SPMO ETF 2026 Rebalance Complete: New Top Holdings and What They Signal
SPMO ETF 2026 Rebalance Complete: New Top Holdings and What They Signal
If you hold SPMO, you've probably noticed your portfolio screen looks quite different since last week. The semi-annual reconstitution — the defining event for any momentum ETF — has reshuffled the deck in some meaningful ways. So what exactly changed, and what does it tell us?
TL;DR — Nvidia (9.23%) and Google (~9% across two share classes) are the new top two, with Broadcom (7.19%) sliding to third. Meta has been completely removed. Micron, Johnson & Johnson, and Google are newly in the top 5. The top 3 holdings make up ~23% of the portfolio, and the top 5 account for over one-third.
What Happened
SPMO (Invesco S&P 500 Momentum ETF) has completed its first-half 2026 reconstitution. The ETF selects S&P 500 stocks with the strongest 12-month price momentum and rebalances every March and September.
The previous top holdings — Broadcom, Nvidia, Meta, JP Morgan, and Palantir — have been significantly reshuffled. Some stayed, some shifted in weight, and one major name disappeared entirely.
The New Top Holdings
New Top 5
| Rank | Stock | Weight | Change |
|---|---|---|---|
| 1 | Nvidia (NVDA) | 9.23% | Retained (weight increased) |
| 2 | Broadcom (AVGO) | 7.19% | Retained (weight decreased) |
| 3 | Micron (MU) | — | Newly added |
| 4 | Johnson & Johnson (JNJ) | — | Newly added |
| 5 | Google (GOOGL/GOOG) | ~9% combined | Newly added |
Here's the interesting wrinkle with Google. It appears in the portfolio through both Class A (GOOGL) and Class C (GOOG) shares, at roughly 3.9% and 5% respectively. Combined, that's approximately 9% — making Google effectively the second-largest position in the entire fund.
Rest of the Top 10
The remaining top-10 slots tell their own story.
- Exxon Mobil (XOM): Energy sector representation
- Lam Research (LRCX): 3.4% — reflecting continued semiconductor equipment strength
- Caterpillar (CAT): 2.7% — infrastructure spending beneficiary
- AMD: 2.13% — AI chip competition remains a momentum driver
Beyond the top 10, notable names include RTX, GE, Palantir (now reduced to 1.87%), Applied Materials, Seagate Technology, Lockheed Martin, Monster Beverage, and Robinhood.
What This Rebalance Tells Us
Google's Rise Makes Sense
Google entering the top 5 — and effectively sitting at #2 — is a logical development. The combination of sustained AI infrastructure investment, cloud revenue growth, and stable search advertising performance has clearly translated into strong price momentum over the trailing 12 months. The market is sending a clear signal about its confidence in Google's growth trajectory.
Meta's Removal Is Surprising but Understandable
The most striking change is Meta's complete removal from the portfolio. I'll be honest: this one caught my attention. Meta remains a fundamentally strong company with significant AI investments and solid revenue growth.
But SPMO doesn't track fundamentals — it tracks price momentum. If Meta's stock price has underperformed relative to other S&P 500 names over the scoring window, it gets cut. That's the beauty and occasional discomfort of rules-based investing. No emotions, no exceptions.
Concentration Risk Deserves Attention
The top 3 names (Nvidia + Google + Broadcom) represent roughly 23% of the portfolio. The top 5 account for over one-third. This level of concentration is a double-edged sword — powerful when these names continue their momentum runs, but potentially painful if their trajectories reverse before the next rebalance in September.
Sector Diversification Is Broadening
The addition of Micron, Johnson & Johnson, Caterpillar, and Exxon Mobil signals that momentum is spreading beyond pure tech. Seeing Johnson & Johnson in a momentum ETF's top 5 is particularly noteworthy — it suggests meaningful capital flows into defensive large-cap names, which is worth monitoring as a potential market sentiment indicator.
What to Watch Going Forward
The next reconstitution is roughly six months away, in September 2026. Here's what matters between now and then.
