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XSMO - ETF AI Analysis

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XSMO

Invesco S&P SmallCap Momentum ETF (XSMO)

Rating:68Neutral
Price Target:
XSMO, the Invesco S&P SmallCap Momentum ETF, earns a solid overall rating because several of its key holdings combine strong business performance with positive momentum. Standout positions like Krystal Biotech, Primoris Services, and Sanmina support the fund’s quality through robust revenue growth, profitability, and encouraging earnings calls, even if some appear richly valued. The rating is held back somewhat by weaker names such as ViaSat and Mercury Systems, where profitability and leverage issues highlight the main risk: exposure to smaller companies that can be more volatile and financially fragile.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and in recent months, indicating solid momentum in its strategy.
Top Holdings With Strong Momentum
Several of the largest positions, such as Viavi Solutions, Formfactor, and Powell Industries, have delivered strong year-to-date gains that support the fund’s overall results.
Broad Sector Diversification
The fund spreads its investments across many sectors, including technology, industrials, health care, and financials, which helps reduce the impact of weakness in any single industry.
Negative Factors
High U.S. Concentration
Almost all of the ETF’s assets are invested in U.S. companies, offering very little geographic diversification if the U.S. market struggles.
Small-Cap and Momentum Risk
Because the ETF focuses on smaller companies with strong recent performance, it may be more volatile and sensitive to market swings than broader, more balanced funds.
Moderate Expense Ratio
The fund’s expense ratio is not especially low, meaning fees could take a noticeable bite out of returns over the long term compared with cheaper index ETFs.

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

XSMO Summary

The Invesco S&P SmallCap Momentum ETF (XSMO) tracks the S&P SmallCap 600 Momentum Index, which focuses on smaller U.S. companies whose stock prices have been rising strongly. It holds a mix of technology, industrial, health care, and financial stocks, including names like Viavi Solutions and ViaSat. Investors might consider XSMO if they want growth potential from small, fast-moving companies and diversification across many sectors. However, small-cap momentum stocks can be very volatile, so the ETF’s price can move up and down more sharply than the overall 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 clear tilt toward tech and industrial names. Viavi Solutions and FormFactor are two of the fund’s main engines right now, both showing strong, sustained momentum that’s helping pull overall returns higher. ViaSat and Powell Industries are also rising, adding steady fuel to the rally. On the softer side, Krystal Biotech and Sanmina look more mixed, occasionally losing steam and keeping gains from being even stronger. Overall, the fund is concentrated in niche U.S. growth stories rather than broad market giants.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Viavi Solutions3.45%$92.31M$11.05B327.00%
71
Outperform
ViaSat3.11%$83.38M$8.42B526.04%
56
Neutral
Primoris Services2.97%$79.58M$9.31B182.63%
75
Outperform
Esco Technologies2.69%$71.91M$8.28B106.96%
70
Neutral
Formfactor2.39%$63.89M$12.09B404.31%
68
Neutral
Sanmina-Sci2.19%$58.62M$10.49B132.97%
79
Outperform
Krystal Biotech2.00%$53.67M$8.02B60.70%
80
Outperform
Powell Industries1.95%$52.27M$9.21B321.74%
76
Outperform
StoneX Group1.78%$47.67M$8.35B81.44%
58
Neutral
Lumen Technologies1.74%$46.52M$9.10B149.72%
55
Neutral

XSMO Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
79.66
Positive
100DMA
77.82
Positive
200DMA
74.61
Positive
Market Momentum
MACD
2.11
Negative
RSI
68.67
Neutral
STOCH
67.78
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 83.61, equal to the 50-day MA of 79.66, and equal to the 200-day MA of 74.61, indicating a bullish trend. The MACD of 2.11 indicates Negative momentum. The RSI at 68.67 is Neutral, neither overbought nor oversold. The STOCH value of 67.78 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
$2.75B0.36%
68
Neutral
$4.75B0.28%
65
Neutral
$3.73B0.07%
66
Neutral
$3.60B0.15%
67
Neutral
$3.41B0.59%
68
Neutral
$2.30B0.17%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XSMO
Invesco S&P SmallCap Momentum ETF
87.11
24.08
38.20%
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
ESML
iShares ESG Aware MSCI USA Small-Cap 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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