MTUM vs SPMO looks like an easy comparison. Both ETFs buy US stocks that have been going up. Both charge less than 0.2% a year. Both are now about half technology. Yet over the last 10 years, one returned 20.2% a year and the other 16.5%. On $10,000, that gap is about $16,000.
The reason isn’t the factor. It’s the rulebook. MTUM and SPMO track different indexes that measure momentum differently, pick from different stock pools, cap their biggest positions differently, and update on different schedules. Those rules decide which winners you own and how much of each.
In this guide, I’ll walk through how each index works in plain English, what the performance record really shows, what each fund holds today, and which one fits which kind of investor.
Returns are total returns with dividends reinvested, to September 30, 2026, unless stated. Holdings are as of October 9, 2026. Some links may be affiliate links. This is educational content, not personalized financial advice.
Key Takeaways
- Same factor, different rules. MTUM picks 125 US large and mid caps using a 6- and 12-month momentum blend, caps each stock at 5%, and rebalances quarterly. SPMO picks about 100 S&P 500 stocks on 12-month momentum, lets winners reach about 9%, and rebalances twice a year.
- SPMO has the stronger long-term record. 20.2% vs 16.5% a year over 10 years, with almost identical volatility. It beat MTUM in 83% of rolling five-year periods since 2015.
- 2026 is a tie so far. Year to date through October 12, MTUM is up 26.4% and SPMO 25.9%.
- SPMO is more concentrated. Its top 10 holdings make up 54% of the fund, vs 39% for MTUM. Apple is SPMO’s #2 holding and isn’t in MTUM at all.
- Owning both is mostly duplication. They share about 71% of their portfolio weight, and their monthly returns have a 0.95 correlation.
MTUM vs SPMO at a Glance
| MTUM | SPMO | |
|---|---|---|
| Full name | iShares MSCI USA Momentum Factor ETF | Invesco S&P 500 Momentum ETF |
| Index | MSCI USA Momentum SR Variant Index | S&P 500 Momentum Index |
| Stock pool | US large + mid caps (MSCI USA) | S&P 500 only |
| Number of holdings | 125 | ~100 |
| Max weight per company | 5% | 9% (or 3× its S&P 500 weight, if lower) |
| Rebalancing | Quarterly + volatility-triggered | Twice a year (March, September) |
| Expense ratio | 0.15% | 0.13% |
| Assets | ~$20.3B | ~$23B |
| Top 10 weight | 38.6% | 54.1% |
| 10-year return (ann.) | 16.5% | 20.2% |
| Max drawdown (month-end, since 2015) | −30.2% | −21.3% |
| Trailing yield | ~0.6% | ~0.7% |
Sources: iShares (Oct 9, 2026), StockAnalysis and Alpha Vantage (Oct 9–13, 2026), InvestingEngineer calculations. Top-10 weights combine Alphabet’s two share classes.
What Is Momentum Investing?
What is momentum investing?
Momentum investing means buying stocks that have outperformed over roughly the past 6 to 12 months, on the evidence that strong trends tend to persist for a while. It is not the same as growth investing. A momentum fund will happily own oil companies or drug makers if those are the stocks that are rising.
The idea has deep academic roots. Researchers Narasimhan Jegadeesh and Sheridan Titman documented it in US stocks in 1993, and later work found the same pattern across countries and asset classes. That’s why index providers build “momentum factor” indexes.
There’s a catch. Momentum works until it suddenly doesn’t. When market leadership flips, often right after a bear market or a sharp rotation, last year’s winners can fall hard. Kent Daniel and Tobias Moskowitz call these “momentum crashes” in their 2016 study. Keep that in mind as we look at the numbers.
How MTUM Picks Its Stocks
The MSCI USA Momentum SR Variant Index in Plain English
MTUM tracks an index built by MSCI. According to the index methodology, the recipe works like this:
- Start with the MSCI USA Index, which covers US large and mid-size companies.
- Measure each stock’s 6-month and 12-month returns, skipping the most recent month (very short-term winners tend to snap back) and subtracting the T-bill rate.
- Adjust for risk. Divide each return by the stock’s volatility over the past three years, so steady climbers rank above wild swingers.
- Blend the two scores 50/50 into a single momentum score.
