MTUM (iShares MSCI USA Momentum Factor ETF) and SPMO (Invesco S&P 500 Momentum ETF) are the two largest momentum ETFs available to US retail traders. Both buy stocks with strong recent price gains, but they differ in their index methodology, rebalancing frequency, cost, and historical returns. SPMO has outperformed over the past decade with a lower expense ratio, while MTUM offers broader diversification including mid-cap stocks.
The short version:
- SPMO tracks the S&P 500 Momentum Index — 100 large-cap stocks, rebalanced semi-annually. Expense ratio: 0.13%. 10-year annualized return: ~20.3%.
- MTUM tracks the MSCI USA Momentum SR Variant Index — ~126 large- and mid-cap stocks, rebalanced quarterly. Expense ratio: 0.15%. 10-year annualized return: ~16.5%.
- SPMO won on performance in 5 of the last 6 calendar years (2021–2026) and carries a lower fee.
- MTUM wins on diversification with more holdings across a broader market-cap range and quarterly rebalancing that adapts faster to market shifts.
- Both funds share ~74% overlap in holdings — they’re more similar than different.
What Are MTUM and SPMO?
MTUM and SPMO are both momentum factor ETFs — funds that select stocks based on recent price performance rather than market cap weighting. They are rules-based, passive funds that track a momentum index, not active strategies.
How Do MTUM and SPMO Differ in Methodology?
What index does MTUM track?
MTUM tracks the MSCI USA Momentum SR Variant Index. The “SR Variant” means rebalancing changes are spread over three days around the effective date to reduce trading costs. The index selects stocks from the MSCI USA Index (large- and mid-cap US stocks) with the highest momentum scores based on 6-month and 12-month price returns (excluding the most recent month). It holds approximately 126 stocks and rebalances quarterly.
What index does SPMO track?
SPMO tracks the S&P 500 Momentum Index. It selects the 100 stocks with the highest momentum scores from the S&P 500 (large-cap only). Momentum is calculated using 12-month price returns, excluding the most recent month. It rebalances semi-annually in March and September.
MTUM vs SPMO: Side-by-Side Comparison
| Feature | MTUM | SPMO |
|---|---|---|
| Issuer | BlackRock (iShares) | Invesco |
| Inception | April 16, 2013 | October 9, 2015 |
| Expense Ratio | 0.15% | 0.13% |
| AUM | ~$25.3 billion | ~$22.2 billion |
| Underlying Index | MSCI USA Momentum SR Variant | S&P 500 Momentum |
| Number of Holdings | ~126 | 100 |
| Market Cap Universe | Large + Mid Cap | Large Cap (S&P 500) |
| Rebalancing | Quarterly | Semi-annual (Mar/Sep) |
| Portfolio Turnover | ~116% | ~44% |
| Dividend Yield (TTM) | ~0.54% | ~0.69% |
| Beta (3-5Y) | ~1.22 | ~1.06 |
Sources: iShares.com, Schwab ETF Research, Invesco, as of August 2026.
Which Has Better Historical Performance?
SPMO has significantly outperformed MTUM over the past decade. According to PortfoliosLab, SPMO delivered a 10-year annualized return of ~20.3% compared to MTUM’s ~16.5% — a meaningful gap driven by stronger performance in recent years.
| Year | MTUM Return | SPMO Return | S&P 500 |
|---|---|---|---|
| 2021 | +13.5% | +23% | +27% |
| 2022 | -18.2% | -10% | -19% |
| 2023 | +9.1% | +18% | +24% |
| 2024 | +32.9% | +46% | +23% |
| 2025 | +22.1% | +27% | +16% |
| 2026 YTD (Jul) | ~+20.0% | ~+27-29% | ~+13% |
Sources: iShares.com (MTUM), Trefis/PortfoliosLab (SPMO), as of August 2026. YTD figures are approximate NAV total returns.
SPMO outperformed MTUM in 5 out of the 6 periods shown. The gap was widest in 2024 (SPMO +46% vs MTUM +33%) and 2021 (+23% vs +13.5%). Both funds meaningfully beat the S&P 500 in 2024, 2025, and 2026 YTD.
Why Has SPMO Outperformed MTUM?
Three factors explain most of the gap:
- More concentrated momentum signal. SPMO holds only the top 100 momentum stocks from the S&P 500. MTUM casts a wider net (126 stocks including mid-caps), which dilutes the momentum factor. The SPMO portfolio has a higher “effective holdings ratio” (0.28 vs MTUM’s lower concentration), meaning it places bigger bets on the highest-momentum names.
