XSMO
Invesco S&P SmallCap Momentum ETF
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XSMO is a solid small-cap momentum fund. Different factor exposure though. AVUV targets small-cap value (cheap companies), XSMO targets small-cap momentum (companies with recent price strength). They actually complement each other well since value and momentum are negatively correlated. Some people run both for that reason. Performance wise XSMO has done great recently but momentum is streaky by nature. AVUV tends to be more consistent across longer periods.
XSMO is a solid small-cap momentum fund. Different factor exposure though. AVUV targets small-cap value (cheap companies), XSMO targets small-cap momentum (companies with recent price strength). They actually complement each other well since value and momentum are negatively correlated. Some people run both for that reason. Performance wise XSMO has done great recently but momentum is streaky by nature. AVUV tends to be more consistent across longer periods.
How’s that compared to XSMO? A poster shared above about that ETF
**XSMO** Most, or at least a significant portion, lose money if you are looking to buy individual stocks.
QQQS and QQQJ have been doing better than QQQ lately. Very interesting. Small cap momentum (XSMO) also with strong performance. Midcap momentum (XMMO) also strong. Both with a funky 5 year chart. This does tell me that the current stock malaise is entirely due to the top 100 large caps and saas companies that are performing poorly. Pretty much EVERYTHING else continues to just straight rip. Conclusion: This tech selloff is fabricated, fake and, quite possibly, ghey.
QQQM is going to be 100% tech. SCHD is going to have all of what's in QQQM but is more large cap heavy than VOO, so I'm not sure you need both. I'd go with something like 10% QQQM (tech growth), 40% VOO (S&P 500), 30% VXUS (Total international), and 20% of Russel 2000 ETF like IWM, or a small cap ETF like IJR/AVUV/XSMO/VIOO to offset your large caps and get some small cap exposure. I have an indexed annuity, and my CPA set me up in these 4 markets: QQQ/VOO/VXUS/Russel 2000. So it seems appropriate to have exposure to growth, blend, international, and the bottom 2000/small cap stocks.
That’s why you invest in small cap, mid cap, and large cap. But companies have the most growth potential when small cap. But I would stay away from funds that follow the Russell 2000 small cap index. SP600 index or a smart beta fund like AVUV or XSMO is better. Active management *might* also be worthwhile for small caps if you’re willing to take manager risk (most people aren’t).
No single stock is worth holding long imo. Especially when there are so many great aggressive growth index funds like QQQ, SPYG, VOOG, VUG, VONG, SPMO, XMMO, XSMO, SSO All of these can easily net 20%+ in a good year
I should add to my previous post that mid and small caps are picking up steam. Check XMMO, XSMO, RWJ. Website for etf profile, returns, top 10 holdings. Alphahttps://seekingalpha.com
So building w/o using money from sale of existing home. OK, got it. Why not pay for landcaping and pool out of pocket also? So you want to open a taxable account? Nothing wrong with duplicating what you have been invested in. You can invest in dividend etfs, but ill-advised if you don’t need the income. Total return / growth will be better achieved with growth funds like large caps IVV, IWY, QQQ, SCHG. Mid and small cap good ones are XMMO, XSMO if you want to cover more bases. Schwab or Fidelity would be good to open an account. Customer service can lead you through it.
Small caps depend on interest rates, which have relatively high in the past few years. The bigger factor is the dominance of the now Mag-7 for 15 years. This won’t last forever. Some small caps are doing well anyway (AVUV, XSMO, RWJ, and even IWM and VB this year), but will likely do much better than the S and P if/when people realize AI will not solve all our problems (which could still take a few years).
XSMO has run 45%. Seems like the play is already run.
