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XSMO - ETF AI Analysis

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XSMO

Invesco S&P SmallCap Momentum ETF (XSMO)

Rating:67Neutral
Price Target:
XSMO, the Invesco S&P SmallCap Momentum ETF, earns a solid overall rating driven by several small-cap companies showing strong growth and positive outlooks. Standout holdings like Krystal Biotech, with robust financial performance, international expansion, and confident earnings calls, and ACM Research, with strong growth and innovation, provide key support for the fund’s quality. However, weaker names such as Mercury Systems, which faces profitability and cash flow challenges, and holdings with high valuations and overbought signals add risk, especially given the fund’s focus on smaller, more volatile momentum stocks.
Positive Factors
Strong Recent Year-to-Date Performance
The fund has delivered strong gains so far this year, suggesting its momentum-focused strategy has recently worked well for investors.
Top Holdings Showing Solid Momentum
Many of the largest positions, such as ViaSat, ACM Research, Formfactor, and Powell Industries, have posted strong year-to-date gains, helping drive the ETF’s overall results.
Broad Sector Diversification Within Small Caps
Holdings spread across industries like industrials, technology, health care, financials, and consumer sectors help reduce the impact if any one area of the market weakens.
Negative Factors
Short-Term Performance Bumpiness
The fund’s recent one-month return has been slightly negative, showing that its momentum strategy can experience short-term pullbacks even during a strong year.
High U.S. Market Concentration
With almost all assets invested in U.S. companies, investors get little geographic diversification and remain heavily tied to the U.S. economic and market cycle.
Moderate Expense Ratio
The fund’s fee is not especially low for an ETF, which means a noticeable portion of returns goes toward covering ongoing costs.

XSMO vs. SPDR S&P 500 ETF (SPY)

XSMO Summary

The Invesco S&P SmallCap Momentum ETF (XSMO) invests in smaller U.S. companies that have been rising in price, following the S&P SmallCap 600 Momentum Index. It holds a mix of industries like industrials, technology, and health care, with examples including ViaSat and Esco Technologies. Investors might consider XSMO if they want growth potential from small companies and diversification across many sectors, rather than picking individual small-cap stocks. However, because it focuses on smaller, fast-moving companies, the ETF’s price can be more volatile and can go up and down sharply with changes in the stock market.
How much will it cost me?The Invesco S&P SmallCap Momentum ETF (XSMO) has an expense ratio of 0.36%, meaning you’ll pay $3.60 per year for every $1,000 invested. This is slightly higher than average because it tracks a specialized index focused on small-cap stocks with strong price momentum, which requires more active management. Overall, it’s a reasonable cost for a niche strategy targeting potential growth opportunities.
What would affect this ETF?The Invesco S&P SmallCap Momentum ETF (XSMO) could benefit from a strong U.S. economy, as its focus on small-cap companies with price momentum may thrive in periods of economic growth and innovation, particularly in sectors like Industrials and Technology. However, it may face challenges during economic downturns or rising interest rates, which can negatively impact smaller companies and consumer-focused sectors. Regulatory changes or shifts in market sentiment toward small-cap stocks could also influence its performance.

XSMO Top 10 Holdings

XSMO is leaning hard into U.S. small-cap momentum, with a noticeable tilt toward industrials and tech names that have been doing the heavy lifting. ViaSat and ACM Research are two of the fund’s main engines, both riding strong recent runs, while Protagonist Therapeutics and Ligand Pharma add extra punch from the health care side. On the flip side, Powell Industries and FormFactor have been losing a bit of altitude lately, acting as mild drags. Overall, it’s a domestically focused, high-momentum mix where a few fast climbers set the tone.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
ViaSat4.62%$140.58M$10.60B363.99%
56
Neutral
Esco Technologies2.92%$88.91M$8.17B64.61%
70
Neutral
Protagonist Therapeutics2.60%$78.99M$8.79B153.84%
68
Neutral
Indivior2.20%$66.97M$4.88B90.07%
66
Neutral
StoneX Group2.19%$66.65M$9.10B77.68%
58
Neutral
Mercury Systems2.14%$65.21M$5.83B86.12%
57
Neutral
Formfactor1.96%$59.63M$8.28B267.09%
68
Neutral
Ligand Pharma1.93%$58.70M$5.76B116.65%
60
Neutral
Pricesmart1.78%$54.30M$5.98B77.57%
77
Outperform
ACM Research1.78%$54.25M$5.42B166.18%
72
Outperform

XSMO Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
88.42
Negative
100DMA
84.86
Positive
200DMA
79.79
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XSMO, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 88.03, equal to the 50-day MA of 88.42, and equal to the 200-day MA of 79.79, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XSMO.

XSMO Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$3.04B0.36%
67
Neutral
$9.13B0.25%
67
Neutral
$6.05B0.28%
64
Neutral
$4.23B0.07%
66
Neutral
$4.11B0.15%
67
Neutral
$3.68B0.59%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XSMO
Invesco S&P SmallCap Momentum ETF
86.76
19.08
28.19%
FNDA
Schwab Fundamental US Small Co. Index ETF
FESM
Fidelity Enhanced Small Cap ETF
VIOO
Vanguard S&P Small-Cap 600 ETF
SMLF
iShares MSCI USA Small-Cap Multifactor ETF
CALF
Pacer US Small Cap Cash Cows 100 ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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