Invesco S&P SmallCap Momentum ETF

XSMO

Market cap $2.05B

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

Invesco S&P SmallCap Momentum ETF (XSMO) is rated a buy, while Vanguard Small-Cap Growth ETF (VBK) is rated a hold. XSMO's momentum strategy delivers higher long-term returns and better risk-adjusted performance than VBK's passive growth approach. Despite higher fees, XSMO justifies its cost with superior returns, lower drawdowns, and more attractive valuations compared to VBK.

The Invesco S&P SmallCap Momentum ETF (XSMO) offers a compelling buy opportunity for investors seeking outperformance in the small-cap segment. XSMO's momentum strategy delivers superior risk-adjusted returns and lower volatility compared to the iShares Core S&P Small-Cap ETF (IJR). While XSMO's high portfolio turnover and concentration present risks, its quarterly rebalancing and sector agility drive resilient performance.

If you're interested in broad exposure to the Small Cap Growth segment of the US equity market, look no further than the Invesco S&P SmallCap Momentum ETF (XSMO), a passively managed exchange traded fund launched on March 3, 2005.

As the Federal Reserve's rate cuts become more likely to begin in September, investors may shift their focus back to U.S. small-cap ETFs. Many of these funds have been out of favor in 2025, as large-cap counterparts have captured significant investor attention.

XSMO has tracked the S&P SmallCap Momentum Index since June 21, 2019, and has delivered a solid 94.27% total return since. One key advantage is its simple-to-understand approach. Twice annually, the Index selects 120 stocks from the S&P SmallCap 600 Index with the best one-year price returns. The Index also ensures larger companies receive an allocation boost. As a result, XSMO's momentum statistics will always be strong. However, its main attraction is its best-in-class combination of growth and value.

Looking for broad exposure to the Small Cap Growth segment of the US equity market? You should consider the Invesco S&P SmallCap Momentum ETF (XSMO), a passively managed exchange traded fund launched on 03/03/2005.

Court ruling halts Trump-era tariffs, boosting stocks and spotlighting high-beta, momentum ETFs like SPHB, MTUM, XMMO, SPMO and XSMO.

Designed to provide broad exposure to the Small Cap Growth segment of the US equity market, the Invesco S&P SmallCap Momentum ETF (XSMO) is a passively managed exchange traded fund launched on 03/03/2005.

The Invesco S&P SmallCap Momentum ETF (XSMO) leverages a momentum strategy, focusing on U.S. small-cap stocks with strong relative price performance. XSMO has consistently outperformed small-cap benchmarks, but the current economic environment poses challenges for smaller companies due to high interest rates and potential economic slowdown. The fund's sector allocation has shifted significantly towards financial services, contributing to its attractive valuation and strong profitability metrics compared to peers.