Jul. 15, 2025 10:32 PM ETInvesco S&P SmallCap Momentum ETF (XSMO)IJR, SLYG, XSVM, RWJ, SPMO, XSMOThe Sunday Investor6.71K FollowersSummaryXSMO has tracked the S&P SmallCap Momentum Index since June 21, 2019, and has delivered a solid 94.27% total return since. One key advantage is its simple-to-understand approach.Twice annually, the Index selects 120 stocks from the S&P SmallCap 600 Index with the best one-year price returns. The Index also ensures larger companies receive an allocation boost.As a result, XSMO's momentum statistics will always be strong. However, its main attraction is its best-in-class combination of growth and value.XSMO trades at 17.44x forward earnings and offers a 21% one-year estimated earnings per share growth rate, which trounces even dedicated small-cap growth funds like SLYG.The key risk is high portfolio turnover, as the momentum factor won't always follow growth stocks. However, I like what I see today, so I've assigned XSMO a "buy" rating.bpawesome/iStock via Getty ImagesInvestment ThesisSince June 21, 2019, the Invesco S&P SmallCap Momentum ETF (NYSEARCA:XSMO) has been comprised of 120 S&P SmallCap 600 Index stocks with the best price returns over the past twelve months. The strategyThis article was written byThe Sunday Investor6.71K FollowersThe Sunday Investor has completed all the educational requirements for the Chartered Investment Manager designation and is on track to become a licensed options and derivatives trading advisor. Focusing on U.S. Equity ETFs, The Sunday Investor maintains a comprehensive ETF Database that tracks the performance and fundamentals for nearly 1,000 funds. He is active in the comments section and ready to answer questions about any ETF you might considering.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments