Exchange Traded Funds (ETFs)

ETF Talk: The ETF Gift That Keeps on Giving

Christmas is just a day away, and if you’ve done as much shopping as I have, your wallet probably looks a little emptier than usual. Now, there’s no shame in spending what is needed to show the people closest to you how much you care. But once the holiday whirlwind has come and gone, it would be nice to get yourself a gift that could recoup the costs.

One of the best ways to do that is through the gift of sound investing. And one gift with the potential to make your portfolio pleased is the Invesco S&P 500 Momentum ETF (SPMO).

SPMO tracks an index of 100 S&P 500 components with the strongest volatility-adjusted momentum. Adjusting for volatility tilts the fund toward stocks that have experienced a relatively smooth increase in price. However, due to this, major sector tilts are to be expected, and the fund has historically exhibited higher volatility relative to vanilla funds in the same segment. The index is reconstituted and rebalanced semi-annually.

The fund has assets under management of around $13.19 billion and a modest expense ratio of 0.13%. It is currently up 6.10% over the last month. While it is down 0.28% over the last three months, it is also up a massive 28.33% year to date.

Chart courtesy of Stockcharts.com

Top holdings include Broadcom Inc. (NASDAQ: AVGO), 9.59%; NVIDIA Corporation (NASDAQ: NVDA), 9.07%; Meta Platforms Inc Class A (NASDAQ: META), 7.78%; JPMorgan Chase & Co. (NYSE: JPM), 5.43%; Palantir Technologies Inc. Class A (NASDAQ: PLTR), 4.99%; Netflix, Inc. (NASDAQ: NFLX), 3.73%; Walmart Inc. (NASDAQ: WMT), 3.61%; Visa Inc. Class A (NYSE: V), 3.44%; Oracle Corporation (NYSE: ORCL), 2.36% and GE Aerospace (NYSE: GE), 2.34%.

Exclusive Three Defense Investments with Potential to Outperform

Now, not all gifts will be received well by everyone, and portfolio gifts are no exception. Investors should always do their due diligence before adding any stock, fund or ETF to their portfolios.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

Jim Woods

Jim Woods is a 20-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor. Jim is the editor of Forecasts & Strategies, Tactical Trader, TNT Trader, Five Star Trader, Bullseye Stock Trader, and The Deep Woods. His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. His articles have appeared on many leading financial websites, including StockInvestor.com, InvestorPlace.com, Main Street Investor, MarketWatch, Street Authority, Human Events and many others. Jim formerly worked with Investor’s Business Daily founder William J. O’Neil, helping to author training courses in the CANSLIM stock-picking methodology. The independent firm TipRanks rates Jim the No. 3 financial blogger in the world (out of more than 6,000). TipRanks calculates that, since 2012, he's made 361 successful recommendations out of 499 total, earning a success rate of 72% and a +15.3% average return per recommendation. He is known in professional and personal circles as “The Renaissance Man,” because his expertise includes such varied fields as composing and performing music; Western horsemanship, combat marksmanship, martial arts, auto racing and bodybuilding. Jim holds a BA in philosophy from the University of California, Los Angeles, and is a former U.S. Army paratrooper. A self-described “radical for capitalism,” he celebrates the virtue of making money from his Southern California horse ranch.