SPMO resembles some other momentum ETFs at the sector level as consumer discretionary and health care stocks combine for over 60% of the new ETF’s weight. Seven of SPMO’s top 10 holdings, a group that combines for approximately 40% of the ETF’s weight, are either consumer discretionary or health care names.
“Factor based indices continue to increase in popularity for investors who seek alternatives to traditional market-cap weighted indices,” Vinit Srivastava, Senior Director of Strategy Indices at S&P Dow Jones Indices, said in a statement.
Amazon.com (NasdaqGS: AMZN) is SPMO’s largest holding at a weigh of 5.4%.
“Momentum as an investment strategy has always been one of my favorite tactics in the stock market. As momentum is simply defined as ‘following the herd’, this new ETF comes as a good addition to the wide variety of instruments we can invest in today,” notes the Seeking Alpha article.