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Should Invesco S&P MidCap Momentum ETF (XMMO) Be on Your Investing Radar?
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The Invesco S&P MidCap Momentum ETF (XMMO - Free Report) was launched on March 3, 2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Growth segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $6.56 billion, making it one of the larger ETFs attempting to match the Mid Cap Growth segment of the US equity market.
Why Mid Cap Growth
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Also, growth stocks are a type of equity that carries more risk compared to others. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.34%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.73%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector -- about 20.6% of the portfolio. Information Technology and Healthcare round out the top three.
Looking at individual holdings, Technipfmc Plc (FTI) accounts for about 3.94% of total assets, followed by Ati Inc (ATI) and Roivant Sciences Ltd (ROIV).
The top 10 holdings account for about 29.16% of total assets under management.
Performance and Risk
XMMO seeks to match the performance of the S&P MIDCAP 400 MOMENTUM INDEX before fees and expenses. The S&P Midcap 400 Momentum Index is composed of securities with strong growth characteristics selected from the Russell Midcap Index.
The ETF has lost about 2.04% so far this year and is up roughly 0.31% in the last one year (as of 10/26/2026). In the past 52-week period, it has traded between $129.80 and $173.82.
The ETF has a beta of 1.10 and standard deviation of 21.24% for the trailing three-year period. With about 80 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P MidCap Momentum ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, XMMO is a good option for those seeking exposure to the Style Box - Mid Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell Mid-Cap Growth ETF (IWP) and the Vanguard Morningstar Mid-Cap Growth ETF (VOT) track a similar index. While iShares Russell Mid-Cap Growth ETF has $18.69 billion in assets, Vanguard Morningstar Mid-Cap Growth ETF has $18.85 billion. IWP has an expense ratio of 0.23% and VOT charges 0.05%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should Invesco S&P MidCap Momentum ETF (XMMO) Be on Your Investing Radar?
The Invesco S&P MidCap Momentum ETF (XMMO - Free Report) was launched on March 3, 2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Growth segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $6.56 billion, making it one of the larger ETFs attempting to match the Mid Cap Growth segment of the US equity market.
Why Mid Cap Growth
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Also, growth stocks are a type of equity that carries more risk compared to others. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.34%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.73%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector -- about 20.6% of the portfolio. Information Technology and Healthcare round out the top three.
Looking at individual holdings, Technipfmc Plc (FTI) accounts for about 3.94% of total assets, followed by Ati Inc (ATI) and Roivant Sciences Ltd (ROIV).
The top 10 holdings account for about 29.16% of total assets under management.
Performance and Risk
XMMO seeks to match the performance of the S&P MIDCAP 400 MOMENTUM INDEX before fees and expenses. The S&P Midcap 400 Momentum Index is composed of securities with strong growth characteristics selected from the Russell Midcap Index.
The ETF has lost about 2.04% so far this year and is up roughly 0.31% in the last one year (as of 10/26/2026). In the past 52-week period, it has traded between $129.80 and $173.82.
The ETF has a beta of 1.10 and standard deviation of 21.24% for the trailing three-year period. With about 80 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P MidCap Momentum ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, XMMO is a good option for those seeking exposure to the Style Box - Mid Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell Mid-Cap Growth ETF (IWP) and the Vanguard Morningstar Mid-Cap Growth ETF (VOT) track a similar index. While iShares Russell Mid-Cap Growth ETF has $18.69 billion in assets, Vanguard Morningstar Mid-Cap Growth ETF has $18.85 billion. IWP has an expense ratio of 0.23% and VOT charges 0.05%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.