- Pick the top 125 stocks.
- Weight them by momentum score × company size, with no company above 5%.
Quarterly Rebalancing and the “Volatility Trigger”
MTUM’s index is reviewed four times a year, in February, May, August and November. Each review is limited to about 30% one-way turnover, so the portfolio doesn’t flip completely at once.
It also has an emergency brake. Under MSCI’s momentum methodology, if market volatility jumps sharply in a month, the index can rebalance off-schedule using only the 6-month signal. MSCI says the goal is to limit drawdowns when volatility spikes.
If you’ve read that MTUM rebalances “twice a year,” that information is out of date. It switched to this quarterly index in November 2020.
How SPMO Picks Its Stocks
The S&P 500 Momentum Index in Plain English
SPMO tracks the S&P 500 Momentum Index from S&P Dow Jones Indices. The recipe is simpler:
- Start with the S&P 500 only.
- Measure each stock’s 12-month return, skipping the most recent month.
- Adjust for risk by dividing by the volatility of daily returns over that same 12 months.
- Pick the top 20%, roughly 100 stocks, with a buffer so stocks near the cutoff don’t churn in and out.
- Weight them by momentum score × company size, capped at the lower of 9% or three times the stock’s normal S&P 500 weight.
Twice-a-Year Rebalancing and the 9% Cap
SPMO updates only twice a year, in March and September, with no volatility trigger. Since September 18, 2026, the 9% cap applies per company rather than per share class, so Alphabet’s two share classes now count together.
The September 2026 rebalance shows how dramatic these updates can be. It changed 54 of 99 holdings, dropped Nvidia and Broadcom, and added Apple, Merck and UnitedHealth.
The Critical Difference: Index Rules Side by Side
Here’s the centerpiece of the MTUM vs SPMO debate. Same factor, six different design choices:
| Rule | MTUM (MSCI) | SPMO (S&P DJI) | What it means for you |
|---|---|---|---|
| Stock pool | US large + mid caps | S&P 500 only | MTUM can own mid caps the S&P 500 doesn’t include |
| Lookback | 6 + 12 months | 12 months | MTUM reacts faster, including to false starts |
| Risk adjustment | 3-year weekly volatility | 12-month daily volatility | MTUM penalizes historically jumpy stocks for longer |
| Number of stocks | Fixed 125 | ~100 (top 20%) | MTUM is broader |
| Weight cap | 5% per company | 9% (or 3× index weight) | SPMO lets its biggest winners run |
| Rebalancing | Quarterly + volatility trigger | March and September | MTUM updates more often and trades more |
Sources: MSCI USA Momentum SR Variant Index Methodology (Aug 2024); MSCI Momentum Indexes Methodology (Jul 2025); S&P Momentum Indices Methodology (Aug 2026).
Three of these differences matter most in practice.
First, the weight cap. When a few stocks dominate a trend, as Micron, AMD and other chip stocks did in 2024–2026, SPMO can hold nearly twice as much of each as MTUM can. That helps a lot when the leaders keep leading and hurts when they stumble.
Second, speed. MTUM’s 6-month signal and quarterly updates sound like an advantage. In practice, faster momentum signals can sell after a dip and buy back after the rebound. That is the “whipsaw” problem. Faster isn’t automatically better.
Third, the stock pool. MTUM can reach into mid caps. SPMO only owns companies that have already been admitted to the S&P 500, which requires positive earnings. MTUM’s pool is broader; SPMO’s is more established.
MTUM vs SPMO Performance Compared
Trailing Returns
| Period (to Sep 30, 2026) | MTUM | SPMO | S&P 500 (SPY) |
|---|---|---|---|
| 1 year | 24.6% | 26.3% | 15.7% |
| 3 years (annualized) | 32.5% | 39.3% | 22.8% |
| 5 years (annualized) | 13.9% | 21.6% | 13.7% |
| 10 years (annualized) | 16.5% | 20.2% | 15.2% |
| $10,000 invested Nov 30, 2015 | $48,970 | $65,431 | $43,748 |
| 2026 YTD (to Oct 12) | 26.4% | 25.9% | 15.0% |
Market-price total returns, dividends reinvested, InvestingEngineer calculations from Alpha Vantage data. iShares reports MTUM NAV returns of 24.39%, 32.44%, 13.83% and 16.48% for the same periods, which closely match our figures.
