Momentum Strategy Delivered 506% Returns but Now There Are Warning Signs

Mid-cap stocks occupy an overlooked space between small-cap volatility and large-cap stability, and Invesco S&P MidCap Momentum ETF ( NYSEARCA:XMMO ) attempts to exploit this inefficiency by isolating the top 20% of momentum performers from the S&P MidCap 400 Index.

24/7 Wall Street • Feb 18, 2026

Should Invesco S&P MidCap Momentum ETF (XMMO) Be on Your Investing Radar?

Launched on March 3, 2005, the Invesco S&P MidCap Momentum ETF (XMMO) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Growth segment of the US equity market.

Zacks Investment Research • Feb 17, 2026

XMMO: The Mid-Cap Momentum Remained Soft In 2025, But Trends Appear Favourable For 2026

Invesco S&P MidCap Momentum ETF (XMMO) is rated a buy with a $170 price target, implying 20% upside for 2026. XMMO is positioned to benefit from Fed rate cuts, robust US GDP growth, and strong earnings momentum in mid-cap stocks. XMMO's portfolio is diversified across sectors, led by high-growth holdings like CIEN, TWLO, and LITE, supporting the bullish outlook.

Seeking Alpha • Dec 30, 2025

XMMO: Top-Performing Mid-Cap Momentum ETF Riskier Than Before - How To Adapt

XMMO is a popular mid-cap momentum fund with a 0.35% expense ratio and $5.2 billion in assets under management. It's also one of the top-performing funds in its category. In July, I touted XMMO's outstanding momentum, excellent growth-at-a-reasonable price, and adequate quality features as reasons to buy. However, the latter two have deteriorated since its Index's reconstitution in September. XMMO's forward P/E has increased from 18.84x to 23.28x, while its holdings' EBIT margins and ROTC have dropped by about four points.

Seeking Alpha • Dec 29, 2025

VIDEO: ETF of the Week: XMMO

On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research, Todd Rosenbluth, discussed the Invesco S&P MidCap Momentum ETF (XMMO) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF.

ETF Trends • Nov 19, 2025

ETF of the Week: Invesco S&P MidCap Momentum ETF (XMMO)

VettaFi's Head of Research Todd Rosenbluth discussed the Invesco S&P MidCap Momentum ETF (XMMO) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and strategy, visit the Innovative ETFs Content Hub.

ETF Trends • Nov 13, 2025

XMMO: A Momentum Play In Mid Caps, Above-Average Growth And Volatility

The Invesco S&P MidCap Momentum ETF (XMMO) offers a momentum-driven, growth-focused strategy with a strong tilt toward industrials and technology sectors. XMMO trades at a premium valuation, reflecting its above-average earnings and sales growth, but also carries higher volatility and downside risk than peers. The fund has delivered top-tier performance, outpacing the S&P Mid-Cap 400 and most peers, but amplifies both market gains and losses due to its momentum approach.

Seeking Alpha • Oct 15, 2025

XMMO: Mid-Cap Momentum Investing Is The Way To Get Alpha

Invesco S&P MidCap Momentum ETF offers a momentum-driven approach to mid-cap investing, outperforming the S&P 400 benchmark with only slightly higher risk. XMMO's momentum strategy delivers superior risk-adjusted returns, evidenced by significantly higher Sharpe ratios compared to IJH, despite a modestly higher expense ratio and lower dividend yield. Current market conditions—declining interest rates and reasonable valuations—make XMMO especially attractive, but investors should monitor interest rates and valuation levels for potential risks.

Seeking Alpha • Oct 2, 2025

Momentum ETFs Climb Higher in 2025

In the one-year period ended June 2025, the S&P 500 Momentum Index rose 30%, essentially double the gain of the S&P 500. Momentum was the best-performing factor of the widely tracked benchmark, ahead of growth, free cash flow, and even high beta slices.

ETF Trends • Jul 28, 2025

XMMO: Impressive Returns And Fundamentals For This Mid-Cap Momentum ETF

XMMO's strategy changed six years ago, and it has paid dividends for investors, delivering an impressive 132% return that trounced the S&P MidCap 400 Index. The strategy is straightforward in that it only uses one-year price returns to select 80 S&P MidCap 400 Index stocks, repeating the process twice annually in March and September. While XMMO guarantees strong exposure to momentum stocks, my analysis also revealed excellent GARP features. Notably, its estimated earnings growth rate is better than the S&P MidCap 400 Growth Index.

Seeking Alpha • Jul 23, 2025