- Lower turnover. SPMO’s semi-annual rebalancing (44% turnover) means less trading drag. MTUM’s quarterly rebalancing (116% turnover) incurs more transaction costs and can trade in and out of positions more frequently.
- Lower fee. SPMO charges 0.13% vs MTUM’s 0.15%. The 2-basis-point difference is small but compounds over time.
What Are the Holdings and Sector Differences?
Both funds are heavily weighted toward technology — the sector that has driven most US market momentum in recent years. As of mid-2026, MTUM allocated ~47.6% to tech, while SPMO allocated ~56.8%. Both are significantly overweight tech compared to the broader S&P 500.
Key sector differences:
- Energy: MTUM holds ~11.8% vs SPMO’s lower allocation — MTUM’s mid-cap inclusion picks up more energy names.
- Industrials: MTUM ~14.8% vs SPMO ~12.8%.
- Consumer Staples: SPMO holds ~4% vs MTUM’s lower allocation, providing a touch more defensive positioning.
- Communication Services: SPMO ~9% vs MTUM’s lower weight.
Despite these differences, the two funds share ~74% overlap in holdings (per ETF Trends analysis). The largest common holdings include Nvidia, Apple, Meta, and other mega-cap tech names that have persistently exhibited strong momentum.
Which Is Better for a Trend Trading System?
The answer depends on your system’s design:
| If your system prioritizes… | Choose | Why |
|---|---|---|
| Maximum momentum exposure | SPMO | Higher concentration in top momentum names, stronger historical returns |
| Lower fees | SPMO | 0.13% vs 0.15% — small but meaningful at scale |
| Broader diversification | MTUM | 126 holdings including mid-caps, quarterly rebalancing |
| Faster adaptation to market regime changes | MTUM | Quarterly rebalancing can rotate in/out of sectors faster |
| Lower portfolio turnover / tax efficiency | SPMO | 44% turnover vs 116% — less trading and fewer taxable events |
| Mid-cap exposure | MTUM | MSCI USA includes mid-caps; S&P 500 is large-cap only |
For a simple trend-following system that buys momentum and holds, SPMO has the stronger track record. For a tactical system that rebalances frequently or pairs momentum with other factors, MTUM’s quarterly resets and broader universe may complement your strategy better.
Quick Self-Check
Test your understanding of the MTUM vs SPMO comparison. Click each question to reveal the answer.
Which fund has a lower expense ratio?
SPMO charges 0.13%, while MTUM charges 0.15%. SPMO is cheaper by 2 basis points.
How often does each fund rebalance?
MTUM rebalances quarterly (4 times per year). SPMO rebalances semi-annually (twice per year, in March and September).
Which fund includes mid-cap stocks?
MTUM includes mid-cap stocks because it tracks the MSCI USA Index (large- + mid-cap). SPMO is limited to the S&P 500, which is large-cap only.
Frequently Asked Questions
Can I use both MTUM and SPMO in the same portfolio?
Yes, but there is significant overlap (about 74% of holdings are shared). Combining both adds little diversification benefit. You are better off picking one and allocating the rest of your portfolio to a different factor or asset class.
Which fund is better for long-term holding?
SPMO has a stronger long-term track record (10-year annualized ~20.3% vs MTUM’s ~16.5%) and a lower expense ratio. However, momentum as a factor can experience long periods of underperformance — neither fund should be your only holding.
Do MTUM and SPMO pay dividends?
Yes, both pay dividends. MTUM pays quarterly dividends with a trailing 12-month yield of approximately 0.54%. SPMO also pays quarterly with a yield of approximately 0.69%. Both are relatively low-yield due to their growth-oriented holdings.
Which momentum ETF is larger by assets?
MTUM is the larger fund with approximately $25.3 billion in AUM (as of August 2026), compared to SPMO’s $22.2 billion. MTUM has been on the market since 2013, two years longer than SPMO (2015).
What happens to these funds during a bear market?
Momentum funds tend to fall harder in bear markets because they are heavily invested in the stocks that rose the most — which also tend to fall the fastest. In 2022, MTUM fell -18.2% and SPMO fell -10%, compared to the S&P 500’s -19%. SPMO’s semi-annual rebalancing helped it hold up better by not trading in and out of positions during the downturn.
Educational content only — not financial advice. Past performance does not guarantee future results. Trading involves risk of loss. View our Disclaimer and Affiliate Disclosure.
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