Invesco S&P 500 Momentum ETF (SPMO) Covered Calls

The investment seeks investment results that generally correspond (before fees and expenses) to the price and yield of the S&P 500 Momentum Index (the underlying index). The fund generally will invest at least 90% of its total assets in common stocks.

You can sell covered calls on Invesco S&P 500 Momentum ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for SPMO (prices last updated Fri 4:16 PM ET):

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Core Business and Products

The Invesco S&P 500 Momentum ETF (SPMO) is a factor-based investment vehicle designed to capture the "momentum effect"—the tendency for stocks that have performed well in the recent past to continue performing well in the near future. The fund tracks the S&P 500 Momentum Index, which selects the top 100 companies from the S&P 500 based on their risk-adjusted momentum scores over the last year.

The portfolio is reconstituted and rebalanced semi-annually. Because it follows price strength, its sector composition can shift dramatically. In 2026, the fund remains heavily concentrated in Information Technology and Industrials. By weighting constituents by a combination of market capitalization and momentum score, SPMO ensures it captures the largest "trend-setters" in the U.S. large-cap market.

Competitive Landscape

Momentum investing carries higher turnover and volatility than broad-market indexing. SPMO competes on the basis of its low expense ratio (0.13%) and its strict focus on the blue-chip S&P 500 universe. While smaller momentum funds like JMOM lack liquidity and options, SPMO provides a liquid alternative for traders using derivative-based strategies.

Key related investment vehicles and competitors in the momentum and growth space include:

1. iShares MSCI USA Momentum Factor ETF: The primary direct competitor with a highly liquid options chain and a broader large/mid-cap universe.
2. Invesco DWA Momentum ETF: A sister fund that uses a "relative strength" methodology to select stocks from a broader market universe.
3. iShares Russell 1000 Growth ETF: While not a momentum fund, it shares many of the same high-performing technology and industrial holdings.
4. SPDR S&P 500 ETF Trust: The standard benchmark; SPMO is designed to "tilt" a portfolio for outperformance during sustained bull markets.

Strategic Outlook and Innovation

In 2026, SPMO is strategically positioned for investors who believe the "winner-takes-all" dynamic of the current AI and domestic industrial cycles will persist. The fund’s systematic, rules-based approach removes human emotion from the trading process, providing a transparent way to access one of the most well-documented anomalies in finance. For sophisticated traders, SPMO serves as an efficient tool for "factor tilting," allowing them to supercharge large-cap exposure during bullish market regimes.

Want more examples? SPMD Covered Calls | SPNT Covered Calls