Stock market experiences stealthy and clandestine influence from these designated ETFs, as disclosed by Morningstar
In the realm of exchange-traded funds (ETFs), some have proven to outperform the market significantly, especially in the past year. Among these standouts, as per Morningstar's evaluation, are three ETFs that have notably surpassed the MSCI World index and overall stock market.
One of these high-flyers is the Invesco S&P 500 Momentum ETF (SPMO). This passively managed ETF had a 12-month return of 29.51%, significantly outperforming its Morningstar Large Blend category average of 13.26%, and ranking in the 1st percentile for performance. It boasts a 5-star Morningstar rating and a low expense ratio of 0.13%.
Another notable entrant is the PGIM Jennison Focused Growth ETF. This actively managed large growth ETF returned 22.30% in Q2 2025 and 16.93% over the last 12 months, outperforming large growth category averages (which gained 17.07% for the quarter), earning it a Morningstar Silver Medalist rating.
It's worth noting that these ETFs have exhibited strong relative performance versus broad market benchmarks like the S&P 500 and MSCI World, often considered proxies for global stock markets.
In contrast, the iShares Edge MSCI World Momentum Factor UCITS ETF (Acc), which is traded in Germany, yielded a return of 39% over the past 12 months. However, Morningstar's analysis and ratings only point to the Invesco S&P 500 Momentum ETF (SPMO), PGIM Jennison Focused Growth ETF, and an unspecified potential alternative as the three ETFs believed to outperform the market. No alternative to the iShares Edge MSCI World Momentum Factor UCITS ETF (Acc) that is traded in Germany was mentioned.
The iShares Edge MSCI World Momentum Factor UCITS ETF (Acc) charges 0.3% in annual fees and uses its income to buy more shares. As of now, it holds 349 stocks, with top positions including Nvidia, Eli Lilly, Meta Platforms, Broadcom, and Amazon.
While the Invesco S&P 500 Momentum ETF (SPMO) and the iShares Edge MSCI World Momentum Factor UCITS ETF (Acc) are both momentum-focused ETFs, it's essential to note that they are not the same. The iShares MSCI International Momentum ETF, which is not traded in Germany, is a different ETF altogether.
In conclusion, the Invesco S&P 500 Momentum ETF (SPMO) stands out as a top recommended ETF in 2024 with clear evidence of surpassing stock market averages, including broad benchmarks like the MSCI World, according to Morningstar's latest analysis and ratings.
- In the realms of technology and investing, the PGIM Jennison Focused Growth ETF, with its strong performance, suggests a keen focus on emerging tech giants.
- When considering finance and ETFs, it's fascinating to observe that the Invesco S&P 500 Momentum ETF (SPMO) and the iShares Edge MSCI World Momentum Factor UCITS ETF (Acc) each employ distinct approaches despite their shared focus on momentum.