Both funds beat the S&P 500 over 10 years, but SPMO did so by a much wider margin. Over five years, MTUM roughly matched the index, while SPMO beat it by about 8 points a year.
Test the Gap From Your Own Start Date
Over 10 years SPMO leads by about 3.7 points a year. In 2026, though, the two are almost tied. Plot MTUM, SPMO and SPY on one chart, switch to percentage view, and move the start date around. You’ll see for yourself how much the “winner” depends on when you begin.
Compare MTUM vs SPMO on TradingView →Affiliate link. We may earn a commission at no extra cost to you.
Calendar-Year Returns
| Year | MTUM | SPMO | S&P 500 (SPY) |
|---|---|---|---|
| 2017 | 37.5% | 27.8% | 21.7% |
| 2018 | −1.7% | −0.9% | −4.6% |
| 2019 | 27.3% | 25.9% | 31.2% |
| 2020 | 29.8% | 28.3% | 18.4% |
| 2021 | 13.4% | 22.6% | 28.7% |
| 2022 | −18.3% | −10.5% | −18.2% |
| 2023 | 9.2% | 17.5% | 26.2% |
| 2024 | 32.9% | 45.8% | 24.9% |
| 2025 | 22.2% | 26.6% | 17.7% |
| 2026 YTD (Oct 12) | 26.4% | 25.9% | 15.0% |
MTUM had a great 2017 and edged out SPMO in 2019 and 2020. From 2021 through 2024, though, SPMO won by 8 to 13 points every year, and that stretch built most of its lead.
Rolling Returns: Is SPMO’s Lead Consistent?
A single start date can flatter either fund, so I compared every rolling three- and five-year period since late 2015:
| Rolling window | SPMO beat MTUM | MTUM beat S&P 500 | SPMO beat S&P 500 |
|---|---|---|---|
| 3 years (95 periods) | 74% | 47% | 72% |
| 5 years (71 periods) | 83% | 28% | 86% |
This is the most striking stat in the comparison. Over rolling five-year periods, MTUM beat a plain S&P 500 fund only 28% of the time. SPMO did so 86% of the time.
How They Behaved in Crashes and Reversals
| Episode (month-end) | MTUM | SPMO | S&P 500 |
|---|---|---|---|
| COVID crash (Jan–Mar 2020) | −17.9% | −16.1% | −19.4% |
| 2022 bear market (Dec 2021–Sep 2022) | −26.9% | −21.1% | −23.9% |
| 2023 rebound (Dec 2022–Jun 2023) | −0.2% | −0.3% | +16.8% |
| 2025 tariff shock (Jan–Apr 2025) | −4.1% | −5.3% | −7.6% |
| July 2026 momentum reversal | −12.6% | −11.0% | 0.0% |
There’s a clear pattern. In quick shocks such as COVID and the 2025 tariff scare, both funds held up about as well as the market or better. In regime changes, when leadership flips, both lagged badly. The early-2023 rebound is the textbook case: the S&P 500 gained almost 17% while both momentum funds went nowhere.
July 2026 was the latest reminder. A hawkish Fed and rising yields hit the chip stocks both funds were loaded with. Both fell 11–13% in a month while the S&P 500 was flat. For more context, see our breakdown of the July 2026 chip selloff [Related reading placeholder].
Volatility, Drawdown and Risk-Adjusted Returns
| Since Nov 2015 (monthly data) | MTUM | SPMO | S&P 500 |
|---|---|---|---|
| Volatility (annualized) | 17.6% | 17.5% | 15.0% |
| Worst drawdown (month-end) | −30.2% | −21.3% | −23.9% |
| Sharpe ratio (3% risk-free rate) | 0.73 | 0.91 | 0.77 |
| Beta vs S&P 500, last 3 years | 1.28 | 1.41 | 1.00 |
Volatility is almost identical, but SPMO earned more for the same bumpiness: a higher Sharpe ratio, which measures return per unit of risk. Its worst drawdown, the fall from a peak to a later low, was also shallower. One caution: over the last three years, both funds have swung more than the market, with SPMO more sensitive (beta 1.41).