Thanks, this is what I’m thinking of going with: Core S&P 500 Allocation: 60% ETF | Symbol | Percent :—|:—|:—| Vanguard S&P 500 ETF | VOO | 35% Vanguard S&P 500 Growth ETF | VOOG | 15% Technology Sector ETF | XLK | 5% Consumer Discretionary ETF | XLY | 5% Small-Cap Allocation :40% ETF | Symbol | Percent :—|:—|:—| Vanguard Small-Cap ETF | VB | 20% Small-Cap Momentum ETF | XSMO | 10% Small-Cap Value ETF | AVUV | 10%
Very interesting. Here is what I’m thinking of doing: | Asset Category | Symbol(s) | Allocation | |-——————————|-—————|————| | **Core S&P 500 Allocation** | | **60%** | | - Vanguard S&P 500 ETF | VOO | 35% | | - Vanguard S&P 500 Growth ETF | VOOG | 15% | | - Technology Sector ETF | XLK | 5% | | - Consumer Discretionary ETF | XLY | 5% | | **Enhanced Small-Cap Allocation** | | **40%** | | - Vanguard Small-Cap ETF | VB | 20% | | - Small-Cap Momentum ETF | XSMO | 10% | | - Small-Cap Value ETF | AVUV | 10% |
ITOT is better for diversification. IVV and VOO are OK but don't make it your entire portfolio. I prefer IVV though. Not a fan of Vanguard. XSMO doesn't provide enough diversification either as it's only 117 or so stocks. Also what momentum factors do they value? If you can't answer that, then stay away from that one too. IJR/ IJS or AVUV are better for small caps generally, especially small cap value. Even VB/VBR is an option that is better than XSMO.
Many people recommend SCHB, but SCHB doesn’t seem to really get much advantage from small cap exposure. I mean I guess it did a little better the VOO in the last month. [SCHB vs IWM](https://etfdb.com/tool/etf-comparison/IWM-SCHB/#performance) [SCHB vs VOO](https://etfdb.com/tool/etf-comparison/SCHB-VOO/#performance) Meanwhile XSMO beats SCHB pretty handily all year: [XSMO vs SCHB](https://etfdb.com/tool/etf-comparison/SCHB-XSMO/#performance)
Because you think these are the ones most likely to benefit from a rotation? Looking at performance it doesn’t really differentiate from IWM: https://etfdb.com/tool/etf-comparison/IWM-avuv/#performance Or XSMO https://etfdb.com/tool/etf-comparison/XSMO-avuv/#performance
I personally go with the following in order of biggest percentage to smaller. VOO, VGT, VYM or MGV, XSMO, XMHQ, AVUV. I only own ETFs I'm willing to add to each week and over the next 5 years. Full disclosure I just added XSMO, XMHQ, and AVUV this year to take advantage of the rate cut cycle that will impact mid to small companies over the next 2 years. With you being so young you could handle risk if you're a long term investor. Advise - Do NOT sell when things drops out ...increase your investments if you can. Example being Oct/Nov/Dec 2023 was a GREAT time to really drops some cash into your investment. Realizing you can't chase the market but you can damn sure take advantage.
Hey everyone, I’m getting a promotion and am looking for advice on best ways to invest it. Some info about me: 28 years old, not married, no debt, and I rent an apartment. I currently have 66k in 401k, 48k in brokerage, 15k in Roth IRA, 5k house/emergency fund in HYSA. With my promotion I will be making $166k/yr and while my organization does not match 401k contributions, it automatically contributes an extra 10% of my salary to my account. My plan is to max out my 401k (60% to Roth and 40% to Employer Voluntary), invest $500/week in brokerage, and $100/week in HYSA. Here’s what I’m thinking for my brokerage portfolio: 40% SPLG 15% VT 15% QQQM 12.2% XMMO 10% XSMO 5% SGOV 2.8% BTC Curious to hear what you all think! My time horizon is 30+ years but I’ll probably look at buying a house in the next 5 years so I’m curious to hear if I should up my percentage of SGOV or maybe increase contributions to my HYSA. Would appreciate the advice, thanks!
We are different people so I wouldn't have anything you have, but your choices of the a large cap, mid cap and small cap fund is a sensible philosophy plus then the separate concept of the growth one works fine. You could do other things too. Also there are many small and midcap factor ETFs that would perform differently than your choices (for example compare VBK to XSMO), but your choices aren't "wrong"... its just like a sports draft where teams pick the player they think is best. They might miss something better or find a diamond. You should just be confident in your own choice though. You can rebalance, but you don't need to. I wouldn't rebalance at a calendar date, but might because the current environment favors one type of stock now more than others. If one of my ETFs outperforms the others, I'm not going to punish it or cut it down. I want the more money in it. But again, just making them all the same at the start of each year is a valid idea too.
Yes I recently purchased XSMO. The majority of my current portfolio is in large cap though, GOOGL, Draftkings, MSFT
I like XSMO and USVM when it comes to small cap ETFs.