📈BUYING HEAVY: SPMO Consistently Smashes S&P500 (Best Growth ETF 2026)

Investing Simplified - Professor G•Mar 24, 2026

Summary

Nolan provides a deep dive into the SPMO (Invesco S&P 500 Momentum ETF), labeling it a 'cheat code' for growth-oriented investors. He demonstrates through a 10-year backtest that SPMO significantly outperformed both a standard S&P 500 index and a conservative diversified portfolio containing bonds and real estate. A key argument is that SPMO achieved this with lower volatility; its worst year was a 10% drop, whereas the S&P 500 fell 18%. Nolan emphasizes that momentum investing works because institutional money tends to pile into winners, creating trends that persist longer than many expect.

The video focuses on the recent semi-annual reconstitution of the ETF, which saw significant shifts in top holdings. Nolan explains that the fund is built for bull markets, where it overweights the top-performing stocks driving the broader market's gains. He notes that while the fund can be volatile on a month-to-month basis, its long-term track record is exceptional. Nolan mentions that the fund is currently down about 4% year-to-date, which he views as a strong buying opportunity.

SPMO: Nolan considers this one of the best growth ETFs available because it captures the upside of bull markets while historically suffering fewer drawdowns. He notes that it has recently rebalanced, concentrating over a third of the portfolio in just its top five holdings. He is personally doubling down on his position right now because the fund is slightly down for the year.

NVDA (Nvidia): Nvidia remains the top holding in the fund with a 9.23% weighting after the recent rebalance. Nolan views its inclusion as a testament to its continued momentum and role as a market leader. He highlights that the fund continues to rely on such high-performers to drive its overall outperformance.

GOOGL (Alphabet/Google): Google has seen a massive increase in the fund's allocation, now making up approximately 9% of the total portfolio across different share classes. This move places it in the second position within the ETF, replacing other former leaders. Nolan points out this significant shift as a key part of the fund's strategy to rotate into current strength.

META (Meta Platforms): Meta was completely removed from the SPMO ETF during the most recent reconstitution, a move Nolan disagrees with personally. He states that Meta's current price is a 'steal' and he still likes the company, though the ETF's algorithm requires a trend exit. He expects Meta might be added back in future rebalances once its momentum returns.

MU (Micron Technology): Micron is a new addition to the top three holdings of the ETF following the latest rebalance. Nolan includes it as part of the new core group of stocks that the fund is betting on for the next six months. Its inclusion reflects the fund's pivot toward the strongest current performers in the semiconductor and tech sectors.

Mentioned Stocks

Sentiment: BUYAction: RECOMMENDED

Reasoning: Micron has entered the top three holdings of the fund. Nolan points to it as one of the new high-momentum winners the fund is rotating into.

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