First, Nvidia's momentum sustainability. At 9.23%, it's the single largest holding. Nvidia's direction will be the primary driver of SPMO's performance.
Second, whether Meta stages a comeback. If Meta's stock delivers strong price appreciation over the coming months, it could re-enter the portfolio at the September rebalance.
Third, the momentum factor's overall performance. SPMO is currently down about 4% year-to-date. In market recoveries, momentum strategies tend to snap back aggressively — but choppy, directionless markets can be their worst enemy.
FAQ
Q. Meta was removed from SPMO — should I sell my Meta shares?
SPMO's removal of Meta reflects weakened short-term price momentum, not a deterioration in the company's intrinsic value. Individual stock investing and momentum ETF investing are fundamentally different strategies. If you believe in Meta's long-term fundamentals, the SPMO rebalance alone isn't a reason to sell.
Q. The top 5 holdings make up over a third of the portfolio. Isn't that too concentrated?
Concentration is inherent to momentum strategies — they overweight whatever is winning the most. If this concentration level makes you uncomfortable, consider using SPMO as one component of a broader portfolio rather than a standalone holding. Pairing it with a market-cap weighted index or a different factor ETF can help manage this risk.
Q. SPMO is down about 4% year-to-date. Is it a good time to buy?
Momentum strategies can experience short-term volatility, but historically they've outperformed the S&P 500 over longer periods. In a 10-year backtest, $10,000 invested in the S&P 500 grew to roughly $35,000, while the same amount in SPMO reached approximately $49,000. That said, past performance doesn't guarantee future results, so any decision should factor in your personal time horizon and risk tolerance.
Next Posts
Why Momentum Investing Works — Academic Evidence and Behavioral Finance
Why Momentum Investing Works — Academic Evidence and Behavioral Finance
Momentum is one of the most proven market factors alongside value and size. The average investor loses 2-4% annually to emotional timing mistakes, and rules-based momentum strategies structurally eliminate these behavioral errors.
The SCHD Reconstitution Paradox — Why the Fund Had to Sell Its Winners
The SCHD Reconstitution Paradox — Why the Fund Had to Sell Its Winners
SCHD removed 22 stocks averaging +6.7% YTD and added 25 averaging -9.4%. No manager made this call — a quality formula did. Rising prices lowered dividend yields, which dropped quality scores below the top-100 threshold.
Treasuries at 4.39% vs SCHD at 3.5% — The Sideline Investor's Dilemma
Treasuries at 4.39% vs SCHD at 3.5% — The Sideline Investor's Dilemma
US Treasuries yield 4.39% risk-free while SCHD offers 3.5%. Short-term math favors bonds for new capital, but SCHD compounds $100K into $332K over a decade with dividends tripling. The Fed's rate path is the key rotation variable.
Previous Posts
SPMO ETF 10-Year Backtest: How Momentum Crushed Both Diversified Portfolios and the S&P 500
SPMO ETF 10-Year Backtest: How Momentum Crushed Both Diversified Portfolios and the S&P 500
$10,000 in SPMO grew to $48,778 over 10 years, crushing the S&P 500 at $35,471 and a diversified portfolio at $24,638. A deep dive into what momentum investing actually delivers.
Why Gold Falls During a War — The Margin Call Paradox Explained
Why Gold Falls During a War — The Margin Call Paradox Explained
Gold is falling because 2026 rate cut expectations collapsed to zero and a VIX/GVZ-driven margin call storm is forcing liquidation across all asset classes. The 200-day moving average has not been tested in 860 days, with a retest likely within weeks.
Dollar Index — Institutional Accumulation Points to a 52-Week High Retest
Dollar Index — Institutional Accumulation Points to a 52-Week High Retest
The dollar index scores +8 across fundamentals, sentiment, COT data, and technicals. Institutional traders have been accumulating dollar longs for months. After support confirmation at 99.5, a retest of the 52-week high at 102 is a realistic target.