About this video

• Video Title: FORGET the S&P500 & QQQ - I'm BUYING & HOLDING THIS ETF FOREVER!
• Channel: Viktoriya M Finance
• Speakers: Viktoriya M (Implied by channel name and consistent narration)
• Duration: 00:12:23

Overview

This video introduces the Invesco S&P 500 Momentum ETF (SPMO) as a potentially superior investment compared to the S&P 500 and QQQ. The speaker highlights SPMO's momentum-based strategy, its historical performance, and its potential for both growth and downside risk mitigation, particularly in the context of AI-driven stocks.

Key takeaways

• SPMO's Momentum Strategy: The ETF tracks an index of 100 S&P 500 stocks with the highest momentum scores, calculated based on 12-month price growth (excluding the last two months) scaled by daily return volatility. This strategy aims to identify stocks with consistent appreciation and lower volatility.
• Performance Comparison: SPMO has historically outperformed the S&P 500 and QQQ in recent years, especially during market downturns like 2022, and has shown strong rallies, particularly in 2024.
• AI Exposure: The ETF's current holdings are heavily weighted towards major AI-related stocks like Nvidia, Meta, and Broadcom, making it a way to potentially capitalize on the AI movement.
• Risk and Reward: While SPMO offers strong growth potential and better downside risk mitigation, its concentrated portfolio and momentum-based approach may lead to underperformance in market recovery situations.
• Long-Term Perspective: The speaker advocates for a long-term view, suggesting that stocks with significant past appreciation often continue to grow due to high expectations for earnings and growth.

During the 2022 bear market, SPMO fell by approximately 10%, while the S&P 500 lost 19% and the NASDAQ 100 (QQQ) lost 35%. In the recent market selloff in April, SPMO captured similar downside to the S&P 500 and significantly less downside than QQQ. It also recovered much faster, providing more than double the returns of QQQ and four times the returns of the S&P 500 in the aftermath of that selloff.