other factors such as yield and historical performance.

What is the historical track record and stability of these ETFs?

Both XMMO and XSMO were launched on 3 March 2005, providing nearly two decades of operational stability and track record. This longevity indicates their ability to withstand various market cycles and conditions. A stable history can instil confidence in investors, though past performance does not guarantee future results. It is essential to understand that both funds have demonstrated consistent operational performance over this time.

How similar are the top holdings of XMMO and XSMO?

The top holdings of XMMO and XSMO do not overlap, reflecting their distinct market cap focuses. XMMO's top ten holdings include FTI, ATI, CW, RGLD, ROIV, NVT, WWD, STRL, HL, and TTMI. In contrast, XSMO's include VSAT, PTGX, ESE, FORM, INDV, MRCY, SNEX, LGND, MSGS, and PARR. This differentiation underscores the unique investment strategies each fund employs.

What are the liquidity aspects of XMMO and XSMO?

XMMO holds approximately $7.0 billion in net assets, while XSMO has $2.9 billion. Both funds possess large asset bases that support solid liquidity and efficient trading. Higher net assets typically result in more reliable market execution, benefiting investors by facilitating easier buying and selling. However, potential investors should consider that XMMO offers a more established liquidity profile due to its larger asset base.

How do the dividend yields of XMMO and XSMO compare?

XMMO offers a dividend yield of 0.67%, whereas XSMO has a slightly lower yield of 0.62%. These yields are modest and may not appeal to income-focused investors seeking substantial dividends. Both funds primarily target capital appreciation through momentum strategies rather than income generation. Investors should align these yields with their own income needs and investment objectives.

How do XMMO and XSMO respond to market downturns?

XSMO, which targets small-cap stocks, may experience increased volatility during economic downturns due to the inherent risks associated with smaller firms. Conversely, XMMO, focusing on mid-cap companies, might offer some stability, as mid-caps often balance growth and risk. However, both funds rely on momentum strategies, which can lead to fluctuations based on recent market performance trends.

How does concentration risk differ between XMMO and XSMO?

For XMMO, the top-ten holdings represent over 28% of its assets, introducing significant concentration risk. This means that a considerable portion of the fund's performance is influenced by these companies. XSMO's concentration level is not explicitly detailed, but the absence of shared holdings with XMMO suggests a different risk profile. Investors should consider the implications of concentrated portfolios when evaluating these funds.

Why are the index tracked and sector weights not available for these ETFs?

Both XMMO and XSMO do not disclose the specific index tracked or sector weights, which introduces a level of opacity in understanding their portfolio construction. This lack of information may limit investors' ability to assess the ETF's diversification and risk profile fully. As a result, investors should consider this transparency gap as part of their due diligence.

Who might prefer XMMO or XSMO for long-term investing?

Investors seeking exposure to mid-cap companies with a focus on momentum might lean towards XMMO. It combines established stability with a track record of longevity. Those comfortable with higher volatility and interested in small-cap growth could find XSMO appealing. Each ETF's unique characteristics should align with the investor's risk tolerance and overall investment strategy.

XMMO vs XSMO

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

This page compares XMMO (Invesco S&P MidCap Momentum ETF) and XSMO (Invesco S&P SmallCap Momentum ETF). Explore their expense ratios, top holdings, dividend yields and how each fund tracks momentum within its respective market segment. Data is presented for clarity and ease of comparison. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

XMMO

Metric

XSMO

0.34%

Expense Ratio

0.35%

0.67%

Dividend Yield

0.62%

$7.04B

Net Assets

$2.90B

Holdings

109

Mar 3, 2005

Inception Date

Mar 3, 2005

–

Index Tracked

–

Mid-Cap Blend

Fund Category

Small Blend

XMMO costs about $1.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

Investment Analysis

XMMO

Pros

The fund’s expense ratio is 0.34%, offering modest access to an established mid-cap momentum strategy.
With approximately $7.0 billion in net assets, the fund provides solid liquidity for efficient trading.
Launched in March 2005, the ETF has demonstrated longevity and a stable track record.

Considerations

A low yield of 0.67% limits its suitability for investors seeking substantial income.
The index tracked and sector weights are not available, creating some opacity regarding portfolio construction.
The top-ten holdings account for over 28% of assets, introducing meaningful concentration risk.

XSMO

Pros

The 0.35% expense ratio delivers a cost-effective approach to small-cap momentum exposure.
A large asset base of $2.9 billion supports strong liquidity and reliable market execution.
Established in March 2005, the fund offers nearly two decades of consistent operational performance.

Considerations

Small-cap strategies are inherently more volatile, posing a risk during market downturns.
A dividend yield of 0.62% is very low, making the fund unsuitable for income investors.
With the index tracked and sector weights not available, the methodology is partially opaque.

About XMMO and XSMO

XMMO (XMMO)

The Invesco S&P MidCap Momentum ETF aims to track an index composed of mid-capitalisation stocks demonstrating strong price momentum. Investors might consider this fund for potential growth opportunities associated with established yet dynamic companies. With an expense ratio of 0.34%, the fund provides exposure to 77 holdings in the mid-cap blend category. Launched in March 2005, it currently manages approximately USD 7.04 billion in net assets. While the fund offers a modest dividend yield of 0.67%, its primary focus remains on capital appreciation. As with any investment, values can fluctuate based on market conditions, and past performance does not guarantee future results. Always consider personal financial circumstances and seek independent advice before investing.

XSMO (XSMO)

The Invesco S&P SmallCap Momentum ETF (XSMO) is designed to help investors access the potential growth of smaller companies through a systematic strategy. This fund focuses on stocks within the small-cap universe that have shown stronger relative momentum over the past 12 months. With net assets of USD 2.90 billion and 109 holdings, it offers diversified exposure to this sector. The fund has a low expense ratio of 0.35%, making it a cost-effective option for those interested in this style of investing. While it currently pays a dividend yield of 0.62%, income is typically not the primary focus for momentum-based ETFs. Launched in March 2005, the fund allows investors to tap into small-cap trends without picking individual stocks. Investors should remember that all investments carry risk, including the potential for loss of capital.

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XMMO vs XSMO

Fund Snapshot

Investment Analysis

XMMO

Pros

Considerations

XSMO

Pros

Considerations

About XMMO and XSMO

Buy XMMO or XSMO in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What is the primary difference between the mid-cap and small-cap momentum strategies of XMMO and XSMO?

How do the expense ratios of XMMO and XSMO compare, and what does this mean for investors?

What is the historical track record and stability of these ETFs?

How similar are the top holdings of XMMO and XSMO?

What are the liquidity aspects of XMMO and XSMO?

How do the dividend yields of XMMO and XSMO compare?

How do XMMO and XSMO respond to market downturns?

How does concentration risk differ between XMMO and XSMO?

Why are the index tracked and sector weights not available for these ETFs?

Who might prefer XMMO or XSMO for long-term investing?

Fund Snapshot

About XMMO and XSMO