ETF comparison

FMTM vs SPMO

Two US momentum ETFs, one much newer than the other. FMTM is an active fund that rebalances every month; SPMO tracks an S&P 500 momentum index that reconstitutes twice a year. Here is how they compare over the only window they share, with SPY alongside, and the part the comparison usually leaves out.

Performance figures computed from BestFolio's price data as of 2026-09-01. Fund facts last reviewed 2026-09-02 against the issuers' MarketDesk and Invesco pages.

What each fund is

Head to head over the shared window

FMTM started trading on 2025-03-20, so that is where an honest comparison has to begin. The window runs to 2026-09-01, 365 trading days. Annualised figures over a window this short are indicative, not a track record.

Calendar returns

How much they overlap

Daily returns of FMTM and SPMO correlated at 0.759 over the window, FMTM and SPY at 0.655, SPMO and SPY at 0.853. FMTM's concentrated active book makes it the less index-like of the two, but both are one factor on the same market. Owning both is one momentum position with two expense ratios, not diversification.

Where the two funds differ

• Rebalance cadence. FMTM reconstitutes monthly, SPMO's index twice a year. Faster rotation shortens the lag after momentum turns, which is the theoretical case for FMTM. It also means more turnover and, in taxable accounts, more realised gains.
• Concentration. 30 to 50 holdings against roughly 100. FMTM will look less like the S&P 500 in both directions.
• Cost and size. 0.45% against 0.13%, and a fund a fraction of SPMO's size. Over a decade the fee gap alone compounds to several points of return.
• Record. SPMO has lived through the COVID crash and the 2022 bear. FMTM has lived through 365 trading days.

What they share, and why it matters more

Both funds are always fully invested in equities. When a systemic drawdown arrives, a momentum ETF rotates among falling stocks, monthly or semi-annually, and takes the market's drawdown with some extra. The alternative is tactical momentum: rules that compare stocks against bonds or cash and can leave equities entirely. BestFolio tracks those strategies with backtests reaching back decades, and the difference in worst drawdowns is the whole argument. The longer analysis is in SPMO vs FMTM vs tactical momentum; the strategies themselves start with HAA and GEM.

Questions people ask

FMTM vs SPMO performance: which has done better?

Over the window both funds have traded (2025-03-20 to 2026-09-01), SPMO returned 56.1% in total and FMTM 53.4%, against 37% for SPY. Their worst drawdowns were almost identical (-15.4% for FMTM, -15.6% for SPMO). The record is about eighteen months long, which is too short to separate skill from noise.

How often does FMTM rebalance?

Monthly. FMTM is actively managed and reconstitutes its 30 to 50 holdings every month. SPMO follows an index that rebalances twice a year, so it can hold six-month-old winners for longer.

Do FMTM and SPMO overlap?

Both hold large US stocks selected for price momentum, so they overlap heavily in style even when the exact names differ. Their daily returns correlated at 0.759 over the shared window (SPMO and SPY at 0.853). Holding both is closer to a single momentum bet than to diversification.

Is FMTM better than SPMO?

Not on the evidence so far. FMTM costs 0.45% against 0.13%, is far smaller, and has trailed SPMO slightly over their shared window with a near-identical drawdown. Its case is the monthly rebalance, which should rotate out of fading winners faster; that argument has not yet been tested by a long bear market.

What do FMTM and SPMO have in common that matters most?

Neither can leave equities. In a systemic drawdown a momentum ETF rotates among falling stocks, faster or slower. Tactical momentum strategies that can move to bonds or cash are the alternative BestFolio tracks, with backtests back to the 1970s.

Is there a UCITS version of SPMO for European investors?

Use the BestFolio UCITS finder to look up the closest European-listed equivalent for any US ETF, including SPMO. It shows the ISIN, listing, and how close the match is.