Is it the rules, or just good timing?
Honest answer: some of both. SPMO’s lead came mostly from 2021–2024, when a few large-cap chip and AI stocks dominated. A 9% cap and a 12-month signal were well suited to that market.
A different market, with broader leadership, faster rotations or more mid-cap winners, could favor MTUM’s rules. A decade of data is meaningful, but it is not proof that one methodology will always win.
Holdings, Sector Exposure and Concentration
Top 10 Holdings Side by Side
| # | MTUM | Weight | SPMO | Weight |
|---|---|---|---|---|
| 1 | AMD | 6.5% | Micron | 9.5% |
| 2 | Micron | 5.2% | Apple | 8.9% |
| 3 | Alphabet | 4.7% | Alphabet | 8.6% |
| 4 | Intel | 4.3% | AMD | 5.6% |
| 5 | Cisco | 3.6% | Intel | 5.4% |
| 6 | Applied Materials | 3.1% | Johnson & Johnson | 4.6% |
| 7 | Johnson & Johnson | 3.0% | ExxonMobil | 3.0% |
| 8 | Sandisk | 2.8% | Lam Research | 3.0% |
| 9 | Palo Alto Networks | 2.8% | Applied Materials | 2.8% |
| 10 | ExxonMobil | 2.5% | Sandisk | 2.8% |
| Top 10 total | 38.6% | Top 10 total | 54.1% |
Holdings as of Oct 9, 2026 (Alpha Vantage). Alphabet share classes combined.
Notice what’s missing. Neither fund holds Nvidia, Microsoft, Amazon, Meta or Broadcom right now, even though they are among the largest US companies. Their 12-month trends simply weren’t strong enough at the last rebalance. That’s momentum investing in action: size doesn’t matter, only the trend does.
The other big difference is Apple: almost 9% of SPMO, and absent from MTUM.
Sector Allocation
| Sector | MTUM | SPMO |
|---|---|---|
| Information Technology | 54.4% | 54.2% |
| Industrials | 10.2% | 7.6% |
| Health Care | 9.0% | 10.6% |
| Energy | 8.7% | 5.6% |
| Communication Services | 4.7% | 8.7% |
| Financials | 5.4% | 6.1% |
| Other | 7.6% | 7.2% |
Both are now roughly 54% tech, mostly semiconductors, memory and chip equipment. MTUM leans more toward industrials and energy; SPMO leans more toward Alphabet (communication services) and Apple.
How Much Do MTUM and SPMO Overlap?
A lot. The two funds share 70 companies and about 71% of their portfolio weight. Since 2015 their monthly returns have had a 0.95 correlation (0.97 over the last five years), where 1.0 means they move in lockstep.
Concentration is the real difference. MTUM’s 125 holdings behave like a portfolio of about 43 equally weighted stocks. SPMO’s roughly 100 behave like about 25.
Example: what a 20% drop in one stock would do
If Micron fell 20% in a day, SPMO would lose about 1.9% (9.5% × 20%) and MTUM about 1.0% (5.2% × 20%).
If Apple fell 20%, SPMO would lose about 1.8%. MTUM wouldn’t feel it at all.
Keep an Eye on the Stocks That Move These Funds
Micron, Apple and Alphabet make up about 27% of SPMO. AMD, Micron and Intel are MTUM’s biggest positions. Build a watchlist of both ETFs and their top holdings, then set price alerts, so a sharp move in one chip stock doesn’t catch you off guard. MTUM’s next index review is in late November; SPMO’s is in March.
Build Your Momentum Watchlist on TradingView →Affiliate link. We may earn a commission at no extra cost to you.
Fees, Turnover and Trading Costs
Expense ratios: SPMO charges 0.13% and MTUM 0.15%. On a $10,000 investment, that’s $13 vs $15 a year, a $2 difference. Even over 20 years, the fee gap adds up to only a few hundred dollars on that amount. Compared with the 3.7-point-a-year return gap of the past decade, fees are not what decides this matchup.
Turnover: MTUM replaced about 104% of its portfolio in its fiscal year ended July 31, 2026, according to its annual report. SPMO’s turnover is lower: about 44% in the latest data, and 72% in its last prospectus. Higher turnover can mean hidden trading costs that don’t show up in the expense ratio, especially because index rebalances are predictable to other traders.
