XSMO - ETF AI Analysis

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Invesco S&P SmallCap Momentum ETF (XSMO)

Rating:70Outperform

Price Target:―

XSMO, the Invesco S&P SmallCap Momentum ETF, earns a solid overall rating driven mainly by strong, growing companies like CareTrust REIT, Zurn Water Solutions, and Sanmina, which show robust financial performance, positive earnings calls, and strategic growth initiatives. The rating is held back somewhat by weaker names like StoneX Group, where profitability and cash flow challenges create caution, and by several holdings with high valuations or bearish technical trends. A key risk factor is the fund’s focus on small-cap momentum stocks, which can be more volatile and sensitive to shifts in market sentiment.

Positive Factors

Strong Recent Performance

The ETF has shown solid gains over the past month, three months, and year-to-date, indicating positive recent momentum.

Momentum in Top Holdings

Several of the largest positions, such as TTM Technologies, Sanmina-Sci, and Esco Technologies, have delivered strong year-to-date gains that support the fund’s overall results.

Broad Sector Diversification

Holdings are spread across many sectors, including industrials, technology, consumer cyclical, financials, and others, which helps reduce the impact of weakness in any single industry.

Negative Factors

Higher Expense Ratio

The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees each year.

Concentration in U.S. Stocks

With almost all assets invested in U.S. companies, the ETF offers very limited geographic diversification and is heavily tied to the U.S. market.

Dependence on a Few Key Holdings

A meaningful share of the portfolio is in a small group of top holdings, so weak performance from these names could weigh on the fund.

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

AUM2.37B

RegionNorth America

Expense Ratio0.36%

Beta0.98

IssuerInvesco

Inception DateMar 03, 2005

Dividend Yield0.68%

Asset ClassEquity

Index TrackedS&P SmallCap 600 Momentum Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume237,293

30 Day Avg. Volume230,482

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

91.21

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering111

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

XSMO Summary

The Invesco S&P SmallCap Momentum ETF (XSMO) tracks the S&P SmallCap 600 Momentum Index, focusing on smaller U.S. companies whose stock prices have been rising strongly. It holds a mix of industrial, technology, and consumer companies, including names like TTM Technologies and InterDigital. Someone might invest in XSMO to seek higher growth potential from small, fast-moving companies and to diversify beyond large, well-known stocks. However, this ETF can be more volatile than funds holding bigger companies, so its price can go up and down sharply with changes in the market and investor sentiment.

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 industrial names like Esco Technologies and Granite Construction doing much of the heavy lifting as their shares keep climbing. Financial player StoneX Group is another strong engine, rising steadily and reinforcing the fund’s tilt toward economically sensitive businesses. InterDigital and Armstrong World add a tech-and-building flavor that’s been generally supportive, while Brinker International and Sanmina are more mixed, occasionally losing steam and trimming some of the upside. Overall, the fund is concentrated in U.S. industrial and tech-driven small caps.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
IDCC	InterDigital	3.92%	$92.85M	$9.32B	73.38%	76 Outperform
AWI	Armstrong World	2.74%	$65.01M	$7.52B	13.68%	77 Outperform
EAT	Brinker International	2.62%	$62.20M	$6.15B	-9.41%	70 Neutral
ESE	Esco Technologies	2.60%	$61.70M	$7.39B	76.64%	70 Neutral
SANM	Sanmina-Sci	2.51%	$59.59M	$8.64B	88.77%	79 Outperform
SNEX	StoneX Group	2.47%	$58.58M	$6.68B	58.60%	58 Neutral
CTRE	CareTrust REIT	2.38%	$56.40M	$9.07B	56.37%	80 Outperform
ZWS	Zurn Water Solutions	2.25%	$53.44M	$8.44B	43.37%	79 Outperform
JBTM	JBT Marel	2.21%	$52.36M	$8.52B	21.20%	73 Outperform
GVA	Granite Construction	2.05%	$48.67M	$5.92B	66.29%	70 Outperform

XSMO Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

76.44

Positive

100DMA

74.39

Positive

200DMA

71.62

Positive

Market Momentum

MACD

0.88

Positive

RSI

56.91

Neutral

STOCH

32.30

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XSMO, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 78.62, equal to the 50-day MA of 76.44, and equal to the 200-day MA of 71.62, indicating a bullish trend. The MACD of 0.88 indicates Positive momentum. The RSI at 56.91 is Neutral, neither overbought nor oversold. The STOCH value of 32.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XSMO.

XSMO Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
XSMO	―	―	$2.37B	0.36%	70 Outperform
FNDA	―	―	$9.96B	0.25%	67 Neutral
FESM	―	―	$4.12B	0.28%	66 Neutral
CALF	―	―	$3.55B	0.59%	69 Neutral
VIOO	―	―	$3.54B	0.07%	66 Neutral
SMLF	―	―	$3.50B	0.15%	67 Neutral

Performance Comparison

XSMO

Invesco S&P SmallCap Momentum ETF

79.32

14.61

22.58%

FNDA

Schwab Fundamental US Small Co. Index ETF

―

FESM

Fidelity Enhanced Small Cap ETF

―

CALF

Pacer US Small Cap Cash Cows 100 ETF

―

VIOO

Vanguard S&P Small-Cap 600 ETF

―

SMLF

iShares MSCI USA Small-Cap Multifactor 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.

Disclaimer

This 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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