Generated September 5, 2026.
Overview
FDMO and SPMO are both momentum-factor ETFs that tilt toward faster-rising equities, but they differ in scope and construction. FDMO casts a wider net across the entire market, while SPMO restricts its selection to large-cap stocks in the S&P 500. Both pay modest quarterly distributions and charge minimal fees, making them low-friction vehicles for capturing momentum exposure.
How they differ
The most fundamental difference is breadth: SPMO targets momentum within a defined S&P 500 benchmark, whereas FDMO pursues momentum across the broader market without that large-cap anchor. This shows up in beta—SPMO's 1.35 beta exceeds FDMO's 1.19, reflecting SPMO's concentrated tilt toward large-cap momentum names, which tend to be more volatile. SPMO also leads on cost and scale: its 0.13% expense ratio is 2 basis points lower than FDMO's 0.15%, and its $22.2B AUM dwarfs FDMO's $892M, suggesting deeper liquidity and tighter bid-ask spreads.
Who each is best for
FDMO: Fits investors seeking momentum exposure without confinement to the S&P 500—useful for those who want inclusion of mid-caps and small-caps if they show momentum characteristics, and who accept slightly higher volatility in exchange for broader market participation.
SPMO: Fits investors who want momentum exposure anchored to large-cap stability and prefer the transparency of a clearly defined index methodology; also suits those prioritizing lower costs and maximum trading liquidity.
Key risks to know
- Momentum mean reversion. Momentum factors are cyclical and often reverse sharply after outperformance windows close. Both funds face periods of extended underperformance relative to the broader market when fast-rising stocks cool.
- Concentration in trend winners. Momentum strategies by design accumulate the highest-conviction names in an uptrend, creating implicit concentration risk. SPMO's S&P 500 constraint mitigates some dispersion, but both funds will hold overlapping high-momentum names during strong rallies.
- Volatility and drawdown magnitude. Both funds carry above-market beta; SPMO's 1.35 reading indicates it amplifies broad market swings by 35%, which increases the magnitude of corrections when momentum reversals coincide with market selloffs.
- Small-cap liquidity risk in FDMO. If FDMO's mandate includes smaller momentum names, those holdings may trade less actively during stress periods, potentially widening exit costs.
Bottom line
If you want to minimize costs and prefer the certainty of an S&P 500 framework, SPMO's lower expense ratio and far larger AUM offer a cleaner entry point. If you value access to mid and small-cap momentum names and accept marginally higher fees, FDMO offers a broader universe. Both carry momentum's inherent cyclicality risk—factor exposure doesn't smooth returns, it reshapes them. Past performance doesn't guarantee future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