Trading: both are large and liquid. iShares reports MTUM’s median bid/ask spread at just 0.03%. Use limit orders anyway.
Income: neither is an income fund. Trailing yields are about 0.6% for MTUM and 0.7% for SPMO.
Housekeeping: MTUM will do a 4-for-1 stock split effective November 5, 2026. You’ll own four times as many shares at a quarter of the price; your investment’s value doesn’t change.
Risks Investors Should Understand
- Momentum reversals. Both funds can lag sharply when market leadership flips, as in early 2023 and July 2026. These are the moments when momentum investors are most tempted to quit.
- Sector concentration. At about 54% tech each, mostly chips, a semiconductor or AI-spending downturn would hit both hard.
- Single-stock concentration. This risk is higher in SPMO, where three companies (Micron, Apple and Alphabet) make up about 27% of the fund.
- Valuation risk. Recent winners often trade at rich valuations. iShares lists MTUM’s P/E at about 34×, and data providers show SPMO around 28×. Both are well above the long-run market average, which can be painful when interest rates are high.
- Rebalancing timing. SPMO can hold a fading stock for up to six months between updates. MTUM updates faster but pays for it in turnover and whipsaw.
- Benchmark risk. Both can trail a plain S&P 500 fund for years. MTUM did so in most rolling five-year periods.
MTUM vs SPMO: Which ETF Fits Which Investor?
Choose SPMO If…
- You want the momentum fund with the stronger 10-year record, lower cost and lower turnover.
- You’re comfortable with concentration, where the top 10 can exceed half the fund.
- You prefer momentum leaders drawn only from established S&P 500 companies.
- You can stomach big six-month portfolio overhauls.
Choose MTUM If…
- You want broader, less top-heavy momentum exposure, with a 5% cap and 125 stocks.
- You like the idea of a wider pool that includes mid caps.
- You prefer quarterly updates and a built-in response to volatility spikes, and accept the extra turnover.
- You want lower single-stock risk, even if the historical record is weaker.
Consider a Smaller Position (or Neither) If…
- You need steady income: both yield under 1%.
- You’d be tempted to sell after a 10–20% drop. Momentum rewards patience through ugly stretches.
- Your core portfolio is already tech-heavy, for example through an S&P 500 or Nasdaq-100 fund.
For most long-term investors, a momentum ETF works best as a satellite: a 10–20% tilt alongside a broad core fund, not the whole portfolio. If you’re weighing a momentum fund against a growth index, see our SPMO vs QQQM comparison. New to index investing? Start with what the S&P 500 is.
Should You Own Both?
Usually not. With about 71% overlapping weight and a 0.95 correlation, owning both mostly averages two very similar funds and adds paperwork. Pick the rulebook you believe in and stick with it.
A note for UK investors
MTUM and SPMO are US-domiciled ETFs. Most UK retail platforms can’t offer them, even after the FCA’s new Consumer Composite Investments disclosure regime took effect in April 2026.
If you want similar exposure, look at UCITS momentum ETFs listed in London or Europe. For example, iShares offers an MSCI USA momentum UCITS fund (IUMO, 0.20% TER). Check which index it tracks. We’re not aware of a UCITS fund that tracks the S&P 500 Momentum Index.
Final Verdict
In the MTUM vs SPMO matchup, the evidence favors SPMO’s rulebook. Over the past decade it delivered higher returns at the same volatility, with a shallower worst drawdown, lower turnover and a slightly lower fee. It also beat MTUM in most rolling periods, not just one lucky stretch.
That edge came with a trade-off: more concentration, and a market that rewarded letting a few big winners run. MTUM is the broader, more diversified way to own momentum, and in 2026 it is keeping pace.
If you want one momentum fund and can handle concentration, SPMO has the better track record. If single-stock risk worries you more than the historical gap, MTUM is a reasonable alternative. Either way, size it as a tilt, not your whole portfolio, and expect rough patches when leadership flips.
Frequently Asked Questions
What is the difference between MTUM and SPMO?
