I Bought This ETF Instead of More QQQ

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What’s up gang!

Hope you have been enjoying this recent market rip and haven’t been on the sidelines. At the time of writing this the S&P 500 is up over 15% from the lows in March.

Another come back for the ages. *chef’s kiss"

Inspired by this great performance I stumbled across a new ETF that has outperformed VOO over the last 10 years.

After doing some research into this fund I decided to buy $1,200 of it instead of QQQ .To save you the time, I provided the short version of my notes on this ETF below.

Let’s take a look at SPMO.

SPMO is the Invesco S&P 500 Momentum ETF. At first glance it looks like just another growth ETF, but when you pop the hood, it’s actually pretty interesting.

SPMO doesn’t just hold the biggest companies.

It ranks stocks inside the S&P 500 based on momentum. It basically looks for companies with strong, consistent performance and less volatility.

That means it ends up holding names like Nvidia, Broadcom, AMD, Google, but also some less common top holdings like Johnson & Johnson, Caterpillar, and Lam Research.

SPMO will restructure its holdings twice a year based off of the momentum algorithm. I’m really curious to see in the future how drastic these restructures will be as historically over 50% of the holdings have changed.

Diving into the holdings more is one reason I was intrigued by SPMO. When comparing it by weight to SPY it is only about 30% similar. This is much lower compared to more traditional growth ETFs like VUG or SCHG.

Despite the holdings being weighted quite differently than most growth funds, SPMO has still outperformed the S&P 500 over the last 10 years returning an average of 17% annually compared to the S&P’s 14%.

A few things that stood out to me that led me to buy SPMO.

• It has outperformed the S&P 500 since inception
• It has less overlap with VOO and QQQ than many similar growth ETFs
• It gets rebalanced twice a year, so the holdings can shift pretty aggressively
• It gives me more growth exposure without just buying more of the same ETFs I already own

Also, the expense ratio is 0.13%, so not Vanguard cheap, but still very reasonable for what it offers.

I’m planning to keep dollar cost averaging into it over the next year and see how the rebalancing plays out.

If you want more details on SPMO, I did a full video breaking it down here. Click here to watch it.

Let’s ride the momentum. ~ Cade

What Happens When Everyone Gets Rich Too Fast - Interesting piece by Jack Raines on the insane compensation that AI employees are going to make as these companies IPO in the future. It’s hard to image being a 28 year old and your stock just became worth $15 million, but this is the case for many.

Should You Buy At All Time Highs - As the market has been blowing through the roof you might be asking yourself, “should I wait to invest more?” Here is a full video I did to answer that question, backed by the numbers.

Real investments managers would be in the trenches.

Look this story up if you haven’t…

Below is a list of featured products I have vetted personally, created, or used. These offers are just for you:

Nothing in this email is intended to serve as financial advice. Do your own research. Thanks for reading, if you have any questions, comments, suggestions, etc. about the email don’t hesitate to send me a reply.