SPMO - SPMO: Heavy Into TMT Stocks After The March Reconstitution
2024-05-04 04:34:12 ET
Summary
- The momentum factor has slowed recently, despite strong performance driven by AI and semiconductor stocks.
- Invesco S&P 500 Momentum ETF focuses on domestic large caps and may miss out on global equities and further alpha from Chinese stocks.
- SPMO has a solid track record and is efficient, but investors should be cautious of its high valuation and potential near-term weakness.
- I highlight key price levels to watch following the ETF's March reconstitution and rebalance.
The momentum factor has taken a breather in the last month and a half. It surged out of the gates in 2024, powered higher by overweights to the ongoing AI theme and broader semiconductor-stock surge. Also helping the strategy which seeks to pounce on what has been winning was general outperformance by large-cap growth despite small caps catching a relative bid off the October 2023 low. Let’s dig into where momentum may go from here. ...
SPMO: Heavy Into TMT Stocks After The March Reconstitution