Both buy US stocks with strong recent price momentum. MTUM picks 125 large and mid caps using 6- and 12-month momentum, caps each at 5%, and rebalances quarterly. SPMO picks about 100 S&P 500 stocks using 12-month momentum, allows weights up to about 9%, and rebalances in March and September.
Which ETF has the lower expense ratio?
SPMO, at 0.13% vs 0.15% for MTUM. On $10,000, that’s $13 vs $15 a year, too small to decide between them.
Which ETF has performed better historically?
SPMO. Through September 30, 2026, it returned 20.2% a year over 10 years vs 16.5% for MTUM, and it won 83% of rolling five-year periods. In 2026 they’re nearly tied. Past performance doesn’t guarantee future results.
Does MTUM hold more stocks than SPMO?
Yes. MTUM holds 125 stocks vs about 100 for SPMO, and it’s far less top-heavy: its top 10 make up about 39% of the fund vs 54% for SPMO.
Which ETF has more exposure to technology stocks?
They’re about equal right now, roughly 54% each as of October 2026, mostly semiconductors and memory. SPMO owns Apple; MTUM doesn’t.
How often do MTUM and SPMO rebalance?
MTUM rebalances quarterly (February, May, August, November) and can add an extra rebalance when market volatility spikes. SPMO rebalances twice a year, in March and September.
Are MTUM and SPMO good long-term investments?
They can be useful as a satellite tilt in a diversified portfolio. Both are more volatile than the S&P 500, can lag for long stretches, and shouldn’t be your only holding.
Can momentum ETFs lose money during market reversals?
Yes. In July 2026, MTUM fell 12.6% and SPMO 11.0% while the S&P 500 was flat. In 2022, MTUM lost 18.3%.
Do MTUM and SPMO hold many of the same stocks?
Yes. They share about 70 companies and roughly 71% of their portfolio weight, and their returns are 0.95 correlated.
Should investors own both MTUM and SPMO?
Usually not. The overlap is so high that the second fund adds little diversification. Most investors are better off choosing one.
Next Steps
- Decide whether you want momentum as a tilt at all, and how big (10–20% is common for a satellite).
- Pick a rulebook: SPMO for concentration and the stronger record, MTUM for breadth.
- Check what you already own. If your core fund is tech-heavy, a momentum fund adds more of the same right now.
- Commit to holding through at least one ugly stretch. That is when momentum strategies earn their keep.
Related reading: SPMO vs QQQM: Which ETF Is Better for Long-Term Investors? · SCHD vs VYM: Which Dividend ETF Is Better? · Is the AI Chip Rally Over? What the July 2026 Selloff Really Showed · AI Stock Rotation Explained — Nvidia vs AMD vs Broadcom
Know What You Own Before the Next Reshuffle
Momentum funds change their holdings regularly: MTUM every quarter, SPMO every March and September. Chart both funds against the S&P 500, compare their drawdowns, and check how each one reacts after a rebalance before you commit money to either.
Chart MTUM, SPMO & SPY on TradingView →Affiliate link. We may earn a commission at no extra cost to you.
How We Ran the Numbers
We calculated returns, volatility, drawdowns and rolling windows from monthly adjusted closing prices (dividends reinvested) for MTUM, SPMO and SPY, November 30, 2015 to September 30, 2026, using Alpha Vantage data. Our MTUM figures match iShares’ published returns to within about 0.2 points. Month-end data understates intramonth drawdowns. Holdings and sector weights come from fund data as of October 9, 2026. Methodology details come from the MSCI and S&P Dow Jones Indices index documents. Fund facts come from iShares and Invesco.
Trading, not investing? If you want to trade short-term moves in US shares and ETFs rather than hold a momentum fund for the long term, Pepperstone offers share and ETF CFDs. CFDs are leveraged and do not give you ownership of the ETF or its dividends.
Learn more about Pepperstone →Affiliate link. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading CFDs. Consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Disclaimer: This article is for educational purposes only and is not personalized financial, investment or tax advice. Past performance does not guarantee future results. ETF holdings and index rules change; verify current details with the fund issuer before investing.
Disclosure: The content on this page was produced with AI writing assistance under the editorial direction of a licensed Electrical Engineering practitioner and certified investor in different markets with over a decade of experience. All articles are reviewed and approved by the author before publication.
