Invesco S&P MidCap Momentum ETF

XMMO

Market cap $5.22B

Invesco S&P MidCap Momentum ETF (XMMO) is rated a buy with a $170 price target, implying 20% upside for 2026. XMMO is positioned to benefit from Fed rate cuts, robust US GDP growth, and strong earnings momentum in mid-cap stocks. XMMO's portfolio is diversified across sectors, led by high-growth holdings like CIEN, TWLO, and LITE, supporting the bullish outlook.

XMMO is a popular mid-cap momentum fund with a 0.35% expense ratio and $5.2 billion in assets under management. It's also one of the top-performing funds in its category. In July, I touted XMMO's outstanding momentum, excellent growth-at-a-reasonable price, and adequate quality features as reasons to buy. However, the latter two have deteriorated since its Index's reconstitution in September. XMMO's forward P/E has increased from 18.84x to 23.28x, while its holdings' EBIT margins and ROTC have dropped by about four points.

Launched on March 3, 2005, the Invesco S&P MidCap Momentum ETF (XMMO) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Growth segment of the US equity market.

On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research, Todd Rosenbluth, discussed the Invesco S&P MidCap Momentum ETF (XMMO) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF.

VettaFi's Head of Research Todd Rosenbluth discussed the Invesco S&P MidCap Momentum ETF (XMMO) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and strategy, visit the Innovative ETFs Content Hub.

The Invesco S&P MidCap Momentum ETF (XMMO) offers a momentum-driven, growth-focused strategy with a strong tilt toward industrials and technology sectors. XMMO trades at a premium valuation, reflecting its above-average earnings and sales growth, but also carries higher volatility and downside risk than peers. The fund has delivered top-tier performance, outpacing the S&P Mid-Cap 400 and most peers, but amplifies both market gains and losses due to its momentum approach.

The Invesco S&P MidCap Momentum ETF (XMMO) was launched on March 3, 2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Growth segment of the US equity market.

Invesco S&P MidCap Momentum ETF offers a momentum-driven approach to mid-cap investing, outperforming the S&P 400 benchmark with only slightly higher risk. XMMO's momentum strategy delivers superior risk-adjusted returns, evidenced by significantly higher Sharpe ratios compared to IJH, despite a modestly higher expense ratio and lower dividend yield. Current market conditions—declining interest rates and reasonable valuations—make XMMO especially attractive, but investors should monitor interest rates and valuation levels for potential risks.

Looking for broad exposure to the Mid Cap Growth segment of the US equity market? You should consider the Invesco S&P MidCap Momentum ETF (XMMO), a passively managed exchange traded fund launched on March 3, 2005.

In the one-year period ended June 2025, the S&P 500 Momentum Index rose 30%, essentially double the gain of the S&P 500. Momentum was the best-performing factor of the widely tracked benchmark, ahead of growth, free cash flow, and even high beta slices.